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She compares the sector to the beverage category where carbonated soft drinks are fading, but "you have non-carbonated drinks, whether it is water, juice or tea, and energy brands like Monster or Red Bull." S&P Capital IQ analyst Esther Kwon has a "strong buy" on Philip Morris because of its rising sales in emerging markets, and a "buy" on Lorillard and Altria

Equally concerning is indoor smoking, whether from cigarettes, cigars, or other tobacco products

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