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Reynolds To Cut Prices Of Cigarettes

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  • Reynolds To Cut Prices Of Cigarettes

    Reynolds To Cut Prices Of Cigarettes

    Responding Carton Of Newport 100S to a price cut in Marlboro cigarettes announced earlier this month by the Philip Morris Companies, the R. J. Reynolds Tobacco Company said yesterday that prices of its leading premium Marlboro Cigarettes brands, Winston and Camel, would be comparably reduced for at least one Newport 100 Carton month.

    In a promotion to begin in June, Carton Of Newports Price Buy Cheap Cigarettes Reynolds intends to charge retailers $4 less a carton, with the savings to be passed on to consumers. In Marlboro's slightly different strategy, the $4 discount was given to retailers, who can decide how much to pass on to consumers.

    In either case, the price cuts have brought on a new cigarette price war, started by Newport Cigarettes Marlboro's response to a declining share of the premium brand market against the growing Cheap Cigarette popularity of discount brands. Marlboro Light Cigarettes "We don't like taking these kinds of steps, but we will defend Carton Of Newport Cigarettes our brands."

    Marlboros accounted for almost one of every four cigarettes sold last year, a slight decline from 1991. Still, Marlboros are Discount Cigarettes Free Shipping by far the world's top brand and, according to Cigarettes Online the Maxwell Consumer Report, three times more popular than Reynolds's leading seller, Winston, which last year had a 6.8 percent market share. Camel's share last year was 4.1 percent.

    Reynolds intends the promotion to include only Winston and Camel, not its leading menthol cigarette, Salem, or any of its discount brands. Effect on Profits Carton Of Cigarettes Unclear

    It is uncertain, however, what impact the promotion might have on year-end profits. As part of the announcement of Marlboro's price reductions, Philip Morris officials said the strategy could cost the company as much as $2 billion.

    "Obviously, if I had figures, I couldn't say what they are," Ms. Carter said. "But Cheap Cigarettes I don't think we'll get anywhere close to those numbers."

    Ms. Carter declined to say whether the reductions would remain after June, other than to acknowledge that Reynolds would "protect" its brands against anything Philip Morris did with Marlboro.

    Shares of Reynolds's parent, RJR Nabisco, closed unchanged yesterday at $5.75 on the New York Stock Exchange. Philip Morris shares lost 25 cents each, to $46.75.
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