Record Amount Spent on Promotions in ’01

The U.S. tobacco industry spent a record amount on promotions in 2001 in an effort to reverse lagging sales, the Federal Trade Commission said.

The six largest U.S. tobacco companies, including Altria Group Inc.’s Philip Morris unit and R.J. Reynolds Tobacco Holdings Inc., spent $11.2 billion on promotions and advertising in 2001, a 17% increase from $9.6 billion in 2000. Meanwhile, manufacturers sold 398.3 billion cigarettes, or 3.8% less, to U.S. wholesalers and retailers.