Grisly Labels Not So Scary For Cigarette Sales

RICHMOND, Va. (AP) — U.S. tobacco companies’ sales aren’t expected to go up in smoke despite new grisly warning labels set to appear on cigarettes packs next year.

An analysis by research firm IBISWorld estimates the labels will cause a decline of less than one percent in overall U.S. tobacco revenues in 2013.

<< Photo Gallery: Changes to U.S. Cigarette Packs Coming>>

An average person smokes fifteen cigarettes a day at a cost of about $1,500 per year, translating to $300 million in lost sales. That’s only a fraction of the estimated $43.8 billion in revenue in 2013.

The labels required by federal law will take up half of the pack by the fall of 2012 and include images of diseased lungs and a smoker’s corpse.

Cigarette makers are concerned by marketing restrictions imposed by the labels, and some are suing over them.

Copyright 2011 The Associated Press


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