Headlines and pundits continually tout that the tobacco industry is doomed. Are they correct? I don’t think so, and I believe there is compelling data that explains why.
Price hikes have largely offset cigarette volume declines, allowing ongoing, often growing, profitability.
I hear that rather often and it implies to me that Tobacco doesn't price optimally. It looks it would be more profitable for them to sell at higher prices given that usually it is said that cigarette volume declines were offset or even more than that, by price hikes. But then I start thinking wouldn't be then logical to raise prices even without proceeding volume declines?
Price hikes have largely offset cigarette volume declines, allowing ongoing, often growing, profitability.
I hear that rather often and it implies to me that Tobacco doesn't price optimally. It looks it would be more profitable for them to sell at higher prices given that usually it is said that cigarette volume declines were offset or even more than that, by price hikes. But then I start thinking wouldn't be then logical to raise prices even without proceeding volume declines?
What do you think about Imperial Brands?