By Laura Cooper

In the era of rising gas prices, cheap cigarettes are hot again.

As consumers tighten their belts to afford gas, they've been gravitating towards Altria's Basic brand-a discount cigarette, said Sal Mancuso, chief financial officer at Altria. (Mancuso will become CEO next month.) The Marlboro Cowboy Cut, a discounted version of the company's premium brand, has also seen growth, he said.

Tax rebate checks, which came in stronger than last year, provided relief to customers and helped spending on items like cigarettes, the company said.

"We have to pay close attention to the consumer's economic situation," Mancuso said. The company said that it would closely be watching how gas prices trend.

Shares of Altria were up nearly 7% in morning trading after the company beat analysts' expectations, delivering higher-than-predicted cigarette sales.

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(END) Dow Jones Newswires

April 30, 2026 11:20 ET (15:20 GMT)

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