Analyst Vivien Azer notes that “young smoking brand preferences drive long-term market shares.”
In this regard, investors might want to consider Camel, which has increased its market share among 12-17 year olds by 21 percent—a gain attributed to the Camel Crush cigarette which switches from plain to menthol when you squeeze it.
And, of course, kids love Joe Camel.
Newport is also gaining ground among young people.
While Marlboro is losing share among younger smokers, Azer says it may stabilize this trend with new products. Despite losing ground, Marlboro remains the biggest cigarette brand among kids and all ages.
Kids tend toward premium cigarettes because they smoke less, and they have a strong and growing preference for menthol.
Overall youth smoking rates are declining, which Azer says is “good.”