Perdomo Cigars has announced that it will be taking a price increase on a portion of its products, effective Jan. 1.
In a letter sent to retailers, the company announced a 3 percent increase on the following product lines:
- Perdomo 20th Anniversary
- Perdomo Habano Bourbon Barrel-Aged
- Perdomo Reserve Champagne Series
- Perdomo Special Craft Series
- Perdomo Factory Tour Blend
- Perdomo Lot 23
- Perdomo Humidified Bags
In practical terms, that works out to a sticker price increase of about 25 cents per cigar, though with various methods of applying OTP and sales taxes, the actual amount that the end consumer sees will vary.
In the letter, the company attributed the need for the increase due to “continuous cost increases in manufacturing.” There was no mention of costs related to FDA regulation, and the company said that it will continue to financially support the Premium Cigar Association (PCA), the Cigar Association of America (CAA), and the Cigar Rights of America (CRA), “helping to protect our industry from the overreach of the FDA.”
Six of Perdomo’s lines are not being affected by the increase:
- Perdomo Estate Seleccion Vintage
- Perdomo Double Aged 12 Year Vintage
- Perdomo Small Batch Series
- Perdomo Nick’s Sticks
- Perdomo Fresco
- Perdomo Mini Cigarillos
Perdomo gained acclaim for absorbing the State Children’s Health Care Initiative Program (SCHIP) tax when it was implemented in 2009, which adds on a capped tax of 40.26 cents when cigars are imported into the United States, though the actual uncapped rate is 50.26 percent of the wholesale price. The company said that it will continue doing so in 2020. “Our approach moving forward is to continue offering the highest quality premium cigars at affordable price points,” wrote Nick Perdomo Jr., president and ceo of Perdomo Cigars, in the letter.