PMFTC wants Marlboro registered in low price category as production volume drops 

Philip Morris Fortune Tobacco Corp. has asked the Bureau of Internal Revenue to allow Marlboro cigarettes to enter the low-price category market to address a drop in production volume as consumers switch to more affordable brands.

 

“It is critical for our company that we secure the approval of the (BIR) for our request to register Marlboro Original, Marlboro Gold Lights, Marlboro Menthol, and Marlboro Black Menthol” in the low price category, PMFTC president Paul Riley said in a letter to BIR assistant commissioner Alfredo Masajon, head of the Large Taxpayers Service.

 

Riley said production volume has dropped from to 68 billion this year against 92 billion sticks in 2012. If left unaddressed, production in 2014 could reach just 48 million, he said in his letter.

 

“To prevent this dire development, the company is willing to significantly cut its margins by introducing new Marlboro products with Net Retail Selling Prices (NRSPs) of below P11.50/pack. The company is hoping to get an additional volume of 8.9 billion sticks in 2014 which, in turn, can help the BIR collect more revenues from cigarettes,” Riley said.

 

Riley said, though, that PMFTC will still keep its original Marlboro products in the premium category. Neither will flagship brand Philip Morris be introduced in the low price category. — JDS, GMA News