A combination of inflation and shifting smoking habits is making it more difficult for tobacco companies to offset declining cigarette volumes with higher prices, according to an article in The Wall Street Journal. Over the three months through September, U.S. cigarette sales fell 8 percent year-on—almost double the long-term average. Stronger against illicit vapes by the Food and Drug Administration could potentially stabilize cigarette volumes. In addition to competition from illicit vapes, premium brands such as Marlboro face additional pressures as inflation makes consumers more price sensitive. Despite the pressures, The Wall Street Journal believes it is unlikely that Altria will take dramatic actions.

Source: Wall Street Journal November 06, 2023 20:58 UTC