Philip Morris, Reynolds boost wholesale cigarette prices

NEW YORK (AP) -- The nation's two biggest tobacco companies are boosting cigarette prices in a move that analysts say could add as<br>much as 18 cents per pack at the store.<br><br>Philip Morris, owner

Friday, January 14th 2000, 12:00 am

By: News On 6

NEW YORK (AP) -- The nation's two biggest tobacco companies are boosting cigarette prices in a move that analysts say could add as
much as 18 cents per pack at the store.

Philip Morris, owner of the best-selling Marlboro brand, and R.J. Reynolds Tobacco Co., which makes the Winston, Salem and Camel brands, announced the price rise Friday.

The Philip Morris increase of 13 cents a pack wholesale goes into effect with shipments Monday, spokesman Michael Pfeil said.

Reynolds' 13 cents-per-pack increase is effective with Tuesday shipments, spokeswoman Jan Smith said.

Other tobacco companies are expected to match the increases.

Neither company comments on its pricing strategy for competitive reasons. But analysts said the moves appeared aimed at boosting
profitability following last year's steep decline in cigarette consumption.

David Adelman, tobacco analyst for Morgan Stanley Dean Witter, said he expects the retail prices for the companies' brands to rise
15 cents to 16 cents a pack from the current national average, which he estimated at about $2.65 a pack.

Martin Feldman, with Salomon Smith Barney, said the increase at retail could be as much as 18 cents a pack.

The increases come two weeks after a 10 cents-per-pack federal excise tax went into effect.