RALEIGH, N.C. -- Hundreds of little cigarette companies across the country are taking customers away from big manufacturers like Philip Morris USA and R.J. Reynolds Tobacco Co., thanks to their lower prices and a legal loophole, reported
WRAL-TV News.
Some,
such as Alternative Brands in Mocksville, N.C., manufacture cigarettes, while others, like Birdtown Enterprises in Cherokee, N.C., import them. Birdtown buys cigarettes made in Brazil so cheaply that they retail here for as little as $1 a pack, the report stated.
In four years, the market share of the small cigarette companies has multiplied more than tenfold, from 0.5 percent of cigarettes sold in the United States in 1998 to 6.5 percent in 2002, according to the National Association of Attorneys General. The group said the numbers for 2003 will be more startling, according to
WRAL-TV News.
Philip Morris, RJR, Brown & Williamson Tobacco Corp., and Lorillard Tobacco Co., the four biggest cigarette manufacturers in the United States, agreed in 1998 to settle all current and future state claims against them.