Nisa is investing over £2m into price reductions on tobacco, claiming the decrease makes it “cheaper than a number of competitors”.
In a letter to retailers, seen by Better Retailing, Nisa said: “With the government recently introducing its biggest ever duty on tobacco, along with other market pressures, we’re making over £2m of further price investments into the tobacco category. We’re reducing the WSP of 321 lines, which will be live [on Tuesday 2nd May], making us cheaper than a number of our competitors.”
The reductions will be spread across over half of Nisa’s tobacco products, with an average reduction of 2%. The letter sent by Nisa states that items on lower price tiers are seeing higher reductions.
A spokesperson for Nisa told Better Retailing: “In order to mitigate the impact of the increase in tobacco duty rates, and to support our retailers at a time of rising costs, Nisa has announced a price investment in tobacco of over £2m. The investment will reduce the price of more than half of tobacco products, helping our retailers to remain competitive and support their margins. Following retailer feedback we’ve also made changes to a number of RSPs across the category to better align with the wider market and manufacturer recommendations.”
The letter also stated that Nisa is making reductions of around 4% on many of its milk products. It added: “The cost price decrease is based on Co-op’s contractual stance with the Co-op Dairy Group farmers, to pay a fair market price following a commodity price change. We will continue to work closely with Co-op and Muller to ensure we maintain a reasonable balance between paying the CDG farmers a fair price and market competitiveness.”
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