LCDH - What is their future?

[BrightonCorgi]

Several threads have gone into the potential future of LCDH franchises.  Will they all start selling NC's?  Will they start going out of business?  Does Habanos have unannounced plans to keep LCDH inventories to what a consumer would expect walking into a store?

Figured this would be a good thread to solely talk on the present day and future of this franchise.

[havanaclub]

Tbh, I don’t think HSA has even thought about this or cares. They will get the stock they will get and be instructed to keep bumping up prices.


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[bmac]

[BrightonCorgi]

26 minutes ago, havanaclub said:

Tbh, I don’t think HSA has even thought about this or cares. They will get the stock they will get and be instructed to keep bumping up prices.

That does not work in every locale.  Much of EU is price fixed on tobacco.  Other regions where it is not; regulars will go to another store if LCDH costs more for the same cigar.

[Cigar Salute]

I'm guessing that more will begin to follow in the footsteps that a bunch have already been doing for years: they will set up adjacent sites with a separate set of books designed solely to sell whatever they do have online outside of their territories.  As long as HSA provides incentives for their distros to push volume for better rates and more access to HTF/prestige stock, distros & retailers will look for ways to move cigars by whatever means they can.  If they continue to find themselves starved of inventory, then it really depends on the individual retailer's situation.  An LCDH owned by a generations - deep tobacco family is likely to have a HUGE private collection of vintage and rare items that would fetch them a fortune could easily move some of that stock for primo money on BR or other auction outlets, as well as offering to their own VIP clients to keep them engaged.  In the meantime, Habanos may find themselves pressured by retailers to cut up the existing stock into smaller units.  If they can't get enough 25-count Cohiba cabinets out the door, what if 10's came back?  What if 12-count Fundy's came back?  They could break these larger boxes up & probably make more money by selling them that way instead of the larger count packages.  Bad for us consumers in that sense, but I do believe it could be good for retailers.  

 

[SCgarman]

On 7/27/2022 at 8:06 AM, BrightonCorgi said:

Several threads have gone into the potential future of LCDH franchises.  Will they all start selling NC's?  Will they start going out of business?  Does Habanos have unannounced plans to keep LCDH inventories to what a consumer would expect walking into a store?

Figured this would be a good thread to solely talk on the present day and future of this franchise.

Rob stated per their agreement license with HSA they cannot sell NC cigars

[La_Tigre]

6 minutes ago, SCgarman said:

Rob stated per their agreement license with HSA they cannot sell NC cigars

But as in Mexico, they have the NC shop downstairs/next door: See Cozumel’s business model. 

[BrightonCorgi]

1 hour ago, SCgarman said:

Rob stated per their agreement license with HSA they cannot sell NC cigars

They already are.

[El Presidente]

2 hours ago, BrightonCorgi said:

They already are.

Written agreements are one thing. 

Reality is something again. 

[BrightonCorgi]

2 hours ago, El Presidente said:

Written agreements are one thing. 

Reality is something again. 

HSA needs to make LCDH's their number priority vs. sending off cigars the Far East.  LCDH is the face of Habanos world wide.  Stocked humidor is big part of it.

[Edicion]

I wonder what will happen to the LCDH exclusive cigars line. I enjoy almost every one of their releases, some are among the best of what is coming out of Cuba right now, but for how long will they be around..

[Tdm_86]

Over here, the LCDH I buy from has started an NC shop in their former smokelounge. Government mandated all smokelounges be closed earlier this year, so they made lemonade. It’s doing extremely well from what the owners told me.
 

And they have to, the supply situation over here is insanely bad. They have no boxes of anything except for some Cuaba, Fonseca and if you’re lucky some small format Hoyo, Partagas, Upmann.