With Tobacco Plus Expo (TPE) 2020, the industry’s first major trade show of the year less than two weeks away, Southern Draw Cigars announced it is not planning to increase prices for 2020.
In a press release, Sharon Holt of Southern Draw Cigars explained, “We wish to avoid spending too much time on price increase (and justification) discussions with our staff and current valued retailer partners. The family believes this is time that should be spent on value increasing discussions instead. Southern Draw has been blessed by the patience and loyalty of our partners and consumers, which more than warrants this important decision.”
In a press release, Southern Draw Cigars outlined several reasons why it decided not to do a price increase:
- SDC would like to hold on to our retailers and customers during this time of gloom and uncertainty in the industry by providing quality products at fair prices and an incentive for consumers not to turn to bargain or overall cheaper products.
- A price increase would likely increase churn in the essential life blood of brick and mortar shops operating in states with higher than average tobaccos related taxes.
- SDC has been blessed with a growth rate of >100% per year over the last 6 years, a 4% – 5% price increase now won’t really matter over the next 5 – 10 years, however the churn and the loss of referrals and consumer support will adversely impact our growth rate.
- A price increase on current products and with existing partners will take a lot of time and energy away from family, sales representatives and brokers, if sales are soft or growth declines, the opinion will likely be that it was due to the price increase.
Southern Draw Cigar has also announced it is releasing the Cedrus Lancero at TPE 2020.