A fine or a crack on the head – the choice is yours
Canada, Thursday, June 7, 2007—Retailers in Nova Scotia have complained that it will be impossible for them to comply with regulations requiring that they remove displays of tobacco products from their stores, according to a Canadian Press report.
Nova Scotia, which is copying a similar ban in Prince Edward Island, has warned retailers that it will fine them $1,000 if they do not remove the displays and eliminate tobacco advertisements from their stores.
"A lot of people are not going to be going along with this because the government has not dealt in good faith," Sid Chedrawe, of the Independent Food Stores Association, was quoted as saying. Chedrawe added that rules requiring cigarettes to be stored below the counter would require clerks to bend down to retrieve packs, leaving them vulnerable to attackers.

Under the counter initiative
New Zealand, Thursday, June 7, 2007—The Cancer Society and ASH want tobacco products in New Zealand to be kept out of sight in all retail outlets where they are sold, according to a report in the Gisborne Herald.
The Cancer Society's new health promotion officer, Mary Mazengarb, says her first priority is to distribute petitions that call for cigarettes to be sold from under the counter. "We want cigarette displays off the walls at check-outs and placed under the counter," she said.
"Recent research shows 66 per cent of adult New Zealanders support a total ban on the visual display of cigarettes, and support is even higher among non-smokers.”

Advertising ban to be enforced
Philippines, Thursday, June 7, 2007—Almost all tobacco advertising currently on display in the Philippines will have to be removed by July 1 under a law passed in 2003 but so far not enforced, according to the Philippine Information Agency.
Only in-store advertisements will be permitted after that date.

Loews buying into natural gas
US, Thursday, June 7, 2007—Loews Corp has announced that it has agreed to buy natural gas exploration and production assets from Dominion Resources for $4.025 billion in cash, Citigroup reported on Monday.
The company expects to complete the purchase during the third quarter of this year, from when it will operate the business as a separate subsidiary of the Loews Corp, which also owns Lorillard.

PM signals intentions in Bulgaria
Bulgaria, Thursday, June 7, 2007—Philip Morris is determined to play the leading role on the Bulgarian market, according to a Novinite report quoting the field manager for the country, Andrei Vasilescu.
Vasilescu talked to the press on Wednesday after signing a memorandum of co-operation with the Bulgarian Customs Agency. The memorandum provides for joint action in the fight against the illegal trade in tobacco products, including the exchange of information.
Vasilescu was quoted as saying that PM had “serious long-term plans” for the Bulgarian market, but he ruled out involvement in the privatization of Bulgartabac.

Suit cites 'cynical' marketing
US, Thursday, June 7, 2007—A Miami attorney is seeking $1 billion in damages on behalf of a woman whose mother and grandmother both died of what are alleged to be smoking-related health problems, according to a report by Forrest Norman for the Daily Business Review.
The Miami-Dade Circuit Court suit, which stems from the Engle class action litigation filed in the 1990s, alleges that cigarette manufacturers engaged in cynical and exploitative marketing that targeted black communities.

Local measures sought
EU, Thursday, June 7, 2007—The EU Health Council believes that certain anti-tobacco measures would be best applied at local or regional levels, rather than across the European Community, even if these initiatives were funded by EU contributions.
The Council held an exchange of views at the end of May as a contribution to the consultation launched by the Commission’s Green Paper on the policy options at EU level for tackling involuntary exposure to environmental tobacco smoke.
According to provisional minutes of the meeting, the debate focused on identifying effective and appropriate measures and the level (national or EU) at which they should they be taken.

Sun-cured project gets OK
China, Thursday, June 7, 2007—A sun-cured tobacco production project run jointly in China’s Shandong and Guangdong provinces is said to have passed a technical appraisal by a group of experts appointed by the State Tobacco Monopoly Administration, according to a Tobacco China Online report.
The project was developed by the Qingzhou Tobacco Research Institute of the China National Tobacco Corp in the Shandong Province, and the Nanxiong Tobacco Research Institute in the Guangdong Province.

