Coupons are one of the tobacco industry’s top marketing strategies. From 2013 to 2014, the industry doubled its annual investment in coupons, which together with discounts make up more than 86 percent of its entire marketing expenditure in one year.
While the Surgeon General recommends a pack price of $10, the average pack price in the United States is about $6 per pack. It isn’t hard to see why Big Tobacco invests so much in slashing prices: the smoking rate is almost three times higher among households earning less than $20,000 a year compared to those earning more than $100,000 a year. Coupons and discounts threaten to counteract the impact of tobacco taxes and raising the price of tobacco products, which is one of the most effective ways to drive down the smoking rate, especially among young people.
