Smokers Source of Smoking Hot Profits

oasho3iszIn the tobacco control world, we often talk about how the tobacco industry pours large amounts of money into campaigns to oppose efforts to reduce death and disease caused by tobacco use. They often claim to have smoker’s rights as their motivation. But where does this money come from? A recent article in USA Today answers the question. . .smokers!

USA TODAY examined the EBITDA profit margin, looking at profit margins over the past 12 months at consumer staples, consumer discretionary and health-care companies. Just 10 companies in the Standard & Poor’s 500 are bringing in 40% profit margins or higher. Smokers are definitely a source of smoking hot profit margins. The big tobacco companies Phillip Morris International, Altria and Lorillard all make the list.

Tobacco Free Kids responded, “Sadly, Big Tobacco’s profits come at a high price for their customers. Smokers and other tobacco users pay with their wallets at the front end and with their health and lives at the back end.”

 

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