Altria Group Inc.’s customers are increasingly lighting up discount cigarettes as an adjustment to cope with inflation.
(Bloomberg) — Altria Group Inc.’s customers are increasingly lighting up discount cigarettes as an adjustment to cope with inflation.
The Marlboro parent said in its most recent earnings report that volume declines and share growth in cheaper brands were due to several quarters of high inflation.
“We believe some smokers are trading down as a result of the adverse financial conditions,” Chief Financial Officer Sal Mancuso said during the analyst call.
During the pandemic, the company saw “added nicotine occasions” develop, Chief Executive Officer Billy Gifford said. Consumers are smoking less as activity goes back to normal, he said.
“As we came out of the Covid pandemic and you saw mobility increase, you would expect some of those nicotine occasions to come back out of their day,” Gifford said on the call.
Altria expects Marlboro to continue growing in the premium segment over the long term. Gifford said the company is also growing its business in vapes and electronic nicotine products through brands such as NJoy.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.