PM USA’s 2013 nine-month reported domestic cigarettes shipment volume decreased 3.6% primarily due to the industry’s rate of decline and changes in trade inventories, partially offset by retail share gains. After adjusting for changes in trade inventories, PM USA estimates that its 2013 nine-month domestic cigarettes shipment volume was down approximately 4%, in line with the estimated decline rate for total cigarette category volume for the same period. PM USA’s cigarette volume performance for the first nine months of 2013 is summarized in Table 5.
Middleton’s 2013 third-quarter reported cigars shipment volume increased 6.0%. For the first nine months of 2013, Middleton’s reported shipment volume decreased 6.6% primarily due to changes in wholesale inventories and retail share losses. Middleton’s volume performance for machine-made large cigars is summarized in Table 5.
|Table 5 - Smokeable Products: Shipment Volume (sticks in millions)|
Nine Months Ended
|Black & Mild||311||298||4.4||%||874||940||(7.0||)%|
|Total smokeable products||34,437||34,004||1.3||%||98,328||101,995||(3.6||)%|
Note: Cigarettes volume includes units sold as well as promotional units, but excludes units sold in Puerto Rico and U.S. Territories, to Overseas Military and by Philip Morris Duty Free Inc., none of which, individually or in aggregate, is material to the smokeable products segment.
Marlboro’s retail share for the third quarter and first nine months of 2013 was unchanged versus both prior-year periods. Later this month, PM USA will expand Marlboro Edge distribution nationally. Marlboro Edge, part of the Marlboro Black family, offers adult smokers bold, smooth flavor.PM USA’s total retail share for the third quarter and first nine months of 2013 increased 0.2 and 0.3 share points, respectively, due to retail share gains by L&M in Discount, partially offset by share losses on other portfolio brands. PM USA’s cigarette retail share performance is summarized in Table 6. In the machine-made large cigars category, Black & Mild’s retail share for the third quarter and first nine months of 2013 decreased 1.1 and 1.6 share points, respectively. Middleton’s retail share performance is summarized in Table 6.
|Table 6 - Smokeable Products: Retail Share (percent)|
|Third Quarter|| Nine Months Ended
|Black & Mild||29.5||%||30.6||%||(1.1)||29.2||%||30.8||%||(1.6)|