Cuba Increases Prices Of Cohiba Behikes—Again
There was an outpouring of outrage and indignation last year when Cuban cigar distributor Habanos S.A. announced a major price hike. Cohibas and Trinidads, it was declared, were to be fixed to the Hong Kong dollar in every market around the world, which meant that the prices for these flagship brands were instantly doubled, and, in some cases, tripled, with many Cohibas approaching $100 per cigar.
But just when it seemed that Cohibas couldn’t get more expensive, Habanos did it again. In January, many Cohiba fans were shocked to see that prices for the Cohiba Behike series had increased yet again, this time by another 45 to 57 percent, depending on the size. The largest Cohiba Behikes are now priced at around $300 each, comparable in price to many complete boxes of cigars in the United States.
The fluctuations vary by market. In London, the retail price of the Cohiba Behike BHK 52 (a former Cigar of the Year) went from £110 to £160.80 (about $201.50), a hike of 45 percent. The larger BHK 54 saw a jump from £130 to £204.20 (about $256), a 57-percent increase. And the hefty BHK 56 went from £150 to £225 (about $280) per cigar, which is a 50-percent spike in price. That amounts to $2,800 per box of 10, and that’s if you can even find them. Demand has always outstripped supply for the Behikes ever since they were commercialized in 2010. Boxes are often allocated before they even arrive, and retailers can sometimes be selective as to which customers they deem worthy enough to purchase these rare smokes.
Though Spain has historically been a less-expensive market for Cuban cigars, the change in pricing means that no such discounts exist anymore, and prices there are up slightly more than 50 percent per cigar. From Barcelona to Madrid, a Cohiba Behike BHK 52 now costs 180 euros (up from 118 euros), which converts to around $200; the BHK 54 now costs 227 euros (up from 150 euros), amounting to about $251; and the BHK 56 costs 250 euros (up from 166 euros), which converts to approximately $275.50 per cigar.
If you think that’s expensive, Canada’s retail prices for the trio are C$307, C$404 and C$440, respectively, which works out to about $230, $300 and $330. They experienced a 50 percent increase as well.
Other countries like Germany didn’t see the spike in retail price until April, so smokers in Hamburg and Frankfurt had a little more time to save some money. Now, Behikes in Deutschland are priced like the rest of the world.
And while many believe that Habanos is going to price itself out of the market, this doesn’t seem to be the case so far. Retailers and distributors report that, despite the price hikes, people are still buying Cohibas and Cohiba Behikes faster than they can stock them.
“Our sales here in the U.K. are still very strong, even with the high prices of Cohiba’s Behike and Trinidad,” says Ajay Patel, who owns a La Casa del Habano shop in London. “It looks like Habanos is positioning itself for the super luxury market, like Patek Philippe, Gucci, Dolce & Gabbana and Hermes.”
In Germany, considered by Habanos to be its third largest market in the world, customers are still buying Behikes.
“Demand for BHK is still strong so far,” assures a representative from 5th Avenue Products Trading, Germany’s official Habanos distributor. “But delivered volumes are still extremely low.”
So, what makes Cohiba Behikes so special? According to Habanos, Cohiba stands above the other Cuban brands due to its tobacco being selected from the top five farms of Pinar del Río. The leaves also undergo an additional fermentation process. But only Behikes contain medio tiempo, a rare sprouting of two potent leaves that sometimes grow on the very top of the tobacco plant.
If high prices signal exclusivity, then the psychological game seems to be working—the more Behikes cost, the more people want them. At least, for now.
