With the national retail roll-out and advertising campaign of blu eCigs just beginning in the third quarter of 2012, sales of the electronic cigarettes contributed $14 million to Lorillard Inc.’s total net sales for the quarter.
During the quarter, which ended Sept. 30, total Lorillard wholesale cigarette unit volume decreased 2.1% compared to the corresponding period of 2011. Domestic wholesale cigarette unit volume also decreased 2.1% for the third quarter of 2012.
Changes in wholesale inventory patterns are estimated to have positively impacted year-ago comparisons by approximately 160 million units. This was less than expected as wholesalers entered the third quarter with fewer units, but further reduced inventory levels. Additionally, the third quarter of 2012 contained one fewer shipping day (63) than the third quarter of 2011 (64), which had a 1.6% negative effect on volume. Adjusting for both the positive impact of the relative change in wholesale inventory patterns and the negative impact of one fewer shipping day in the third quarter of 2012, Lorillard domestic wholesale shipments were down 2.0% as compared to the third quarter of 2011. (CSP Daily News: www.cspnet.com)
