If Cuban cigars weren’t quite expensive enough for you, they’re about to get even more so, as Habanos S.A. has begun informing its distributors of a new global pricing policy that aims to standardize pricing across markets as is done in other segments of the luxury goods market. Unfortunately for cigar smokers, that baseline market is said to be Hong Kong, one of the most expensive markets in the world for Cuban cigars.
The increase is being described as very substantial, and will most effect global brands including Cohiba and Trinidad, two of Habanos S.A.’s most premium brands. All the brands in Habanos S.A.’s portfolio will see an increase, with the increase to non-global brands being described as relatively moderate.
This has forced distributors to scramble and adjust their pricing, with one telling halfwheel that the increase has to be implemented immediately and will be seen as soon as the coming summer months, if not sooner. Several distributors, speaking under condition of anonymity, confirmed that they have been informed of the upcoming change and are now figuring out how it will prices in the markets they serve. Some distributors said that they are still awaiting specifics of the changes as well as new price sheets, so they were unable to offer specifics on the increases, though all acknowledged that it will be significant.
A representative from Habanos S.A. acknowledged an email sent by halfwheel seeking additional information and details about the price change, but has thus far not provided any specifics.