No Smoke, No Problem? 

VIDEO

 

The U.S. Smokeless Tobacco Company is the biggest smokeless tobacco company in the 

United States.1 But I wouldn’t be surprised if you’ve never heard the name. The company’s brands 

get much more exposure than the company itself, and those I’m sure you will recognize. They are 

Skoal and Copenhagen, and they’ve been around for 184 and 72 years, respectively. But unlike any 

other time in their long history, these brands – and several others like them – have come face to face 

with a unique growth opportunity.2  

 

Marketed as socially preferable to their sickly sibling, the cigarette, smokeless tobacco 

products are becoming more popular and manufacturers are on the verge of releasing a new line of 

products. In fact, smokeless tobacco consumption is expected to grow by 7% in 2006.3 Using 

cigarettes as a foil, smokeless tobacco products are increasingly represented as safe, compared to 

cigarettes, clean, flavorful, and capable of providing concealable nicotine at work, at home, and in 

bars and restaurants where cigarettes are increasingly banned. Of course, the very serious health 

problems associated with smokeless tobacco – including cancer, cavities, gum disease and heart 

problems -- are all too often being swept under the rug ...and young men, in particular, are 

increasingly at risk.4 It’s the same old tobacco story: Try to hook your market while they’re young, 

using products camouflaged with mild or sweet flavors to mask the deadly ingredients. 

 

But more on smokeless tobacco’s targeted marketing later. First, let’s take a look at what 

smokeless tobacco really is, how it affects the body, and why it’s rising in popularity. 

 

There are two main types of smokeless tobacco -- chewing tobacco and snuff. Snuff is moist, 

finely ground tobacco, placed between cheek and gum, and held there. Chewing tobacco is actual 

tobacco leaf, which is chewed. Both varieties contain 28 carcinogens and allow slow absorption of 

nicotine through the oral mucosa lining the mouth, cheeks and gums. How much nicotine? Three to 

four times the amount delivered by a cigarette. As for cancer, smokeless tobacco has been clearly 

associated with increased rates of cancer of the lip, tongue, cheeks and gums.4 

 

In spite of this, about 6% of adult U.S. men are users. Less than half a percent of adult U.S. 

women partake. As for the younger crowd, 11% of high school males and 2% of high school females 

use the stuff along with 3% of middle school children. The most popular brands?  You guessed it. 

Skoal, with 30% of the market, and Copenhagen with 22%.4   

 

As I mentioned before, these are brands of the U.S. Smokeless Tobacco Company. How did it 

alone build up such a following? The company goes all the way back to 1822 when George Weyman 

invented Copenhagen snuff in Pennsylvania. Upon his death in 1870, the company was handed over 

to his sons. They began calling it the United States Tobacco Company in 1922, and, in 1934, Skoal, a 

wintergreen flavored product, was invented. The company put up its first billboard in 1943, and 

advertising helped. In 1966, sales were at $50 million. By 1973, they had topped $100 million, and 

they surpassed $1 billion in 1992.2

 

 

A significant portion of this success can be attributed to a couple of successful relationships. In 

1974, the company discovered a long-lasting co-product endorsement partner in the National 

Intercollegiate Rodeo Association. And in 1981, Skoal and NASCAR partnered up.2 As rodeo and 

NASCAR have gained popularity over the last 30 years, so has smokeless tobacco. 

 

During this time, the user base has changed. In 1970, about 13% of men over age 65 were 

smokeless tobacco users, compared to only 2% of those age 18 to 24. But today, there are 3 young 

men for every 2 older users. And that didn’t happen in a vacuum.1  In the early 80s, U.S. Tobacco 

defined a strategy to hook young users. The following excerpt from internal documents describes how 

the company would overcome the natural resistance of youngsters to their bitter, harsh-tasting 

product: “New users of smokeless tobacco – attracted to the product for a variety of reasons – are 

most likely to begin with products that are milder tasting, more flavored, and/or easier to control in the 

mouth. After a period of time, there is a natural progression of product switching to brands that are 

more full bodied, less flavored, have more concentrated ‘tobacco taste’ than the entry brand.”5 

 

And their strategy was successful. Introduced in 1983 and 84, Skoal Bandit and Skoal Long 

Cut were designed to graduate users up in strength as nicotine tolerance grows. Cherry flavoring was 

added in 1993, and by 1995, apple, peach, vanilla, and berry-flavored products accounted for 11% of 

snuff sales.6 

 

Now what’s on the horizon? Increased marketing of smokeless tobacco as “socially 

acceptable” along with the introduction of new products.  

 

These new products, currently being test-marketed in cities including Austin and Louisville, are 

packaged in tea bags to be placed between the lip and gum. You discard the pouch after 10 minutes 

to half an hour, and no spitting is required up until that point. Another selling point, according to the 

manufacturer, is that smokeless tobacco eliminates the second-hand smoke issue. Users can partake 

of it virtually anywhere they want. Given reasons such as this, it’s no surprise that traditional tobacco 

companies, including Philip Morris and the RJ Reynolds Tobacco Company, are also test marketing 

new smokeless tobacco products. According to tobacco analyst Bonnie Herzog of Citigroup, 

smokeless tobacco products “are another way for cigarette manufacturers to diversify the mix and 

improve their margins.”  She expects operating profit margins for smokeless tobacco are 10% to 25% 

higher than for cigarettes.3 

 

More than 7 million Americans have used smokeless tobacco in the past month, and the 

numbers are growing, which means the associated health problems are also growing.4  Here’s my 

advice:  For employers, prohibit smokeless tobacco at work, just as you do cigarettes. For spouses, 

prohibit it at home. It may not generate second-hand smoke, but it’s a heck of a nasty habit and a 

terrible example for your kids. Plus, it causes cancer and could kill your loved one. For schools, make 

using smokeless tobacco a suspendable offense. For coaches, your policy should be: “You chew it, 

you’re gone.” And for the National Intercollegiate Rodeo Association, for goodness sakes, find 

yourself another sponsor. 

  

For Health Politics, I’m Mike Magee. 

 

 

 

 

 

 

References 

 

1. Barry, M. United States Smokeless Tobacco Company (USSTC) – A Real Public Health 

“Bandit.” Campaign for Tobacco-Free Kids. May 16, 2006. 

2. United States Tobacco Web site. UST Inc History. Available at: 

www.ustinc.com/content.cfm?id=32. 

3. Levere JL. No Smoke, No Foul? Critics Disagree. New York Times. August 9, 2006. 

4. Centers for Disease Control and Prevention Web site. Smokeless Tobacco: Fact Sheet. 

November 2005. Available at: www.cdc.gov/tobacco/facsheets/smokelesstobacco.htm. 

5. “The Marketing of Nicotine Addiction by One Oral Snuff Manufacturer.” Tobacco Control; 

Spring, 1995, 4(1). Cited in Barry, M. 

6. 2005 Annual Report & 2006 Proxy UST, see 

http://ccbn.mobular.net/ccbn/7/1301/1391/print/print.pdf.