ITC raises Classic Connect and Gold Flake Superstar cigarette prices
ITC has increased prices for Classic Connect and Gold Flake Superstar as it gradually passes higher tobacco taxes to consumers. The company says it has passed on 50–60% of recent tax hikes so far, using staggered increases to help protect volumes and curb migration to illicit cigarettes.
What happened
ITC raised prices of Classic Connect and Gold Flake Superstar cigarettes as it gradually passes through higher tobacco taxes. The company is staggering
Key facts
- Classic Connect 20-cigarette pack: ₹428, up from ₹390 (+₹38)
- Gold Flake Superstar 10-cigarette pack: ₹89, up from ₹79 (+₹10)
- ITC said 50–60% of recent cigarette tax hikes had been passed on
- Additional excise duty: ₹2,050–₹8,500 per 1,000 sticks
- GST: up to 40%
- ITC shares closed at ₹264.75, up 2.62% (₹6.75)
Why this matters
Higher regulated tobacco pricing reinforces the value of scale, premium-brand portfolios and compliance capabilities in a market where illicit-cigarette competition is a growing risk.
What to watch
- Retail offtake and market-share trends for Classic Connect and Gold Flake Superstar over the next 1-2 quarters.
- Whether competitors match price increases, preserving category-wide price discipline.
- Evidence of shifts toward 10-stick packs, lower-priced brands, bidis, or illicit cigarettes.
- Further tobacco-tax, GST compensation cess, or excise-duty announcements.
- ITC cigarette volume growth, net realization growth, and segment-margin commentary in quarterly results.
- Use selective, brand- and geography-specific price increases rather than a broad immediate hike across the cigarette portfolio.
- Increase premiumization through product mix, pack architecture, and targeted distribution for higher-realization brands.
- Hold or limit price actions in value-sensitive segments to prevent downtrading and illicit-market leakage.
- Emphasize tax-stability advocacy ahead of future Union Budget and GST-related policy decisions.