CIGARETTE WAR

Stratford Evening Post, Volume II, Issue 221, 15 April 1933, Page 7

CIGARETTE WAR

America Cuts Prices Another cigarette "price war" is in progress in the United States. Four of the most popular brands are selling for 5d a packet of 21) compared with the previous price of 7jUl, or two packets for Is. The reduction in the wholesale price made recently by the four leading manufacturing companies is said to be due to the inroads made by "depression brands" —cigarettes which for two years past have been selling at 5d a packet. It is reported that the sellers of these have obtained 20 per cent, of the trade held by their big competitors. Many smokers are now rolling their own cigarettes .and it is estimated thai 40,000,000.000 home-made cigarettes were consumed last year. The "Big Four" tur-s out 50.000,000.000 cigarettes a jYar, and »tno present drop in wholesale prices is expected to cost them £10,000.000. This is the second reduction this year .the first costing the companies £10.000,000. Retailers can make only 3-10ths of Id profit on a packet selling at sd. o