R.J. Reynolds to Raise Cigarette Prices
From Reuters
No. 2 U.S. cigarette maker R.J. Reynolds Tobacco Co. said it would raise list prices on some of its brands and reduce retail discounts on others as it faced higher expenses.
Discounts to retailers will be cut by $1 a carton on the company’s most popular brands, effectively raising the cost of a pack of Kool, Doral and most Camel varieties by 10 cents, a Reynolds spokesman said.
The Winston-Salem, N.C.-based company cited higher costs resulting from the recent enactment of federal tobacco farm buyout legislation and increasing rates from obligations under the Master Settlement Agreement with states as reasons for the price increases.
