According to Goldman Sachs, British American Tobacco (BAT) has raised cigarette prices for the fourth time this year. Bonnie Herzog, Managing Director of the New York-based investment management firm, stated that although the timing of the price increase was expected, the extent of the increase - particularly for smaller brands - exceeded expectations.
British American Tobacco has increased the price of Newport menthol cigarettes, Camel and Pall Mall Box by 15 cents per pack. The non-menthol version of Newport cigarettes has been raised by 25 cents, while Pall Mall non-filter and Pall Mall Vintage Gold have each been increased by 38 cents per pack. According to a spokesperson, British American Tobacco has implemented price increases on several of its brands previously, but Lucky Strike has not been affected at this time.
A London-based tobacco company owns Reynolds American Inc., headquartered in Winston-Salem, North Carolina. Reynolds American is the parent company of RJ Reynolds Tobacco Company and has increased prices for oral tobacco. The prices for Camel Snus, Grizzly Snus, and three other oral tobacco brands have increased by 9 to 13 cents per can. The cost of Natural American Spirit Roll-Your-Own tobacco will increase by 40 cents per can.
Herzog announced that these changes will take effect on January 2, following Altria's announcement in October of a 15 cent increase per pack and the latest increase from British American Tobacco in August.
Herzog said, "Looking to the future, as the industry continues to successfully implement price increases to offset ongoing sales pressures, we continue to expect robust net pricing growth." He added, "While there is an increased risk of potential price-cutting deals, and concerns about the manufacturers' pricing power declining... we believe that brands like Marlboro, with a very loyal customer base and effective promotional activities, should be able to maintain their franchise with these consumers.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
