Tag: price hike

  • Minneapolis Mulls $15 Minimum Pack Price

    Minneapolis Mulls $15 Minimum Pack Price

    Credit: Nikolay

    The Minneapolis City Council in Minnesota is considering adding new rules and restrictions on sales of tobacco products, including a minimum price for cigarettes and other products that could be the highest in the nation.

    The changes under consideration include a minimum price of $15 per pack of cigarettes or package of four or more cigars, or for certain-size packages of snuff or snus, according to media reports.

    The changes to the city’s existing tobacco products ordinance also would bar price discounts or coupons for tobacco products, and — starting Dec. 1 — ban free samples of tobacco products, and ban smoking of “samples” inside any retail establishment licensed to sell tobacco products.

    The changes would also increase the penalties for businesses that violate the ordinance — including moving from a $200 fine to a $500 fine for a first violation.

  • Tobacco Product Prices Up in Cuba

    Tobacco Product Prices Up in Cuba

    Credit: Timothy S. Donahue

    Beginning on April 12, Cuban tobacco users experienced higher retail prices for cigarettes and cigars. The brands are the domestic tobacco products sold in local stores used by Cuban residents, not tourists.

    According to the report, the prices of cigarette-style brands like Criollo, Titanes, and Popular are now CUP 30 ($1.25) per pack of 20. H. Upmann Clásico, a short cigar sold with and without filters, is CUP 50, and Popular Auténtico is now CUP 60. (It should be noted that an American dollar on Cuba’s black market averages about CUP 300 to $1; this would put the price of a 20-pack of Populars at about $0.10.)

    Minister of Finance and Prices, Vladimir Regueiro, told Cuban media that the current cost does not cover all the costs and expenses related to the production and commercialization of the tobacco products.

    In a press conference, he added that the measure would “contribute to reducing the fiscal deficit in the country, and new financial resources may be mobilized from the state budget to support the social expenses of priority sectors.”

    He also said that tobacco is not a necessity for the population and that the responsibility of the State and the government is to guarantee an appropriate level and assortment of food products.

  • Price hikes result in KT&G profit surge

    KT&G’s first-quarter operating profits and revenue have increased significantly compared to the same period last year, due to price hikes and improvements in its affiliates’ performances, according to a story in the Korea JoongAng Daily.

    South Korea’s No. 1 cigarette and ginseng company’s operating profit increased by nearly 65 percent year-on-year to krw428.5 billion ($395 million). The company’s net profit increased by 55 percent to krw308.8 trillion.

    Although the company’s sales increased by value to 18 percent from one year ago—to krw1.14 trillion by volume—because of the increased prices of cigarettes, sales have actually decreased. KT&G sold 7.1 billion cigarettes in this year’s first quarter, a 41.4 percent decrease from the first quarter of last year, during which the company sold 12.2 billion cigarettes. The price hike has allowed KT&G to earn krw1,768 in profit on inventory cigarettes per packet.

    The company plans to spend the krw330 billion it earned in profits on the price change by giving back to the community.