It has everything to do with the drop in legal demand, which is due to a combination of factors. We do not deny that fewer people are smoking. However, if the marketplace truly reflected all consumption legally, we probably would have been able to manage that decline internally. But so much of the marketplace has been displaced by this illegal activity--not only the illegal activity straight up, but the imports that the legal manufacturers are using to substitute and compete with the illegal tobacco. That is what has contributed to our desperate situation.
On June 9th, 2008. See this statement in context.