Smoke and mirrors: Cigarette tobacco makers alter labels to sidestep tax hike

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cigarette-tobacco-makers-alter-labels-to-sidestep-tax-hike

A major tax increase on loose cigarette tobacco has caused pipe tobacco sales to surge dramatically this year. Historically, the tobacco industry manufactured around 270,000 pounds of pipe tobacco per month. Yet, in April, it hit 566,000 pounds, ultimately skyrocketing to 1.7 million pounds in August. While pipe smoking has risen somewhat in popularity since the recession began, mostly because it's a less expensive alternative to cigars, that dynamic is but a rounding error in the spectacular growth seen this year.

So, what's behind the pipe tobacco explosion? The real answer lies in another question: What's in a name?