Reynolds (as of March 16, 2009) , Lorillard to raise prices..



March 7, 2009 - R.J. Reynolds Tobacco Co. said today that it will raise the list price on its cigarette brands in the range of 41 cents to 78 cents a pack for wholesale customers. The increase goes into effect March 16, 2009.

The cost of a pack of Camel, Kool, Winston and Salem is going up 44 cents, while Pall Mall, Doral and Capri are going up 41 cents, said David Howard, a spokesman for Reynolds. The manufacturer's nonsupport brands are increasing between 71 cents and 78 cents a pack.

Altria Group Inc. is raising the list price for brands that include Marlboro, Virginia Slims and Parliament by $7.10 a carton, and the list price for brands that include Benson & Hedges, Chesterfield and Merit by $8.07 a carton.

Lorillard Tobacco Co. also is increasing its list price for its brands by $7.10 a carton, according to Pat Shehan, the owner of Tarheel Tobacco in Winston-Salem. Lorillard also had a price increase in February 2009.

Besides the list-price increase, Reynolds also is reducing its discount rate at retail. "The net result is that we will be aligned with our competitors in terms of pricing," Howard said.

The price hikes by the manufacturers had been expected by analysts and consumers ever since Congress passed the increase in the federal excise tax on cigarettes to pay for expansion of the State Children's Health Insurance Program.

Anti-smoking groups hailed the approval of the SCHIP program in part because analysts estimate that cigarette sales will decline by as much as 8 percent as a result of the tax increase.

Shehan estimated that the federal tax increase raises the cost of a carton of cigarettes by $6.17.

Rising Prices Causing People to Re-think Their Lifestyle - This Just Might Be the Time to Eliminate Tobacco From Your Life..

Related news brief: Altria/Lorillard cigarette prices increase..

Reference: Reynolds raising cigarette pricesBy Richard Craver, Winston_Salem Journal Reporter, 3/6/2009; 2nd UPDATE: Reynolds, Lorillard To Raise Cigarette Prices, Dow Jones - CNNMoney.com, 3/6/2009.

2 comments:

  Joe Q Bartab

March 8, 2009 at 1:31 PM

A carton has 20 packs? When did this happen? All this time I was apparently buying mini cartons that only had 10 packs per carton.

  tobaccowatch.org

March 9, 2009 at 12:31 PM

thanks Joe - it must have been a misprint in the article we created the news brief from.. - tobaccowatch.org.