How Has Altria’s Retail Share In Smokable Products And Smokeless Products Changed Over The Last Year?
Altria’s retail market share for cigarettes increased, primarily driven by gains made by Marlboro and L&M, in Discount. Tobacco companies have come to accept that cigarette volumes will decline in the U.S. and therefore they increase the prices periodically to make up for the falling volumes. This price rise negatively affects the premium brands, which suffered a fall in market share. Effective May 17, 2015, Altria increased the list price on all of its cigarette brands by $0.07 per pack. And again effective November 15, 2015, Altria increased the list price on all of its cigarette brands by $0.07 per pack. In the machine-made large cigars category, while Black & Mild’s retail share for 2015 declined 1.0 share point, Black & Mild gained retail share in the more profitable tipped cigars segment.
While Copenhagen’s retail share increased 0.9 share points, Skoal’s retail share declined by 0.6 share points and the total smokeless products retail share declined by 0.1 share point to 54.9%. USSTC and smokeless tobacco products of PM USA face competition for market share from American Snuff and Swedish Match, which also occupy a significant volume shares of ~30% and ~15%. They are also coming up with new product launches to benefit from the strong growth. Between 2012 and 2015, Altria has resorted to bi-annual price hikes that have ranged between $0.07 and $0.05. Effective May 5, 2015, USSTC increased the list price on all its brands by $0.07 per can. However, in December 2015, USSTC increased the list price on Copenhagen and Skoal popular price products by $0.12 per can. In addition, USSTC increased the list price on all other brands by $0.07 per can.
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Notes:
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
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