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D @~ @ @~O ~p, ~ p`@ @ @0~?0@ @~0B@ @ ` @b~`~@~qH" @ Ã??08<~@0~   ~@ 0 AA~ @~@@ B  ~ ` B~ ~a? @X~0@ ~@@  ~ ~$`~ $ `~@ B  !~`   ~ ~   ~`   @`~   @~ @@0 P~  ~>~ ! @~`  8@  ``~@(~  ~$  ~@ S " ~!@ @,@ x~`@   ~   0a~P`   `~`, ~p~@@ ~C@~! @~  (` ~ A<8>?|~8>~ ~ ~ @@?Àpx~C0= @~`p D~ $@8~p@0 ?0#x <pLJ~  L ~ ,@p@~@@`@~<@<!0@ <~9 "=\ " ~@  0Sx`@ @~$D@ 8  ~ @|@<B ~  L ?|p'8~ HD`  ~?"! `@ ~@  ~>0 @@ xp @`>~ @@ ,@~ @~@@  @ @~  @$~ #~  B 0~!;" @~@ @@@~  @ ~ !B D~#@ cA`~~ @D @~@@  ~"  t p <  !x~@   Bx@~ "  ~`p@ @p@@"~ @00  c@ @~@@B h" pp@@@~@0@@< H ! ~0!  /~A!A @p@!  $B~  @ @p~ @@`  `H  |<< @a~   ""@0b~ !"~@ "`2 ~p D D  ~  C` @ @O~@ DA @a 8~ H@B  ~  (   ~@ g! ! @"! ~ #dB B x< ~  ~ D" ! p>x~ !`$Bp~`!@@ ~H p p?~ |~ pCf@Ap<0 0~0A`   !`p~ @ @@~@@@D B?x  <   >   |?~  @8  ???  p? |  ~p??>  ?? ? <~ #  @B A ~ ?|!~"  8! ~"  D~ @B@ "  @ ~@ @  |  ?~c`   8 ??~ @  ` ~ @ @ >|?p?~@H@ @Bp@p ~ D     TP x|? >?~  B  @B @@ x?x? ~ @D!A     ?~~ ?~   @@~ @!@ 8x ?` |0` |???8`0~@  ` @~@@  @px??0~ @0 @0~     @0 ~@cgp@~ 0 p &x  ~   @p ~@@`  `p ~@@   <@~ pB À ?8  ? ~   ~  <`   ?? ~@0 @$A ~ `~  8  ~ @@@? D ~ 8"<@  @È ~ " 0   ~    y?8<~ "x>`> "x@?>` xp? ~  @ ~ x 0@p p C ~ p@ ~ `@  ~  $   ~   >8 p ~   @p ~  @ 8` ~ @   ~ 8 @@   ~   0x ~  |H~ @ ~   ~  a1@ x x?8~   D~??8~ `h8x~?x~  @~p@A|8 ?|?xp8~ `x@  xp x@p @x8x`pp`x0x8~B  x << ` |9IIII)!dxdxTable_A t    \R3'\TABLE DTABLE ETABLE F:;k8Auto List 62  0  .3      dTABLE G  4Vf$Ӏ  12    _ԀThisincludesexpendituresfor:(1)thesponsoring,advertising,orpromotionofsportsor e sportingevents;supportofanindividual,group,orsportsteam;andpurchaseoforsupportfor Q equipment,uniforms,sportsfacilities,and/ortrainingfacilities;(2)allexpendituresfor = advertisinginthenameofthecigarettecompanyoranyofitsbrandsinasportsfacility,ona ) scoreboard,orinconjunctionwiththereportingofsportsresults;and(3)allexpendituresfor  functionalpromotionalitems(clothing,hats,etc.)connectedwithasportingevent. 6 4Vf$Ӏ  1    _ԀCigarettesgivenawayXXXXincludeallcigarettesdistributedforfree,whetherthroughsampling, e couponsforfreeproduct, buy3packs,get1freetypeoffers,orotherwise,aslongasthose Q cigaretteswerenotreportedassold.#XXXXv#ԀForyearspriorto2001,theCommissionrequiredthe = manufacturerstoreportthenumberC6z C ofcigarettestheysoldbutnotthenumbertheygaveaway.It ) ispossible,however,thatinthoseearlieryears,somemanufacturersincludedintheirsales  figuressomecigarettesthatwereactuallygivenaway.(hH  Z 6Times New Roman Regular   4Vf$Ӏ  2    _ԀUSDAsestimatesalsoincludesalesbysmallermanufacturersandimporters. - 4Vf$Ӏ  3    _ԀThereportedfiguresincludealladvertising,merchandising,andpromotionalexpenditures e relatedtocigarettes,regardlessofwhethersuchexpenditureswouldconstitute commercial Q speechorwouldbeprotectedfromlawenforcementactionundertheFirstAmendment.The = Commissionbeganrequiringtobaccocompaniestoincludeexpendituresforsuchprotected ) speechin1989. 4Vf$Ӏ  4    _ԀDefinitionsoftheadvertisingandpromotionalexpenditurecategoriescurrentlyusedare e reportedinAppendixA. 4Vf$Ӏ  5    _ԀPriorto2002,transitadvertisingwasdefinedasadvertisinginoronpublictransportation e facilities. | 4Vf$Ӏ  6    _ԀBrandedspecialtyitemdistributionincludesthepracticeofsellingorgivingtoconsumers e noncigaretteitemssuchasTshirts,caps,sunglasses,keychains,calendars,lighters,and Q sportinggoodsbearingacigarettebrandsnameorlogo. R 4Vf$Ӏ  7    _ԀNonbrandedspecialtyitemdistributionincludesthepracticeofgivingconsumersnon e cigaretteitemssuchascompactdiscs,lighters,andsportinggoodsinconnectionwiththe Q marketingofcigarettes. t 4Vf$Ӏ  8    _ԀThecigarettecompaniesalsospent$220,000in2004and$806,000in2005onXXXXpublic e entertainmenteventsdisplayingtheircorporatename,butnotdisplayingthenameorlogoofany Q brandofcigarettesorotherwisereferringtocigarettes.#XXXX뤬#ԀXXXXThesefiguresarenotincludedinthetotal = advertisingandpromotionalexpendituresreportedherein.#XXXX뤹#(hH  Z 6Times New Roman Regular(hH  Z 6Times New Roman Regular i 4Vf$Ӏ  9    _ԀThiscategorydoesnotincludedirectmailcontainingcoupons.Couponssentviadirect e mailwerereportedinthe couponandretailvalueaddedcategoryfrom1988to1996,buthave Q beenreportedseparatelysince1997.  4Vf$Ӏ  10    _ԀIn2002,theCommissionclarifiedthatXXXXwhencouponsaredistributedforfreecigarettesand e nopurchaseisrequiredtoredeemthem,suchactivitiesshouldbereportedonlyas sampling, Q notas coupons.#XXXX뤈#(hH  Z 6Times New Roman Regular 4Vf$Ӏ  11    _ԀThecigarettesandthebonusitemsareoftenpackagedtogetherasasingleunit. 