Add Perdomo to the list of companies that will be raising its prices because of costs of new regulations.
In a letter sent to retailers earlier this week, the company announced that it would be raising prices effective Jan. 1, 2017.
“Due to FDA regulation and rising manufacturing costs, we will have a small price increase on a few of our lines,” wrote Arthur Kemper, the company’s vice-president. “We will continue to absorb the punitive SCHIP tax on all our brands this year, staying extremely competitive and keeping them in the market’s ‘sweet spot.'”
Comparing prices from Perdomo’s last price increase in March 2015, halfwheel found that prices amongst seven lines will increase roughly 37 cents per cigar on average.
The largest increases were to the Champagne, Grand Cru, Perdomo Squared 2008 and Nick’s Sticks which will increase 50 cents for the majority of the vitolas offered in each line.
Perdomo’s 20th Anniversary will increase $6 per box, or 25 cents per cigar and Fresco will increase 30 cents per cigar.
Lot 23 will increase 25 cents per cigar, though customers buying boxes might have some sticker shock. Perdomo has adjusted the box quantity of Lot 23 from 20-count to 24-count boxes. This means a box of Lot 23 Churchills will jump in price from $130 to $162 per box due to the quantity change and price increase.