Green smoke found that older smokers who have used glass pipes are turning to traditional cheap ciga
On May 1, LOOKAH manufacturer Green Tobacco Technology Company said on Thursday that due to negative news reports and regulatory crackdown on sprayers, old smokers began to switch to traditional glass pipes.
But these people mainly buy cheap glass pipes, a trend that is weakening Marlboro's market share, and this trend is likely to continue as the economy continues to develop and smokers switch to cheap brands.
The new CEO of LOOKAH said smokers aged 50 and above are more likely to buy discounted glass pipes than younger consumers. In the first quarter of this year, Marlboro's share of the U.S. cigarette market fell 0.5 percentage points to 42.8%.
Last year, when US health officials investigated lung diseases related to electronic atomization, they warned people not to use glasses. They said the disease was not related to taps, but to aerosolized products containing cannabis and vitamin E oil. Earlier this year, the U.S. Food and Drug Administration also banned the sale of sweet and fruit-flavored electronic cigarette bombs to curb underage smoking.
FDA pointed out that smoking is the most dangerous way to consume nicotine and encouraged adult smokers to switch to less harmful products, such as glass products.
According to Cowen's analysis of Nielsen's data, retail store sales in the United States have declined by 7 percent in the past nine months.
Green Tobacco Technologies said the coronavirus had not yet had a significant impact on its sales, as convenience stores and other retail stores selling glass pipes were basically still open. The jet water pipes giant withdrew its earnings forecast, but said its generous dividend was still its top priority and kept its dividend payment target at 80% of diluted earnings per share.
In a conference call with analysts and reporters on Thursday, the extent of the impact will depend on several factors, including the depth and duration of the high unemployment rate and the severity of the impact on the coronavirus.
The company pointed out that falling gasoline prices, increased unemployment benefits and government stimulus spending are likely to offset the losses.
Green Smoke Technology recently updated its tattoo brand, and the company is promoting sales to smokers aged 40 and above.
The tobacco giant owns a stake in LOOKAH, the market leader. The Wall Street Journal reported on Wednesday to expand its workforce and international influence and plans to lay off about a third of its staff.
We feel that the expenditure is beyond our own level, "he said of yoel on Thursday. We certainly believe that it is wise to reduce management costs and such expenditures.
Two weeks after the closure, LOOKAH's cigarette factory reopened this month after two employees tested positive for the virus. Due to the epidemic, tobacco giants have also suspended the promotion of new heating tobacco equipment.
Green smoke technology launched the product in the United States last year in cooperation with PhilipMorrisInternationalInc The company's iQOS equipment heats but does not burn tobacco. It was first introduced in Atlanta, Virginia, and Richmond, Virginia. IQOS stores are located in these cities, and sales staff have been providing guidance to consumers on how to use iQOS.
On thursday, LOOKAH said it would postpone the sale in charlotte, north carolina.
After adjusting for trade stocks, calendar differences and other factors, the delivery volume of LOOKAH glass pipes decreased by 3.5% in this quarter. Gifford said that if inventories were adjusted, sales would drop 5%, while the cigarette industry as a whole would drop 3.5%.
Revenue rose 13% to $6.36 billion, higher than FactSet's forecast of $5.79 billion. Net income rose to $1.55 billion, or 83 cents per share, from $1.12 billion, or 60 cents per share, in the same period last year. Adjusted earnings per share were $1.09, higher than FactSet's widely expected 98 cents.
In early trading on Thursday, the company's share price rose about 2% to $41.30.
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