OLIVA RAISING PRICES MARCH 1

[Jimmie the Mum]

http://halfwheel.com/oliva-raising-price...h-1/141532

Oliva Cigar Co. has announced that effective March 1, it will be increasing prices 5 percent on all of its products other than Cain.

“Due to the impact of hefty user fees by the FDA in 2017, we are forced to enact a modest increase on our products,” said a letter being sent to retailers.

User fees are likely to be just over 4 cents per cigar for 2017 according to sources and halfwheel estimates. They are paid to FDA’s Center for Tobacco Products to help pay for the government resources needed to enforce the regulations.
Oliva joins a host of other companies that have raised prices because of the cost associated with regulations by the U.S. Food & Drug Administration. Since the rules took effect last August, A.J. Fernández, Alec Bradley, Altadis U.S.A., Davidoff of Geneva USA, General Cigar Co., J.C. Newman, Perdomo, Rocky Patel Premium Cigars and others have raised prices.

[nayslayer]

hefty? lol

[Tonto]

So...
"User fees are likely to be just over 4 cents per cigar for 2017 according to sources and halfwheel estimates."

and...
"Oliva Cigar Co. has announced that effective March 1, it will be increasing prices 5 percent on all of its products other than Cain."

I'm not that smart a person, but even I can see what's going on here. 

But maybe I'm not even close....

[Tonto]

Does anyone know how much A.J. Fernández, Alec Bradley, Altadis U.S.A., Davidoff of Geneva USA, General Cigar Co., J.C. Newman, Perdomo, Rocky Patel Premium Cigars and others have raised their prices?

[Jimmie the Mum]

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.

[Tonto]

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.

So..."User fees are likely to be just over 4 cents per cigar for 2017 according to sources and Halfwheel estimates."

But..."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."


Anyone else see a trend developing? 

I have no problem with companies making money...hell, that's what they are supposed to do, but it appears, at least to me, that they are using the new tax as an excuse to raise their profits at the expense of their customers.

Someone, please tell me I'm wrong.

[Tonto]

I posted on Halfwheel's Facebook page yesterday, in a thread about the price increase.

I posted:

"User fees are likely to be just over 4 cents per cigar for 2017 according to sources and halfwheel estimates." but "it will be increasing prices 5 percent on all of its products other than Cain."
So either the estimates are badly off...or something else is going on.

Halfwheel actually just answered me directly in that thread:

As we've discussed elsewhere, user fees are likely to be the smaller part of FDA costs for the next few years. Bigger bills are likely lawyers, testing, etc. There's some variable between our estimates and the range of what companies have told us, but we are talking about a tenth of a penny per cigar. — CM.

Very interesting...

[Jimmie the Mum]

I guess it will all sort itself out eventually, unchartered waters for sure. Lawsuits have been filed, printing on boxes, packaging  etc will be different and will cost the manufactuerer and consumer more money.
Hopefully, the manufacturer and FDA doesn't price the consumer out of the enjoyment.

[Ansatci6]

Really? I have never noticed that before.