4Vf$Ӏ  13    _ԀTheseexpendituresarenotincludedinthe$14.15billionand$13.11billionreportedin e Table2C. 4Vf$Ӏ  14    _ԀPriorto2002,theCommissionaskedwhether tarandnicotineratingsweredisplayedon e cigarettepackaging. d d VhAowContractContract Outline StyleC.1(a)(1)(i)(A)(a)(;3$2#  0  .3  0  (O;$0  2#  a  .3  0` (#(#(b$0  0` (#(#2#   .3  0 ` (#` (#(xir$0  0` (#(#0 ` (#` (#2#(  0  )3  0 (# (#($0  0` (#(#0 ` (#` (#0 (# (#2#(  a  )3  0h(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#2#(   )3  0h(#h(# !  _5Q5' XXX'g3L3#` p0a# `N^E6g 66(#(# 6666 6666 6666 6666 6666 6666 6666 6666 (#(#66IXXI@ #I9# IFederalTradeCommission p   CigaretteReport H For2004and2005   p #X:X #4XX:@*#i 4#4 iԈX@*   `     h      p ISSUED:2007  r*% X X  TRX3'X3' Letter3'Letter5' XXX'g3L33'LetterT X  8e585#i 4##XX in#8XXdd8  ?*XXXX5o-I.0  INTRODUCTION 8T$T$ H  Thisreportisthelatestinaseriesoncigarettesales,advertising,andpromotionthatthe  FederalTradeCommission( theCommission)haspreparedsince1967.  9H   Thestatisticaltablesappendedtothisreportprovideinformationondomesticsalesand   advertisingandpromotionalactivityforU.S.manufacturedcigarettesfortheyears1963through  ` 2005.Thetableswerecompiledfromrawdatacontainedinspecialreportssubmittedtothe p 8  CommissionpursuanttocompulsoryprocessbythefivemajorcigarettemanufacturersintheUnited H  States:AltriaGroup,Inc.#XXXXU#XXXXԀ(theultimateparentofPhilipMorris);HouchensIndustries,Inc.(the    ultimateparentofCommonwealthBrands,Inc.);#XXXX #XXXXԀLoewsCorp.(theultimateparentofLorillard  TobaccoCo.)#XXXX #XXXX;ReynoldsAmerican,Inc.(theultimateparentofR.J.ReynoldsTobaccoCo.and#XXXX^ #XXXXSanta  FeNaturalTobaccoCompany,Inc.andwhichacquiredBrown&WilliamsonTobaccoCorp.in p 2004#XXXX #XXXX)#XXXX뤼 #XXXX;andVectorGroupLtd.(theultimateparentofLiggettGroup,Inc.and#XXXX #VectorTobacco,Inc.)XXXX. H  II.0  TOTALCIGARETTESALESANDADVERTISINGANDPROMOTIONAL 0 EXPENDITURES #XXXX뤞#XXXX$$ #XXXX#  Thereportshowsthatthetotalnumberofcigarettessoldorgivenawaydecreasedby4.2  billioncigarettes(1.1percent)from2003to2004,andthenby8.8billion(2.4percent)from2004to   2005;advertisingandpromotionalexpendituresdeclinedfrom$15.15billionin2003to$14.15 "l! billionin2004,andthento$13.11billionin2005.Thelargestsinglecategoryofexpendituresin |$D # both2004and2005wasXXXXpricediscountspaidtocigaretteretailersorwholesalersinordertoreduce T&"% thepriceofcigarettestoconsumers.Thisonecategoryaccountedfor$10.93billion(77.3percentof ,(#' totaladvertisingand#XXXXM#promotionalexpenditures)in2004,and$9.78billion(74.6percentofall *%) expenditures)in2005. +'+   Tables1and1Adisplayannualcigarettesalesbymanufacturerstowholesalersandretailers. -|)-  5o- 59ee8  5  Table1Adisplaysthetotalnumberofcigarettessoldandgivenawayintheyears2001through2005. 2  1      ׀ e In2004,themajordomesticcigarettemanufacturerssoldorgaveaway363.4billioncigarettes = domestically,downfrom367.6billionin2003;in2005,theysoldorgaveaway354.6billion.Sales  rosefrom360.5billionin2003to361.3billionin2004,andthendeclinedto351.6billionin2005,   whileXXXXcigarettesgivenawaydecreasedfrom7.1billionin2003to2.1billion#XXXX5#XXXXin2004,beforerisingto  ` 3billion#XXXX뤿#XXXXin2005#XXXX9#XXXX.#XXXX뤂#  8    BecausethecigarettesalesdatareportedtotheCommissionbythemajormanufacturersare u  basedonfactoryshipments,andthuscanreflectchangesininventoryholdingsbycigarette M  wholesalersandretailers,theCommissionsannualreportsalsoincludeinformationfromthe % cigaretteconsumptionseriesproducedbytheU.S.DepartmentofAgriculture(USDA),whichis  basedonanestimateofthenumberofcigarettesactuallyconsumed. 2  2      ׀USDAscigaretteconsumption p estimates,whichareincludedinTable1A,showa3.0percentdecreasefrom2003to2004(from400 H billioncigarettesto388billion),anda3.1percentdecreasefrom2004to2005(376billion   _cigarettes)._Ԁ  ]  #X" XXXX III.0  ADVERTISINGANDPROMOTIONALEXPENDITURESBYCATEGORY #XXXX뤿#e$$   Tables2through2Cshowtheamountsspentoncigaretteadvertisingandpromotionforthe = years1970,and1975through2005. 2  3      ׀Thesetableslisttheamountsspentonthedifferenttypesof  mediaadvertising(e.g.,newspapersandmagazines)andsalespromotionactivities(e.g.,distribution   ofcigarettesamples),andalsogivethepercentageofthetotalamountspentforthevarioustypesof  ` advertisingandpromotion.  8    Table2Cshowsthatoverall,$14.15billionwasspentoncigaretteadvertisingandpromotion u  in2004,adeclinefromtherecord$15.15reportedbythemajorcigarettemanufacturersin2003., 2  4      ׀ M  Spendingdeclinedanother$1.04billion,to$13.11billionfrom2004to2005. %   Newspaperadvertisingexpendituresdecreasedfrom$8.3millionin2003to$4.9millionin  2004andthento$1.6millionin2005,thesmallestamountreportedforthiscategorysincethe p Commissionbeganaskingaboutnewspaperspendingin1970.Thisadvertisingcategoryaccountsfor H justover1/100thofonepercentofallexpenditures.Althoughnewspaperspendingaccountedfor   23.1percentoftotalexpendituresin1981,ithasaccountedforlessthanonepercentofexpenditures ] since1992. 