Packaging and Pricing
PROJECTED RETAIL PRICES; 10'S, 20'S, 22'S 30'S
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MEMORANDUM
- CONFIDENTIAL -
TO: MESSRS. F. J. SCHULTZ
B. VILA
FROM: R. E. SMITH
July 21, 1976
RE: PROJECTED RETA=PRICES; 10's, 20's, 22's 30's
--------------------------------------------------------------------
As general background,consumers would:pay the following amounts
for these packings:
20's 10's 22's 30's
U.S. Average 484~ 274", 54G 574~
High 581~ 344, 63(~ 71,~
Low 36 20 38 39
MRD-developed state-by-state projections are shown in the attach-
ment. The 20's projections come from The Tax Burden on Tobacco,
1975. Projected 10'pack prices were calculated by taking 56% of
manufacturer/distributor costs on 20's (Lorillard's premium for
producing 10's), and ad'ding, applicable taxes. Retail prices for
22's and 3'0'"s were projected by (arbitrarily) adding 10% to the
manufacturer/distributor per pack costs of 20's and adding appli-
cable taxes.
Please let me know if you have any questions.
RES/j f
attachment
R. E. S.
cc:
W. Doyle O
~
M. Kayiatos Q;
0
PROJECTF.O Rt"TA7L PRICEI. 10, 20 22, & 30 PAC14S'.
STATE
Alaska
Alabama
Ari'xonaArkansas
California
Colorado
Connecticut
~ Delaware
D.C.
Florida
Georgia
~ Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
~ Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
~ Tennessee
~ r r Texas
Utah
~ Vermont
:~ Virginia
1. Washington
West Virginia
~ Wisconsin
Wyoming,
Median Average
A11 States****
1
WEIGlITED. AVEltAGE PR'3CE7NCLUDINC Af.L TP..`Cf:S,
110, y 20's 22,y 30"s
.26~ .483' .523 .555
.315 .504 .602 .622i
.332 .491 .647, .647'
.276 .509 .552 .623
.264 .483 .520, .560
.245 .448 .485 .525
.315 .576 .626 .710
.272 .501 .599 .599
.312 .478 .609 .609
.308 .599 .604' .672
.233 .479 .516 .516,
***. .425 **r :*.
.264 .484! .522 .570
.213 .387 .417 .441
.265 .478 .516 .568
.301i .466 *** ***
.215 .360 .398 .398
.264 .481 .519 .563
.270, .499~ .541 .605
.252 .461 .537 .537
.314 .574 .623 .707
.267 .479 .512 .561
.281 .521 .567 .639
.258 .464 .500, .544
.250 .447 .483 .519
.306 .453 .598 .598
.319 .468 .623 .623
.295 .449 .575 .575
.239 .439 .523 .523:
.294 .536 .658 .658'
.270 .495 .583 .583'
.340 .542 .646 .646
.199 .358 .384 .392
.255 .459 *** ***
.268 .485 .586 .586
.257 .464 .554 .554
.237 .424 .458 .494
.282 .523 .567 .639
.282 .522 .566 .638
.226 .410 .441 .465
.245 .450 **'. ***
*** .483 .521 .573
.295 .533 .579 .653
.238 .434 .467 .499
.257 .471 .510 .558
.218 .379: .406 .417
.287 .530 .572 .636
.264 .484 .570 .570
.278 .513 :554 .618
.234' .426 .461 .493
.273' .481 .536 .573
Note: 1. 20's retail prices fromTtie Tax,Burden on Tobacco.
1975. Table 13.
2. 10's prices calculated by deducting,al!1 taxes from,
20's, taking 56% of' this amount (Lorililard's cost to
manuFacture)' and adding all taxes.
3. 22's & 30's retail price calculated by deducting
all taxes from 20's, increasing manufacturer/distributor
costs byL0% and adding all taxes.
~'* Packing not allowed.
U.S. average calculated by weighting,state prices by, volume;
Tobacco Tax Council',, 7/75-2/7G data.
7/21/76
