The role of marketing practices and tobacco control initiatives on smokeless tobacco sales

Background: While much is known about the impact of tobacco control policies on the demand for cigarettes, there is relatively little known about how tobacco control interventions and tobacco industry activities may impact smokeless tobacco (SLT) demand. The purpose of this study was to examine how tobacco control policies and retail promotion may affect aggregate SLT sales, specifically moist snuff (MST) sales which makes up the vast majority of the SLT market. Methods: Nielson market-level retail scanner data for moist snuff tobacco products in US convenience stores from 2005 to 2010 for 30 market areas, totaling 180 market-year observations, were used to examine the impact of tobacco control policies and retail promotion on sales. Tobacco control policy variables, including cigarette and MST excise taxes, state tobacco control program expenditures, and state clean indoor air laws, were merged to Nielsen market areas by state and year. Regression models were estimated for per capita sales volume and per capita dollar sales of MST products overall as well as stratified by pack size and brand. Results: Higher cigarette tax was significantly associated with lower sales volume of single pack MST products. A higher level of per capita state level tobacco control program expenditures was found either to have no significant association with MST sales volume or be associated with increased MST sales volume. MST sales in markets with a weight-based MST excise tax structure appeared to be higher than in markets with an ad valorem tax structure. A higher MST product price was associated with a higher sales volume of premium single packs and had no significant effect on non-premium single packs sales volume. A higher MST price was also associated with high MST dollar sales for both premium and non-premium single packs. Conclusions: This study observed that overall MST products were both complements and substitutes to combustible cigarettes. However, results vary depending on pack size and brand as well as region of the country. It is possible that MST are complements for some segments of the population and substitutes for others. A weight-based tax structure for MST products generally favors premium brand products.Ph.D.Includes bibliographical referencesby Maria Hrywn