Diplomatic supplier raises tobacco prices

Emily Pacey

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The diplomatic tobacco crisis eases as International Diplomatic Supplies raises its prices

UK-based diplomatic supplier International Diplomatic Supplies will raise tobacco prices from February. The move could be the first step in ending a fierce price war that has engulfed the European diplomatic supply industry over the past three years. Heavy price competition between suppliers has slashed profit margins and caused tobacco retail prices to dip almost to cost price.

International Diplomatic Supplies managing director Patrick Doyle told RavenFox.com: “Prices will go up by about £2 ($3.93) per 200-stick carton in the next promotion we launch. And it will probably stick at that. A box of 200 Marlboro cigarettes will cost about £8.95 ($17.58) after the rise. The prices will be much more sensible than they are now.”

He added that he would like to be able to sell 200 sticks for about £12 ($23.57). “This price would be ideal. Cartons of 200 cigarettes cost about £20  ($39.30) in airports, but since we don’t have the overheads of an airport retailer, £12 would be fine.”

Industry sources indicate that other retailers are also planning to raise tobacco prices. Doyle commented: “We decided to raise tobacco prices at a board meeting, completely independently of anyone else. Of course, it would be ideal if other suppliers also raised their prices.”

See DFNI February 15 for a full report.