5   Themanufacturersreportedspending$95.7milliononmagazineadvertisingin2004!down   from$156.4millionin2003!and$44.8millionin2005.Magazineadvertisingrepresentedlessthan !  onepercentoftotalspendinginbothyears.Spendingonmagazineadvertisingpeakedin1984,when #X" thecigarettecompaniesreportedspending$425.9million(20.3percentoftotaladvertisingand e promotionalexpenditures). =   Spendingon outdooradvertisingdeclinedfrom$32.6millionin2003to$17.1millionin  2004,andthento$9.8millionin2005(lessthan1/10ofonepercentoftotalspending).Beginningin   2002,XXXX outdooradvertisinghasbeendefinedtomeanbillboards;signsandplacardsinarenas,  ` stadiums,andshoppingmalls(#XXXX'#whethertheyareopenairorenclosed);andanyotheradvertisements  8  placedoutdoors,regardlessoftheirsize,includingthoseoncigaretteretailerproperty.Inprioryears, u   outdooradvertisingwasnotpreciselydefined.Inparticular,itwasnotclearthatsignsinarenas, M  shopping,stadiums,shoppingmalls,oronretailerpropertywouldhavebeenreportedinthiscategory. %   Astheyhavesince2001,thecompaniesreportedthattheymadenoexpendituresontransit  advertising(i.e.,advertisingwithinoronprivateorpublicvehiclesoranytransportationfacility)in p 2004or2005.Transitadvertisingpeakedat$60.2millionin1991. 2  5       H   Spendingonpointofsalepromotionalmaterials(adspostedattheretaillocationbut   excludingoutdooradsonretailerproperty)declinedfrom$165.6millionin2003to$163.6millionin ] 2004,beforerisingto$182.2millionin2005.Pointofsaleadvertisingaccountedfor1.2percentand 5 1.4percentoftotaladvertisingandpromotionin2004and2005,respectively.Theseexpenditures   peakedin1993at$400.9million. !    Beginningin2002,the promotionalallowancecategorywasbrokenintofournew #X" categories:pricediscounts,promotionalallowancespaidtoretailers,promotionalallowancespaidto %0!$ wholesalers,andotherpromotionalallowances.For2004and2005,thelargest promotional m'#& allowancecategorywas XXXXpricediscountspaidtocigaretteretailersorwholesalersinordertoreduce E)$( ?* ?  ?  thepriceofcigarettestoconsumers(e.g.,offinvoicediscounts,buydowns,andvoluntaryprice e reductions),whichaccountedforexpendituresof$10.93billionin2004(upfrom$10.81billionin = 2003)and$9.78billionin2005.#XXXX/#XXXXԀ#XXXX1#XXXXԀInaddition,theindustryspent$542.2millionin2004(downfrom  $1.23billionin2003)and$435.8millionin2005#XXXXT1#XXXXԀonpromotionalallowancespaidtocigarette   retailersinordertofacilitatethesaleorplacementofcigarettes(e.g.,paymentsforstocking,shelving,  ` displaying,andmerchandisingbrands,volumerebates,andincentivepayments),and$387.8million  8  in2004and$410.4millionin#XXXX2#XXXX2005onpromotionalallowancespaidtocigarettewholesalers(e.g., u  paymentsforvolumerebates,incentivepayments,valueaddedservices,andpromotionalexecutions). M  Finally,$1.3millionwasspentin2004and$1.5millionin2005onpromotionalallowancespaidto % anyoneelse(otherthanretailers,wholesalers,andfulltimecompanyemployees)involvedinthe  cigarettedistributionandsalesprocess,inordertofacilitatethesaleorplacementofcigarettes.#XXXX뤼3# When p thesefourpromotionalallowancecategoriesarecombined,theytotal$11.86billionfor2004 H (accountingfor83.8percentofallspendingthatyear),and$10.62billionin2005(81percentoftotal   spending).In2003,thecompaniesreportedexpendituresof$12.72billiononthesecategories(84.0 ] percentoftotalspending). 5   Moneyspentgivingcigarettesamplestothepublic( samplingdistribution)decreasedfrom   $17.9millionin2003toXXXXԀ$11.6millionin2004,beforerisingto$17.2millionin2005.#XXXXx8# Sampling !  wasredefinedin2002toinclude,amongotherthings,XXXXwhencouponsaredistributedforfreecigarettes #X" andnopurchaseisrequired#XXXXV9#.Cigarettesamplingexpenditureshaveaccountedforlessthanone %0!$ percentoftotalspendingeveryyearsince1992. m'#&   In2002,thespecialtyitemdistributioncategorywasbrokenintotwonewcategories:branded E)$( andnonbranded.In2004,$8millionwasspentonbrandedspecialtyitemdistributionthroughthe +&* mail,atpromotionalevents,orbyanymeansotherthanatthepointofsalewiththepurchaseof ,(, cigarettes;thatfiguredeclinedto$5.3millionin2005. 2  6      ׀(Specialtyitemsdistributedalongwiththe e purchaseofcigaretteswereredesignatedasretailvalueaddedexpensesbeginningin1988.)In2004 = and2005,respectively,$216.6millionand$225.3millionwasspentdistributingnonbranded,non  cigaretteitemsinconnectionwiththemarketingorpromotionofcigarettes.T 2  7      ׀Thetotalof$224.6   millionspentonspecialtyitemdistributionin2004accountsfor1.6percentoftotaladvertisingand  ` promotionalexpenditures;the2005totalof$230.5millionrepresents1.8percentoftotalspending.  