Smokeless Tobacco Prices Going Up

(CSP) Altria Group Inc. has announced a smokeless price increase, according to an industry alert issued by Christina McGlone, an analyst with Deutsche Bank Securities Inc., New York. The increase, effective May 25, is five cents per can on all moist smokeless tobacco and snus brands (Copenhagen, Skoal), including value-tier SKUs.

"While some of this could be promoted back at retail, on a list-price basis, it equates to more than 1.9% on Skoal/Copenhagen, more than 3% on promoted SKUs (Skoal Xtra, Copenhagen Wintergreen) [and] more than 2.7% on snus."

While Reynolds American Inc. has not yet followed suit, "we expect this imminently," said McGlone. Continued