30% of rollers laid off at Partagas and Upmann

[El Presidente]

There is an oversupply of smaller vitola's and Pramides in Havana's warehouses and 30% of workers have been laid off (8 weeks now) on half pay from the factories mentioned until supply issues improve.

Habanos believe it is the perfect time for a 10% price increase to its distributors with another 5 % increase proposed for August.

Look for 15% this year and 15% next year before things stabilise. That would put them where they want to be pricewise for the post embargo world.

At the Qantas lounge in LAX. Will report plenty more in the coming days!

Keep well guys.

Rob

[demiurgic]

The increase sounds adventurous in this economy, and given they are overstocked.

Guess there is a confidence in the air that the embargo will end.

Risk Takers those Habanos fellas!

Like Padron (not Jose) was back in the day.

Safe trip Prez!

[Padrino]

There is an oversupply of smaller vitola's and Pramides in Havana's warehouses and 30% of workers have been laid off (8 weeks now) on half pay from the factories mentioned until supply issues improve.

Habanos believe it is the perfect time for a 10% price increase to its distributors with another 5 % increase proposed for August.

Look for 15% this year and 15% next year before things stabilise. That would put them where they want to be pricewise for the post embargo world.

Gotta love it. This forum is just about the only place where anyone can read news like this first hand , news that actually matters and affects all of us. So the game is fixed and we're slowly being screwed...

Thanks Prez... (i think )

[Lanthor]

Stinks about the layoffs, unfortunately we saw extensive layoffs at my company as well.

To increase prices -on a highly descretionary item- given the global outlook is pretty foolish imho...logic would dictate decreasing pricing to blow out excess inventory.

[sounddust]

Bah, monopolies...

[kilroy]

It would appear that 50 years of a poorly run communist state has affected their business decision making. Don't they know that even IF the embargo drops that its going to take years of litigation and court time to get around the issues with General Cigar, etc over licensing rights in the US?

[Colt45]

Habanos believe it is the perfect time for a 10% price increase to its distributors with another 5 % increase proposed for August.

Look for 15% this year and 15% next year before things stabilise. That would put them where they want to be pricewise for the post embargo world.

Brilliant.

Safe travels.

[kyee]

Damn. Like I need another reason to buy more boxes!

[El Presidente]

It would appear that 50 years of a poorly run communist state has affected their business decision making. Don't they know that even IF the embargo drops that its going to take years of litigation and court time to get around the issues with General Cigar, etc over licensing rights in the US?

I think that has been taken care of behind the scenes. There won't be a fight. There will be " Contractual Agreements" enterred into between the majors.

[Fatshotbud]

30% of workers have been laid off (8 weeks now) on half pay from the factories mentioned until supply issues improve

This a good idea and probably in game plan to minimize temptation for counterfeiting.

[aavkk]

I have to say that 15% a year is steep! With the hurricanes last year no doubt eventually taking their toll on production I wonder how this will play out over the next few years?

[cvm4]

I have to say that 15% a year is steep! With the hurricanes last year no doubt eventually taking their toll on production I wonder how this will play out over the next few years?

It'll play out that some consumers will get priced out of habanos.

[Professor Twain]

Another reason to be glad that I have a well stocked Czarador in Australia.