The prices of tobacco has risen back up although people are smoking less. According to a research firm, cigarettes generated more money than soda and beer combined because of cost cutting measures and price markups by tobacco companies.
The Wall Street Journal reports that the tobacco industry used to be at a solid seven successful companies, but the regulatory changes and other legal battles have left it at two.
CDC tells how much money is spent on tobacco advertising in 2014, a staggering $9 billion. Up to date, they still continue to advertise relentlessly for smokeless tobacco and more cigarettes in the U.S.
80 percent of the spending’s on tobacco advertisements were spent on decreasing the price for those who buy cigarettes, CDC says. According to Wall Street Journal the purchases of tobacco decreased 37 percent in the years of 2001 to 2016. But the increase of their prices increased revenues 32 percent, ultimately making around $93 billion dollars.
The Tobacco manufacturers Association stated in The Wall Street Journal, that prices have risen from $3.73 to $6.42. In association with that, the profits earned from such a rise have gone up 77 percent, collecting $18.4 billion.