Altria Announces 1st Cigarette Pack Price Increase of the Year

Move follows BAT’s increase in December
Marlboro cigarettes
Photograph: Shutterstock

Altria and Philip Morris USA have announced a cigarette pack price increase of 15 cents, Bonnie Herzog, managing director at Goldman Sachs, announced on Jan. 18. The change is effective on Sunday and affects Marlboro, Basic, Chesterfield, L&M and L&M Simple Tobacco cigarettes.

There is also a 20-cent-per-pack increase on Benson & Hedges, Merit, Nat’s, Parliament and Virginia Slims, she said. This follows Altria’s last price increase in October, and British American Tobacco’s price increase in December.

“Broadly, [Altria’s] price increase today doesn’t come as a surprise, and we believe [Altria] has become more sophisticated and targeted with its pricing strategies as well as promotional spending to offset these more frequent list price increases, especially for price sensitive consumers,” Herzog said.

While there is some increased risk of downtrading, especially given pressures on the consumer, she said brands like Marlboro with a very loyal customer base and strong promotions should be able to keep those consumers within the franchise.

Altria, Richmond, Virginia, is one of the country’s largest tobacco producers. Its companies include Philip Morris USA, U.S. Smokeless Tobacco Co., John Middleton, Ste. Michelle Wine Estates and Philip Morris Capital Corp.

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.


Exclusive Content


Convenience Stores Speak Out Against New York Tobacco Proposals

Lawmakers reject flavored tobacco ban, accept cigarette tax increase, but negotiations not over yet


Driving EV Owners Into the C-Store

3 ways to encourage customers to charge on their credit cards while charging their cars


Vuse Solo Menthol Can Remain on Market Pending Further Developments

Court stays FDA’s marketing denial order of R.J. Reynolds Vapor Co.’s tobacco product


More from our partners