EXCLUSIVE: JT to Raise Mevius Cigarette Price by 40 Yen

August 14, 2018

Tokyo- Japan Tobacco Inc. plans to raise the price of its mainstay Mevius cigarette brand by 40 yen per pack to 480 yen on Oct. 1, informed sources told Jiji Press on Tuesday.

The company is expected to file for Finance Ministry approval of the price increase as early as Tuesday. One pack contains 20 cigarettes.

The price hike will coincide with an increase of one yen per cigarette in Japan's tobacco tax. The tax increase is part of the government's plan to raise the levy in stages, by a total of 3 yen by October 2021.

JT also plans to raise prices for other cigarette brands, such as Seven Stars, by 20-40 yen per pack.

Furthermore, the company will increase the price of tobacco capsules for its Ploom Tech smokeless device by a similar margin, in the first price revision to the heat-not-burn tobacco product.

JT's move apparently reflects an estimated increase in costs due to a possible sales decline following the price increase as well as the tax hike.

Philip Morris Japan Ltd. has already filed for ministry approval of its plans to raise prices for its Marlboro cigarette brand and its iQOS heat-not-burn tobacco device.

British American Tobacco Japan Ltd. is also considering a price revision. Jiji Press