Cigarette Price Increase Could Be on Horizon for Tobacco Firms

 

(foxbusiness.com) The three largest U.S. tobacco firms may enact a new round of cigarette price increases in the coming weeks, though the increase won't necessarily boost profitability as the industry's players have heightened promotions recently.
Wells Fargo & Co. analyst Bonnie Herzog predicted the industry would push through in December their second round of cigarette price increases this year, with the investment bank projecting Altria Group Inc. (MO) leading with a six- to seven-cent per-pack increase.
Altria typically leads on pricing action, followed shortly by announcements by smaller peers Reynolds American Inc. (RAI) and Lorillard Inc. (LO). Continued