Lights Cigarettes in the USA

Executive Summary

The lowest in Tar: Ultras, One Milligram and Ultima

As soon as the trend toward Lights cigarettes was established, manufacturers sought to innovate on the basis of lower tar deliveries in order to capture the franchises that were trading down toward Lights cigarettes. Consumers were expected to demand lighter and lighter cigarettes, so as soon as the technology permitted, the manufacturers introduced cigarettes with tar deliveries in the 6-1 mg. tar range.

Nevertheless, this expected trend did not happen. Ultra Lights cigarettes were introduced in the USA market in 1964, three years after Marlboro Lights 14 mg. was launched. The segment grew as the overall Lights segment did, but it did not develop to its fullest. The segment peaked at 12.8% share of the market in 1991 and started to decline. Currently the segment is consolidated toward the 4-6 mg. tar band with about 10% market share since 1991, while the 1-3 mg. tar band has declined from 2.7% market share in 1991 to 2% market share in 1996.

There is not a dominant brand in the segment, and manufacturers have dropped all marketing support to the Ultra Lights brands. A change in the segment is expected in the near future when Philip Morris rolls out its Marlboro Ultra Lights line extension.

British American Tobacco's consumer researches appoint the lack of flavour as the major barrier for this segment to continue developing. The Ultra Lights segment's franchise is mainly composed of 51+ year-old smokers who are willing to trade off taste in favour of the ultra low tar aspects. They joined the segment in the initial stages of development and have aged with it. The segment does not attract new career smokers.

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