8  In2003,specialtyitemdistributionexpenditureswere$264.2million. u    In2004,expendituresforadultonlypublicentertainmentcategorydroppedto$140.1million, M  from$150.9millionin2003;theseexpendituresthenroseto$214.1millionin2005.Thiscategory % XXXXincludespublicentertainmentevents#XXXX@#(e.g.,sponsorshipofbarnightsorconcerts)XXXXԀthattakeplaceinan  adultonlyfacility#XXXXhA#XXXXԀandthatdisplaythenameorlogoofacompanyscigarettesorotherwisereferto p cigarettes.In2004,a#XXXXA#nother$115,000wasspentongeneralaudiencepublicentertainment!i.e., H XXXXevents#XXXXC#Ԁ(e.g.,sponsorshipofafishingtournament)XXXXthatdonottakeplaceinanadultonlyfacility#XXXX뤏C#XXXXԀand   thatdisplaythenameorlogoofacompanyscigarettesorotherwiserefertocigarettes!downfrom ] $32.8millionin2003.#XXXXD# 2  8      ׀Generalaudiencepublicentertainmentspendingwas$152,000in2005. 5   Thecompaniesalsoreportedspending$28.2millionin2004and$30.6millionin2005onthe   XXXXsponsorshipofsportsteamsorindividualathletes.Thisexpenditurecategoryaccountedfor0.2 e percentofalladvertisingandpromotionalexpendituresinbothyears.#XXXXF# =   Allreportingcompaniesindicatedthatnomoneyhadbeenspentonendorsementsand  testimonialsforcigarettesineither2004or2005.Noexpenditureshavebeenreportedinthis   categorysince1988.  `   Thecigarettecompaniesreportedspending$93.8millionfordirectmailadvertisingin2004  8  ($93.8millionhadbeenspentin2003),and$51.8millionin2005. 2  9       u    Theindustryreportedspending$751.8milliononcouponsin2004(anincreasefromthe M  $650.7millionreportedin2003).In2005,spendingoncouponsroseto$870.1million.T 2  10       %   Retailvalueaddedexpendituresarethecostsassociatedwithofferssuchas buyone,getone  freeand buythree,getafreeTshirt,wherethebonusitemisdistributedatretailwhenthe p cigarettesarepurchased. 2  11      ׀Thecompaniesspent$636.2millionin2004and$725millionin2005on H retailvalueaddedinvolvingfreecigarettes.Theyalsospent$14.3millionand$7.5millioninthose   yearsonretailvalueaddedinvolvingfreenoncigaretteitems,downfrom$20.5millionin2003. ] Totalretailvalueaddedexpenditureswere$650.6millionin2004and$732.5millionin2005. (#  5   In2004,thecompaniesreportedspending$1.4milliononadvertisingonacompanyInternet   website;thatfigureroseto$2.7millionin2005.They___continued_Ԁtoreportnoexpendituresonany !  otherInternetadvertising(e.g.,XXXXbanneradsonthirdpartysitesordirectmailadvertisingusingemail).#XXXX3O# #X"   Thecompaniesreportedspending$346,000ontelephoneadvertisingin2004,afigurethat e declinedto$59,000in2005.ThiscategoryincludesexpensesassociatedwithXXXXtelemarketingcallsor = theoperationofincomingtelephonelinesforconsumerstoparticipateinpromotionsorhearpre  recordedproductmessages(butexcludescostsassociatedwithcustomerservicerepresentativesfor   respondingtoconsumercomplaintsorquestions).  ` #XXXX뤚P#  In1988,theCommissionbeganrequiringthecigarettecompaniestoreportthetotalamountof  8  moneytheyspentadvertisingandpromotingsportsandsportingevents. 2  12      ׀Thisquestionisseparate u  from,and_duplicative_Ԁof,thereportingoftheindividualvariousadvertisingandpromotioncategories. M  Forexample,moneyspentonamagazineadvertisementpromotingacigarettebrandedsports % tournamentopentothoseofallagesisreportedunderthecategory generalaudiencepublic  entertainmentandisalsoreportedasanexpenditureon sportsandsportingevents.Similarly, p expendituresonsponsorshipofsportsteamsandindividualathletesarereportedunderthecategory H  sponsorshipandarealsoreportedas sportsandsportingevents.Themajordomesticcigarette   companiesspent$28.2millionin2004and$30.6millionin2005onsportsandsportingevents,down ] from$62.8millionin2003.Theseamountsarethesameasthosereportedforsponsorships(seep._6,_ 5 supra),whichmeansthatin2004and2005,unlikeinprioryears,thecompaniesdidnotreportany    sportsandsportingeventexpendituresotherthansponsorships. !    In2001,theCommissionbeganrequiringthemajorcigarettemanufacturerstoreport #X" expendituresXXXXonadvertisementsdirectedtoyouthortheirparentsthatareintendedtoreduceyouth %0!$ smoking.For#XXXXX#2004,thecompaniesreportedspending$62.7milliononsuchadvertising,adecrease e fromthe$72.9millionspentin2003. 2  13      ׀In2005,theyreportedspending$55.5million.Thesefigures = donotincludecontributionstothirdpartiesthatengageinsuchprograms.    Cigarettemanufacturersreportedthattheypaidnomoneyorotherformofcompensationin   connectionwiththeproductionorfilmingofanymotionpicturesortelevisionshowsineither2004or  ` 2005,andthattheypaidnomoneyorotherformofcompensationtoanyoneengagedinproduct  8  placementinmotionpicturesortelevisionshows.XXXXThecompaniesalsoreportedthatneithertheynor u  anyoneworkingforthemsolicitedtheappearanceofanycigaretteproductinanymotionpictureor M  televisionshow,orgrantedpermissionfortheappearanceofanycigaretteproductinanymotion % pictureortelevisionshow.