@grestmon, something to pay attention to is price at purchase and purchase timeline.  If the catalog retailers purchased large stock count at a price before production/supply costs increased, then of course they can charge less for those items purchased at a lower price point.  Can't control the price of fuel, but it HAS to be taken into account in the cost of anything that has to be shipped long distances.  Items bought directly from DE are going to be higher cost right now, because the overhead cost is more current.  If big online retailer bought 5 thousand boxes of XYZ ACID cigars at Price point A, then those prices would (should if there isn't any price gouging going on) stay at that price point even if bad crop seasons and increased production costs are now causing a B% increase in the same XYZ ACID cigars...  I understand *SOME* stores can't move the product, but to say that DE is having an issue moving ACID cigars on the whole is just a gross misrepresentation of the actual amount of ACID product DE **IS** moving.  Last I saw Drew Estate was the single largest cigar manufacturer world wide, I'm sure they are doing something right...

@MatthewJohnZeigler I may be wrong.  But I know of several retailers scattered throughout the country that all tell me that ACID went from being one of their best selling brands to being their worst selling brand.  As Charlie had said, many retailers have told him that ACID sales aren't as easy as they once were.  A lot of this stemmed from their pricing issues.  Retailers were and stlll are able to purchase ACIDs from catalog retailers for less than DE sold them DIRECT.

No doubt, working solely off the MSRP and retail margins, and fair or not, the reputations of the companies mentioned.

@dancrago @Charlie Minato @MatthewJohnZeigler I just was pointing out we probably shouldn't dismiss these without smoking them, and I think the people at DE would tell you the same thing—six years ago, you know—when they were launching Liga Privada.

That was all I was getting it with the cheap tobacco comments. Book by its cover, book by its cover.

@Charlie Minato @MatthewJohnZeigler Charlie, I wouldn't phrase it as "cheap" tobacco. It's entirely possible these new cigars use perfectly good tobacco, I just think the ACIDs probably use even better. Not a question of inferiority of tobacco on the new products, but a question of Drew estate using simply superior quality tobaccos in what they do. If you were to compare these to say, Isla del Sol, you have a pretty good comparison in terms of price point and probably tobacco quality. Consider the difference between a Romeo y Julietta and an Ashton Classic; RyJs are good, but Ashtons are simply higher quality.

In short, I'd think CAO and Leon Jimines and the like should feel more threatened by these than Drew Estate. From what I know of Drew Estate and Gurkha, and of the flavored/infused market, the two companies just aren't playing in the same league.

@MatthewJohnZeigler Some of this just doesn't seem to add up:

1. How do retailers like CI/JR/Thompson, etc. not have to deal with federal (I assume SCHIP?) taxes? If there are other federal taxes, how are they avoiding it?

2. The catalogs in FL and PA do have to deal with local sales tax for in-state purchases, just like the shop down the road. They can chose not to deal with taxes for out of state purchases, but I can spend the next 12 hours writing down the names of family-owned retailers who advertise on the same practice.

3. I think @grestmon is onto something here, "writing this smoke off...just yet" seems like a poor strategy. Sure, the prices are cheaper than most ACIDs at this point, but that doesn't mean the tobacco is inherently of low quality. DE and plenty of other companies make cigars for similar MSRPs that I wouldn't dare describe as low cost or "cheap" tobacco. Your other post seems to suggest that higher costing tobacco would be a better thing, it's a bit confusing. I'm perfectly acceptable with people smoking these and coming to their conclusions about the quality, it's frustrating when a book is judged literally by its cover.

While it seems like ACID sales are doing fine, this wouldn't be the first time someone with retail experience had an issue with the pricing of ACID.  There are plenty of retailers I know, many of whom support DE and make plenty of money off DE, that will tell you ACID sales aren't as easy as they once were because of the pricing increases. 

Surely if the Gurkhas or any other product tasted as good or better than ACID at a significantly cheaper price, there would be some concern. As of now, it seems no one has made a serious and lengthy commitment to enter the segment, which DE dominates, but I imagine this won't be the last attempt.

@grestmon, going to have to disagree with you on that one.  Comparing retail prices to online prices is a horrible thing to do, mainly because online distributors do NOT have to deal with federal AND local sales and tobacco taxes, which in some states is as high as 75 cents on the dollar.  I can assure you, that ACID cigars are not in any trouble, in any way, shape, or form.  Your information is is misguided and incorrect.  

By your logic, the cost of say, XYZ Dish soap at a local mom and pop shop being quite a bit higher (due to overhead costs and additional taxes) than at a discount wholesaler would be "proof" that this dish soap wasn't selling well.  But that's just not how product sales works.

@gurkha @george23 @AronL @SharingSmoke Cheap, low cost, flavored tobacco with names, graphics and marketing that looks to most anyone with eyes that it's dangerously close to going back to "teen/child" marketing... FDA approved huh...  This is a bad move all around.  With the FDA moving in and trying to jockey for more control over Cigars and the local markets, it's products like this that add fuel to their fire, provide them with the fodder for their cannons.  I mean, all the FDA needs to do is hint at these being marketed towards underage demographics and there isn't much Gurkha/Cojimar can do to deny it.. I mean.. LOOK at them!

@gurkha @george23 @SharingSmoke Somehow I'm not surprised this is a Gurkha product. Good luck, guys. You're gonna need it...

@george23 @AronL @SharingSmoke appreciate the feedback and like everyone, you are entitled to your opinion. We just tried to have some fun with the names...not trying to cause any harm.