Wednesday, November 27, 2013

Popular cigarette manufacturers ITC and Godfrey Phillips have launched a smaller price packs to revitalize the market after sales plunged more than 30% during April-September due to sharp increase in prices.
ITC, which has over 70% market share approximately Rs 35,000-crore Indian cigarette market, has launched shorter-stick variants of its popular brands such as Gold Flake and Navy Cut nationally, over the last six months after test-marketing such products in select states. The company has launched variants in both the sub-65 mm length, which attracts lower taxes, as well as 69 mm sticks, as compared to the usual 74-84 mm length. 

Godfrey Phillips, maker of brands such as Four Square and Red & White, too is taking a similar route as cigarette sales have stated falling volumes. Cigarette prices have gone up by up to 30% in the last six months due to increase in taxes. (Courtesy: ET).