BAT Increases Cigarette Prices 14 Cents

Some brands to see a 22-cent hike
Pall Mall cigarettes
Photograph: Shutterstock

NEW YORK — British American Tobacco (BAT) is taking another 14-cent-per-pack price increase across some of its major brands including Camel, Lucky Strike, Newport, Pall Mall and certain lines of Natural American Spirit.

More than 20 other cigarette brands—including Capri, Carlton, Kent, and Old Gold—will see increases of 22 cents per pack, according to a research note from New York-based Goldman Sachs Managing Director Bonnie Herzog. The increases are effective July 5.

“Broadly we view this announcement as a surprise given the company’s price increase in March for similar amounts,” Herzog said.

Altria, Richmond Va., increased its pack prices by 14 cents per pack in January, so Herzog said she expects Altria and other cigarette manufactures to follow this list price increase shortly. Altria has become more strategic in the way it takes pricing, though, Herzog said.

Altria and BAT representatives could not immediately be reached for comment by CSP.

British American Tobacco, 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.

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