Smokeless tobacco sales increase
US, Wednesday, June 6, 2007—In announcing the launch of a new line of moist smokeless tobacco (MST), US Smokeless Tobacco Co (USST) said yesterday that the MST category was growing by more than six per cent annually, making it one of the fastest growing consumer packaged goods categories at retail.
USST announced that it was going to introduce an all new line of premium MST products designed to make its core brand, Copenhagen, ‘more approachable for adult smokers’. Cope will be available in retail outlets from September 17 in three long-cut varieties: Smooth Hickory, Whiskey Blend Flavor and Straight.
"Our research has shown that one of the most significant contributing factors to the extraordinary growth of the MST category has been adult smokers making the switch to smokeless tobacco, primarily Skoal," said Thano Chaltas, vice-president, marketing. "With the new premium Cope line of products, our core Copenhagen brand will now be able to play a larger role in adult smoker conversion and will help to sustain MST category growth going forward."

Counterfeit cigarette seizures soar
EU, Wednesday, June 6, 2007—The EU is concerned about the level of counterfeit cigarettes entering its territory, partly because these products are draining money from state and community budgets, but also because it believes they are more harmful than are cigarettes manufactured by the regulated sector.
According to figures recently published by the EU Commission, last year EU customs officials intercepted more than 156 million packs of counterfeit cigarettes, 380 per cent more than it seized during 2005. About 92 per cent of the cigarettes seized last year had come from China.
Cigarettes accounted for more than 60 per cent of all of the counterfeit products intercepted last year, but for only one per cent of the number of intercepts.
In the conclusion to its report on counterfeit products, the EU Commission said, 'In addition to the health effect – fake cigarettes are even more dangerous to smokers – the introduction on to the EU market of large quantities of such goods represents a significant impact on the national EU budgets. It is conservatively estimated that the cigarettes seized during the course of 2006 represent potential losses in customs duties and taxes for the European Community and member states' budgets of more than €460 million.’
In all, officials intercepted almost 36,500 consignments of counterfeit goods involving about 250 million items, up from about 26,000 intercepts of 75 million items the previous year. At least part of this growth can be put down to increased efforts on the part of the authorities, in particular Operation DAN, which in September 2006 netted 92 containers of goods including fake toys, sunglasses, shoes and car parts.
There were big increases in cases involving medicines and personal care products, and in the traditional counterfeit sectors of clothing and luxury goods. The only sectors to show decreases involved food and computer equipment.
Seizures were said to have increased in most member states, and in Germany they went from 15.5 million articles in 2005 to 140.0 million last year.
China accounted for about 33 per cent of the intercepts but 86 per cent of the seized articles. But China is in third place behind India and the United Arab Emirates when it comes to sources of counterfeit medicines intercepted by authorities in the EU.
The EU Commission reports that in addition to a limited number of intercepts involving 'huge' quantities of seized goods, there has been a significant increase in cases involving fewer articles. More goods had been detected in postal and air traffic, possibly due to booming internet sales. In fact, 80 per cent of the intercepts involved postal and air consignments.

China delegation seeks cigar ties with Cuba
Cuba, Wednesday, June 6, 2007—A tobacco-industry delegation from China’s Sichuan province visited Cuba last month looking for opportunities to co-operate in leaf tobacco production, cigar manufacture and tobacco trade, according to a Tobacco China Online report quoting local sources.
The representatives from the Sichuan-Chongqing Regional China Tobacco Industry Corp (SCRCTIC), the operator of the province’s tobacco manufacturing sector, took with them samples of the Great Wall cigar brand.
The SCRCTIC, which is the largest cigar manufacturer in China, believes that the Cuba visit, the first of its kind, was an important step on the road to its developing international markets.

Kentucky among states receiving disputed tobacco settlement money
Frankfort, Kentucky, USA, Tuesday, June 6, 2007 – The state of Kentucky received a supplemental payment of $833,000 Monday tobacco Master Settlement Agreement (MSA), according to a report released by Commonwealth News Service.

