The price cut comes less than a month after the company raised its prices in Israel, Globes reports.
One month after Philip Morris notified retailers that it was raising the prices of its cigarettes and rolling tobacco, the company has reversed its decision.
The result will be a cut in tobacco prices. Marlboro rolling tobacco will cost NIS 7 less, after the price rose by NIS 2 a month ago. ML and Next cigarettes will cost NIS 1 less (the price was not raised in the previous list), while the price of L&M Loft will now fall by NIS 2, after being raised by NIS 1 a month ago.
Early this month, retailers were notified that prices of the company's cigarettes would be increased immediately. Philip Morris cited "commercial considerations," which is also the explanation provided for the current price cuts after such a short time: "Lowering the prices of some of the brands was due to the company's commercial considerations."
The current price of a pack of Marlboro Gold and Marlboro Red cigarettes is NIS 35-36 (according to the MySupermarket website), and a packet of 10 packs costs NIS 350. A pack of Parliament cigarettes costs NIS 38.50, as of now, and Next rolling tobacco costs NIS 42.50.
Philip Morris owns 58% of tobacco brands activity in Israel, followed by Globrands with 31.5%, and Dubek with 10.4%. As of 2017, the market in Israel was estimated at 5.8 billion cigarettes ("sticks").
The rolling tobacco market (a category that has been gaining ground) presents a different picture. Dubek has a 39% share of this market, followed by Philip Morris (33%) and Globrands (27.5%). The market was estimated at 760 tons as of 2017.
Revenue from the excise tax on cigarettes totals NIS 6 billion a year. Over 80% of the prices of cigarettes consists of taxes paid to the state: 65.5% excise tax and 17% VAT.
Advertisements of tobacco products and cigarettes were banned last December.