Tobacco

Altria Raising Prices Across Brands

Eight-cent wholesale hikes to take effect May 10
RICHMOND, Va. -- Altria Group Inc., the largest U.S. tobacco company, plans to raise prices on all 18 of its cigarette brands, reported Bloomberg. Altria's Philip Morris USA division will charge wholesalerseight cents a pack more for Marlboro, Virginia Slims and other brands, David Sylvia, a spokesperson for the Richmond, Va.-based company, told the news agency. The increase will begin May 10.

The company would not explain why it is raising prices, the first increase since October, said the report.

The higher prices are within "the normal range" expected this year, [image-nocss] Thilo Wrede, an analyst for New York City-based Credit Suisse wrote in a research note to clients earlier this week.

Marlboro shipments rose 1.6% to 29.6 billion cigarettes last quarter, while the brand increased its U.S. market share by 0.3 percentage point to a record 42.7%, Altria said April 21. Its overall cigarette market share slipped 0.7 point to 50.2%.

The list price for Marlboro, the price the company sells the cigarettes to its wholesalers for, will go up to $3.70 a pack from $3.62 a pack, added a Dow Jones report.

The average price of a pack of Marlboro in convenience stores was $5.42 in the first quarter, Sylvia told Bloomberg.

Altria directly or indirectly owns 100% of each of PM USA, U.S. Smokeless Tobacco Co., John Middleton, Ste. Michelle Wine Estates and Philip Morris Capital Corp. PM USA cigarette brands include Marlboro, Alpine, Basic, Benson & Hedges, Bristol, Cambridge, Chesterfield, Commander, Dave's, English Ovals, Lark, L&M, Merit, Parliament, Players, Saratoga and Virginia Slims.. Moist smokeless tobacco brands include Copenhagen, Cope, Copenhagen Pouches, Skoal, Skoal Bandits, Skoal Pouches, Red Seal and Husky. Cigar brands include Black & Mild, Middleton's, Gold & Mild and Prince Alberts.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Foodservice

Opportunities Abound With Limited-Time Offers

For success, complement existing menu offerings, consider product availability and trends, and more, experts say

Snacks & Candy

How Convenience Stores Can Improve Meat Snack, Jerky Sales

Innovation, creative retailers help spark growth in the snack segment

Technology/Services

C-Stores Headed in the Right Direction With Rewards Programs

Convenience operators are working to catch up to the success of loyalty programs in other industries

Trending

More from our partners