Marlboro Takes Record Share in First Quarter

Source from:  Tobacco Reporter 04/23/2010

PM USA's domestic cigarette shipment volume during the first quarter of this year, at 34.1 billion, was 0.7 per cent lower that it was during the first quarter of 2009, according to results announced by the Altria Group yesterday. Shipments of Marlboro, at 29.6 billion, were up by 1.6 per cent, while shipments of other premium brands, at 2.4 billion, were down by 10.4 per cent, and shipments of discount brands, at 2.1 billion, were down by 17.0 per cent. The company's share of the domestic market, 50.2 per cent, was lower by 0.7 of a percentage point, with the share of its other premium brands falling 0.6 of a percentage point to 4.0 per cent and its discount brands slipping 0.4 of a percentage point to 3.5 per cent. But PM USA was able to report a record result for Marlboro, whose share increased by 0.3 of a percentage point to 42.7 per cent. This performance was said to have been driven primarily by Marlboro Menthol and the introduction of Marlboro Special Blend products. Meanwhile, USSTC and PM USA's combined domestic smokeless products shipment volume during the first quarter of this year, at 186.1 million units (cans and packs), was 21.9 per cent higher than that of the first quarter of 2009. Shipments of Copenhagen, at 83.8 million units, were up by 31.3 per cent; shipments of Skoal, at 67.7 million units, were up by 10.1 per cent; and shipments of other brands, at 34.6 million units, were up by 26.5 per cent. The companies' combined smokeless-products market share, at 55.4 per cent, was down by 0.8 percentage points, with Copenhagen gaining 1.9 percentage points to 25.6 per cent, Skoal falling 0.9 of a percentage point to 23.1 per cent, and other brands dropping 1.8 percentage points to 6.7 per cent. Middleton's reported cigar shipment volume during the first quarter of this year, at 282 million pieces, was down by 18.3 per cent on that of the first quarter of the previous year. Black & Mild volumes were down by 18.0 per cent to 276 million. Despite the falls in volume, Middleton's retail share, at 28.6 per cent, was 0.1 of a percentage point higher, with Black & Mild's share up 0.3 of a percentage point to 28.2 per cent. Altria's 2010 first-quarter reported diluted earnings per share were up by 39.3 per cent to $0.39, while adjusted diluted earnings per share were up by 7.7 per cent to $0.42. Income from its cigarette segment's operating companies was up by 7.6 per cent to $1.2 billion on a reported basis, and up by 6.7 per cent to $1.3 billion on an adjusted basis. And income from its smokeless segment's operating companies grew by $180 million to $178 million on a reported basis, and by 49.2 per cent to $188 million on an adjusted basis. "Altria delivered strong adjusted earnings per share growth of 7.7 per cent in a challenging environment, behind strong income growth in our cigarette and smokeless tobacco businesses," said Michael E. Szymanczyk, Altria's chairman and CEO. "We continue to be pleased with the performance of our tobacco companies' brands, particularly Marlboro and Copenhagen. Marlboro achieved record retail share results in the first quarter, and Copenhagen regained its position as the largest smokeless tobacco brand, as measured by retail share." Enditem