Little Cigar Consumption on the Rise,
While Cigarette Use Declines
SCHIP Law Will Tax Little Cigars at Cigarette Equivalent for First Time
New data from the Maxwell Report indicates a dramatic increase in the use of cigarillos and little cigars over the past decade, a troubling trend given the popularity of these products with young adults (ages 18-25) and the African American community. According to the data, over a 10-year period from 1997-2007, little cigar consumption increased 240 percent, while cigarillos increased by almost 150 percent. Meanwhile, cigarette consumption has declined by about 25 percent over the same 10 year period.
"These numbers are extremely troubling. Little cigars and cigarillos are obviously a serious public health threat and there is evidence that they are popular among young adults and minorities," said Dr. Cheryl G. Healton, President and CEO of American Legacy Foundation. "While much effort has been focused over the past decade to increasing awareness about cigarettes and the dangers of smoking, cigar products have emerged as a profitable product while remaining taxed at a much lower rate for tobacco companies and consumers are taking the bait," she added. Low prices, candy flavors and promotional marketing promoting affluence and hip hop culture may be some factors that make little cigars popular among youth. Healton points out that the recent federal tax increase on these emerging products may help to curb the consumption.
Under the new law expanding the State Children's Health Insurance Plan law (SCHIP) program, which was signed by President Obama February 4th, taxes will increase not only on cigarettes - a major victory for public health advocates - but on cigar products as well. Little cigars will now be taxed at $1.01 per pack, and cigarillos and large cigars will have an increase from $.05 to $.40.
"For years there has been an established correlation between increased taxes on tobacco and a decrease in consumption rates. This is especially true among price-sensitive youth and young adults," Healton said. "The signing of SCHIP into law is indeed a momentous victory for the public health community on several fronts."
Two of the major manufacturers of these products are John Middleton Company, which is owned by Altria, the parent company of Philip Morris, and Swisher International. Middleton's "Black & Mild" and Swisher's "Swisher Sweets" are among the most popular cigar brands for young adults today.
This issue holds great significance in the U.S. as Black History Month is observed throughout the month of February and the contributions of the nation's African American leaders is celebrated.
 Little Cigars
Little cigars – which look like cigarettes but are wrapped in tobacco leaf – were once an almost invisible product and have grown exponentially in popularity.
In May of 2006, attorneys general around the country filed a petition with the U.S. Department of Treasury's Alcohol Tobacco Tax and Trade Bureau (TTB) to ask the federal agency to close a loophole allowing tobacco manufacturers to pass off their cigarettes in brown wrappers as "little cigars." Under these rules, the tobacco companies classify their own products in a way that defeats public health and marketing restrictions that would otherwise apply to cigarettes. Some suggest that with the current economic crisis, even the most loyal traditional cigarette smoker may begin to use little cigars or cigarillos to save money.
Cigarillos
Cigarillos are longer, slimmer versions of a large cigar and are currently available in a variety of flavors, including apple, cream and wine, which may be more appealing to youth. While sold in packs, they are individually wrapped and often sold individually at a much lower cost than a pack. Additionally, many state and local laws do not have minimum pack size requirements for cigars - unlike cigarettes. Research shows cigar products' popularity and sales are rising, particularly with young adults and in urban communities of color. |
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