So says Philip Morris, aka Altria, aka one of the world’s largest tobacco companies.
Michelle Leder of footnoted.org has the scoop, which she found by perusing a 74-page company slideshow filed with the SEC. From footnoted:
the company’s CFO noted that because it was raising prices on cigarettes in dozens of countries it was actually helping various governments. Here’s how Philip Morris describes it in one of the slides: “Higher cigarette retail prices are boosting government revenues.”
And if you want examples of these price hikes:
Just look at slide #13, which showed the price of a pack of Marlboros in the Ukraine climbing a whopping 78% since January 2008. Slide #12 shows how taxes have also increased dramatically in the Ukraine, rising more than four-fold since Jan. 2008. Despite these sharp price hikes, slide #14 shows that a pack of Marlboros is still cheaper than many other things that consumers might buy in the Ukraine, including a movie ticket, a bottle of Budweiser, a Big Mac, and Colgate toothpaste. Milk, bread, Coke and beer are cheaper than a pack of Marlboros, the slide shows.
Philip Morris – and the tobacco industry as a whole – is once again on the defensive (or PR offensive, as you like). Earlier this month, the US senate approved legislation that would introduce European-style restrictions on advertising and prominent health warnings on cigarette packets.
The legislation, which was signed into law by President Barack “sometime smoker” Obama last week, will also ban flavoured cigarettes and the use of tobacco-product logos and brand names in sponsoring athletic and entertainment events.
Related links:
Smoking is a class issue – Guardian UK
The other smoking ban – FT Weekend
“Smoking kills five million a year”. What does this mean? – Willem Buiter