Markets Wired

The amount spent on cigarette advertising and promotion by the five largest cigarette companies in the United States declined from $13.11 billion in 2005 to $12.49 billion in 2006, according to a report released today by the Federal Trade Commission. The largest spending category – spending on price discounts – fell from $9.78 billion in 2005 to $9.21 billion in 2006, but still accounted for nearly 74 percent of all marketing expenditures.

The number of cigarettes sold by those manufacturers to wholesalers and retailers declined from 2005 to 2006, while the number given away increased. Overall, the total number of cigarettes sold and given away declined from 354.6 billion in 2005 to 350.6 billion in 2006.
A separate report on smokeless tobacco found that spending on advertising and promotion rose from $250.79 million in 2005 to $354.12 million in 2006. The dollar value of sales by the five largest manufacturers declined from $2.61 billion to $2.59 billion, and the number of pounds of smokeless tobacco sold declined from 116.2 million pounds to 115.82 million pounds.

To read the full reports, go to [http://www.ftc.gov/os/2009/08/090812cigarettereport.pdf; http://www.ftc.gov/os/2009/08/090812smokelesstobaccoreport.pdf.] The Commission has issued cigarette reports since 1967 and smokeless tobacco reports since 1987. The Commission vote authorizing the staff to issue the reports was 4-0.

Copies of the documents related to these cases are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(FTC File No. 072-3058)
(FYI cigarette and smokeless)