Altria looks to capture different tobacco consumers with new products

Currently many cigarette smokers are getting more interested in trying various tobacco products besides cigarettes, than previous generations of smokers, and Altria Group Inc, parent company of the largest cigarette maker, Philip Morris USA, is looking on their recently-launched products to lure customers who are open to new products, according to the company.

The corporation, best-known for marketing the iconic Marlboro cigarettes, as well supported its profit forecast, published in January.

Altria, which also markets Copehnagen and Scoal smoke-free tobacco products and Black & Mild cigars, has witnessed a change in tobacco consumption patterns in the USA. Whereas the rate of cigar and cigarette smokers has been virtually unchanged, the consumption of smokeless tobacco has been growing.
Nevertheless, Marlboro – with roughly 42 percent share of the U.S. cigarette market – remains the leading brand in the group’s portfolio.

At the same time, many smokers have admitted to be trying new “reduced-risk” tobacco products, like snus and other smoke-free tobacco, due to health growing concerns and social stigma.

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Experts forecast Marlboro, Philip Morris USA Q4 Performance

On the threshold of the annual financial report, presented by Altria Group, owner of Philip Morris USA, leading industry analysts forecast its performance during the fourth quarter of the year, basing on its Q3 results.

Since adult Americans reduce their expenses on tobacco products, due to growing taxes, and increasing social stigma on smoking, the largest cigarette maker in the United States reported drop in shipping volumes, but confirmed it still managed to obtain revenue growth through increase of organic cigarette prices during its earning conference pre-call.

Industry experts predicted that the company’s leading brand, Marlboro could retain its market share, thanks to the recently introduced Marlboro Leadership Price, though the brand has lost 1% of market share in the previous quarter, totaling 41.7% of the US cigarette market. In addition, the market share of its other key brands, including Parliament and Virginia Slims, went down as well.

The drops in Marlboro market share affected the overall number of cigarettes sold by the company during the quarter, which dropped by 9% to equal 33.3 billion cigarettes versus the same period a year before. Yet, Philip Morris USA’s discount cigarette brands, including L&M were up by 9.5%.

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Imperial Tobacco Reports Lower Profits for Q1

Highlights of Imperial Tobacco Profit Report:

• Revenues during the quarter from October to December 2011 were down by 1 percent
• Cigarette equivalent sales volumes dropped 7 percent
• Overall financial performance considered in line with the company’s expectations

Imperial Tobacco, Bristol-based, fourth-leading tobacco company in the world, published its profit report for the first quarter of the financial, reporting sales were down by 1 percent during the three months from October to December, due to difficult economic situation in Spain, sanctions in Syria and de-stocking in the USA and Ukraine.

The British tobacco corporation, which markets such brands as Davidoff, West, Gauloises Blondes, JPS, Lambert & Butler, Classic, Gitanes, Prima and others, stated last week that if eliminating the influence of the latter four markets, total sales grew 3 percent during the quarter.

Imperial Tobacco admitted the cigarette equivalent volumes, among which are fine cut tobacco brands, like Golden Virginia, dropped by 7 percent, whereas the underlying picture showed volumes decrease of 1 percent.

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