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NEW YORK-- Following Philip Morris' reduction on its off-invoice discount by 5 cents per pack on its 4 core brands-- Marlboro, Virginia Slims, Parliament and Basic brand cigarettes--Reynolds American is increasing the list price of its nonsupport brands.
Beginning on Jan. 3, 2006 Capri, Lucky Strike, and Tareyton brands will increase by $0.075. The company is also increasing the price on Viceroy by 10 cents a pack and the price of GPC, Misty, Forsyth, Monarch and Best Value brands will increase by five cents a pack. Natural American Spirit Brands, which has very strong brand loyalty, will also have a price increase of five cents.
Reynolds American did not increase the price on its support and investment brands, such as Camel and Kool, but Citigroup Investment Research expects the company to lower promos in the marketplace where necessary.