Reynolds American Inc., the second- largest U.S. tobacco company, plans to raise prices on all of its cigarette brands after it increased its share of U.S. smokers in the first quarter.
Reynolds’ R.J. Reynolds Tobacco Co. division notified wholesalers yesterday it will charge 8 cents a pack more for top-selling Camel, Pall Mall and several other brands, David Howard, a company spokesman, said today. Distributors’ list prices for Carlton, Lucky Strike and other brands will climb by 33 cents a pack, he said.
The increases take effect May 12, two days after an 8-cent- a-pack increase by Altria Group Inc.’s Philip Morris USA, the largest U.S. producer. Reynolds boosted its share of U.S. smokers by 0.2 percentage point to 27.9 percent last quarter, helped by Pall Mall sales.
Reynolds, based in Winston-Salem, North Carolina, won’t explain why it’s raising cigarette prices, or disclose their average retail prices, Howard said. The increases cover more than 20 brands and varieties, he said.
Reynolds advanced 64 cents to $52.17 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have declined 1.5 percent this year.