Philip Morris Scales Back Tobacco Price Hikes

Source from:  The Japan News 07/03/2017

Philip Morris Japan Ltd. has decided to reduce the number of its cigarette products that will be subject to price hikes to 32 from 82, Jiji Press learned Thursday.

On the same day, the Tokyo-based unit of Philip Morris International Inc. retracted its application, filed with the Finance Ministry in May, for price increases affecting the 82 products and reapplied for hikes for the 32 products, all from its flagship Marlboro brand, according to informed sources.

The move apparently reflects the firm’s judgment that raising prices for a wide range of products could lead to sales falls and earnings deterioration rather than improving the company’s profitability.

The original price hike plan was to affect about 80 percent of Philip Morris’ cigarette lineup of 100 products. If the Finance Ministry gives its go-ahead, Philip Morris will lift the prices of the 32 products by ￥10 per pack on Sept. 1.Speech. Enditem