#XXXX\#    Thedataoncigarette advertisingandpromotionalexpendituresreportedinTables2through p 2Cwerenotcollectedintheirpresentformuntil1975.Therefore,Table3reportscigarette H advertisingexpendituresfrom1963through1974.   XXXX IV.0  TARRATINGS,FILTERS,LENGTH,ANDFLAVOR5$$  󀀀 ! #XXXX뤲_#_  Tables4and4Agivethedomesticmarketshareofcigaretteswithtarratingsof15milligrams   (mg.)orlessfortheyears1967through2005.Thedatafortheyearssince1982arefurtherbroken !  downintosubcategoriesaccordingtotarratings,e.g.,3mg.orless,6mg.orless,etc.(categoriesare #X" presentedcumulatively).In2004,cigaretteswithtarratingsof15mg.orlessconstituted84.8percent %0!$ ofthedomesticcigarettemarket,whilecigaretteswithtarratingsof3mg.orless!thelowestrated m'#& portionofthemarket!madeup0.8percentofthemarket.In2005,thosefigureswere83.5percent E)$( and0.6percent,respectively. e   AsshowninTables5and5A,filteredcigaretteshavedominatedthemarketsincethe = Commissionbegancollectingthisinformationin1963.Filteredcigarettesheld99percentofthe  marketinboth2004and2005.     Table6providesthedomesticmarketshareofthevariouscigarettelengthcategories.The  ` Kingsize(7988mm.)categorycontinuestobethebiggestseller,with62percentofthemarketin  8  both2004and2005.ThiscategoryisfollowedbytheLong(94101mm.)group,whichheld35 u  percentofthemarketinbothyears.UltraLong(110121mm.)andRegular(6872mm.)cigarettes M  accountedfortwopercentandonepercent,respectively,ofthemarketinboth2004and2005. %   Table7givesthemarketshareofmentholandnonmentholcigarettes.In2004and2005,the  marketshareofmentholcigaretteswas27percent,whilenonmentholsheld73percentofthemarket. p   Tables8and8Arelatetowhether tarratingsaredisplayedoncigarettepackaging.Table H 8Ashows:(1)thepercentageoftheoverallcigarette_market_Ԁrepresentedbyvarietieswithdifferenttar   ratings,and(2)withineachtargroup,thepercentageofthosevarietiesthatdisclosestarratingson ] theirpacks. 2  14      ׀Table8Ashowsthatcigarettevarietiesthatprintedtarratingsontheirpacks 5 representedonly1.2percentoftheoverallmarketin2004and0.9percentin2005.&h 2  15      ׀Cigaretteswith   tarratingsof811mg.represented42.5percentofthemarketin2004and43.3percentin2005; !  however,only1.5percentofthesecigarettesdisclosedtheirratingsonthepackin2004,andonly1.2 #X" percentdidsoin2005.Incontrast,91.6percentofcigarettesrated3mg.tarorlessdisclosedtheir %0!$ ratingsonthepackin2004,and90.7percentdidsoin2005.  m'#& eXXXX8XXdXXd8* d dd Xdd Xdd X$$,00 ,00 ,'00 ,00 ,400 +  3) 03TABLE1 0 TOTALDOMESTICCIGARETTEUNITSALES  1XX(INBILLIONSOFINDIVIDUALCIGARETTES)#11cm##XX1eo# F<*" 0  0FqXYEAR 9/!" 9#XXhq6p#1XTOTALSALESREPORTEDBY  CIGARETTE r  MANUFACTURERS* 9/!  " 9UNITCHANGE r  FROMPRIORYEAR 9/!  " 9%CHANGE r FROMPRIORYEAR 9/! " 9USDACIGARETTE r CONSUMPTIONESTIMATES11 e[' " 00  @19630@e#XX1p#1X1963 }sB " @1963 @ $@516.5$@}516.5 [QC " $@516.5 $@ [Є 9/! " 9Є#11r#11 \R! " 33333_@523.933333_@\523.9#11t#11 }I " 33333_@523.9 00 33333_@ @19640@1964 }sB " @1964 @ @505.0@}505.0 ~tC " @505.0 @ '-11.5'~(11.5) }sC " '-11.5 ' -2.2}(2.2)#119u#11 }sB " -2.2  33333@511.233333@}511.2#11w#11 }I " 33333@511.2 00 33333@ @19650@1965 }sB " @1965 @ H@521.1H@}521.1 }sC " H@521.1 H@ 0@16.10@}16.1 {qB  " 0@16.1 0@  @3.2 @{3.2#11Rx#11 |rA !"  @3.2  @ @528.7@|528.7#11z#11 }I "" @528.7 00 @ @19660@1966 }sB  #" @1966 @ 33333@529.933333@}529.9 |rC  $" 33333@529.9 33333@ !@8.8!@|8.8 zpA  %" !@8.8 !@ 333333?1.7333333?z1.7#11c{#11 |rA  &" 333333?1.7 333333? @541.2@|541.2#11}#11 }I  '" @541.2 00 @ @19670@1967 }sB (" @1967 @ fffffn@525.8fffffn@}525.8 |rC )" fffffn@525.8 fffffn@ @5.9@|5.9 zpA *" @5.9 @ ?1.1?z1.1#11q~#11 |rA +" ?1.1 ? )@549.2)@|549.2#11#11 }I ," )@549.2 00 )@ @19680@1968 }sB  -" @1968 @ fffff@540.3fffff@}540.3 |rC  ." fffff@540.3 fffff@ @4.5@|4.5 yoA  /" @4.5 @  ?.8?y.8#11#11 {q@  0"  ?.8 ?  @545.7 @{545.7#11ȃ#11 }I  1"  @545.7 00  @ Ğ@19690Ğ@1969 }sB 2" Ğ@1969 Ğ@ 33333@527.933333@}527.9 ~tC 3" 33333@527.9 33333@ (-12.4(~(12.4) }sC 4" (-12.4 ( ffffff-2.3ffffff}(2.3)#11#11 }sB 5" ffffff-2.3 ffffff 33333@528.933333@}528.9#11߆#11 }I 6" 33333@528.9 00 33333@ Ȟ@19700Ȟ@1970 }sB 7" Ȟ@1970 Ȟ@ @534.2@}534.2 |rC 8" @534.2 @ 333333@6.3333333@|6.3 zpA 9" 333333@6.3 333333@ ?1.1?z1.1#11#11 |rA :" ?1.1 ? 33333À@536.433333À@|536.4#11#11 }I ;" 33333À@536.4 00 33333À@ ̞@19710̞@1971 }sB <" ̞@1971 ̞@ @547.2@}547.2 }sC =" @547.2 @ *@13.0*@}13.0 {qB >" *@13.0 *@ 333333@2.4333333@{2.4#11#11 |rA ?" 333333@2.4 333333@ X@555.1X@|555.1#11#11 }I @" X@555.1 00 X@ О@19720О@1972 }sBA" О@1972 О@ @561.7@}561.7 }sCB" @561.7 @ -@14.5-@}14.5 {qBC" -@14.5 -@ @2.7@{2.7 |rAD" @2.7 @ fffff@566.8fffff@|566.8#11#11 }IE" fffff@566.8 00 fffff@ Ԟ@19730Ԟ@1973 }sBF" Ԟ@1973 Ԟ@ E@584.7E@}584.7 }sCG" E@584.7 E@ 7@23.07@}23.0 {qBH" 7@23.0 7@ ffffff@4.1ffffff@{4.1 |rAI" ffffff@4.1 ffffff@ m@589.7m@|589.7#11#11 }IJ" m@589.7 00 m@ ؞@19740؞@1974 }sBK" ؞@1974 ؞@ @594.5@}594.5 |rCL" @594.5 @ #@9.8#@|9.8 zpAM" #@9.8 #@ 333333?1.7333333?z1.7 |rAN" 333333?1.7 333333? @599.0@|599.0#11`#11 }IO" @599.0 00 @ ܞ@19750ܞ@1975 }sBP" ܞ@1975 ܞ@ ق@603.2ق@}603.2 |rCQ" ق@603.2 ق@ ffffff!