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Altria Group Inc. chief executive Louis
Camilleri extended a discount of 65 cents a pack in the third quarter for its
top-selling Marlboro cigarettes because of smokers such as Richard Snowden. The
grocery stocker switched two months ago to discount brand Cherokee, which cost
almost 60 percent less. cheap cigarettes
"Marlboro got too expensive for me," Snowden, 46, said as he left
Charlie's Tobacco Outlet in Greensboro, N.C.
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Altria's Philip Morris USA unit, the biggest U.S. tobacco company,
began offering the discounts last year after raising prices to fund a 1998 legal
settlement with U.S. states. The discounts probably contributed to a decline in
third-quarter profit to $1.21 a share from $4.36 billion, or $2.06, last year,
according to analysts surveyed by Thomson Financial. cigarettes
Altria's net income in the year-ago quarter was bolstered by the sale of
Miller Brewing Co. The company also is the majority owner of Kraft Foods Inc.,
the largest U.S. food company. Kraft said after the close of trading that its
profit fell 6.8 percent after cutting prices and spending more on marketing.
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Lower-priced cigarettes such as Commonwealth Brands Inc.'s USA Gold have
grown to more than 10 percent of the U.S. market since 1999 as the biggest
producers started raising prices to pay the $246 billion settlement with U.S.
states that have earmarked some of the money for smoking prevention and shifting
tobacco farmers to different crops.
marlboro cigarettes
Philip Morris
and other big manufacturers including R.J. Reynolds Tobacco Holdings Inc. last
raised prices in April 2002.
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