Tag: United States

Philip Morris USA’s cigarette shipment volume during the 12 months to the end of December, at 116,606 million, was down by 5.1 percent on that of the 12 months to the end of December 2016, 122,930 million.
Marlboro shipments were down by 5.1 percent to 99,974 million, while shipments of other premium brands were down by 6.5 percent to 5,967 million.
Discount brand shipments were down by 5.2 percent to 10,665 million.
PM USA’s share of the US retail cigarette market during the year to the end of December, at 50.7 percent, was down by 0.4 of a percentage point. Marlboro’s share was down by 0.4 of a percentage point to 43.3 percent, while that of the company’s other premium brands was down by 0.1 of a percentage point to 2.7 percent. The company’s discount-brands’ share was up by 0.1 of a percentage point to 4.7 percent.
In reporting its results yesterday, Altria said that PM USA’s reported domestic cigarettes shipment volume had decreased by 5.1 percent during 2017, primarily driven by the industry’s rate of decline, retail share declines, and one fewer shipping day. ‘When adjusted for calendar differences, PM USA’s domestic cigarettes shipment volume decreased by an estimated five percent,’ it said. ‘Total cigarette industry volumes declined by an estimated four percent.’
Middleton’s cigar shipments during the year to the end of December, at 1,542 million, were up by 9.9 percent on those of the year to the end of December 2016, 1,403 million.
Shipments of Black & Mild cigars were up by 10.7 percent to 1,527 million, while shipments of other brands were down by 37.5 percent to 15 million.
Meanwhile, USSTC’s smokeless product shipments (cans and packs) during the year to the end of December, at 841.3 million, were down by 1.4 percent on those of 2016, 853.5 million.
Copenhagen shipments were increased by 1.2 percent to 531.6 million, while Skoal shipments were down by 7.3 percent to 241.9 million.
Other-brand shipments were up by 0.4 percent to 67.8 million.
USSTC’s share of the retail market in smokeless tobacco was down by 1.0 percentage point to 53.7 percent. Copenhagen’s share was increased by 0.5 of a percentage point to 33.7 percent, while Skoal’s share was down by 1.4 percentage points to 16.7 percent. The share of the company’s other brands was down by 0.1 of a percentage point to 3.3 percent.
In presenting the results, Altria’s chairman, CEO and president said the company had had another “strong year in 2017”.
“We delivered outstanding financial performance and continued to focus on rewarding our shareholders – paying out $4.8 billion in dividends, increasing our dividend by 8.2 percent and repurchasing more than $2.9 billion in shares. Our 2017 total shareholder return of 9.4 percent follows four consecutive years of returns exceeding 20 percent. Over this five-year period, our total shareholder return of 181 percent outperformed both the S&P 500 and S&P Food, Beverage and Tobacco Index by more than 70 percent.
“That success was built on our core tobacco businesses, which delivered strong income growth and expanded their already high margins, despite a year with some unique challenges. Further, we acquired Nat Sherman to improve our smokeable segment’s position in the growing super-premium cigarette segment.
“We also accomplished several other important strategic initiatives for future success, including making significant progress toward our goal of becoming the US leader in authorized, non-combustible reduced-risk products.
“And the passage of federal tax reform strengthens our financial capability to further invest in our businesses and reward our shareholders. We thus are forecasting 2018 full-year adjusted diluted EPS growth in a range of 15 percent to 19 percent.”

The deaths of four squirrel monkeys used as subjects in a nicotine addiction study have prompted the US Food and Drug Administration to shut down the research permanently and to establish a council to oversee all animal studies under the agency’s purview, according to a story by Sheila Kaplanjan for the New York Times.
“It is clear the study was not consistent with the agency’s high animal welfare standards,” Dr. Scott Gottlieb, the FDA commissioner, said in a statement on Friday. “These findings indicate that FDA’s animal program may need to be strengthened in some important areas.”
Gottlieb has called in an independent investigator to examine the agency’s animal research programs, starting with those at the National Center for Toxicological Research, in Arkansas, where the squirrel monkeys were housed.
FDA researchers are continuing other primate studies, though Gottlieb said he wanted to reduce reliance on them.
The suspended study, begun in 2014, was designed to inform agency officials who have expanded oversight of tobacco products, regulation of e-cigarettes and alternative nicotine delivery devices.
The research was supposed to measure the effects of nicotine on addiction, mostly on young squirrel monkeys though it also included some adults.
The deaths drew the attention of many animal rights activists, including the celebrated primate expert Jane Goodall. In a September letter to Gottlieb, Dr. Goodall accused the researchers of performing cruel and unnecessary nicotine addiction experiments on the squirrel monkeys.
In September, the FDA suspended the studies and started investigating treatment of the animals. They found numerous deficiencies, although the agency has not released an inspection report with details.
Kaplan’s story is at https://www.nytimes.com/2018/01/26/health/fda-monkeys-nicotine.html?emc=edit_tnt_20180126&nlid=60534081&tntemail0=y.

The findings of a report into the public health effects of electronic-cigarette use in the U.S. are due to be discussed during a public webinar next week.
According to a National Academies News press note, millions of U.S. citizens use electronic nicotine delivery systems, which were described as a diverse group of devices such as ‘cigalikes’ and vape tank systems that produce an aerosol that users inhale via a mouthpiece.
“A new congressionally mandated report from the National Academies of Sciences, Engineering, and Medicine evaluates the available evidence of the short- and long-term health effects related to the use of e-cigarettes in users; vulnerable populations of users such as youth, pregnant women, and individuals with underlying medical conditions; and non-users exposed to second- and third-hand aerosol generated by use of these devices,” the note said.
The report is said to contain dozens of conclusions in areas such as smoking initiation and cessation; the health effects of using e-cigarettes compared to those of smoking combustible tobacco cigarettes; and the health effects related to cancer, cardiovascular disease, and respiratory and oral diseases.
The note said that members of the committee that conducted the study and wrote the report will present their findings and recommendations, and answer questions during a public webinar beginning at 11.00 Eastern Standard Time on Jan. 23.
To register for the webinar, click here.