Bank of America Comments on Lorillard Price Increases

Bank of America reports that it learned (and confirmed) Thursday that Lorillard, Inc. LO announced a list price increase on most of its cigarette brands. “Effective July 1, the wholesale price of Newport (menthol) will rise by $2.50 per 1000 cigarettes, or 50c per carton or 5c per pack,” Bank of America writes. “At the wholesale level, this represents a +1.2% increase for Newport. Prices for Old Gold, Kent and True will rise by $4.00 per 1000 (or 80c per carton or 8c per pack). Prices for Newport non-menthol will rise by a greater $5.50 per 1000, or $1.10 per carton or 11c per pack. (Further, the off-invoice promotion for non-menthol Newport will drop by $1.50 per carton, or 15c per pack, suggesting an effective increase of 26c per pack.) “Reduced promos on Newport non-menthol may or may not signal that volumes are coming in better than expected. The list price for Maverick was unchanged.” Lorillard closed Thursday at $108.87.