The cigarette industry is in decline because of the extensive anti-smoking campaigns and prohibitions, the sales of all cigarette brands decreased in the past year. Altria Group Inc. (Marlboro, Virginia Slims, L&M manufacturer) has provided a report with all incomes for the fourth quarter of 2014 year, where is observed a tendency to some decrease in sales and earnings. According to representatives of the company, cigarette sales decreased not only because of anti-smoking, but more because of increased taxes on cigarettes, "people with middle and lower incomes can no longer buy cigarettes at such high prices." "Our view is that the adult tobacco consumer is feeling better about their economic situation and their economic future," said Altria Chief Executive Marty Barrington. The considerable percent of smokers - include people with low or medium income level, as smokers with high income can afford anti-smoking treatment or other methods to provide the body with nicotine (for example e-cigarettes, patches, gums with nicotine). Altria - largest US tobacco company, noticed that cigarette shipments and selling fell by 1.7% in fourth quarter, and for the whole last year by almost 3.2%. In addition the cost of was up 16 cents from a year earlier. Sales of electronic devices (as e cigarettes) and liquids, also didn`t meet expectations, they grew only by 50% to $ 2 billion in sales last year in 2014, but not as was expected in 2013 by 160%. "Cigarette revenue excluding excise taxes rose 3.3% to $ 3.91 billion in the fourth quarter"- Altria company representatives said. Operating income at the division rose 7.6% to $ 1.72 billion.

But total cigarette volume declined 3% while cigar volume grew 6.1%. Except cigarettes and tobacco, the sales of the rest Altria company`s products has grown, from smokeless tobacco products and wine (rose by 2.9%) to mostly moist snuff which income rose for 1%. Despite the fact that Smokeable Products Segment sales decreased, the company`s shares increased in price from 50.7% to 50.9%. - www. smokin4free. com Published 05.02.2015 17:05 Source - www. smokin4free. com