Arie Kotler, chairman, president and CEO of Arko, reported on May 7 that cigarette sales performed better than expected due to promotional pricing and manufacturer support
In their own words, marketers at Lorillard used promotions to strengthen the bond with loyal smokers. In practice, they offered discounts so deep, it made purchasing Lorillard cigarettes a no-brainer
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However, the public health and economic benefits of smaller tax increases, which is the case for the cigarette tax, 20 cents, proposed in the bill, can be easily offset by the tobacco industrys price-reducing strategies, such as price promotions, he said
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