Ahead of IPCPR 2018, Southern Draw Cigars has announced price increases for the second straight year. Leading up to IPCPR 2017, the company added price increases of 5% for their Kudzu, Firethorn and Rose of Sharon line-ups. This was due to the added costs of FDA regulations, among other factors, with Southern Draw founder Robert Holt stating, “today’s accelerating costs due to user fees, legal fees, increased demand on human resources and general inflationary pressures associated with the production, packaging and distribution of these premium blends.”
Price increases for 2018 are more directly influenced by the FDA, specifically the added costs to “facilitate the FDA warning labels on all boxes, bundles and samplers that take effect in August 2018.” Beginning August 1, 2018, Southern Draw will increase costs by 20¢ to 25¢ per cigar (most cigars in SD’s portfolio). To ease the transition, the company is offering its current pricing to all IPCPR 2018 retail attendees, as well as free shipping.
In addition, Southern Draw is ceasing production on the QuickDraw petit corona and short panatela in its popular Connecticut, Habano and Pennsylvania blends. The company will continue to produce the QuickDraw corona gorda size in all three blends and will provide an updated inventory to those retailers that wish to purchase the remaining petit corona and short panatela sizes. The cancelled sizes will, however, remain available to retailers as special order requests.