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FTC Report Shows Declines In Cigarette Sales, Promotion

By Darrell A. Hughes, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- A Federal Trade Commission report released Wednesday shows relatively slender declines in cigarette sales, advertising and promotion.

However, a separate FTC report shows that spending on smokeless tobacco, also referred to as chewing tobacco, advertising and promotion rose from $250.79 million in 2005 to $354.12 million in 2006.

The FTC examines activity between 2005 and 2006. The amount spent on cigarette advertising by the five largest cigarette companies in the U.S. declined from $ 13.11 billion in 2005 to $12.49 billion in 2006, the report said.

While spending on price discounts fell from $9.78 billion in 2005 to $9.21 billion in 2006, it still accounted for roughly 74% of all marketing expenditures.

The report goes on to site declines in the number of cigarettes sold by manufacturers to wholesalers and retailers, along with declines in the total number of sold and given away.

-By Darrell A. Hughes, Dow Jones Newswires; 202-862-6684; darrell.hughes@ dowjones.com

  (END) Dow Jones Newswires
  08-12-091309ET
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