Oliva Raising Prices March 1

Oliva Cigar Co. has announced that effective March 1, it will be increasing prices 5 percent on all of its products other than Cain.

“Due to the impact of hefty user fees by the FDA in 2017, we are forced to enact a modest increase on our products,” said a letter being sent to retailers.

User fees are likely to be just over 4 cents per cigar for 2017 according to sources and halfwheel estimates. They are paid to FDA’s Center for Tobacco Products to help pay for the government resources needed to enforce the regulations.

Oliva joins a host of other companies that have raised prices because of the cost associated with regulations by the U.S. Food & Drug Administration. Since the rules took effect last August, A.J. Fernández, Alec Bradley, Altadis U.S.A., Davidoff of Geneva USA, General Cigar Co., J.C. Newman, Perdomo, Rocky Patel Premium Cigars and others have raised prices.