News: Altadis U.S.A. Price Increase Goes Into Effect


Earlier this month Altadis U.S.A. informed retailers of a price increase that went into effect yesterday. In a copy of a letter written by Javier Estades, general manager of premium cigars, Altadis U.S.A. cited production costs for the increase.

“Unfortunately, like others in our industry, we are subject to rising tobacco and manufacturing costs, which during the past few years have been come significant,” wrote Estades. “Consequently, we have been forced to revise our pricing structure to reflect a portion of these increases.”

January is the most popular month for manufacturers to raise prices, Altadis U.S.A. was one of more then a dozen to do so last year at this time.

As is often the case, end consumers may not immediately notice the increase as retailers work through stock purchased before January 19.

8 comments
vroomp
vroomp

Sad................

tylernim
tylernim

Oh cool...the prices on cigars I never ever buy are increasing.  Moving along!

Richard Fleming
Richard Fleming like.author.displayName 1 Like

Purchases will probably decrease accordingly.

Joel Hoffman
Joel Hoffman

come on they dont have enough ?please i can see the small guys but Altadis ?

maxx
maxx

@Joel Hoffman Price increases affect both large and small manufacturers. They all need to make a profit to stay in business.

AronL
AronL

@maxx I sincerely doubt that Altadis is hurting for cash right now...

AronL
AronL

@maxx Thanks for the economics lesson. But I've worked in the cigar trade. Margins aren't exactly razor-thin. In any event, this doesn't effect me, as I don't smoke Altadis. Unless you count their half-stake in Habanos.

maxx
maxx

@AronL They have profit margins to maintain as do all businesses.

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  1. [...] Note: We’ve started covering price increases over the weekend and I made some reference to this on Twitter, but there will be a lot less January increases than [...]