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Smokers are fighting back by going online to find bargain prices for cigarettes, a practice that is angering states, health campaigners, traditional retailers and the big tobacco companies themselves.
"Cigarettes are an ideal product for distribution through the Internet," said Ali Davoudi, founder of esmokes.com and president of the Online Tobacco Retailers Association.
"The average person out there shopping for cigarettes online is your average, hard-working blue-collar American, looking to save money on a product that, for whatever reason, no matter what you say, is an addictive product. They're addicted."
The savings available via the Internet may also prove to be addictive. A carton of Marlboros from Yesmoke.com in Switzerland costs only $15 (9.50 pounds), postage included, whereas the average cost of a 10-pack carton in the United States is $37. The tab is even higher in New York City, where smokers pay more than $3.50 a pack just in taxes, which can mean a full-retail price tag of $75 a carton.
U.S. smokers are catching on to the savings. Forrester Research estimates Internet cigarettes sales will be $5 billion in 2005, more than double what is expected this year. That means states could lose $1.4 billion in tax revenue, the study found.
"Cigarettes are an ideal product for distribution through the Internet," said Ali Davoudi, founder of esmokes.com and president of the Online Tobacco Retailers Association.
"The average person out there shopping for cigarettes online is your average, hard-working blue-collar American, looking to save money on a product that, for whatever reason, no matter what you say, is an addictive product. They're addicted."
The savings available via the Internet may also prove to be addictive. A carton of Marlboros from Yesmoke.com in Switzerland costs only $15 (9.50 pounds), postage included, whereas the average cost of a 10-pack carton in the United States is $37. The tab is even higher in New York City, where smokers pay more than $3.50 a pack just in taxes, which can mean a full-retail price tag of $75 a carton.
U.S. smokers are catching on to the savings. Forrester Research estimates Internet cigarettes sales will be $5 billion in 2005, more than double what is expected this year. That means states could lose $1.4 billion in tax revenue, the study found.
