The last 10 years have brought a lot of changes to the premium cigar industry. We have seen a tremendous influx of new manufacturers, new brands, and new trends that have drastically changed the marketplace. One such change having a huge impact has been the release of limited-edition cigars. In this month’s edition of the Retailer Corner, we examine this trend and offer some advice to our retail partners.

Cigars have been sold for hundreds of years across the world, but for the majority of that time adult consumers were not overly concerned with the rarity of the cigar they enjoyed smoking. This would all change in 1995 with the release of two limited edition cigars –  the Fuente Fuente OpusX and the Partagas 150. Both lines piqued consumer interest and showed manufacturers there was demand for non-regular releases. It’s been more than 20 years since the Fuente Fuente OpusX  release and we still see tremendous amount of consumer demand for its annual release. Every year since 1995, the industry has seen a steady flow of limited edition releases by many premium cigar manufacturers.

As a retailer, it’s often difficult to decide when to bring in a limited-edition production. First, you need to consider the brand. If brand X releases a limited edition, but none of their regular production cigars sell well for you, then it is best not to carry it. Certain brands also do better with limited-editions than other brands, based on their targeted demographic. For instance, Drew Estate has consistently done well with limited-edition cigars due to the fact their adult consumers have more awareness of brands and are more engaged. Thus, when Drew Estate releases a limited-edition their customers are more likely to go out of their way to seek that cigar.

Second, you need to consider the price point of the cigar and decide if the price is within your customers’ budget. If brand x is $30 per cigar and the vast majority of your customers purchase cigars under $10 then it may not be the right cigar for your store. As expensive cigars often require a big investment for retailers, you want to make sure you get a return on your investment. Remember, the more expensive the cigar, the higher your carrying costs are as a business owner.

Third, consider the size of the cigar before purchasing it. If cigars measuring 6 x 60 don’t typically sell well in your store, then you should avoid bringing in a limited-edition of that size. Also remember that limited-edition lanceros are often very popular with cigar connoisseurs who are involved in online cigar groups, but these groups make up a very small percentage of adult cigar consumers. Thus, if you bring in a limited-edition lancero, make sure your customers fall in that demographic.

Fourth, be conservative with your buying. Too often, retailers overextend themselves by buying too much of one limited edition cigar. Some retailers, for example, may buy up to 100 boxes of one limited-edition cigar, overestimating the demand. Limited-edition cigars generally sell well within the first few months they are released and need to turn quickly on your shelf. If the limited-edition cigar stays on the shelf more than a few months, then the supply exceeded the demand. As a retailer you’re better off having too few of a cigar than too many.

Santa Clara Cigars, with our 120,000 square foot humidor carrying more than 300 brands, has long been the nation’s most trusted provider of premium cigars. Our relationships with manufacturers often give us access to many great, limited-edition cigars, and we are more than happy to help our retail partners fulfill their consumer demand for these great cigars. Please check out our website SantaClaraCigars.com to see a wider range of our brands and inventory.