NEW YORK (Reuters) - Philip Morris USA said on Thursday it will introduce new varieties of its Chesterfield cigarettes in California and Colorado next month, but declined to comment on an analyst report about any plans the cigarette company may have for a new lower-priced brand.
Prudential Securities analyst Rob Campagnino said on Thursday he believes Philip Morris USA, the top U.S. cigarette maker, is considering bringing out a new brand to compete with cigarettes from deep-discount manufacturers.
New York-based Philip Morris USA and other top U.S. cigarette companies are fighting against higher state excise taxes on cigarettes, which are pushing many consumers to switch to less expensive brands.
A spokesman for Philip Morris USA, a unit of Altria Group Inc. (NYSE:MO - News), said the new versions of Chesterfield are premium-blend filtered cigarettes, while other versions of the brand were nonfiltered.
Campagnino said he thinks Philip Morris USA "is giving strong consideration to introducing a new brand" and that he believes the brand "would be priced at a discount to Basic," which is Philip Morris USA's main generic cigarette already on the market.
While there will be an introductory offer of 90 cents off per pack, the new Chesterfields will be sold at a premium price comparable to Philip Morris USA's top-selling Marlboro brand, the spokesman said.
Jun 04, 2003 4:11 pm Email to a Friend
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