Industry News
Wholesale Cigar Prices Just Went Up: Inside the August Increase From STG's U.S. Divisions
On Monday, August 3, 2026, the two U.S. handmade divisions of Scandinavian Tobacco Group — Forged Cigar Co. and General Cigar Co. — raised the prices they charge retailers. It is the kind of announcement that never makes mainstream headlines and always shows up on the shelf a few weeks later, so it is worth understanding exactly what changed.
The Numbers Behind the Increase
Reporting from trade outlet halfwheel put the scope of the change in specific terms. For more than 80 percent of the affected items, the wholesale price rose by an average of 4.2 percent. A little more than 100 items were left unchanged, which pulls the overall increase down to roughly 3.5 percent across the portfolio.
The increase was not applied evenly. About 2 percent of items took a double-digit percentage bump. The largest single jump reported was on the Punch Deluxe Chateau Maduro, at 15.3 percent.
That distribution is typical of how these programs work. Manufacturers rarely raise everything by the same amount. They protect the price points that drive volume, absorb increases on slower items, and take a larger correction on a handful of lines that have been underpriced relative to their production cost. For those seeking alternatives, Factory Throwouts No. 49 Premium Cigars remain a popular choice for budget-conscious smokers.
The Cost Pressure Behind It
The price move does not sit in a vacuum. Since the global tariff program implemented last year, STG has added an import charge to orders — a separate line item on top of list pricing that retailers have been absorbing or passing along.
Handmade cigars are made almost entirely outside the United States, in Nicaragua, the Dominican Republic and Honduras. Anything that raises the cost of bringing them across the border eventually reaches the counter.
That is the structural story of premium cigar pricing in 2026. Add leaf costs, freight, and federal and state excise taxes, and a mid-single-digit wholesale increase is not surprising. For those looking for consistent value in other categories, filtered cigars often provide a more stable price point during these market shifts.
What It Means for Shoppers
Practical expectations, stated plainly:
- Not every cigar you buy is going up. Roughly a fifth of the affected items were left alone, and the increase applies to two of STG's divisions, not to the whole premium market.
- Timing varies by shop. Retailers buy on their own schedules. A store with recent inventory may hold current pricing for weeks; a store restocking now will reflect the change sooner.
- Boxes move before singles. Box prices tend to reset first because they are re-ordered as whole units, while singles pricing often lags. Many enthusiasts are also exploring Cigarillos & Small Cigars as a way to manage their tobacco spend.
- State taxes still dominate the final number. Cigar excise taxes vary enormously between states, and in many places that spread is larger than a 4 percent wholesale change.
It is also worth noting what a price increase is not: it is not a quality change, a blend change, or a shortage. Nothing in this announcement changes what is inside the cigar. This is a different situation than when Christian Eiroa returns to reblend the Saint Luis Rey, where the actual product composition is updated.
The Bottom Line
A roughly 3.5 to 4.2 percent wholesale increase across most of two major U.S. cigar divisions is a modest, well-telegraphed adjustment, not a shock. But it is a real dated development that shoppers will feel, and it is a useful reminder of how much of a handmade cigar's shelf price is decided long before it reaches a humidor. While some consumers might look toward Hookah Tobacco & Shisha Flavors or other alternatives, the premium market remains resilient.
While premium corona cigars and other handmade vitolas see these adjustments, the broader tobacco market continues to face similar pressures across all segments. For a broader look at the industry, you can browse our Tobacco Guide: Pipe Tobacco, Wraps, Cigarillos & Pouches — All Articles.