Camel becomes more high-priced
R.J. Reynolds will increase prices for its renowned cigarette brands with 5-15 cents per pack. Camel, Kool, Pall Mall, Capri, Doral, Misty, Salem and Winston along with nonsupport brands will become more costly beginning with the next week.
The list price is going up the most - 15 cents a pack - for Camel and Winston. It is a 5.4 % increase for a carton of Camel and 5 % for a carton of Winston.
As sustained spokesman David Howard, previous time when R.J. Reynolds had increased the prices was in March 2002; the prices were raised in December for Camel, Doral and Winston, for Misty, Pall Mall and Salem in June and for Capri in August.
Philip Morris also has introduced some changes in pricelist of its cigarettes. Leading company initiated a promotion that offered a discount for some brands and increases prices for the others. As company’s representatives affirm, discount promotion will last till October.
Although, boosting of prices didn’t surprised the wholesaler customers and analysts.
Tobacco manufacturers increase the costs for cigarettes because of rising of taxes on smoking products.
Every company has poles apart reaction on tax rising. “While recent trends have shown that manufacturers have not always followed each others’ pricing actions, we believe that in this case it is likely that Philip Morris’ competitors will take up pricing,” Bonnie Herzog, an analyst with Citigroup, wrote in a report on Thursday.
Also Herzog added, “These price increases come as a bit of a surprise considering a federal excise-tax increase is likely.
Over 92 percent of our trade contacts believe that there is at least a 50 percent chance that there will be a federal-excise tax increase on cigarettes, effective in early 2008.”
According to published, prices of cigarettes(per carton) and increasing cost of R.J. Reynolds brands are the following: Camel - 15 cents - $29.14, Capri - 5 cents - $32.63, Doral - 5 cents - $25.44, Kool - 5 cents - $29.14, Misty - 10 cents - $17.92, Pall Mall - 5 cents - $25.44, Salem - 5 cents - $29.14 and Winston - 15 cents - $29.14
