ITC raises Classic Connect and Gold Flake Super Star cigarette MRPs again
ITC has raised the MRP of Classic Connect 20-packs to ₹428 from ₹390 and Gold Flake Super Star 10-packs to ₹89 from ₹79, as revised-price stock enters stores following higher tobacco taxes.
What happened
ITC has again raised cigarette MRPs: Classic Connect 20-packs to ₹428 and Gold Flake Super Star 10-packs to ₹89. The increases follow February’s 40% GST and
Key facts
- Classic Connect 20-pack MRP: ₹428, up from ₹390 by ₹38 (9.74%)
- Gold Flake Super Star 10-pack MRP: ₹89, up from ₹79 by ₹10 (12.66%)
- GST rate on cigarettes/tobacco: 40% from February 1
- Classic Connect price previously rose from ₹300 to ₹360 and then ₹390
- Gold Flake Super Star previously rose from ₹59 to ₹70, then ₹79
Why this matters
The tax-led price reset could widen the competitive advantage of scaled, compliant cigarette manufacturers such as ITC while increasing pressure on smaller or value-focused rivals.
What to watch
- NielsenIQ or company-reported cigarette volume trends after revised-price inventory fully replaces old stock.
- Evidence of trade-down from Classic Connect and Gold Flake Super Star into lower-MRP ITC variants, smaller packs, bidis, or competing brands.
- Further government excise/GST changes, tobacco-control actions, or enforcement announcements targeting illicit cigarettes.
- Price revisions by Godfrey Phillips India, VST Industries, and other tobacco peers.
- Retailer feedback on old-stock depletion, consumer resistance at the ₹428 and ₹89 price points, and demand for credit or lower-priced packs.
- ITC is likely to extend revised MRPs to adjacent Classic and Gold Flake SKUs, using staggered price actions to manage consumer shock and retailer inventory transitions.
- Retailers may prioritize stocking higher-value premium packs while increasing availability of lower-price alternatives to capture downtrading demand.
- Competing cigarette brands are likely to review price points and pack architecture, particularly 10-stick packs, to preserve affordability gaps.
- ITC may lean more heavily on premiumization, distribution execution, and non-cigarette FMCG growth to offset any tobacco-volume moderation.
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