Better economy spurs Altria cigarette sales
NEW YORK (AP) — A better economy is prompting smokers to buy more cigarettes, even as prices climb. This helped Marlboro maker Altria in its second quarter.
The uptick in cigarettes sold is unusual at a time when tobacco companies have routinely seen declines, as people smoke fewer cigarettes because of tax increases, smoking bans and increasing social stigma. Camel cigarette maker Reynolds American said Tuesday that it also sold more cigarettes in the quarter.
Altria said part of the increase resulted from retailers' inventory movements, which often come ahead of a price increase. But it said volume rose 1 percent in the quarter even adjusting for that factor.