The leading tobacco companies in the United States have cut spending on cigarettes promotion and marketing, focusing on smokeless tobacco brands, found a report by the Federal Trade Commission.

The report confirms the industry-wide tendency as tobacco giants concentrate on alternatives to cigarettes, such as innovative smokeless products to maintain income while tax increases, anti-smoking policies, health concerns and other problems contribute to cigarettes sales decline. According to the data published by the FTC last week, spending on cigarette promotion fell by nearly 35% totaling $9.94 billion in 2008 versus 2003. In the same period cigarette sales fell 11 percent to 320 billion units.

Most part of the money spent by tobacco companies, nearly 72% or $7.2 billion, was spent on price discounts paid to cut the price of cigarettes smokers have to pay, since the average price of a pack of cigarettes grew 119% to $4.55 from 2003.

The number of free cigarettes given during promotions decreased by staggering 62% to 2.7 billion in the five-year period (2003-2008). The federal report shows that money tobacco makers spent on campaigns intended to adolescents and their parents that are aimed to decrease teenage smoking went down by 84 percent totaling $11.5 within the five-year period. However, the amount spent on promotions of smokeless tobacco brands showed a twofold growth in 2008 compared to 2003, reaching $547.9 million and sales of smokeless tobacco rose by almost 11 percent. Tobacco groups spent nearly 59 percent, or $249.5 million, on promotional campaigns and price discounts for retailers to cut prices to the consumers.

The federal agency admitted that 2008 marks the first time it asked tobacco companies to provide information on snus – latest smokeless tobacco products that users consume between gum and cheek – and dis solvable tobacco products, such as sticks and strips that have been recently launched by top tobacco companies.

Though experts consider the decline in cigarette marketing a positive sign, tobacco giants still spend enormous money to promote their products, according to Matthew Myers, head of the Campaign for Tobacco-Free Kids, who said that the growth in smokeless tobacco advertisements has been “troubling”.

The rate of adult smokers across the nation has decreased considerably since the 1970s, from almost 40 percent to 20 percent, meaning that approximately 46 million people still smoke, shows the data by the Centers for Disease Control and Prevention. However, the decline has stopped since 2004 for unclear reasons, though some anti-smoking experts blame wise cigarette promotion efforts, new products and insufficient programs of smoking prevention and cessation programs.

The latest federal data shows that nearly 3.5 of adult Americans consume smokeless tobacco products. The Federal Trade Commission has published reports on cigarette industry since 1967, including the reports on smokeless tobacco, issued for the first time in 1987. The federal agency examines the information received from the leading tobacco companies such as Altria Group, Reynolds American Inc., Lorillard Inc. and Commonwealth Brands Inc.

By Steve Shepherd, Staff Writer. Copyright © 2011 Cigarette-Store.org. All rights reserved.