Markets Wired

The amount spent on cigarette advertising and promotion by the largest cigarette companies in the United States rose from $8.05 billion in 2010 to $8.37 billion in 2011, due mainly to an increase in spending on price discounts, or discounts paid to cigarette retailers or wholesalers in order to reduce the price of cigarettes to consumers.  Spending on price discounts increased from $6.49 billion in 2010 to $7.00 billion in in 2011.  The price discounts category was the largest one in 2011, as it has been each year since 2002. 

The number of cigarettes sold to wholesalers and retailers in the United States declined from 281.6 billion in 2010 to 273.6 billion in 2011. 

The Commission has issued the Cigarette Report periodically since 1967, and the Smokeless Tobacco Report periodically since 1987.

According to the Smokeless Tobacco Report,

• Spending on advertising and promotion by the major manufacturers of smokeless tobacco products in the United States rose from $444.2 million in 2010 to $451.7 million in 2011, with price discounts making up the largest spending category and accounting for $168.8 million.
• The dollar value of sales by these manufacturers rose from $2.78 billion in 2010 to $2.94 billion in 2011.
• The weight of smokeless tobacco sold rose from 120.5 million pounds in 2010 to 122.7 million pounds in 2011.

To read the full reports, click on Federal Trade Commission Cigarette Report for 2011, and Federal Trade Commission Smokeless Tobacco Report for 2011.

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