UPDATE: Reynolds, Lorillard To Raise Cigarette Prices
March 06 2009 - 10:48AM
Dow Jones News
Lorillard Inc. (LO) and Reynolds American Inc. (RAI) announced
plans to hike prices for their cigarette brands, a move that comes
on the heels of price increases from the nation's largest cigarette
maker Altria Group Inc. (MO).
Pricing is a key issue for the U.S. cigarette industry as
companies have seen pressure on volumes amid smoking bans and
higher taxes. Higher prices can help bolster profits when volumes
suffer.
Reynolds said Friday that its cigarette business is raising list
prices of its Camel, Kool, Winston and Salem brands by 44 cents per
pack effective March 16.
The company will raise prices of Pall Mall and Doral cigarettes
by 41 cents per pack, a spokesman for the company said.
Lorillard is raising prices for Newport cigarette and several
other brands by 71 cents per pack.
The hikes come on heels of price increases by competitor Altria
Group Inc. (MO), which early this week announced plans to raise
prices on Marlboro and several other cigarette brands by 71 cents a
pack, a move it said was primarily intended to cover the costs of a
61 cent a pack federal excise tax increase that goes into effect
later this year.
-Anjali Cordeiro; Dow Jones Newswires; 201-938-2408;
anjali.cordeiro@dowjones.com