Habanos, S.A. To Introduce New International Pricing Policy

Cuban cigar prices are expected to substantially increase in the coming days. According to reliable sources, Habanos S.A. intends to introduce a new international price homogenization policy, similar to that applied by global luxury brands.

The bad news for smokers and connoisseurs of the acclaimed Habanos cigar is that the reference market to be used for price benchmarking will be none other than Hong Kong.  As most of our readers will know, Hong Kong is probably one of the highest priced markets for Habanos in the world.

The main brands that will be impacted with the new policy will be Cohiba and Trinidad as well as the Linea de Oro line from the Romeo y Julieta and the Linea 1935 from Montecristo. When the new policy is implemented, these products will see their worldwide sales prices in line with those charged in Hong Kong.

The other Cuban brands (classified as Global, Value, Volume and Other) are also expected to undergo an adjustment, albeit likely on a lower scale than those expected for the lines described above. However, it is certain we will see much higher prices at all markets served by the company’s exclusive distributors.

We spoke to some specialists and they are concerned this policy may make the sales price unfeasible in some markets as in some cases prices might be readjusted up to 150%. They also said that this scenario might result in the closure of some La Casa del Habano stores around the World.

Alexandre Avellar is considered Brazil's main reference in cigars. In 2010 he founded the Conexão Tabaco/Tudo Sobre Charuto, the country's #1 cigar news website. He also writes for many cigar publications around the world. He has been nominated to the Habanos S.A. the Hombre Habano del Año (Habanos Man of the Year) trophy for Communications in the 15th and 16th Habanos Festival. He travels around the world covering the main events and promoting the culture of smoking cigars.


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