Cuba raises state prices for cigars by 20%?

[nKostyan]

Air service between Russia and Cuba has been resumed since November. Our friends have flown to the island and are sending unpleasant news from there. One of the Directors of LCDH said that the government has ordered to raise prices by 20%. I understand that this may be trick for warming up the buyers.

On the other hand, we all understand the plight of Cuba due to COVID and I wouldn't be surprised if it turns out to be true...

Who else has news from the island?

[helix]

20% ! outrageous.

[Woody Hayes]

They'll cut the demand by at least a third.

[Bijan]

A lot of vendors have already raised prices since supply is down. It seems like a logical move for Cuba given limited supply due to covid, etc. As much as all of us hate prices going up.

[mrmessy]

Prices have already been going up. Demand on 24:24 doesn't seem to have gone down. If anything, they will be seen as a more premium product and demand will increase. This will increase pricing until there is a breaking point and the value prop doesn't hold.

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[nKostyan]

I was referring to the prices for sale in Cuba...

[chris12381]

I haven't seen anything in any Gaceta Oficial regarding official changes to prices for tobacco. 

[Nino]

5 hours ago, nKostyan said:

One of the Directors of LCDH said that the government has ordered to raise prices by 20%. I understand that this may be trick for warming up the buyers.

On the other hand, we all understand the plight of Cuba due to COVID and I wouldn't be surprised if it turns out to be true...

Who else has news from the island?

 

Hmmm, I was messaging with one of my Cuban friends in the cigar industry today, and was told that the LCDH/Cigar store at one of the most known HAV factories was being converted into a MLC* only store.

Now, that will not hurt us foreigners as we have been paying in CUC/US$ so far - but it will make buying impossible for Cubans without access to MLC ( and many locals would buy cigarettes, coffee etc from these stores.)

I am quite sure you may be correct in predicting a price increase.

*MLC = Freely Convertible Currency

[chris12381]

I was wrong.  A Gaceta Oficial was published  YESTERDAY.  

FINANZAS Y PRECIOS GOC-2020-689-O77 RESOLUCIÓN NO. 258/2020

I have put the new price list into a Google Sheet.  SEE IT HERE.

RESUELVO

 

PRIMERO: Establecer los precios minoristas en pesos convertibles, de los tabacos habanos, relacionados en el Anexo Único, que forma parte integrante de la presente Re- solución, que se comercializan por las cadenas de tiendas, entidades pertenecientes al Sistema del Turismo y otras entidades económicas autorizadas a comercializar productos minoristas en dicha moneda.

SEGUNDO: Establecer el Impuesto Especial a Productos y Servicios, con un tipo impositivo del seis por ciento (6%), sobre las ventas minoristas de los tabacos habanos comercializados de conformidad con lo establecido en el apartado anterior.

TERCERO: Establecer que los precios de los tabacos habanos que se comercializan en el segundo canal de distribución, entre estos la gastronomía, cafeterías y espacios que no son identificados como tiendas, pertenecientes al Sistema del Turismo y otras entidades económicas, deben ser superiores al menos un quince por ciento (15%) a los establecidos en la presente Resolución.

 

 

Edited November 25, 2020 by chris12381
Broken link was fixed to Gaceta fixed.

[Bagman]

They haven't raised their price in a decade.  So if you average it out, it calculates to a 2% annual increase.  Not bad.  We just were getting a steal for awhile.

[LLC]

With out tourists in Cuba who is going into the stores to buy cigars?


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[NSXCIGAR]

Could also be just in the LCDHs in areas where tourists are since it's the only game in town right now. No one's been to Havana in months. 

[El Presidente]

6 minutes ago, LLC said:

With out tourists in Cuba who is going into the stores to buy cigars?


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consular staff

[NSXCIGAR]

3 hours ago, chris12381 said:

I was wrong.  A Gaceta Oficial was published  YESTERDAY.  

Well, it looks like that's indeed an increase. HU Noellas up over 60%, Siglo VI up 50%. In fact all the Cohiba seems to be at or above worldwide price. RA Superiores up to $67 (20%)... some of these other prices are just way higher than they should be. Some haven't changed: HUSW, Fundys, LGC MdO4 and others.

[amberleaf]

3 hours ago, chris12381 said:

I was wrong.  A Gaceta Oficial was published  YESTERDAY.  

FINANZAS Y PRECIOS GOC-2020-689-O77 RESOLUCIÓN NO. 258/2020

I have put the new price list into a Google Sheet.  SEE IT HERE.

 

What a strange list, full of long discontinued vitolas and SKUs.

[justince]

Is this just LCDH pricing, or is this trickling down into wholesale/worldwide pricing? I can't read Spanish :(

[Bagman]

2 hours ago, NSXCIGAR said:

Well, it looks like that's indeed an increase. HU Noellas up over 60%, Siglo VI up 50%. In fact all the Cohiba seems to be at or above worldwide price. RA Superiores up to $67 (20%)... some of these other prices are just way higher than they should be. Some haven't changed: HUSW, Fundys, LGC MdO4 and others.

Check again.  HUSW is up 20%, Fundy up 55%

 

No CORO in 25 box?  Looks like this list isn't complete.  Guess you have to do the math on that one (15 box)

[LLC]

consular staff

I need one of those


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[chris12381]

46 minutes ago, amberleaf said:

What a strange list, full of long discontinued vitolas and SKUs.

You're assuming two government agencies comunicate with each other.

[NSXCIGAR]

1 hour ago, Monterey said:

Check again.  HUSW is up 20%, Fundy up 55%

SW are up 10%. Fundys up by only $10/box or ~3.5%

1 hour ago, Monterey said:

No CORO in 25 box?  Looks like this list isn't complete.  Guess you have to do the math on that one (15 box)

Missing, but they're $19.85/stick. $496.25 box. Idiotic price. Rob's way cheaper.

[rckymtn22]

9 minutes ago, NSXCIGAR said:

SW are up 10%. Fundys up by only $10/box.

The old price in Cuba was 261.60 and now 408. That is a huge increase.

[NSXCIGAR]

12 minutes ago, rckymtn22 said:

The old price in Cuba was 261.60 and now 408. That is a huge increase.

Whoa, the stuck the 24s up top. Wow. You're right. There goes one of the best deals on the island...

[mtapia3]

This is a very strange/confusing list, but I wouldn't expect anything less from Cuba.  Some of these prices are up there with 24 clearance pricing. Looks like it would only be worth buying ELs on the island now. 

[havanaclub]

Wow.

On a good note party 898 dropped from 225 to 190
 

Pretty messed up list but it’s a Cuba thing.

Unicos up 55 percent. 181 to 285.
Famosos. 0 percent. 135 to 135 lol

898 went down. Same with Choix supreme.


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[Bagman]

1 hour ago, NSXCIGAR said:

SW are up 10%. Fundys up by only $10/box or ~3.5%

Missing, but they're $19.85/stick. $496.25 box. Idiotic price. Rob's way cheaper.

SW used to be 331, now it is 395  395/331 = 19.3% increase