Duty free cigarettesIn daily life or simply logging on internet to make some purchases every lucky person had met expression “duty free”. Marlboro MilesMarlboro Miles is another fag ad campaign that famous manufacturer of smoking products Philip Morris, had used for upholding its famous Marlboro cigarettes. Cigarette packsCigarettes, cigarettes, a lot of brands of different types. Sometimes it is hard to choose one from multitudinous of fags that are presented on tobacco markets ... Famous smokersUsage of cigarettes was highly used in all times in different sphere of life. Sometimes namely usage of cigarettes ... |
Following the steps of major rivals, RJ Reynolds increases prices on cigarette brandsThe second largest cigarette-maker in the U.S., R.J. Reynolds Tobacco Co., is once again giving a hard time adult smokers who are loyal to the company’s products, by increasing wholesale prices on its cigarette brands by 8-33 cents per pack. The company will apply smaller increases to its major brands Camel, Pall Mall, Doral, Salem, Kool and Winston. The prices on the brands which no longer receive marketing support, such as Lucky Strike, Capri, More, Vantage and Eclipse will be increased up to 33 cents a pack. Reynolds communications manager David Howard refused to comment on the price increases, saying that it was a business decision. Nevertheless, Reynolds announced the price hike shortly after major rivals Philip Morris and Lorillard raised prices on their products, which became valid last week. Philip Morris, the leading tobacco company across the nation, hiked prices by 8 cents per packet and announced the closure of the promotional campaign for Basic, which would drive its price up by additional 21 cents per pack. Lorillard as well increased the price of its key brand Newport and other major cigarette brands by more than 40 cents. This is the second price increase carried out by Lorillard this year, after they hiked Newport’s price in February. Last year Reynolds performed a price increase ranging from 41 to 78 cents on all of its brands. Prices on major brands went up by 44 cents, mainly in order to compensate the largest-ever federal tax increase on cigarettes, when wholesale prices were hiked by 62 cents a pack. The newest price rise carried out simultaneously by the major cigarette-makers comes exactly when more and more smokers are opting for discount brands, in order to cut expenses on cigarettes. Laura Dixon, the manager of TNT Tobacco Shop in Boston said that whenever such price increase happens, many smokers are turning to generic brands, as they simply can’t afford premium brands. For instance, a carton of popular cigarettes is selling for $50, and on every carton of Marlboro, Newport or Camel, TNT Tobacco Shop sells 20 cartons of generic discount brands. RJ Reynolds announced the price hike, nearly 20 days after revealing its first quarter revenues report, where the company admitted cigarette shipments lost 2.5 percent during the first three months of 2010. The industry-wide drop was 2.4 percent, Reynolds said. The company stated that the drops in the volume of shipments are caused by the decision to end marketing support on several former major brands, such as Lucky Strike. Industry analysts said the majority of smokers will stay loyal to their favorite brands, regardless of its price. As regards Reynolds, the company will track the consumer response on Pall Mall price hike, since the brand’s popularity has surged mainly due to price discounts the company has offered to smokers of this high-quality brand. Last year Pall Mall became the fourth top-selling brand in the U.S. with a market share of 6.5 percent, just 006 percent shy of Camel’s share. |
