EL DORADO, Ark. -- Even as its unit sales volume in tobacco declines, Murphy USA Inc. is seeing margins expand as consumer trends and company strategies begin to pay off.
Starting with the consumer trend of purchasing more premium products, Andrew Clyde, president and CEO of El Dorado, Ark.-based Murphy, said the company has seen higher margins within the category, and the reasons are varied. When asked about “premiumization” within the category, Clyde said the story was partially about consumers buying more premium items but also manufacturer discounts, which also contributed to a higher mix of premium sales.
Here’s other points Clyde made about the tobacco category ...