PM USA Raises Cigarette Prices..

September 7, 2007 - PM USA Raises Cigarette Prices All brands see increases, promotional reductions; other manufacturers likely to follow suit... RICHMOND, Va. -- Calling it strictly an effort to achieve its business objectives, Altria Group Inc.’s Philip Morris USA announced price increases or reductions in its wholesale off-invoice promotions for all its cigarette brands. PM USA is taking a 5-cent-per-pack or more price increase on all of its brands. “We’re trying to achieve our business objectives and we’re always analyzing the market place…to help us determine the appropriate level of promotional spending,” Bill Phelps, Richmond, Va.-based PM USA’s manager of media affairs. The increases, which go into effect Monday, September 10, and continue through Sunday, October 28. “This price increase comes as a bit of a surprise considering a FET [Federal Excise tax] increase is likely, but could be a precautionary measure by the company,” tobacco analyst Bonnie Herzog of Citigroup said in a research note Wednesday (9/5/07). (PM USA Raises Cigarette Prices by Steve Holtz, CSP Daily News)