Japan Tobacco Considers Price Hike

Source from:  tr.itsmyiq.com May 13, 2008 05/14/2008

Japan Tobacco may increase the price of domestic cigarettes to help it cope with rising costs and a shrinking domestic market, reports Reuters. Cigarette sales in Japan have been declining over the past nine years. If the company raises cigarette prices, it will be the first time since 1993 that a price increase has not been linked to taxes. Currently, a pack of JT's bestselling Mild Seven brand costs ¥300 ($2.89). Smokers account for 26 percent of the Japanese population, down from 34 percent a decade ago and 49 percent in 1966. While JT declined to speculate on the amount of any price hike, analysts predicted its impact on sales would be minimal, given the general rise in consumer prices. They also said the resulting rise in profit would likely offset any sales decline. Enditem