Citigroup tobacco analyst Bonnie Herzog revealed a new survey that suggests Marlboro Snus, Phillip-Morris’s new entry into the smokeless tobacco market, may already be a success.
The survey questioned both retailers and wholesales, who revealed that they feel the new product will be a hit among both smokers and moist smokeless tobacco (MST) users alike. Participants estimated that the heavy effectiveness of the Marlboro brand name coupled with the social acceptance of a smokeless, spitless will appeal to current tobacco users.
According to the report, retailers aren’t worried that the new product will hurt cigarette volumes. Of those polled, 60% feel that Marlboro Snus’s introduction wont have a negative effect on cigarette sales since they feel that smokers will look at the product as a companion to cigarettes, not an opponent.
“The majority of our industry trade contacts believe Phillip Morris was very smart to leverage their Marlboro brand for their new smokeless product and made the right decision by entering the smokeless category via a snus product,” the report said. “Almost 100% percent of our survey respondents indicated they will carry Marlboro Snus when it is available to them.”