E-cigs up 11.7%, cigarettes up 1.2% and smokeless up 4.8%.
Cigarette dollar sales were up 1.2% for the recent four-week period ending Jul 16, 2016, driving by improved volume trends and continued solid pricing (up 3.2%), according to Wells Fargo LLC. Prices were up 1.4% for 12 weeks and 2.4% for 52 weeks. The industry saw marginally improved volumes (-1.9% equal unit volume four-weeks vs -2% for 12-weeks).
Wells Fargo sees room for improvement given macro tailwinds supporting a strong adult tobacco consumer.
Meanwhile in the smokeless category, dollar sales grew 4.8% this period, which is a marked decline from a high of 8% in December, which Wells Fargo believes reflects continued shifts back into combustible cigs by a generally stronger adult tobacco consumer.
Lastly, electronic cigarette dollar sales showed solid gains, increasing an impressive 11.7% in the recent period (+9.1% for 12-weeks) driven by solid volume/pricing by VUSE (+10.3%/+11.3%) and distribution gains by MarkTen XL most likely driven by couponing (-9.5% pricing), Wells Fargo explained.
“Overall, e-cig volumes are starting to show signs of improvement as manufacturers race to innovate ahead of the FDA’s Aug. 8 deeming regs effective date, after which no new products can be sold without FDA authorization,” noted Senior Analyst Bonnie Herzog.