Tobacco Cos. Gain Despite Legal Battles

I think part of their growth stems from the fact that Big Tobacco doesn't just sell tobacco anymore. Most of the cigarette brands are part of super-mega-conglomo (official econ term, I promise) corporations that also sell much of the branded food we consume every day, as the article mentions.

Additionally, anti-smoking laws are driving a lot of nicotine addicts to chewing (smokeless) tobacco, which also adds revenue to corporations that sell such products.

Beyond that, tobacco is friggin expensive these days. The guy in line in front of me at the gas station today bought a pack of Camels, and it was WELL over $5. I know a lot of that is punitive tax, but I can't believe that smokes aren't hugely profitable for the companies producing them. Seriously, what does it cost to make a cigarette. Tobacco is essentially a weed, cigarettes don't use a very high quality tobacco and the manufacturing process (not including today's chemical treatment processes) is nearly 100 years old.

Further adding to profits is the fact that smoking (American and European brand cigarettes) is really taking off in developing countries as well. Poorer and developing countries typically have higher numbers of smokers than developed and Western countries, but now the billions in China and other recently-economically-improved countries are lighting up Marlboros over Red Stars. And import brands command top dollar in Asia and Eastern Europe.

Finally, and this is just a personal theory of mine, I don't think that many people are actually quitting smoking. I think in this climate, far fewer people are willing to publicly admit to smoking tobacco, but will happily light a cigarette when no one's looking (which may reduce smoking, but doesn't stop it completely).

It doesn't make any sense to me that despite all that's been in the news about the cigarette companies making their product EVEN MORE addictive that people are now more willing/able to quit than they were 10 years ago. Couple that with an addiction lacking in immediate risk of death or serious health problems (out of sight, out of mind) I don't see people as being that much more motivated to quit.