Tobacco Industry News

Reports

Two cigarette makers boosting pack prices
The top two U.S. cigarette companies, Altria’s Philip Morris USA and Reynolds American’s RJ Reynolds Tobacco Co., are increasing their wholesale prices by 6 to 8 cents per pack. It is believed that this will help cover the user fees that tobacco companies must now pay the FDA. Economists estimate that every 10% increase in price reduces cigarette consumption by 4%; Altria attributes this spring’s 61.66 cent per pack increase in excise taxes to two-thirds of the 16% drop in cigarette sales in the third quarter. Click here to view the original article.

Cigarette makers: Burning hot or up in smoke?
Cigarette industry stocks have remained stable and profitable despite the economic crisis and new federal regulations; although sales volume has decreased, price increases make up for the lost sales. Tightening federal regulations, higher excise taxes, further decreases in sales, and stricter regulations on the introduction of new products to market could ultimately hurt the companies’ bottom line, but well-established companies may not be affected as much as smaller ones. Click here to read the full article.

Will cigarette maker Reynolds try kicking the habit?
U.S. tobacco company Reynolds American is reportedly in talks with Swedish company Niconovum, a manufacturer of nicotine replacement products including gum and mouth spray for smoking cessation. This would be the first time a large tobacco company offered smoking-cessation products, and is seen as an effort to diversify as cigarette purchases decline in the U.S. Click here to read more. Market analysts are speculating on how Reynolds will choose to market the cigarette-replacement products, recognizing the logic of diversifying their product line. Anti-tobacco groups are also curious about the public health implications of this collaboration. Click here for more details.

Philip Morris in negotiations with original e-cigarette company
Philip Morris is allegedly in negotiations with Ruyan Group, the manufacturer of the original e-cigarette. The nature of the negotiations is unknown at this point, but Ruyan Group has said that an agreement had not been reached at the end of the first phase of discussion. Click here for more details.

top

Back to Table of Contents