29 July 2016
In economic news, Phillip Morris International (makers of such brands as Marlboro, Virginia Slims, and Parliament) released their second quarter earnings report and stated that their shipments have dropped globally.But due to increasing price hikes and a growing demand in Asia, Phillip Morris saw net revenue increase by 1.4 percent. This did not appease investors as stock of Phillip Morris International (PM) has fallen 5% since July 15.
In an article by Bloomberg Gadfly, a commentary website about economic news, the author shows a graph of growth of smoking prevalence over time among different continents of the world. From December of 2014 to December of 2015 we see a decline of smoking rates across the globe, except for Asia Pacific which does not include the Middle East. In Asia, we see a rise in smoking prevalence, and that seems to be where we see most of Phillip Morris’ profits lie. It would be safe to say that Phillip Morris, most definitely has a large number of Asians hooked on their products because of the market share of brands such as Marlboro and Parliament have.
The graph is certainly troubling, as Chicago still manages to get a large number of immigrants from Asia/China who come here and settle in Chinatown and the surrounding area. This is most certainly something that CASAP does not want to see, and we hope to decrease the risk of having immigrants continuing to smoke when they come here. More importantly, CASAP will continue to monitor smoking trends in Asia as they develop.
A link to the full article and the graph can be found here.
Updated stock prices for Phillip Morris can be found here.