‘Sin’ products: Sari-sari stores suffer drop in cigarette, liquor sales
Sluggish cigarette, liquor sales in 2024 — Packworks photo
MANILA, Philippines — Sari-sari stores saw a drop in sales of cigarettes and liquor last year, falling by 22 percent and 17 percent, respectively, amid higher excise taxes on these so-called “sin” products.
Latest findings released Thursday by local tech startup Packworks, using data from its mobile sari-sari store app and business intelligence tool Sari IQ, revealed a notable decline in the sales of cigarette brands Marlboro, Mighty and Winston.
The three cigarette brands, which are long-time staples in neighborhood stores, saw their combined sales drop 22 percent to around P392 million in gross merchandise value (GMV) in 2024. Previous year’s sales amounted to P503 million.
Mighty saw the steepest decline at 25 percent, followed by Marlboro at 24 percent, and Winston at 8 percent.
READ: New Pinoy smokers hit 9.5M from 2021 to 2023
The report, which gathered data from over 300,000 sari-sari stores nationwide, showed the decline came despite the Bureau of Internal Revenue (BIR) lowering the floor price for cigarette packs to P78.58 last year from P114.60 in 2023, under Revenue Regulations No. 016-2024.
Packworks’ report said that while the move had made cigarettes more affordable on paper, inflation and weakened consumer spending still dragged sales down.
The Philippine Statistics Authority (PSA) reported year-end inflation at 3.2 percent in 2024, easing from the previous year, but still contributing to diminished purchasing power.
Fewer drinking sprees
Meanwhile, alcoholic beverages saw an even sharper decline at sari-sari stores.
READ: Philippine liquor sales seen to sustain 5%-7% annual growth
Tanduay rum sales fell by 17 percent, dropping from P124 million in 2023 to P102 million last year.
Emperador brandy fared worse, with a 22-percent plunge in sales, going from over P63 million to P49 million.
Packworks chief data officer Andoy Montiel attributed the decrease in sales of cigarettes and alcohol to prevailing economic and social factors.
“Our tracking data of 12 consecutive months indicate a significant shift in purchasing trends within the sari-sari store sector for cigarettes and alcohol products, which can be due to various external factors such as rising prices and supply issues, but might also be a precursor to changing internal consumer behaviors and preferences,” Montiel said.
