Big tobacco needs more profits; so get ready for the next price increase.

Hello! Dawn again and there is not a single day that I am not thankful that I made the switch away from burning tobacco. I mean what’s not to like? I get to keep my nicotine, but ditch the stink, the tar, the nasty ash and the burning of chemicals that is associated with burning tobacco.

Some days however, I am happier about switching than others, and today is one of those days.  But I am getting ahead of myself here.

Let me start at the beginning……

When I started smoking I could by a pack of cigarettes for around $1/ pack. In fact, I remember how every time prices raised, fellow smokers would start saying things like “When the price gets to $2.00 a pack I am going to quit.” Then prices would raise again and most of the people who had said they were going to quit….didn’t.

At some point though, after years of price hike after price hike, cigarettes were priced at about $4.50 a pack.  This time the people who were saying “I am going to quit if the price gets to $5.00 a pack, and I mean it this time!” said it with more conviction. Now, not all smokers who felt this way, quit smoking, but a TON of people tried to and a few even succeeded. I was not one of them.

smokers deserve
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No, I kept smoking regardless of price. I like my nicotine, and never wanted to give it up. I wanted to quit smoking for a long time I just never wanted to give up my nicotine. Quitting was the only way to get rid of burning tobacco. That was the only option that I had, although for me it was not really an option. I tried all the FDA aids, I even watched as a few of my smoker friends were successful on the same aids that I had failed with.

Updating my nicotine delivery system from burning tobacco to an electronic cigarette made a huge difference and now when prices of burning tobacco get another increase, it does not matter to me at all. See I am no longer depended on their out dated nicotine delivery methods so their constant price hikes do not affect me.

And that brings us to today.

Why am I extra happy to have made the switch? Because, burning tobacco prices are going up again. Yep, Reynolds American has announced an .8 cents a pack increase at the wholesale level, which will translate to about .10 cents a pack at the retail level.

Okay, but it’s only a dime, right?

What if I told you it’s been about a dime nearly every quarter since 2014? At four quarters a year, those dimes really start to add up. And these raises in price have nothing to do with state tobacco taxes. No these are price raises meant to bring direct profits to the tobacco companies.  To make matters worse when Reynolds raises prices, all the other big tobacco companies follow suit. It’s just how they roll… that I mean it’s how they roll in the profits.

What’s even worse is these price hikes are directly linked to the following quote: (Click here to read entire article. )

“Reynolds American (NYSE:RAI) last announced its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 earnings per share for the quarter, missing the consensus estimate of $0.61 by $0.03. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. The company had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.26 billion.”

That’s a lot of words just to say that they had wanted to make .61 cents per pack but were .3 cents short on that. So instead of $3.26 BILLION in profit they only pocketed $3.20 BILLION. Sorry if I have a hard time feeling bad for them.

I am also not sorry I made the switch over 3 years ago. That means 3 years of not being a slave to big tobacco’s need to make grotesque profits on my misery.

So when I say I am always thankful I switched to A Clean Cigarette, but I am even more thankful on days like today. You can understand why. If you would like more information on A Clean Cigarette brand electronic cigarettes just visit or any of our brick and mortar locations.


One thought on “Big tobacco needs more profits; so get ready for the next price increase.”

  1. Great article, Dawn. Clicking on the link was a real eye opener. It makes me ANGRY that an industry is allowed to turn people into addicts and then keep raising prices.
    Profit is their Prophet!

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