Tobacco

See How Tobacco Performed in August

First half of the month shows pressured nicotine volumes, Goldman Sachs says
Cigarettes
Photograph: Shutterstock

NEW YORK —Nicotine volumes remain pressured, lapping COVID-related volatility from last year and reflecting lower usage occasions as work-from-home measures ease.

Goldman Sachs Managing Director Bonnie Herzog noted these findings in a recent research note based on data for the two weeks ending on Aug. 14 from Chicago-based NielsenIQ.

Total nicotine volume was down 8.4% year-over-year for the two weeks ending on Aug. 14. On a two-year stack basis, which looks at the sum of the last two years of growth rates, nicotine volumes were down 9%.

Here’s a look at tobacco subcategories and how each performed in the first half of August:

  • Cigarettes: Total volume was down 10% for cigarettes for the two-week period as cigarette manufacturers price stronger and more frequently, Herzog said. On a two-year stack basis, cigarette category volume improved slightly, down 10.5% for two weeks, compared to 11% for the past four weeks. Altria, Richmond, Va., and British American Tobacco, New York, raised cigarette prices this summer.
  • E-cigarettes: While e-cigarette volume growth decelerated slightly, Vuse continues to outperform in the category, Herzog said. The brand, from Winston-Salem, N.C.-based R.J. Reynolds Vapor Co., was up nearly 78% in volume for the two weeks ending on Aug. 14. Volume growth for total e-cigarettes was 8.9%.
  • Smokeless: Smokeless volumes were down 4.8%, 1.9% on a two-year stack basis. Modern oral nicotine remains strong, though, Herzog said. Zyn, from Richmond, Va.-based Swedish Match, and Altria’s On were up in volume 36.5% and 110.9%, respectively. R.J. Reynolds Velo was up 106.9% in volume.

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