How to Invest in Tobacco
Tobacco is a green leafy plant that is commercially grown and harvested for its leaves and stems. Tobacco is either cured or dried before being rolled into cigars, or shredded for cigarettes and other tobacco products like chew and snuff. This commodity is arguably a staple crop given the widespread popularity and consumption of tobacco products all over the world.Top producers of the tobacco plant include China, followed by Brazil and the United States.
An investment in tobacco can be treated as a play on the global consumer discretionary sector, although many investors would label it as a staple good seeing as how demand for tobacco products is fairly inelastic. An investment in tobacco may be appealing given the steady consumption of this commodity across both developed and emerging markets alike.
Ways to Invest in Tobacco
There is 1 way to invest in Tobacco: Stocks.
How to Buy Tobacco Stocks
There are a wide variety of companies who rely on tobacco for a substantial portion of their revenues. One of the biggest and most well-known tobacco product manufacturers is Philip Morris International (PM); this U.S.-based firm is engaged in the distribution and sale of cigarettes and other tobacco products in approximately 180 countries, covering a whole spectrum of developed and emerging market consumers. Lorillard (LO) is another popular domestic manufacturer of cigarettes with headquarters in North Carolina. Atria Group (MO), which is actually the holding company of Philip Morris USA, is also engaged in the manufacturing and sale of cigarettes and certain other smokeless products. British American Tobacco (BTI), a very popular ADR on Wall Street, is another industry giant with tobacco product sales in more than 180 countries.
Tobacco in the News
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