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Posted

12 months on, What do HSA do with Trinidad and small Cohiba? 

Cigarmageddon.  By any marketing measure, HSA have pulled off a repositioning  miracle. It irks me no end and I didn't think they would be able to pull it off, but they did. 

There has been some  collateral damage in the process: 

  • They have disenfranchised a significant percentage of their client base. (They would have priced that in.) 
  • They have harmed their distributor and retailer relationships. (Distributors will fall into line and retailer damage they would have priced in). 
  • They have given up marketshare to NC. (while grinding their teeth, they would have priced it in. They simply didn't have supply capacity  to protect their markets.)
  • They now have a % of their premium portfolio that doesn't move. Trinidad and Small Cohiba 

Put yourself in their shoes. They have had 12 months to view the performance of their portfolio. Overall they would be thrilled but Trinidad and small Cohiba are a concern. 

Your call. Which direction do you go;)

Posted

there is only one answer from this group. increase prices further.

prez you know that the prices for Trini and Small Cohibas will be EVEN MORE in 2024 than now.  

 

Posted

What I would like them to do is to reprice what they are likely to do is cut production and the retailers will discount them heavily to be able to move them but with little success until inflation catches up and they will move at that stage

Unfortunately it will probably mean they will cut some vitolas and trini will go back to 3-4 cigar Marca 

Posted
2 minutes ago, Rhinoww said:

Cut production, increase prices, then offer sales to current pricing level.

Who gets the sale prices? If the distributors get it then it'll never be seen as a "sale" and prices in Cuba would have to remain much higher which won't happen. 

Reduce production and keep prices stable as long as it takes to realign with demand. Might take 10 years but clearly the demand at these prices isn't there and I would bet against any outright price cuts as it has never happened in the past (aside from a few anomalies from 2022-2023). 

  • Like 1
Posted

Bite the bullet was my vote, what I wish they would to do. Slow down or stop production (without a price increase) is probably what they should do right now.

Still chaps my arse that they think they can say hocus-pocus, and voilà, “those $8 Reyes you’ve been smoking that are worth $12 at most are actually $30 cigars… and you’re welcome.” 😡

Posted
2 hours ago, Corylax18 said:

Option D. None of the Above.

Slap extra bands on them, add a fancy sticker to the boxes and call them Limited/Special/Anejado some other B.S. History has proven the bling is worth far more than the actual cigars to the consumer they're now targeting.  

Yes, that would be essentially reallocation of leaf which is essentially reducing production of those particular models which I suggested. The leaf has to go somewhere. Special production makes money. Reyes and Exquisitos don't. 

Posted

For what it's worth, I think there is probably a growing market for these cigars.

Old timers like most on this forum who have been smoking Cohiba for years and think of it as just another cigar are not going to shell out big dollars for Siglo I. At the moment, the only people buying Siglo I are those who have enough money that they don't care about the prices and are just buying the same cigars they always have.

But, there are new people coming into the hobby every day who have never had a Cohiba and see the prices and think of it as an unobtainable godlike cigar.

For them, I think the Siglo I and Exquisitos etc can be the cigar for "I always wanted to try a Cohiba one day, this is the one I can afford."

I do think a redesign of the brand with blingy boxes, foot bands, RFID etc is in the near future though.

Posted
1 hour ago, Gamehawker said:

D.  Since they are not selling at the current prices sell them at an even higher price in a few years saying that they are aged with a few years on them.  :rolleyes:

Bingo. As has been said before " All cigars sell eventually". 2014 Fonseca anyone? 😁

 

1 hour ago, ATGroom said:

For them, I think the Siglo I and Exquisitos etc can be the cigar for "I always wanted to try a Cohiba one day, this is the one I can afford."

I hope they got for Exquisitos. Those things rock my boat. Those I's just aren't for me. 

  • Haha 1
Posted

As we know is HSA not very rational and far away of being “business men”

Stupid enough to create a Cigarmageddon. Stupid enough to decrease production and for the little output being bold enough to raise the price. That’s my guess. 

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