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Home » Recent CSD Articles » Categories » Today's News » Wells Fargo Anticipates Cigarette Price Increase Wells Fargo Anticipates Cigarette Price Increase Could the next cigarette price increase appear this September? Convenience store retailers should expect the next cigarette price increase to arrive sooner than the normal November cycle, according to a report by Wells Fargo Securities LLC. Wells Fargo conducted a survey of its tobacco retailer and wholesaler contacts representing approximately 60,000 U.S. convenience stores to gauge expectations for the next round of cigarette pricing increases. Bonnie Herzog, managing director – equity research, beverage, household & personal care, tobacco & c-stores for Wells Fargo noted, “According to our contacts, the next cigarette list price increase is expected to be led by PM USA during the week of Sept 18 at $0.08/pack (+2-3%). We agree as we don’t expect manufacturers to wait till the normal November cycle to take a price increase, especially given the severity of volume declines in Q2,” which were related to the outsized impact of California’s $2-per pack increase in excise tax. “As has been the case in past tax cycles, we expect the industry to further mitigate California tax-driven volume declines with list price increases, partially offset by stronger promo efforts. Longer term, we see further downside to combustible cigarette volumes if the U.S. Food and Drug Administration succeeds with its new nicotine mandate. However, we believe this could be mitigated by smokers potentially smoking more in an effort to get the nicotine levels they require—an ‘unintended consequence’—and increased conversion to reduced-risk products,” she added.
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Making cigarettes affordable for our youths and children will clearly result in far greater repercussions than we can imagine. 3. Every year, more than 20,000 Malaysians are killed by tobacco-related diseases. Studies show that more men and women die in Malaysia from tobacco-related diseases than on average in middle-income countries. What is more alarming is that you don’t need to be a smoker to be at risk. The Global Adult Tobacco Survey 2012 on Malaysia revealed that four out of 10 adults were found to be exposed to secondhand smoke at home (7.6 million adults), and four out of 10 were found to be exposed to secondhand smoke indoors at their workplace (2.3 million adults). Among those adults who visited a restaurant in the past 30 days, seven out of 10 would have been exposed to secondhand smoke (8.6 million adults). 4. Another critical area of consideration is economics.
News Search | All News Topics > Tobacco Industry News Topics : By Country | By State ; Press Releases by Industry Channel > All Tobacco Industry Press Releases Philip Morris International Recognized as Global Leader for Corporate Action on Climate Change for the Third Year Running LAUSANNE, Switzerland--(BUSINESS WIRE)--Oct. 25, 2016-- Philip Morris International Inc. (“PMI”) (NYSE/Euronext Paris: PM) today is recognized as a global leader in its action on climate change. For the third consecutive year, the company is on the CDP’s ‘Climate A List’ for taking comprehensive action to reduce greenhouse gas emissions and mitigate climate change, and for its transparent disclosure process. CDP, formerly known as the Carbon Disclosure Project, is the leading international not-for-profit organization assessing the work of companies worldwide in the area of climate change. Thousands of businesses submit annual climate disclosures to CDP for independent assessment against its scoring methodology. PMI’s ranking places the company among the top 9% of corporations, known as “A Listers.” CDP’s Climate Change benchmark report is produced at the request of 827 investors with assets of US$100 trillion. Commenting on the results, PMI’s Head of Environmental Sustainability, Andy Harrop, said: “We’re very pleased to be included on the CDP A List again, and remain dedicated to playing our part in limiting global warming. Building on the reduction of 200,000 tons of CO2 since 2010 across our operations, and our continued action to promote sustainable tobacco production and environmental improvements across our value chain, next year we will announce a suite of new targets based directly on climate science.” “PMI encourages strong action on climate change and supported an ambitious outcome to COP21 in Paris last December. With the Paris Agreement now entering into force, we look forward to working with others in facing the challenges and opportunities of climate change mitigation and adaptation.” The Climate A List is released today in CDP’s report, Out of the starting blocks: Tracking progress on corporate climate action, which establishes the baseline for corporate climate action and recognizes that global corporations have started the transition towards a low-carbon economy, with some already capitalizing on the opportunities this affords.
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