CIGARETTES and liquor sales by mom-and-pop neighborhood outlets, also known as sari-sari stores, declined last year due to increasing prices, according to tech startup Packworks, which makes applications helping micro-retailers manage their businesses.
Citing sales transactions from its network of 300,000 sari-sari stores, Packworks said sales dropped last year of cigarette brands Marlboro, Mighty, and Winston, as well as Tanduay rum and Emperador brandy.
“Combined sales of the three cigarette brands fell approximately 12% in 2024 at over P392 million in gross merchandise value (GMV),” Packworks said.
“Mighty recorded a marked decrease of 25%, followed by Marlboro at 24% and Winston at 8%,” it added.
According to Packworks, sari-sari stores saw a decline in cigarette sales even after the floor price of cigarette packs fell to P78.58 in 2024 from P114.6 in 2023.
“Consumers’ purchasing power was weakened by high inflation,” it added, noting inflation was 3.2% at the end of 2024.
Sales of Tanduay rum declined 17% to P102 million last year. Emperador brandy sales were down 22% at P49 million.
Packworks Chief Data Officer Andoy Montiel said the decrease in cigarette and liquor sales point to signal impending changes in consumer preferences.
He cited “various external factors such as rising prices and supply issues” which “might also be a precursor to changing internal consumer behaviors and preferences.” — Justine Irish D. Tabile