Marlboros Haven’t Bounced Back After Coronavirus Stockpiling

(Bloomberg) -- Altria Group Inc.’s Marlboro seems to be losing retail share to other brands, according to new data that shows cigarette sales bouncing back after coronavirus stockpiling.

Even as overall cigarette consumption increased in the two weeks ending May 2, according to Nielsen data, Marlboro “continued to underperform the industry in dollar sales,” Goldman Sachs analyst Bonnie Herzog said in a research note Tuesday.

Altria’s recent results through the end of March showed “pantry loading” caused sales of smokeable products to jump 14%. The company had cautioned, however, that with tough economic times, consumers tend to trade down to cheaper brands. The same report said that Marlboro’s share of the total cigarette category in the first quarter was 42.8%, down slightly versus the prior year.

According to the Nielsen data, Marlboro sales declined 2.6% for two weeks ending May 2 versus a 4.2% drop over the prior four-week period, Herzog noted. Overall, cigarette dollar sales were down 2.1% for the two-week period, moderating from a 3.7% decline during the prior four-week period.

Altria declined to comment on the Nielsen data, which also looked at competitors like Imperial Brands’ Winston and R.J. Reynolds’ Newport.

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