Cigarette, liquor sales drop due to inflation

Sales of cigarettes and liquor in sari-sari stores decreased last year due to inflation reducing consumers' purchasing power.

According to Packworks, cigarette brands Mighty, Marlboro, and Winston saw a combined GMV drop from over P503 million in 2023 to P392 million in 2024, marking a decline of approximately 12 percent.

Mighty experienced the highest decline at 25 percent, followed by Marlboro at 24 percent and Winston at eight percent.

Despite the Bureau of Internal Revenue lowering the floor price per pack from P114.60 to P78.58 last year, sales continued to decrease as high inflation outpaced the benefits of lower prices.

Tanduay rum and Emperador brandy also saw significant drops in GMV by 17 percent and 22 percent respectively.

Packworks Chief Data Officer Andoy Montiel attributed the lower sales to factors such as rising prices, supply issues, and changing consumer behaviors.