Navy Cut, Gold Flake price hike may hit ITC's sales

The decision by ITC to increase the retail prices of its two best-selling brands – Navy Cut and Gold Flake – by 14% could dent sales in the near term as smokers might switch over to other brands. This comes at a time when cigarette sales are already aggravated by demonetisation. 

According to cigarette retailers across the country, sales of these two brands have declined 20-30% after the price hike but uncertainty over future sales volume looms in the era of demonetisation. 

“Cigarette sales normally fall in the first fortnight after a price hike is announced and then returns to