@8.7ffffff!@|8.7 zpAR" ffffff!@8.7 ffffff!@ ?1.5?z1.5 |rAS" ?1.5 ? @607.2@|607.2#11,#11 }IT" @607.2 00 @ @19760@1976 }sBU" @1976 @ 33333@609.933333@}609.9 |rCV" 33333@609.9 33333@ @6.7@|6.7 zpAW" @6.7 @ ?1.1?z1.1 |rAX" ?1.1 ? ,@613.5,@|613.5#11#11 }IY" ,@613.5 00 ,@ @19770@1977 }sBZ" @1977 @ $@612.6$@}612.6 |rC[" $@612.6 $@ @2.7@|2.7 yoA\" @2.7 @  ?.4?y.4 {q@]"  ?.4 ? H@617.0H@{617.0#11ě#11 }I^" H@617.0 00 H@ @19780@1978 }sB_" @1978 @ fffff:@615.3fffff:@}615.3 |rC`" fffff:@615.3 fffff:@ @2.7@|2.7 yoAa" @2.7 @  ?.4?y.4 {q@b"  ?.4 ? @@616.0@@{616.0#11#11 }Ic" @@616.0 00 @@ @19790@1979 }sBd" @1979 @ fffffn@621.8fffffn@}621.8 |rCe" fffffn@621.8 fffffn@ @6.5@|6.5 zpAf" @6.5 @ ?1.1?z1.1 |rAg" ?1.1 ? l@621.5l@|621.5#11V#11 }Ih" l@621.5 00 l@ @19800@1980 }sBi" @1980 @ @628.2@}628.2 |rCj" @628.2 @ @6.4@|6.4 zpAk" @6.4 @ ?1.0?z1.0 |rAl" ?1.0 ? @631.5@|631.5#11"#11 }Im" @631.5 00 @ @19810@1981 }sBn" @1981 @ @636.5@}636.5 |rCo" @636.5 @  @8.3 @|8.3 zpAp"  @8.3  @ ?1.3?z1.3 |rAq" ?1.3 ? @640.0@|640.0#11#11 }Ir" @640.0 00 @ @19820@1982 }sBs" @1982 @ ă@632.5ă@}632.5 }sCt" ă@632.5 ă@ -4.0}(4.0) {qBu" -4.0  333333-.6333333{(.6) |rAv" 333333-.6 333333 Ѓ@634.0Ѓ@|634.0#11#11 }Iw" Ѓ@634.0 00 Ѓ@ @19830@1983 }sBx" @1983 @ ܂@603.6܂@}603.6 ~tCy" ܂@603.6 ܂@ fffff<-28.9fffff<~(28.9) }sCz" fffff<-28.9 fffff< ffffff-4.6ffffff}(4.6) }sB{" ffffff-4.6 ffffff @600.0@}600.0#11#11 }I|" @600.0 00 @ @19840@1984 }sB}" @1984 @ 33333@608.433333@}608.4 |rC~" 33333@608.4 33333@ 333333@4.8333333@|4.8 yoA" 333333@4.8 333333@  ?.8?y.8 {q@"  ?.8 ? 33333Â@600.433333Â@{600.4#11b#11 }I" 33333Â@600.4 00 33333Â@ @19850@1985 }sB" @1985 @ fffff@599.3fffff@}599.3 }sC" fffff@599.3 fffff@ 333333"-9.1333333"}(9.1) |rB" 333333"-9.1 333333" -1.5|(1.5) }sB" -1.5  @594.0@}594.0#11+#11 }I" @594.0 00 @ @19860@1986 }sB" @1986 @ 33333S@586.433333S@}586.4 ~tC" 33333S@586.4 33333S@ )-12.9)~(12.9) }sC" )-12.9 ) -2.2}(2.2) }sB" -2.2  fffff>@583.8fffff>@}583.8#11#11 }I" fffff>@583.8 00 fffff>@  @19870 @1987 }sB "  @1987  @ 33333@575.433333@}575.4 ~tC " 33333@575.4 33333@ &-11.0&~(11.0) }sC " &-11.0 & ffffff-1.9ffffff}(1.9) }sB " ffffff-1.9 ffffff @575.0@}575.0#11ַ#11 }I " @575.0 00 @ @19880@1988 }sB!" @1988 @ @560.7@}560.7 ~tC!" @560.7 @ ffffff--14.7ffffff-~(14.7) }sC!" ffffff--14.7 ffffff- -2.6}(2.6) }sB!" -2.6  @562.5@}562.5#11#11 }I!" @562.5 00 @ @19890@1989 }sB"" @1989 @ l@525.6l@}525.6 ~tC"" l@525.6 l@ ̌A-35.1̌A~(35.1) }sC"" ̌A-35.1 ̌A 333333-6.3333333}(6.3) }sB"" 333333-6.3 333333 @540.0@}540.0#11#11 }I"" @540.0 00 @ @19900@1990 }sB# " @1990 @ ]@523.7]@}523.7 }sC# " ]@523.7 ]@ ffffff-1.9ffffff}(1.9) {qB# " ffffff-1.9 ffffff ٿ-.4ٿ{(.4) |rA# " ٿ-.4 ٿ h@525.0h@|525.0#11[#11 }I# " h@525.0 00 h@ @19910@1991 }sB$!" @1991 @ fffff@510.9fffff@}510.9 ~tC$!" fffff@510.9 fffff@ )-12.8)~(12.8) }sC$!" )-12.8 ) 333333-2.4333333}(2.4) }sB$!" 333333-2.4 333333 @510.0@}510.0#11,#11 }I$!" @510.0 00 @  @19920 @1992 }sB%""  @1992  @ fffff@506.4fffff@}506.4 }sC%"" fffff@506.4 fffff@ -4.5}(4.5) {qB%"" -4.5  -.9{(.9) |rA%"" -.9  @@500.0@@|500.0#11#11 }I%"" @@500.0 00 @@ $@19930$@1993 }sB&#" $@1993 $@ fffff|@461.4fffff|@}461.4 ~tC&#" fffff|@461.4 fffff|@ F-45.0F~(45.0) }sC&#" F-45.0 F !-8.9!}(8.9) }sB&#" !-8.9 ! P~@485.0P~@}485.0#11#11 }I&#" P~@485.0 00 P~@ (@19940(@1994 }sB'$" (@1994 (@ 33333~@490.233333~@}490.2 }sC'$" 33333~@490.2 33333~@ <@28.8<@}28.8 {qB'$" <@28.8 <@ @6.2@{6.2 |rA'$" @6.2 @ `~@486.0`~@|486.0#11#11 }I'$" `~@486.0 00 `~@ ,@19950,@1995 }sB(%" ,@1995 ,@ $~@482.3$~@}482.3 }sC(%" $~@482.3 $~@ -7.9}(7.9) |rB(%" -7.9  -1.6|(1.6) }sB(%" -1.6  p~@487.0p~@}487.0#11z#11 }I(%" p~@487.0 00 p~@ 0@199600@ 1996 }sB)&" 0@1996 0@  A~@484.1A~@ }484.1 |rC)&" A~@484.1 A~@  ?1.8? |1.8 zpA)&" ?1.8 ?  ?0.4?z0.4 |rA)&" ?0.4 ? p~@487.0p~@|487.0#11N#11 }I)&" p~@487.0 00 p~@ 4@199704@ 1997 }sB*'" 4@1997 4@  }@478.6}@ }478.6 }sC*'" }@478.6 }@  -5.5 }(5.5) |rB*'" -5.5   -1.1|(1.1) }sB*'" -1.1  ~@480.0~@}480.0#11#11 }I*'" ~@480.0 00 ~@ 8@199808@ 1998 }sB~+(" 8@1998 8@  |@458.6|@ }458.6 ~tC~+(" |@458.6 |@  4-20.14 ~(20.1) }sC~+(" 4-20.1 4  -4.2}(4.2) }sB~+(" -4.2  }@465.0}@}465.0#11#11 }I~+(" }@465.0 00 }@ <@19990<@ 1999 }sBz,)" <@1999 <@  ̴y@411.3̴y@ }411.3 ~tCz,)" ̴y@411.3 ̴y@  G-47.2G ~(47.2) ~tCz,)" G-47.2 G  $-10.3$~(10.3) ~tCz,)" $-10.3 $ 0{@435.00{@~435.0#11#11 }Iz,)" 0{@435.0 00 0{@ @@20000@@ 2000 }sBv-*" @@2000 @@  fffffy@413.9fffffy@ }413.9 |rCv-*" fffffy@413.9 fffffy@  @2.6@ |2.6 yoAv-*" @2.6 @   333333?.6333333?y.6 {q@v-*"  333333?.6 333333? z@430.0z@{430.0YOMv-*" z@430.0 00 ' z@ Y#XX14s#qXX*0  #qq#CigarettessoldbymanufacturerstowholesalersandretailerswithintheU.S.andtoarmedforcespersonnelstationedoutside ., theU.S.