BAT is accelerating the pace of price hikes for its e-cigarette brands and traditional tobacco products even as inflation continues to clamp down on consumers’ discretionary spending.
Goldman Sachs analyst Bonnie Herzog released Monday a detailed analysis to investors of the R.J. Reynolds Vapor Co.’s top-selling U.S. e-cigarette Vuse.
Another round of price increases also is set for R.J. Reynolds Tobacco Co. products; list-price hikes went into effect Monday.
Herzog’s reports are based on “industry trade contacts” and are rarely wrong.
The list price is what wholesalers pay manufacturers for their traditional cigarette products. The increase typically is passed on to customers at retail, according to the Winston-Salem Journal.
“While there is some increased risk of potential downtrading and concerns that manufacturers have less pricing power today, we believe brands … with a very loyal customer base and strong/effective promotions should be able to keep those consumers within the franchise,” Herzog said.
Reynolds also is raising by 17 cents per pack the price of its heat-not-burn traditional cigarette Eclipse, which is sold in limited stock.