Dr. Gaby Kafie, President of Kafie Trading Company, LLC and founder of Tabacalera G. Kafie & Co. sent a letter to the industry this week announcing an across the board 5% increase on the company’s line of premium cigars.
The letter in its entirety is as follows:
“Kafie 1901 Brands announces a price increase of 5% across entire portfolio of premium cigars.
This year represents our 6th year anniversary in the premium cigar business. I must admit it has been a tremendous learning experience. The entire process of making a premium cigar involves many resources, hands, expertise, time, and patience.
Since inception our company has had a very strict policy to deliver the finest cigar blends to market at very competitive prices. Over the past three years since our factory was established we have tried our very best to keep pricing stable through out all the changes. At times this was done out of great sacrifice to even our own family.
One rule I have at our company, is that we pay our staff first and then we get paid. I’m certain many in the industry share this same practice. Unfortunately over the past 2 years we have been experiencing an increase in the cost of production, as well as further expenses here in the United States with FDA compliance matters. To continue to negate these 2 factors and not address them would be detrimental to our continued success.
Over the past 6 months we have been hesitant to do a price increase, but at this time it is inevitable. We have taken the decision to increase pricing across our entire premium cigar lines by 5%. Even with this slight increase our cigars will still retail in the range of $7.80 – $9.70 each (excluding state excise taxes).
Our value bundles line are increasing by $2.00 each bundle. Not a dramatic change, but it will definitely help meet our operations needs in the year to come. This is the first time since inception our company does a price increase. We hope you understand and continue to support Kafie 1901 Brands.
We value tremendously our distributors & retail partners across the globe and want you all to understand that this is being done in order to always deliver the finest quality premium cigars we can.
Dr. Gaby Kafie “