This payment is the state's share of the $47.3 million in distributions made now, following the distributions of the annual payment of $6.02 billion that was made in April to the 52 states and territories that are part of the MSA.

The bulk of the distribution came from R.J. Reynolds Tobacco Company and Lorillard Tobacco Company. These companies have placed funds into a disputed payments account because of a dispute over the application of the "Non-Participating Manufacturer Adjustment" to the annual payments based on sales years 2003 and 2004.

The companies released the funds because PricewaterhouseCoopers, the independent auditor to the MSA, has reduced the maximum potential amounts of these "Non-Participating Manufacturer Adjustments." There was no similar release of funds from Philip Morris because, unlike R.J. Reynolds and Lorillard, it has not placed funds into the disputed payments account.

Today's distribution also includes late payments, primarily from the General Tobacco Company of Miami, and a smaller amount from the estate of a tobacco company that is being liquidated after filing for bankruptcy.

The MSA requires all the tobacco companies that are signatories to the agreement to make annual payments to the states in perpetuity. The payments are based on each company's market share and were valued at $206 billion over the first 25 years of the agreement.

In addition, the companies that participate in the agreement have agreed to abide by an extensive set of restrictions on their advertising, marketing and promotion of cigarettes, especially to youth.

Thus far, the states have received more than $53.7 billion in payments under the settlement. The Kentucky Office of the Attorney General has been directly involved in the litigation and negotiations resulting in these and other MSA payments.

CNMV takes laid-back approach to battle for Altadis

UK, Tuesday, June 5, 2007 - Despite the fact that no official bid has been launched as yet, UK tobacco group Imperial Tobacco and private equity firm CVC are vying for control of Franco-Spanish tobacco group Altadis, according to a report in The Financial Times.

The most recent approach, made by CVC and fellow buy-out firm PVC, values Altadis at 50 euros per share, a significant increase on Imperial's initial offer of 45 euros per share, made on March 15. Imperial is now studying the possibility of launching a bid worth between 50 and 51 euros per share, and is expected to do so in coming days.

The CNMV, Spain's stock market commission, appears to be taking a relaxed approach to the bidding process, especially compared to its actions during the recent battle for control of electricity supplier Endesa. The regulator has not requested further information from either Imperial or CVC and only suspended trading in Altadis shares at the time of the first offers from each bidder.

Meanwhile, Altadis yesterday announced that PVC had informed the CNMV of its withdrawal from the process. PAI has indicated that its decision was due to 'internal circumstances,' rather than differences with CVC.

New factory planned
South Korea, Tuesday June 5, 2007—A delegation from Koogang Products (KP), of South Korea, recently visited Shanghai Tobacco Machinery to hold talks on the purchase of equipment for a new factory.
KP, which has a joint venture with the Kunming Cigarette Factory to produce the If brand of cigarettes, is said to be planning to establish its own cigarette factory this year.

Winging it
UK, Tuesday June 5, 2007—Rooks that have been spotted extending their wings over discarded but still-smoking cigarettes are possibly using the smoke to fumigate their feathers, according to an Electronic Telegraph report.
Richard Archer, of the Royal Society for the Protection of Birds, in Exeter, UK, where this behavior has been noticed, said it was the first time he had heard of the phenomenon. But he added that the birds might have learned that the smoke could be used to kill parasites. "You have to be careful attributing behavior, but it would seem fumigation is the most likely conclusion,” he was quoted as saying. “Rooks are very intelligent."

