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December 2006

News & Media

Philip Morris Increases U.S. Cigarette Prices 
December 20, 2006 

NEW YORK -- Not unexpectedly, Philip Morris USA increased its cigarette prices by 10 cents per pack, effective December 18, The Wall Street Journal reports.

The cigarette manufacturer also decreased a promotion to retailers by $1 to $4 a carton on its four “focus” brands of Marlboro, Parliament, Virginia Slims and Basic, effective with Monday’s shipments, Philip Morris spokesman Michael Neese told the newspaper.

In addition, Philip Morris hiked list prices of its other brands by $1 a carton, the company said. The increases would more than cover the higher payments for 2007 under the 1998 Master Settlement Agreement, which are expected to be about 6 cents a pack, Citigroup Inc. analyst Bonnie Herzog told the newspaper.

According to analysts, other major cigarette companies, such as Lorillard Inc. and R.J. Reynolds Tobacco Co., will likely drop the amount of their promotions as well.

Meanwhile, Reuters reports that a group of heavy Marlboro smokers filed a class-action lawsuit against Philip Morris USA, asking the company to pay for annual chest x-rays for all smokers over age 50 who have smoked a pack or more a day for the past 20 years, according to court papers filed last Thursday in Boston.

Lawyers at Thornton & Naumes, which filed the lawsuit, claim that as many as 80,000 Massachusetts residents could join the class, according to Reuters.