Philip Morris USA retained its hold on half the market, but cigarette shipments fell 5.8 per cent in the fourth quarter due to slumping consumption and changes in trade inventory, the company said.

Shipments of smokeless products including Copenhagen and Skoal brands declined 4.3 per cent in the last three months of 2013. However adjusted for calendar differences in the comparable reporting period in 2012, PM USA said smokeless volume rose 5 per cent. PM USA also controls about half the smokeless product market.
Altria, PM USA’s parent company, took important steps last year to position itself in the e-cigarette market, said Chief Executive Officer Marty Barrington. “MarkTen is performing well in the e-vapor category, including its expanded test market in Arizona. Further, we believe our agreements with Philip Morris International create the foundation for commercializing our e-vapor products abroad and opportunities to expand our portfolio of innovative products in the US”
Price increases helped raise smokeable product operating revenue, reported as operating companies income (OCI), to USD 1.6 billion (EUR 1.2 billion) in the fourth quarter. After Master Settlement Agreement payments, full-year OCI in the smokeable product segment rose 2.4 per cent to USD 6.4 billion. PM USA products accounted for 50.7 per cent of the smokeable products market in the fourth quarter, nearly identical to the market percentage for all of 2013. Increases of 0.3 percentage points were reported both for the fourth-quarter and full year.