Radiation warning
Greece, Tuesday June 5, 2007—The radiation dose from radium and polonium found naturally in tobacco leaves could be a thousand times greater than that from the caesium-137 absorbed by tobacco following the Chernobyl nuclear accident, according to a Tobacco China Online report quoting ANI (Asian News International).
Constantin Papastefanou, of the Aristotle University of Thessaloniki, is said to have measured radioactivity in tobacco leaves from across Greece and calculated that a smoker consuming 30 cigarettes a day would, on average, receive a radiation dose of 251 microsieverts a year from naturally occurring radionuclides but only 0.199 microsieverts due to the contamination caused by the Chernobyl fallout.
According to Papastefanou, though the radiation dose from smoking is only 10 per cent of the average dose anyone would receive from all natural sources, it represents an increased risk.
"Many scientists believe that cancer deaths among smokers are due to the radioactive content of tobacco leaves and not to nicotine and tar," said Papastefanou.

When an addiction is not an addiction
UK, Tuesday June 5, 2007—A proposal by a regional Primary Care Trust to deny smokers treatment unless they quit seems set to raise questions about the National Health Service’s (NHS) definition of addiction.
According to an Electronic Telegraph report, the Leicester City West Primary Care Trust has proposed that smokers should be denied routine operations on the NHS unless they quit smoking a month before surgery. ‘Research’ is said to have shown that smokers take longer to recover from surgery than do non-smokers and that they are more prone to hospital-acquired infections.
But this raises a question about whether smokers can be expected to quit – especially at a time of increased anxiety – when they are, according to most observers, ‘addicted’ to tobacco.
If the proposal were to be adopted, however, it would give a boost to UK sales of quit-smoking aids, the value of which is said to be set to pass the £100 million mark this year.
Meanwhile, annual world-wide, sales of these and similar products are expected to increase to $2.3 billion by 2010, boosted by the advent of new blockbuster drugs and greater reimbursement levels for the treatment of nicotine, alcohol and drug addictions, according to a PR Newswire report quoting a study by Kalorama Information.

BAT experts visit leaf production areas
China, Tuesday June 5, 2007—A team of experts from British American Tobacco recently inspected high-quality leaf tobacco production areas in the Ningnan and Dechang counties of the Liangshan prefecture, Sichuan province, according to a Tobacco China Online report quoting local sources.
The team, which was accompanied by officials of the Production Technology Department of Liangshan Prefecture’s Tobacco Monopoly Administration, visited three key villages in Ningnan and Dechang, to learn about local growing and field management techniques. Members of the team were said to have quizzed local officials and growers about the transplantation of tobacco seedlings, the application of fertilizer, the prevention and control of pests and plant diseases, responses to drought and flooding, and preparations for the curing of this season’s crops.
In one of the villages, the experts inspected a comparative test that was being carried out on different tobacco varieties.

Altria announces quarterly dividend
US, Tuesday June 5, 2007—The board of directors of the Altria Group has declared a regular quarterly dividend of $0.69 per common share payable on July 10 to stockholders of record on June 15. The ex-dividend date is June 13.
The new dividend rate reflects an adjustment for the Kraft spin-off, which was completed on March 30.

Enduring crisis hurts cigarette sales
Zimbabwe, Monday, June 4, 2007—As disposable incomes continue to deteriorate, demand for consumer goods, including cigarettes, has plummeted in Zimbabwe. British American Tobacco Zimbabwe Holdings’ 2006 sales volumes were 24 percent below those of 2005.
            Citing the country’s unstable economic environment and the need to preserve cash, the country’s board declared no dividend.
         Company chairman Kennedy Mandevhani said the group would continue to review operations with the objective of increasing efficiencies and enhancing shareholder value. 

Fewer smokers in Thailand
Thailand, Monday, June 4, 2007—The number of Thai smokers has fallen by nearly 40 percent in the past 20 years as a result of strict enforcement of anti-smoking laws and effective awareness campaigns, Public Health Ministry deputy permanent secretary Manit Theeratantikanont said on May 28.  
            There are now 9.54 million people aged 15 years or older who smoke daily, compared with 11.7 million smokers in 1987.

