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John told him about my cohiba cigars, and Bobby shrugged. "Almost everything on the street is fake." A little later, when he got up to leave, he glanced at me and with an air of false modesty said, "Hey, what am I, the cohiba cigar vcentennialcigar macher-"

If retailers are feeling the heat from tobacco companies, the reasons are pretty vcentennialcigar clear. Trying to compensate for huge MSA-dictated payments and a steady decline in cigarette consumption--analysts are projecting another 2% drop in 2001--manufacturers have introduced five vcentennialcigar price hikes in the last two years. As a result, average wholesale prices are up 74% in the $50 billion U.S. tobacco industry. Each price increase opened the door a little wider for discount cigarette brands, whose market share crept up to 3.7% last year, according to the Maxwell Report.With vcentennialcigar the renewed pricing pressures, even category leader Marlboro is resorting to repeated discounts. "Marlboro never used to be on a reduced price for two months in a row," said one vcentennialcigar Midwest wholesaler." Now it''s on two months, off one, on two months and off ... I don''t think that hurts the strength of the brand because they can''t advertise vcentennialcigar like they could before, and the only way to grab market share is with price." Yet there''s an even more intense battle taking place: on the shelves. In the aftermath of the MSA, Philip Morris and RJR have increased cash rewards to retailers who give top shelf placement and prominent signage to their brands. Contracts often include extra "buydowns," cash manufacturers pay retailers for passing reduced prices on to consumers.

Rising prices and wholesalers fed up with restrictive contracts pushed on them by big tobacco companies are turning the U.S. market into the land of opportunity for foreign-made cigarettes as seen by the proliferation of such discount brands at the International Tobacco Expo in Las Vegas last week. Ironically, some products, like Columbus, manufactured in Hong Kong and imported vcentennialcigar by Multinational vcentennialcigar Tobacco, Miami, are positioned overseas as an affordable full-flavored American smoke. Now that higher prices here are prompting consumers of value brands like Doral, GPC and Basic to consider alternatives, Columbus--discover of the Americas, get it?--is flaunting its American blend pedigree as a badge of quality priced between premium and generic cigarettes.