JTI have increased the RRP by 25p across their premium range including B&H Gold, Camel Blue, Club King Size, Silk Cut Purple, Silk Cut Silver and Silk Cut Choice.

The RRP increase takes the cost of all 20 packs affected from £10.25 to £10.50. All other brands by JTI are unaffected. The increased RRP is live from July 24 onwards.

The RRP increase coincides with increased prices at a wholesale level, though some wholesalers are holding off on increasing their prices until they have cleared their existing stock.

Following the death of PMP caused by TPD2 and plain packaging legislation, Retail Express’ research shows 50% of retailers have moved away from selling at RRP. Of those selling above RRP, the average increase was 19p above.

Some retailers feel the increased prices are an attempt by JTI to bring retailers back to RRP. Karim Mawji from Young’s Newsagents near Ruislip commented: “They have seen retailers premium pricing, and they want that cake for themselves. Look back to how 10s were such a premium to 20s compared to some years ago. Their increase makes it harder for us to sustain a premium for ourselves.”

The confidential document sent to retailers doesn’t explain the reason for the increase but states: “We wish to advise you that we are increasing the recommended retail prices on the selected premium cigarette brands.”

While tobacco manufacturers urge retailers to sell at RRP, the document states: “You are of course at all times free to sell JTI’s products at whatever price you choose.” Both JTI and Imperial have stepped up their retailer incentive schemes which provide money back for retailers who stick to RRP.

Retail Express approached JTI for comment and is awaiting their response.