R.J. Reynolds - plans to raise wholesale prices on all its cigarette brands..


May 10, 2010 - Reynolds American Inc., the second- largest U.S. tobacco company, plans to raise prices on all of its cigarette brands after it increased its share of U.S. smokers in the first quarter.

On May 7th we reported that Altria Group Inc.'s Philip Morris USA division is raising prices for Marlboro and most of its other cigarette brands by 8 cents a pack.

Reynolds’ R.J. Reynolds Tobacco Co. division notified wholesalers yesterday it will charge 8 cents a pack more for top-selling Camel, Pall Mall and several other brands, David Howard, a company spokesman, said today. Distributors’ list prices for Carlton, Lucky Strike and other brands will climb by 33 cents a pack, he said.

as of 2006..
The increases take effect May 12, two days after an 8-cent- a-pack increase by Altria Group Inc.’s Philip Morris USA, the largest U.S. producer. Reynolds boosted its share of U.S. smokers by 0.2 percentage point to 27.9 percent last quarter, helped by Pall Mall sales.

The company would not explain why it is raising cigarette prices or disclose their average retail prices, Howard said. The increases cover more than 20 brands and varieties, he said.

In note to investors, UBS Investment Research analyst Nik Modi said, "We expect Lorillard to increase prices as well."

Reference: Reynolds to Raise Prices on Camel, All Cigarettes (Update1) by Chris Burritt (cburritt@bloomberg.net.), Bloomberg.com, 5/7/2010;
Reynolds to Raise Prices on Camel, Pall Mall, More Eight- and 33-cent wholesale hikes come on heels of PM USA's increases., CSP Daily News, May 10, 2010.

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