#XXq#qXXqq/,$$ #qq##XXq#qXXTRX3'Avery 5261 AddressX3'3'Letter261 AddressX%" ~@480.3'Letter5' XXX'g3L3T*V^d (d00 00 '00 '00 400 4 $$,X00 ,X00 ,900 ,00 ,00 ,00 ,e00 +  3) 03#XXqq#TABLE1A 0 TOTALDOMESTICCIGARETTEUNITSSOLDANDGIVENAWAY  1XX(INBILLIONSOFINDIVIDUALCIGARETTES)#XX1#   F<*" 0  0F1XYEAR 9/!  " 9UNITS 2 D SOLD* 9/! " 9UNITS   GIVEN 2 D AWAY** 9/! " 9TOTALNUMBER   SOLDANDGIVEN   AWAYASREPORTED 2 D BYMANUFACTURERS 9/! " 9UNIT  CHANGEINSOLD ^p ANDGIVEN    AWAY  ! FROMPRIOR 2 D" YEAR 9/! #" 9PERCENT $ CHANGEINSOLD ^p% ANDGIVEN  & AWAY  ' FROMPRIOR 2 D( YEAR 9/! )" 9USDA  , CIGARETTE  - CONSUMPTION 2 D. ESTIMATES e[' /" 00  D@20010D@ e2001 }sB 0" D@2001 D@  x@398.3x@ }398.3 |rC 1" x@398.3 x@  333333@3.9333333@ |3.9 |rA 2" 333333@3.9 333333@  x@398.3x@ |402.2 [QC 3" x@398.3 x@   [*** 9/! 4"  9*** \R! 5" z@425.0z@\425.0 }I 6" z@425.0 00 z@ H@20020H@ 2002 }sB 7" H@2002 H@  fffffw@376.4fffffw@ }376.4 }sC 8" fffffw@376.4 fffffw@  333333&@11.1333333&@ }11.1 }sB 9" 333333&@11.1 333333&@  fffff6x@387.4fffff6x@ }387.4 ~tC :" fffff6x@387.4 fffff6x@  --14.8- ~(14.8) }sC ;" --14.8 -   -3.7 }(3.7) }sB <"  -3.7   y@415.0y@}_415.0_ }I =" y@415.0 00 y@ L@20030L@ 2003 }sB >" L@2003 L@  v@360.5v@ }360.5 |rC ?" v@360.5 v@  ffffff@7.1ffffff@ |7.1 |rA @" ffffff@7.1 ffffff@  v@367.6v@ |367.6 ~tC A" v@367.6 v@  3-19.83 ~(19.8) }sC B" 3-19.8 3  ffffff-5.1ffffff}(5.1) }sB C" ffffff-5.1 ffffff y@400.0y@}_400.0_ }I D" y@400.0 00 y@ P@20040P@ 2004 }sB E" P@2004 P@  ̔v@361.3̔v@ }361.3 |rC F" ̔v@361.3 ̔v@  @2.1@ |2.1 |rA G" @2.1 @  fffffv@363.4fffffv@ |363.4 }sC H" fffffv@363.4 fffffv@  -4.2 }(4.2) |rB I" -4.2   -1.1|(1.1) }sB J" -1.1  @x@388.0@x@}388.0 }I K" @x@388.0 00 @x@ T@20050T@ 2005 }sB L" T@2005 T@  u@351.6u@ }351.6 |rC M" u@351.6 u@  @3.0@ |3.0 |rA N" @3.0 @  )v@354.6)v@ |354.6 }sC O" )v@354.6 )v@  !-8.8! }(8.8) |rB P" !-8.8 !  333333-2.4333333|(2.4) }sB Q" 333333-2.4 333333 w@376.0w@}_376.0_YOM R" w@376.0 00  w@ Y#XX1#qXX   `     h #XXq#1XX*0  CigarettessoldbymanufacturerstowholesalersandretailerswithintheU.S.andtoarmedforcespersonnel 2*D'w stationedoutsidetheU.S.*(x$$ **  CigarettesgivenawaywithintheU.S.andtoarmedforcespersonnelstationedoutsidetheU.S.11 +(y ***0  Priorto2001,theCommissiondidnotaskaboutcigarettesgivenaway,althoughsomecigarettesgivenawaymay ~,)z havebeenreportedassold.#XX1##XXXX #_B-T*{$$ TRO'3Avery 5261 Address LandscapeX3'Avery 5261 Address'3Letter Landscapes LandscapeX3'Letter261 AddressX%" ~@480.T9qXXqq  *RSd dX00 XX00 X900 900 00 00 e00 eV^W0W0,,,,,,,9,,9,9,9,,+  ,"  ,#XXq#1XX#11#(1  TABLE2    DOMESTICCIGARETTEADVERTISINGANDPROMOTIONALEXPENDITURESFORYEARS1970,19751985(DOLLARSINTHOUSANDS)* ND1,> ))    N 0&FX   0  %   %  '%3 ' '%3 ' '% 3 ' '% 3 ' '% 3 ' '% 3 ' '% 3 ' '%3 ' '%3 ' '%3 ' ?5%3  ?#(XPoX(#(X(XPo<Ӏ @6  Ȟ@1970Ȟ@@1970 H>33 Ȟ@1970 Ȟ@ H1975 '3 '1976 '3 '1977 '3 '1978 '3 '1979 '3 '1980 '3 '1981 '3 '1982 '3 '1983 '3 '1984 '3 '1985 6,3  6        '!3 ' '"3 ' '#3 ' '$3 ' '%3 ' '&3 ' ''3 ' '(3 ' ')3 ' '*3 ' ?5+3  ?Newspapers  M_, $14,026  M_- $104,460 'M_.3 '$155,808 'M_/3 '$190,677 'M_03 '$186,947 'M_13 '$240,978 'M_23 '$304,380 'M_33 '$358,096 'M_43 '$282,897 'M_53 '$200,563 'M_63 '$193,519 'M_73 '$203,527 ?5M_83  ?  9 3.9%  : 21.3% ';3 '24.4% '<3 '24.5% '=3 '21.4% '>3 '22.2% '?3 '24.5% '@3 '23.1% 'A3 '15.8% 'B3 '10.6% 'C3 '9.2% 'D3 '8.2% 6,E3  6   F    G  ' H3 ' ' I3 ' ' J3 ' ' K3 ' ' L3 ' ' M3 ' ' N3 ' ' O3 ' ' P3 ' ' Q3 ' ?5 R3  ?Magazines  - ?S $50,018  - ?T $131,199 '- ?U3 '$148,032 '- ?V3 '$173,296 '- ?W3 '$184,236 '- ?X3 '$257,715 '- ?Y3 '$266,208 '- ?Z3 '$291,227 '- ?[3 '$349,229 '- ?\3 '$388,365 '- ?]3 '$425,912 '- ?^3 '$395,129 ?5- ?_3  ?   `  13.9%   a 26.6% ' b3 '23.2% ' c3 '22.2% ' d3 '21.1% ' e3 '23.8% ' f3 '21.4% ' g3 '18.8% ' h3 '19.5% ' i3 '20.4% ' j3 '20.3% ' k3 '16.0% 6, l3  6  m m   m n  'm o3 ' 'm p3 ' 'm q3 ' 'm r3 ' 'm s3 ' 'm t3 ' 'm u3 ' 'm v3 ' 'm w3 ' 'm x3 ' ?5m y3  ?Outdoor    z $7,338    { $84,329 '  |3 '$102,689 '  }3 '$120,338 '  ~3 '$149,010 '  3 '$162,966 '  3 '$193,333 '  3 '$228,081 '  3 '$266,925 '  3 '$295,226 '  3 '$284,927 '  3 '$300,233 ?5  3  ?    2.0%    17.2% ' 3 '16.1% ' 3 '15.4% ' 3 '17.0% ' 3 '15.0% ' 3 '15.6% ' 3 '14.7% ' 3 '14.9% ' 3 '15.5% ' 3 '13.6% ' 3 '12.1% 6, 3  6  M _    M _   'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' 'M _ 3 ' ?5M _ 3  ?Transit    $5,354    $10,852 ' 3 '$19,341 ' 3 '$21,530 ' 3 '$22,899 ' 3 '$21,151 ' 3 '$26,160 ' 3 '$21,931 ' 3 '$24,135 ' 3 '$26,652 ' 3 '$25,817 ' 3 '$33,136 ?5 3  ?    