Word: cigaretes
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Last week Standard Statistics Co., Inc., world's largest figure factory, estimated U. S. cigaret consumption for 1934 at an all-time new high of 125,000,000,000. Many a cigaret smoker was surprised to find that conservatively advertised Chesterfield, with sales of 34,500,000,000, had outsold garishly advertised Camel (33,800,000,000) and Lucky Strike (33,000,000,000). Old Gold was a poor fourth with 5,500,000,000. Total consumption of the leading four was up 8.4% from last year, but nearly 7,000,000,000 below the 1930 peak. Chief reason...
...Apparently, a certain rough law of compensation is at work in the cigaret trade," commented Standard's statisticians. "Whenever a single brand advances far ahead of the others, it eventually becomes the victim of a competitor's advertising attack. This happened to Camel in 1929-31 and to Lucky Strike in 1933-34. Aside from this generalization, it is futile to attempt to forecast sales of leading brands for any distance ahead. Particularly is it impossible to foresee the response of the millions of cigaret consumers to whatever new advertising appeals may be devised...
Last week the tobacco company which 22 years ago started the trend toward huge cigaret sales, was the first big industrial corporation to announce earnings for the calendar year 1934. R. J. Reynolds Tobacco Co. made $21,536,000, slightly more than in 1933. Stockholders were pleased to learn that Reynolds' directors had decided to continue the regular $3 dividend paid all during Depression...
Richard Joshua Reynolds chose the name Camel for the cigaret which revolutionized the tobacco industry because he liked animal names and because Camel was easy to pronounce. Before Camels were invented the U.S. was producing about ten billion cigarets a year, a large proportion Turkish. Leading domestic brands like Piedmont and Sweet Caporal were made of unblended Carolina leaf. The year Tobaccoman Reynolds launched his cigaret of blended domestic and Turkish tobacco (1913), cigaret consumption leaped to fifteen and a half billion. He followed it up with a highly successful merchandising campaign, profited immensely by the amazing luck that fell...
...Bespectacled Bowman Gray, a great tobacco salesman, is chairman of the board. Suave, meticulous S. Clay Williams left the presidency last spring to become vice chairman, was succeeded as president by Bowman Gray's brother James, who announced the earnings last week. Messrs. Gray and Williams produce no cigaret except Camel, but they can usually count on extra income from Reynolds Chewing tobacco (Schnapps, Micky, Brown's Mule, Day's Work) and from Prince Albert, fastest selling pipe tobacco...