FTC releases cigarette and smokeless tobacco marketing reports for 2009 and 2010
Monday, September 24, 2012
Posted by: Natalia Gromov
Federal Trade Commission today released its reports on cigarette and smokeless
tobacco marketing for 2009 and 2010. The reports also include information
on sales volumes. The latter shows that the number of cigarettes sold and given
away in the U.S. fell by 10 percent in 2009, the second largest increase since
the FTC began reporting sales data in 1963. This decline shows the impact of
the 62-cent increase in the federal cigarette tax that took effect April 1,
2009, and is powerful confirmation that cigarette tax increases are one of the
most effective ways to reduce smoking.
report also showed declines in cigarette and smokeless marketing, although
total marketing remains high at $8.5 billion a year.
Campaign for Tobacco-Free Kids’ statement and the FTC release are below (along with links to the full FTC reports).
FOR IMMEDIATE RELEASE: September 21,
CONTACT: Peter Hamm, 202-296-5469
FTC Report Show Big Decline in Cigarette Sales after 2009
Federal Cigarette Tax Increase, While Tobacco Companies Still Spend Huge Sums
Statement of Susan M. Liss
Executive Director, Campaign for Tobacco-Free Kids
WASHINGTON, DC – A report issued today by the Federal Trade
Commission shows that the number of cigarettes sold and given away in the
United States fell by 10 percent in 2009, one of the biggest declines on
record. This decline shows the impact of the 62-cent increase in the
federal cigarette tax that took effect April 1, 2009, and is powerful
confirmation that cigarette tax increases are one of the most effective ways to
The 2009 decline in cigarette sales is the second largest on
record since the FTC began reporting sales data in 1963. The only larger
decline, 10.3 percent, was in 1999, when tobacco companies significantly
increased cigarette prices to pay for the 1998 legal settlement with the
states. The evidence couldn’t be clearer: When cigarette prices go up,
cigarette sales go down.
Other recent reports have also shown that the 2009 federal
cigarette tax increase significantly reduced smoking. According to a
University of Illinois at Chicago study published in April, youth smoking fell
10 to 13 percent immediately after the tax increase took effect. The
researchers estimated that the tax reduced the number of youth smokers by at
least 220,000 in the first two months alone. Even while reducing smoking,
the tobacco tax increase raised more than $10 billion in just the first 12 months
to help fund expansion of the State Children’s Health Insurance Program.
The federal tobacco tax increase has been the health win and the revenue win
expected and should spur elected officials across the country to increase
The FTC today also reported the following data on tobacco
Cigarette marketing expenditures in the U.S.
declined from $9.94 billion in 2008 to $8.53 billion in 2008 and $8.05 billion
After increasing by 277 percent between 1998 and
2008, smokeless tobacco marketing decreased from $547.9 million in 2008 to
$492.1 million in 2009 and $444.2 million in 2010.
While it is a positive step that tobacco marketing has
declined, the tobacco companies continue to spend huge sums to market their
deadly and addictive products. Counting both cigarette and smokeless tobacco
marketing, the tobacco companies spent $8.5 billion on marketing in 2010 – more
than $23 million each day and nearly $1 million every hour. Cigarette
makers continue to spend the bulk of their marketing budgets – more than 80
percent – on price discounts that make cigarettes more affordable and appealing
to price-sensitive kids.
Tobacco companies spend far more to market tobacco products
than states spend to prevent and reduce tobacco use. In fiscal year 2012,
the states spent $456.7 million on programs to prevent kids from smoking and
help smokers quit. That means tobacco companies spend more than $18 to
market tobacco products for every $1 states spend to reduce tobacco use.
The continuing high level of tobacco marketing show why we
need aggressive action by all levels of government to stop the tobacco
epidemic. The states should increase tobacco taxes and restore funding for
tobacco prevention programs that have been slashed by 36 percent in recent
years. At the federal level, the Food and Drug Administration must
effectively exercise its authority over tobacco products and marketing, the
health care reform law’s expansion of coverage for smoking cessation services
must be implemented, and the Centers for Disease Control and Prevention should
continue the highly successful anti-tobacco advertising campaign it launched
Tobacco use is the nation’s number one cause of preventable
death, killing more than 400,000 people and costing $96 billion in health care
bills each year. These deaths and costs are entirely preventable if
elected officials at all levels fight tobacco use as aggressively as the
tobacco companies market their deadly products.
FTC press release: http://www.ftc.gov/opa/2012/09/tobacco.shtm
FTC cigarette report for 2009 and 2010: http://ftc.gov/os/2012/09/120921cigarettereport.pdf
FTC smokeless tobacco report for 2009 and 2010: http://ftc.gov/os/2012/09/120921tobaccoreport.pdf
FTC Releases Reports on Cigarette and Smokeless Tobacco Advertising
Spent Declines for Cigarettes, Smokeless Tobacco in 2009 and 2010
spent on cigarette advertising and promotion by the largest cigarette companies
in the United States declined from $9.94 billion in 2008 to $8.53 billion in
2009, and again to $8.05 billion in 2010, according to a report released today
by the Federal Trade Commission.
The Commission has issued the Cigarette Report periodically since 1967, and
another one, the Smokeless Tobacco Report, periodically since 1987.
spending category in the Cigarette Report in both 2009 and 2010 was spending on
price discounts paid to cigarette retailers or wholesalers in order to reduce
the price of cigarettes to consumers. This category accounted for $6.67
billion, or 78.2 percent of total spending on advertising and promotion in
2009, and $6.49 billion, or 80.7 percent of that total, in 2010.
The number of
cigarettes sold or given away to wholesalers and retailers in the United States
declined from 322.6 billion in 2008 to 290.3 billion in 2009, and to 282.0
billion in 2010.
According to the Smokeless Tobacco Report for the major manufacturers of
smokeless tobacco products in the United States:
spending on advertising and promotion fell from $547.87 million in 2008 to
$492.10 million in 2009, and again to $444.20 million in 2010.
dollar value of sales by these manufacturers fell from $2.76 billion in 2008 to
$2.61 billion in 2009, then rose to $2.78 billion in 2010.
weight of smokeless tobacco sold fell from 119.90 million pounds in 2008 to
117.70 million pounds in 2009, and rose to 120.50 million pounds in 2010.
To read the
full reports, click on Federal Trade Commission Cigarette Report for 2009 and
2010, and Federal Trade Commission Smokeless Tobacco Report for
2009 and 2010.
Commission vote authorizing the staff to issue the reports was 5-0.Source: The Campaign for Tobacco-Free Kids