1.5%    2.2% ' 3 '3.0% ' 3 '2.8% ' 3 '2.6% ' 3 '2.1% ' 3 '2.0% ' 3 '1.4% ' 3 '1.3% ' 3 '1.4% ' 3 '1.2% ' 3 '1.3% 6, 3  6  -?    -?   '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' '-? 3 ' ?5-? 3  ?PointofSale    $11,663    $35,317 ' 3 '$44,176 ' 3 '$46,220 ' 3 '$57,384 ' 3 '$66,096 ' 3 '$79,799 ' 3 '$98,968 ' 3 '$116,954 ' 3 '$170,059 ' 3 '$167,279 ' 3 '$142,921 ?5 3  ?  m  3.2%  m  7.2% 'm 3 '6.9% 'm 3 '5.9% 'm 3 '6.6% 'm 3 '6.1% 'm 3 '6.4% 'm 3 '6.4% 'm 3 '6.5% 'm 3 '8.9% 'm 3 '8.0% 'm 3 '5.8% 6,m 3  6         ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ' 3 ' ?5 3  ?PromotionalAllowances   $33,789   $72,018 '3 '$82,523 '3 '$108,227 '3 '$125,148 '3 '$137,111 '3 '$179,094 '3 '$229,077 '3 '$272,269 '3 '$366,153 '3 '$363,247 '3 '$548,877 ?53  ?  M_ 9.4%  M_ 14.7% 'M_3 '12.9% 'M_3 '13.9% 'M_3 '14.3% 'M_3 '12.7% 'M_3 '14.4% 'M_3 '14.8% 'M_3 '15.2% 'M_3 '19.3% 'M_3 '17.3% 'M_3 '22.2% 6,M_3  6         ' 3 ' ' 3 ' ' 3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53  ?SamplingDistribution   $11,775   $24,196 '3 '$40,390 '3 '$47,683 '3 '$47,376 '3 '$64,286 '3 '$50,459 '3 '$81,522 '3 '$141,178 '3 '$125,968 ' 3 '$148,031 '!3 '$140,565 6,"3  6  -?# 3.3%  -?$ 4.9% '-?%3 '6.3% '-?&3 '6.1% '-?'3 '5.4% '-?(3 '5.9% '-?)3 '4.1% '-?*3 '5.3% '-?+3 '7.9% '-?,3 '6.6% '-?-3 '7.1% '-?.3 '5.7% 6,-?/3  6  0   1  '23 ' '33 ' '43 ' '53 ' '63 ' '73 ' '83 ' '93 ' ':3 ' ';3 ' ?5<3  ?SpecialtyItemDistribution  m= $5,652  m> $10,088 'm?3 '$20,030 'm@3 '$35,797 'mA3 '$48,281 'mB3 '$62,029 'mC3 '$69,248 'mD3 '$115,107 'mE3 '$95,246 'mF3 '$127,186 'mG3 '$140,431 'mH3 '$211,429 6,mI3  6   J 2.6%   K 2.1% ' L3 '3.1% ' M3 '4.6% ' N3 '5.5% ' O3 '5.7% ' P3 '5.6% ' Q3 '7.5% ' R3 '5.3% ' S3 '6.6% ' T3 '6.7% ' U3 '8.5% 6, V3  6  W   X  'Y3 ' 'Z3 ' '[3 ' '\3 ' ']3 ' '^3 ' '_3 ' '`3 ' 'a3 ' 'b3 ' ?5c3  ?PublicEntertainment  M_d $544  M_e $8,484 'M_f3 '$7,946 'M_g3 '$9,538 'M_h3 '$11,590 'M_i3 '$10,783 'M_j3 '$16,914 'M_k3 '$37,423 'M_l3 '$63,168 'M_m3 '$76,648 'M_n3 '$59,988 'M_o3 '$57,581 ?5M_p3  ?  q 0.2%  r 1.7% 's3 '1.3% 't3 '1.2% 'u3 '1.3% 'v3 '1.0% 'w3 '1.4% 'x3 '2.4% 'y3 '3.5% 'z3 '4.0% '{3 '2.9% '|3 '2.3% 6,}3  6  ~     '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53  ?Other**  Zl $220,841  Zl $10,311 'Zl3 '$18,182 'Zl3 '$26,157 'Zl3 '$42,100 'Zl3 '$60,310 'Zl3 '$56,694 'Zl3 '$86,226 'Zl3 '$181,813 'Zl3 '$123,951 'Zl3 '$286,035 'Zl3 '$443,043 ?5Zl3  ?    61.1%    2.0% ' 3 '2.8% ' 3 '3.4% ' 3 '4.8% ' 3 '5.6% ' 3 '4.6% ' 3 '5.6% ' 3 '10.1% ' 3 '6.5% ' 3 '13.7% ' 3 '17.9% 6, 3  6       '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' '3 ' ?53  ?Total  :L $361,000  :L $491,254 ':L3 '$639,117 ':L3 '$779,463 ':L3 '$874,971 ':L3 '$1,083,425 ':L3 '$1,242,289 ':L3 '$1,547,658 ':L3 '$1,793,814 ':L3 '$1,900,771 ':L3 '$2,095,231 ':L3 '$2,476,441 6,:L3  6 >4  ?100.0?>100% mc1 ?100.0 ? ?100?m100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100% tj83 ?100 ? ?100?t100%SIG3 ?100  $ ? S#c(##XXcN#1XX#XX1U#qXX*0  Becauseofrounding,sumsofpercentagesmaynotequal100percent.b tW0W0 **0  IncludesTVandRadioadvertisingexpendituresof$207,324,000and$12,492,000,respectively,for1970.BroadcastadvertisingwasbannedafterJanuary1,1971. !& Expendituresfordirectmail,endorsements,testimonials,andaudiovisualareincludedinthe AllOtherscategorytoavoiddisclosureofindividualcompanydata.#XXq V#1XX !W0W0 #XX1+X#1XX%eS*P d %d99999999RSW0W0P,4,,,,,,,,9,9,+  5+  5(1#(XPoX(X#(X(XPo@@3#(XPoX([#(X(XPoTABLE2A  DOMESTICCIGARETTEADVERTISINGANDPROMOTIONALEXPENDITURESFORYEARS19861995(DOLLARSINTHOUSANDS)*#(XPoX()\##XXX(XPo[#(XPoXXX(X(XPo 9/ "    x9  z   z  'z3 ' 'z3 ' 'z3 ' 'z3 ' 'z 3 ' 'z 3 ' 'z 3 ' 'z 3 ' ?5z 3 x ?#(XPoX(1]#(X(XPoԀ @6  @1986@@#(XPoX(V_#(X(XPo1986 aW* @1986 @  @1987 @a1987 H>33  @1987  @ H1988 '3 '1989 '3 '1990 '3 '1991 '3 '1992 '3 '1993 '3 '1994 '3 '1995 6,3  x6#(XPoX(_#(X(XPo   #(XPoX(3b#(X(XPo    '3 ' '3 ' '3 ' '3 ' '3 ' ' 3 ' '!3 ' '"3 ' ?5#3 x ?#(XPoX(b#(X(XPoNewspapers  0$ #(XPoX(ad#(X(XPo$119,629  0% $95,810 '0&3 '$105,783 '0'3 '$76,993 '0(3 '$71,174 '0)3 '$48,212 '0*3 '$35,467 '0+3 '$36,220 '0,3 '$24,143 '0-3 '$19,122 ?50.3  ?#(XPoX(d#(X(XPo  / #(XPoX(f#(X(XPo5.0%  0 3.7% '13 '3.2% '23 '2.1% '33 '1.8% '43 '1.0% '53 '0.7% '63 '0.6% '73 '0.5% '83 '0.4% 6,93  x6#(XPoX(Jg#(X(XPo  ^p: #(XPoX(@i#(X(XPo  ^p;  '^p<3 ' '^p=3 ' '^p>3 ' '^p?3 ' '^p@3 ' '^pA3 ' '^pB3 ' '^pC3 ' ?5^pD3 x ?#(XPoX(i#(X(XPoMagazines  E #(XPoX(nk#(X(XPo$340,160  F $317,748 'G3 '$355,055 'H3 '$380,393 'I3 '$328,143 'J3 '$278,110 'K3 '$237,061 'L3 '$235,253 'M3 '$251,644 'N3 '$248,848 6,O3  6#(XPoX(k#(X(XPo  vP #(XPoX(m#(X(XPo 14.3%  vQ 12.3% 'vR3 '10.8% 'vS3 '10.5% 'vT3 '8.2% 'vU3 '6.0% 'vV3 '4.5% 'vW3 '3.9% 'vX3 '5.2% 'vY3 '5.1% 6,vZ3  x6#(XPoX(Xn#