By Timothy S. Donahue

Top Takeaways:

• Broad increase: STG will raise wholesale prices on most handmade cigars sold through its U.S. divisions beginning Aug. 3, citing inflation and higher operating costs.
• Tariff surcharge grows: The company is also increasing its import surcharge from 6% to 7%, reflecting continued pressure from U.S. tariffs on imported cigars.
• Industry trend: STG becomes one of a growing number of premium cigar companies to implement price increases as manufacturers contend with tariffs, inflation and rising production costs.

Scandinavian Tobacco Group (STG) will increase prices across most of its U.S. handmade cigar portfolio on Aug. 3, becoming the latest premium cigar manufacturer to pass higher costs on to retailers amid inflation and ongoing import tariffs.

The increase applies to products sold through Forged Cigar Co. and General Cigar Co., which together market nearly 750 handmade cigar SKUs under brands including Alec Bradley, CAO, Cohiba (non-Cuban), Diesel, Punch, Macanudo, Partagas, La Gloria Cubana, Hoyo de Monterrey and Room101.

According to information distributed to retailers, more than 80% of the portfolio will receive a wholesale price increase averaging approximately 4.2%. More than 100 products will see no change in wholesale pricing, reducing the average increase across the entire portfolio to roughly 3.5%. A small number of products will receive double-digit increases, with the Punch Deluxe Chateau Maduro increasing by approximately 15.3%.

In addition to higher wholesale prices, STG will raise its import surcharge from 6% to 7%. The surcharge was introduced after the implementation of U.S. tariff measures affecting imported cigars and will apply even to products whose wholesale prices remain unchanged.

In a letter to retailers, Gene Richter, STG’s vice president of sales for North America, attributed the increases to inflation while reiterating that the company intends to remove the import surcharge if the tariffs are eliminated.

The pricing action follows the latest round of U.S. tariff changes that took effect in late July. Under the revised rates, imports from the Dominican Republic and Nicaragua—the world’s two largest premium cigar-producing countries—are now subject to 12.5% tariffs, up from 10%, while Honduras remains at 10%. STG manufactures cigars in all three countries, making the company directly exposed to changes in U.S. import duties.

The move also reflects a broader trend across the premium cigar industry. Since the Trump administration’s tariff actions began, numerous manufacturers—including Drew Estate, Oliva, My Father, La Aurora, Plasencia, CLE Cigar Co., Gurkha, Tatuaje, Habanos S.A. and others—have announced wholesale price increases as they work to offset higher import costs and inflationary pressures throughout the supply chain.

For retailers, STG’s latest increase means higher acquisition costs beginning next week, while consumers are likely to see another round of retail price increases on many of the industry’s best-known premium cigar brands as tobacconists adjust shelf prices.