Tobacco

BAT Announces Cigarette Price Increase, Effective Jan. 3

14 brands to go up 14 cents a pack
Camel cigarette
Photograph: Shutterstock

LONDON — British American Tobacco (BAT) announced on Dec. 6 its fourth cigarette list price increase of the year, according to a note from Goldman Sachs Managing Director Bonnie Herzog.

BAT is taking a cigarette list price increase of 14 cents a pack, or a 2 to 3% increase, across 14 brands including Camel, Lucky Strike, Newport and Pall Mall, the New York-based investment management firm said. BAT is also taking a handful of other price increases, like a 22-cent-per-pack increase on eight cigarette brands including Pall Mall Vintage Gold 100, GPC and Monarch.

The increases are effective on Jan. 3, Herzog said, and follow BAT’s 15-cent-per-pack price increase in October and 14-cent-per-pack increases in July and April.

Herzog said she expects other cigarette manufacturers to follow this price increase.

“Looking ahead, we continue to expect strong net price realization for the industry given manufacturers’ strong pricing power,” she said. “Having said that, we do believe there is some increased risk of potential downtrading, despite a relatively narrow price gap between premium and deep discount cig brands, especially in light of the potential for further excise tax increases at the state level.”

BAT, London, owns companies including Reynolds American Inc., the parent company of R.J. Reynolds Tobacco Co. In addition to combustible tobacco products, it also sells non-combustible products under brands like Vuse and Velo.

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.

Related Content

Trending

More from our partners