Smokeless tobacco benefits from the rules and taxes on cigarettes, says UST spokesman Mark Rozelle. That includes bans on public smoking. There's room to grow. You've got an adult user base of 50 million smokers. Forty percent are looking for alternatives.
Small firms are also on the rise.
These makers of low-priced cigarettes benefit indirectly from the MSA, which drove up prices. The legal and regulatory climate continues to improve. Last year, a judge dismissed two of the three claims in a federal racketeering suit against the industry. The new Bush White House may not fund that suit much longer. The industry is appealing the Florida Engle case.