BAT Raises Cigarette Prices for 2nd Time This Year

Vuse Alto pods also see increase, Goldman Sachs says
Photograph: Shutterstock

British American Tobacco (BAT) is raising its cigarette pack prices for the second time this year, according to Goldman Sachs. The increase is effective Oct. 2, Bonnie Herzog, managing director at the New York-based company, said.

BAT is taking a cigarette list price increase of 15 to 25 cents per pack on Newport cigarettes, a 15- to 40-cent increase on Camel cigarettes and a 15-cent-per-pack increase on Pall Mall Box.

It also took several other increases across its portfolio including a 13-cent-per-tin increase on Camel Snus, an 8-cent-per-tin increase on Grizzly and a 15-cent-per-pack increase on Natural American Spirit, among others, Herzog said. In e-cigarettes, BAT took a 34-cent-per-pack increase on Vuse Alto Single Pod Packs.

BAT’s latest price increase was in June. The latest increase follows Altria’s 16-cent-per-pack increase announced in July.

While there is an increased risk of potential downtrading, Herzog said brands with a loyal customer base and strong and effective promotions should be able to keep customers within the franchise.

London-based BAT owns Winston-Salem, North Carolina-based Reynolds American Inc., the parent company of R.J. Reynolds Tobacco Co.

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