With Imperial (Players), there has been a similar train of thought regarding adding extra to the 50cent Budget retail price.
For almost all of their 20’s range an additional 5cent has been applied to the packs but there has not been any improvement to the retailer’s cash margin.
Improvements have been made to the Big Box cash margins. The additional increases to the retail price are greater than the 2.5cent per stick that a 50cent increase would compute.
27x 2.5 is 67.5 but the actual increase was 80 cent a 35 pack should realise 87.5 cent but the actual increase is €1.00, for which the retailer’s margin was increased by 1 cent.
We must sincerely hope that ALL tobacco companies will introduce MPI’s early in the New Year to provide a restoration of the trade margins and in so doing, improve the profits earned from selling their brands at their prices in our stores.
