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|ALTRIA GROUP, INC. filed this Form 8-K on 02/01/2018|
1 Adjusted OCI margins are calculated as adjusted OCI divided by revenues net of excise taxes.
In the fourth quarter, the smokeless products segment’s reported domestic shipment volume declined 0.6%. After adjusting for trade inventory movements and other factors, USSTC estimates that its domestic smokeless products shipment volume declined approximately 2.5%.
For the full year, reported domestic shipment volume declined 1.4%, driven primarily by declines in Skoal. After adjusting for trade inventory movements and other factors, USSTC estimates that its domestic smokeless products shipment volume declined approximately 2%. USSTC estimates that the smokeless products category volume was essentially unchanged over the past six months.
Table 6 summarizes shipment volume performance for the smokeless products segment.
Note: Volume includes cans and packs sold, as well as promotional units, but excludes international volume, which is not material to the smokeless products segment. New types of smokeless products, as well as new packaging configurations of existing smokeless products, may or may not be equivalent to existing moist smokeless tobacco (MST) products on a can-for-can basis. To calculate volumes of cans and packs shipped, one pack of snus, irrespective of the number of pouches in the pack, is assumed to be equivalent to one can of MST.
In the fourth quarter, Copenhagen retail share was unchanged at 33.8%. Copenhagen and Skoal’s combined retail share decreased 1.3 share points in the quarter to 50.1% driven by Skoal.
For the full year, Copenhagen’s 0.5 share point growth was offset by Skoal’s 1.4 share point loss, contributing to a combined share decline of 0.9 share points. Table 7 summarizes retail share results for the smokeless products segment.