Japan Tobacco Is Doubling Down on Cheap Cigarettes
As rivals focus on smoke-free products, the world’s third-largest tobacco maker is taking a different path.
Compressed blocks of tobacco at the Japan Tobacco cigarette plant in Senta, Serbia.
Photographer: Oliver Bunic/BloombergWith their all-American logo, red and blue packaging and low price tag, Eagle 20’s are among the cigarettes of choice for budget-conscious US smokers. When the value is this good, the choice to Buy American is easy, runs the tagline on the website.
“People who used to buy expensive brands are now going for cheaper ones,” says Gary Buchholtz, the owner of the Twin Peaks Liquor store in Longmont, Colorado. As economic pressures and rising prices squeeze consumers in one of the world’s most profitable tobacco markets, he’s seen growing sales of discount options including Eagle 20’s, Pyramid and Montego.