Marlboro, Basic to Sell for Less During Promo

Philip Morris Cos., the world’s biggest cigarette maker, is discounting the price of its best-selling Marlboro brand in the company’s biggest-ever promotion to boost U.S. market share.

The company knocked $4.50 off the price of a carton of Marlboros and $5 off Basic, its best-selling discount-priced brand, according to distributors. The offer represents a 50% increase over Marlboro’s previous $3 promotion. The offer, good until Jan. 3, is available only at certain stores.

The moves are aimed at blunting the impact of a price increase of $4.50 per carton, or 38%, announced by Philip Morris and RJR Nabisco Holdings Corp. on Monday. The higher prices, which will raise cash to help pay the $206-billion tobacco accord with 46 states, are expected to reduce smoking. Philip Morris, by holding back some of the price rise, is aiming to build its U.S. tobacco unit.

The New York-based company couldn’t confirm the promotions. Before Monday’s price increase, the industry hiked prices about 20 cents a pack to pay for settlements with four states.