Prices on cigarettes in the USA go up again, because three major tobacco makers continue trying to get revenue in spite of smoking volumes drop.
R.J. Reynolds Tobacco Co., Philip Morris USA and Lorillard Inc. increased list prices on their cigarettes by 7 cents a pack. The last price increase occured in May current year.
To note that list price is the price which wholesalers pay tobacco manufacturers for their products, therefore the price increases are passed on to customers.
According to David Howard, the representative for R.J. Reynolds, the company last week already increased prices on all its brands. Also Santa Fe National Tobacco Co., the company;s subdivision, raised list prices on its Natural American Spirit by 7 cents, effective with packs being shipped at the end of last week. However, Howard told that they cannot say how price increases will affect retail price, because they do not establish price on retail.
As to Lorillard, its price increase affects Old Gold, True. Maverick, Kent and its most popular Newport brands. The price increase came in action from November 14.
Philip Morris tobacco company increases prices on all its cigarettes brands except L&M. Spokesman Brian May says the increase affects new shipments starting from this week. As to L&M, its price increase is reflected in the company’s reduction of an off-invoice promotional allowance from 15 cents a pack to 8 cents.
In May, Lorillard and Reynolds raised their list prices by 6 cents on most of their brands.
Experts say that generally price increases do not affect smokers’ buying habits unless they are at least 10 cents a pack.