Altria’s Earnings Rely On Growth In Smokeless Products

Contrary to the cigarettes market, smokeless products’ volume in the U.S. has been growing over the last couple of years. A large portion of the consumer base for these products consists of smokers who are switching with the belief that it is a less harmful alternative to cigarette smoking. Smokeless products are also subject to far lower excise duties compared to cigarettes, leading to cheaper prices. The market size for smokeless products in the U.S. was around 1.33 billion packs/cans in 2011.
Altria’s smokeless products segment’s 2012 third-quarter and nine-month net revenues increased 2.6% and 2.8%, respectively, primarily due to higher pricing and higher volume, which partially offset by unfavorable mix due to growth of lower priced products.

How cigarette design can affect youth initiation into smoking: Camel cigarettes

Data extraction: A web based index search of documents targeting "smoothness" or "harshness" and "younger adult smokers" ("YAS") or "first usual brand younger adult smokers" ("FUBYAS") in the 10 year period surrounding the introduction of the "Smooth Character" campaign was used to identify Camel related product design research projects. A snowball methodology was used: initial documents were identified by focusing on key words, codes, researchers, committees, meetings, and gaps in overall chronology; a second set of documents was culled from these initial documents, and so on. 

Data synthesis: Product design research led to the introduction of redesigned Camel cigarettes targeted to younger adult males coinciding with the "Smooth Character" campaign. Further refinements in Camel cigarettes during the following five year period continued to emphasise the smoothness of the cigarette, utilising additives and blends which reduced throat irritation but increased or retained nicotine impact. 

Conclusions: Industry competition for market share among younger adult smokers may have contributed to the reversal of a decline in youth smoking rates during the late 1980s through development of products which were more appealing to youth smokers and which aided in initiation by reducing harshness and irritation.

Reynolds has a ball in NC

This week, North Carolina Gov. Pat McCrory is ringing in the new Republican administration with a series of events including a Gala Presentation and Inaugural Ball -- events that share a common sponsor: tobacco giant Reynolds American.
Winston-Salem, N.C.-based Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Co., as well as three other tobacco-related companies, and it is a longtime powerhouse in North Carolina politics.
In 2012, Reynolds continued to flex its political muscle, with the company and its people using a variety of avenues to help McCrory and other Republicans.

No Proof Electronic Cigarettes Combat Addiction

Selvaggia Gurrieri bought her electronic cigarette nearly two months ago and says it has helped her cut down on cigarettes. "I use it in places where I cannot smoke like in restaurants and at the movies and it has helped me cut down on the amount of cigarettes I smoke." However she now "smokes" in bed too, her non-smoking partner, added.
Another Roman, Marco Guerrieri, bought his first electronic cigarette three months ago and says he has already recouped the $100 approximate cost he spent on it as he has gone from smoking about 20 cigarettes to only five a day. "I don't know if it has really become a fashion yet but people know what it is now. I use it at the movies, at restaurants, in the airports and on planes...and nobody has once stopped me mistaking the vapor for smoke."
'I gave my girlfriend's father one for Christmas but he tried it for a day and gave it up. It was too complicated for him and too hard for him to switch now from the traditional cigarette."
Ray Story, CEO of The Tobacco Vapor Electronic Cigarette Association, said there was no proof e-cigarettes had ever harmed anyone and that attacks on e-cigarettes were more about protecting revenues than public health, according to ABCNews.com.
"In Italy, tobacco is sold through government stores. That old Mafioso-type environment protects its own," he said.
Story said e-cigarettes don't claim to help people quit smoking.
"Yes, nicotine is addictive, like caffeine and sugar. We're not in the non-addictive business. We cater to someone who is already a smoker. Starbucks sells coffee; Coca-Cola sells cola. Both have caffeine. But e-cigarettes deliver nicotine in the cleanest way," he said.
Regarding the Health Ministry's recommendation that electric cigarettes not be given to young people, Story said: "Not giving them to young people is common sense. … We have age verification on our products."
He scoffed at the concern that the use of this gadget could lead young people to graduate from these devices to smoking real cigarettes. "Yeah, and virgin daiquiris make people alcoholics. It's absolutely inaccurate; there's no proof," Story said.