Evening star., 1928-04-23
CIGARETTE SALES
| GAINING HEAVILY
Bright Leaf Acreage to Show
Big Gains, Especially in
Georgia Districts.
BY J. C. ROYLE.
Special Dispatch to The star.


NEW YORK, April 23.-.Sales Of
cigarettes today are running approxi-
mately Is per cent ahead OF those OF
April, 1927. In order to accommodate
the demand which is in prospect bright
leaf growers In the Southeast, from
Virginia to south Georgia, are tncr2as-
ing acreage and planting.
The days when George washington
and his fellow planters found their
hogsheads of tobacco as fluid as King
Georges guineas seem likely TO be
approximated again, so far as the bright
leaf producers are concerned.
The gain is specially noticeable In
the newer districts Of Georgia. which
only In recent years have turned to the
production of tobacco. Georgia last
wear produced 6O,O00000 pounds of
bright leaf. This year the State agri-
cultural authorities predict yield OF
rs 100000 to l00.000000 pounds II the
weather is ordinarily propitious. Grow
ers have been repeatedly warned that
overplanting would mean disaster to
prices, but in the 10 years the leaf has
been cultivated In Georgia the increase
in demand has always been sufficient
to keep prices fairly stable.
Sales Promotion Program.
Extensive sales promotion campaigns
are in progress by all the leading do
mestic manufacturers of cigarettes. ana
sales have responded nobly. These
heavy advertising expenditures have
narrowed margins OF profit somewhat,
but have proved unquestionably tneir
utility as expanderS of volume. This Is
specially true of daily newspaper adver-
tising, according to the trade.
The average gain Of cigarette sales
in the last eight years has been IL per
cent. The demand from woman smok-
ers has done more than little to ac-
count for this. Aggregate sales possibly
may reach Ill 900, 900. 900 cigarettes this
year. as compared with $1,000, 100000
for 1927.
Competitive conditions of the most
severe character prevail, but the adver-
Using of the leading brands has sufiiced
to keep profits of the larger manufac-
turers high, despite the slender margin
between cost and price. Some OF the
chain retail distributors have resorted
at times to price cuts for brief period
but these have acted as stimulus TO
sales of other commodities, so many OF
the retailers have not suffered, while
increased volume.
The price-cut made today In the
wholesale prices of cigarettes by three
big manufacturers reflects accurately
the competitive conditions In the in
dustry and the possibilities afforded by
high volume production.
The export sales Of American tobacco
and cigarettes undoubtedly will benefit
this year from the more stable condi-
tions existing in China. which takes
huge quantities of the American prod
ucts Growers here we're faced with a
Chinese boycott for a time. but this
did not prove SO damaging as was
feared.
British TO Invade Field.
The chief British manufacturer,
which always has left the American
market to the American manufactur-
ers. has announced its intention Of in
vading this field. The announcement
now that the trade has had time to di-
geSt IL is welcomed rather than feared
Any such invasion means a terrific in
crease In advertising in American pub
lications. The growers see an increased
demand for any increase In the sales
OF the English company.
The growers also stand TO benefit
from the improved sales of the so-called
domestic cigars. There has been little ad
vance In the higher priced hand-rolled
cigars. which utilize much Cuban to-
bacco. but the machine-made cigars
which retail at a moderate price have
regained a part of the markets they
lost after the war.
One surprise this year has been the
unusual increase in snuff sales. which
amount TO some Is per cent as COM
pared with those OF the early months
of 1927 This increase is taken to re-
feet the drop in demand for chewing
tobacco Gnd the more rigid enforcement
Of non-smoking regulations in factories
and industrial plants
The hurley tobacco producers still are
In a position which is unsatisfactory TO
them, but they also stand to benefit
now indicated.