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Fri, 08 Aug 2025 09:27:22 -0700
marlon from private IP, post #15754223
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Vice Stocks: Nicotine Is Hot, Beer Is Not
https://www.msn.com/en-us/money/companies/nicotine-is-hot-beer-is-not-what-vice-stocks-say-about-america-s-guilty-pleasures/ar-AA1K9AIT
Nicotine Is Hot, Beer Is Not. What Vice Stocks Say About America’s Guilty Pleasures.
Story by Laura Cooper • 5h
© Richard B. Levine/Zuma Press
Want to know what guilty pleasures are gaining and losing popularity in America? Take a look at the stock prices of Molson Coors and Altria.
Marlboro cigarette-maker Altria, which also owns the growing on! nicotine pouch, is up more than 21% so far this year. Shares of Molson Coors, the brewer behind
beer brands like Miller Lite and Blue Moon, are down more than 13%.
Companies that traditionally sold cigarettes are seeing new engines of growth, no tobacco or smoking required. Nicotine pouches like on! and British American
Tobacco’s Velo look like tiny tea bags that sit between the gum and the cheek and are often filled with wood pulp along with nicotine salts and flavorings.
The nicotine is absorbed into the bloodstream through the mouth’s lining.
Zyn, which is produced by Swedish Match North America, an affiliate of Philip Morris International, is the most popular nicotine pouch. It gained popularity due
in part to a devoted following of unaffiliated “Zynfluencers” who tout their love of the brand.
Earlier this year U.S. health officials authorized Zyn to stay on the market after finding that it has benefits as an alternative for adult smokers that
outweigh its potential risk to young people.
While it’s well known that cigarettes cause cancer and fewer Americans are smoking, many have experienced a rude awakening in the past year or so about the
cancer risks that alcohol can pose.
New warnings about booze’s adverse affects on health have helped fuel the sober-curious movement, and a new report shows just how many people are trying to
cut back.
Recent research found that 56% of U.S. adults polled said they had reduced alcohol consumption for wellness or lifestyle reasons, often opting to try new flavor
profiles or gut-health drinks instead, according to surveys of thousands of U.S. adults conducted by Harris Poll, Ipsos and Morning Consult on behalf of Keurig
Dr Pepper.
Gallup, which has tracked U.S. drinking trends for three decades, found in its latest survey that a record-low number of people claimed beer as their alcoholic
beverage of choice. In beer’s heyday, in the early 1990s, 47% said a bottle of suds was their drink of choice. Now, at 34%, beer’s popularity is on par with
wine.
This year beer demand has dropped much more than expected, Gavin Hattersley, chief executive of Molson Coors, told investors and analysts this week. Uncertainty
around immigration and trade policies have weighed on prices—and consumers.
“These macro impacts in the U.S. have had a disproportionate effect on lower-income and Hispanic consumers,” he said, adding that these shoppers were
dialing down how much they spent on beer, at times forgoing purchases entirely. Beer is more popular with people in households that bring in less than $100,000
a year and with noncollege graduates, according to Gallup.
Tariffs on aluminum, which adds to the cost of every can, are also pressuring beer companies. Molson Coors now expects adjusted earnings to fall as much as 10%
for the full year, compared with previous expectations of low single-digit growth.
Molson Coors says beer demand this year has fallen much more than expected.
Meanwhile, the share price of Anheuser-Busch InBev, which sells the Corona and Stella Artois brands, is up nearly 23% so far this year, even though its beer
sales have fallen for nine consecutive quarters.
While discussing earnings last week AB InBev Chief Executive Michel Doukeris kicked off the call with a list of top highlights that included this one:
Nonalcoholic-beer revenue shot up by 33%.
Beer sales are falling so fast, it’s “actually turning into the combustible section of the alcohol category,” said Bonnie Herzog, a senior consumer
analyst at Goldman Sachs, likening beer’s waning popularity problem to cigarettes.
“I am hard-pressed to find a tailwind for the beer category. Nicotine, on the other hand, is in this period of time where we have a resurgence given some of
the innovation,” she said. “Consumers are gravitating to the smoke-free alternatives. Nicotine pouches. Everything but cigarettes.”
Some cigarette makers are experimenting with cheaper smokes to try to appeal to consumers who feel strapped.
British American Tobacco, which makes Newports and Camels, is testing a more affordable cigarette to reach price-sensitive smokers. And Altria recently used its
trove of consumer data to position its Basic brand front and center in about 30,000 stores across the country—ones where shoppers were seeking value. Basic is
priced below Marlboros—a premium brand that’s the most popular in the U.S. Basic sales rose with limited impact on Marlboro, Altria said.
Write to Laura Cooper at laura.cooper@wsj.com
Fri, 08 Aug 2025 09:29:43 -0700
marlon from private IP
Reply #15155628
https://stocktwits.com/symbol/MO
Fri, 08 Aug 2025 14:42:02 -0700
zerosugar from private IP
Reply #12853729
does anybody even smoke cigarettes anymore? they seem obsolete compared to vapes. vape shops are everywhere and only old people smoke. both are bad.
Fri, 08 Aug 2025 14:45:39 -0700
zerosugar from private IP
Reply #19673496
even shisha bars are obsolete now, although they may still be a thing in middle eastern countries or shisha at restaurants after dinner. however, here in the
midwest, nobody smokes shisha anymore. everybody vapes. thank god, geekbar are being discontinued and no longer shipped to the usa. less people will vape now.
all the other vapes suck. lol.
Fri, 08 Aug 2025 15:06:04 -0700
marlon from private IP
Reply #15271444
https://en.wikipedia.org/wiki/Hookah_lounge
Chaldeans call it hookah.
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