Altria Group

Tobacco industry adapts to world of fewer smokers

Source: The Tennessean Author: Anita Wadhwani By any name or variety you choose — call it snuff, dip, chew or plug — smokeless tobacco is making a comeback, and Tennessee farmers, factory workers and consumers are playing a major role in the renewed buzz. Farmers here and in Kentucky who once made a good living off raising burley tobacco for cigarettes have had to eliminate 40 percent of acreage devoted to that crop as demand has declined, while farmers who cultivate the dark tobacco used for chewing have been able to expand their fields by 22 percent in three years. Now, the massive marketing muscle of the nation's biggest tobacco companies — Altria Group and its subsidiary Philip Morris USA, which owns the 100-year-old U.S. Smokeless Tobacco Co. factory within view of the state Capitol, and R.J. Reynolds, which runs its smokeless operations out of a Memphis factory — are battling for market dominance. Together, the two manufacturers already control 90 percent of the American smokeless tobacco sector with brands such as U.S. Smokeless' Skoal and R.J. Reynolds' Kodiak. They're competing with new fruit- and mint-flavored products (some packaged to look like miniature cigarette packs) to attract a new generation of consumers and entice ex-smokers looking for nicotine- infused alternatives. Former cigarette smokers like Dave Kenner, 31, a construction worker making a pit stop at a West Nashville convenience store last week, said he switched to Red Seal Wintergreen smokeless because heavily taxed cigarettes cost too much — nearly $300 [...]

Charlotte Parker2011-02-04T12:24:02-07:00February, 2011|Oral Cancer News|

Smokeless tobacco picking up steam — Products growing in popularity as smokers turn to cheaper and less obtrusive alternatives

Source: Los Angeles Times By: Julie Wernau Ron Carroll prefers to smoke cigars and pipes. But when he can't do that he says he manages to unobtrusively get his nicotine fix by slipping a packet of tobacco, about the size of a teabag, under his upper lip. "I use it all the time — movies, planes," said the Chicagoan, who adds that he likes the fact he can remove the packet as easily as a piece of gum. There's no chewing, spitting or mess, he says. "It's discreet, and you don't look like an addict, he said. "Smoking's definitely more about the flavor; the whole experience,'' Carroll said. "With this, it's just taking the edge off." Cigarette sales by volume have plummeted 17 percent from 2005, partly the result of health warnings and bans on smoking in public places as well as taxation by local and federal governments. And the heat on cigarette smokers is expected to intensify as the federal Food and Drug Administration requires images of corpses and diseased lungs to be featured on cigarette packs in two years. Smokeless tobacco products — which come in shapes ranging from toothpicks to orbs and in flavors from cherry to peach — so far have not met with the same intense scrutiny, although there have been some changes. In June, the FDA increased the size of warning labels on smokeless products. "This product is addictive" and "This product is not a safe alternative to cigarettes,'' say the warnings. Scientists say [...]

Oral Cancer Foundation News Team - A2010-12-07T12:42:38-07:00December, 2010|Oral Cancer News|

On the Call: Altria Group CEO Michael Szymanczyk

Source: Business Week Richmond, VA Like other tobacco companies, Altria Group Inc. is focusing on cigarette alternatives such as cigars, snuff and chewing tobacco for sales growth as tax increases, smoking bans, health concerns and social stigma make the cigarette business tougher. The smokeless tobacco category is growing at about 7 percent a year, but still remains small compared with cigarettes. The parent company of the nation's biggest cigarette maker, Philip Morris USA, said Wednesday that volumes for its smokeless tobacco segment, which includes Copenhagen and Skoal, as well as Marlboro Snus, grew 16.4 percent in the third quarter and revenues excluding excise taxes increased about 11 percent to $363 million. In a conference call with analysts regarding Altria's third-quarter earnings, CEO Michael E. Szymanczyk talked about the company working with retailers to better align their shelf space with changes in the tobacco industry. QUESTION: Is the investment to help retailers reallocate their space and improve their display units for smokeless products meaningful to call out? RESPONSE: This is a category that has grown pretty substantially here over the last few years, but in retail stores, there hasn't been any significant movement in the space. At the same time, the cigarette category has declined in volume. And while inventories have come down in the cigarette business, the actual physical space devoted to cigarettes hasn't meaningfully changed. There's a good opportunity to play catch-up here. ... We're helping retailers redistribute their space so it's more consistent with their sales, and that [...]

Oral Cancer Foundation News Team - A2010-10-21T12:27:20-07:00October, 2010|Oral Cancer News|