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For Immediate Release:  
For Further Information Contact:
March 8, 2006

Office of The Attorney General
- Zulima V. Farber, Attorney General

 

Paul Loriquet
609-292-4791

 

Cigarette Sales in the U.S. Reach Historic 55-year Low
Attorneys General Say Fewer Americans Smoking since Implementing Public Health Restrictions under Landmark Tobacco Master Settlement Agreement

Attorney General Zulima V. Farber joined members of the National Association of Attorneys General Tobacco Committee today in announcing an historic drop in the number of cigarettes sold in the United States last year. According to figures compiled by the Tobacco Tax Bureau of the United States Department of the Treasury, cigarette sales in 2005 declined by 4.2% from 2004 levels, marking the largest one-year percentage decrease in cigarette sales since 1999. Farber said that 2005 cigarette revenues from sales in New Jersey declined 12.6% from 2004.

The 2005 sales figures continue a long-term decline in cigarette smoking that began with the settlement of lawsuits brought by state Attorneys General against the major tobacco companies. Cigarette sales in the United States have fallen by more than 21% since the state Attorneys General negotiated the landmark 1998 tobacco Master Settlement Agreement (MSA), which imposed public health restrictions on the advertising, promotion and marketing of cigarettes by tobacco companies.

The new figures were announced at the National Association of Attorneys General Spring meeting in Washington, D.C.

The 378 billion cigarettes sold in the United States in 2005 represented the lowest number of cigarettes sold in the United States since 1951. The United States population has more than doubled since that time.

“The continuing long-term decline shows that we are winning the battle against cigarette smoking and that the MSA and the other tobacco state settlement agreements have made a difference,” said Attorney General Farber. “The decline in 2005 was one of the largest single-year declines in history and is evidence that the long-term downward trend is continuing.”

The MSA created a broad array of restrictions on the advertising, marketing and promotion of cigarettes. For example, it prohibited the targeting of youth in cigarette advertising. It also prohibited outdoor advertising of cigarettes and the advertising of cigarettes in public transit facilities, as well as the use of cigarette brand names on merchandise, and a host of other restrictions. The payment provisions of the MSA were designed to compensate the states in part for the billions dollars in health care costs associated with treating tobacco-related diseases under state Medicaid programs.

“The work of the Attorneys General in negotiating the tobacco MSA focused attention on the conduct of the tobacco companies and the dangers of cigarette smoking,” said Iowa Attorney General Tom Miller, co-chairman of the National Association of Attorneys General Tobacco Committee. “The continued enforcement efforts of the MSA’s provisions by Attorneys General, along with other health advocates, have made a marked difference in the number of smokers across the country, particularly among youth.”

“It is not a coincidence that cigarette sales are down and fewer people are smoking. The Master Settlement Agreement was designed to protect the public and reduce cigarette consumption – and it does just that,” said Vermont Attorney General Bill Sorrell, Chair of the American Legacy Foundation, a national public health organization committed to building a world where young people reject tobacco and anyone can quit.

Underscoring these trends, statistics from the New Jersey Department of Health and Senior Services show that among New Jersey youth, current cigarette use significantly declined from 10.5% in 1999 to 4.1% in 2004 for middle school students and from 27.6% in 1999 to 17.3% in 2004 for high school students, according to the New Jersey Youth Tobacco Survey. Among New Jersey adults, smoking prevalence decreased from 19.8% in 2000 to 17.4% in 2005, according to the New Jersey Adult Tobacco Survey.

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