Reynolds to Raise Prices on Its Cigarettes

Source from:  Journalnow.com 10/29/2009

R.J. Reynolds Tobacco Co. said today that it will raise the list price on its cigarette brands from 6 to 8 cents a pack for wholesale customers. The price increase takes effect on Monday and affects all of its cigarette brands. David Howard, a spokesman for Reynolds, said that the company made a business decision regarding the increase. "As is our policy, we do not comment on pricing strategy," he said. The decision comes five days after Philip Morris USA announced a 6-cent a pack increase, which went into effect today. Reynolds also is raising list prices less than a week after reporting that its cigarette-shipment volume fell 11 percent in the third quarter to 20.6 billion. Reynolds said that the industry decline was 12.6 percent. Howard said that the list price is increasing 6 cents a pack for its growth brands, Camel and Pall Mall, and also for Doral, GPC, Kool, Misty, Salem and Winston. All but GPC are considered as a support brand, which mean they get a limited amount of marketing support. The list price is being raised 8 cents a pack for its other brands, including Capri, Eclipse, Lucky Strike, More, Now, Tareyton and Vantage. All but Capri are considered as nonsupport brands. Enditem