New restrictions on tobacco ads
Pakistan, Monday, June 4, 2007—Pakistan’s federal Health Ministry has tightened restrictions on tobacco advertisements and announced that it would pursue legislation banning them completely. Annually, tobacco companies spend an estimated PKR55 million ($907,584) on advertising in Pakistan. There are about 25 million smokers in the country.
            Under the new restrictions, which go into force immediately, the print media may not carry tobacco ads larger than one square inch, and advertisements outside shops will be banned after a deadline. Furthermore, tobacco advertisements may be aired on the electronic media only between 3 am and 4 am.
            Tobacco companies said that they had voluntarily pulled out of most advertising routes already.

Republic Technologies acquires OCB-Vertriebs
France, May 31, 2007—Republic Technologies International has acquired OCB-Vertriebs-GmbH, a leading distributor of RYO/MYO products in Heinsberg, Germany.
            Leonard Hahnen, former sole owner and president of OCB-Vertriebs-GmbH has retired. Management of OCB will be taken over by Eike Haug, managing director of Altesse, Austria, which is also part of the Republic Group. Heinz Heuser has been appointed sales and marketing director.
            “Under Mr. Hahnen’s management, OCB-Vertriebs-GmbH became one of the leading suppliers of rolling papers, cigarette tubes and other smoking accessories on the German market, and we are very grateful to him for that” said Philippe Parcevaux, president of Republic Technologies International.
            The company headquarters will remain in Heinsberg and all staff has been retained. 

JTI-MacDonald accused of fraud
Canada, Thursday, May 31, 2007—Japan Tobacco Inc.'s Canadian unit was ordered by an Ontario judge to stand trial on charges it defrauded the Canadian government out of about C$1 billion ($931 million) in the 1990s by shipping cigarettes to the U.S. to avoid paying taxes, reports Bloomberg.
            JTI-MacDonald is accused of shipping Canadian-made Export A, Vantage and other cigarette brands to the U.S., knowing the tax-free exports would be smuggled back into Canada for sale on the black market. The company has denied any wrongdoing.
            The case stems from tobacco sales in Canada between 1981 and 1993, when prices tripled as provincial and federal governments boosted taxes in an effort to curb tobacco use. The average price of a carton of 200 cigarettes rose from C$15 to C$45 in 12 years, according to a study done by Physicians for a Smoke-free Canada.
            The rising prices fueled a black market in Canada, with the sale of contraband cigarettes imported from the U.S. and elsewhere rising from almost zero in 1985 to 14.5 billion in 1993. The taxes were reduced the following year to curtail the smuggling.

Mild Seven family expands
Japan, May 31, 2007—Japan Tobacco Inc. will be launching a new brand, Mild Seven Aqua Menthol Super Lights Box, in Japan next month. This year marks the 30th anniversary of Mild Seven, and in celebration of this occasion, JT has announced that it would enhance the brand equity of Mild Seven, focusing on quality, value and strengthening sales.
            Mild Seven products accounted for three of the five leading tobacco products by sales volume in Japan during the last fiscal year. The brand’s total market is 31.6 percent. With the addition of Mild Seven Aqua Menthol Super Lights Box, the Mild Seven brand family will consist of 19 different products.

CPM acquires U.K.-based Wolverine Proctor & Schwartz International, Wednesday, May 30, 2007—CPM, an equipment provider for particle size reduction and pelleting, has acquired U.K.-based Wolverine Proctor & Schwartz Ltd of Glasgow, Scotland. The company will be combined with CPM’s U.S.-based Wolverine Proctor, which was acquired in July of 2006.
            “This acquisition concludes the reunification of the U.K.- and U.S.-based operations of Wolverine Proctor to achieve new levels of global market coverage,” said Ted Waitman, CPM president. “This is a proud day for all CPM employees to work together to deliver unprecedented value and innovation to our customers.”
            Now operating again as one company, Wolverine Proctor will be a leader in equipment for high-value thermal process applications including baking, drying, roasting, toasting, flaking and shredding for the food, chemical, tobacco and textile industries. The company will have global sales and product support coverage. In addition, all business functions will be further integrated.

Reynolds American to end joint venture
USA, Wednesday, May 30, 2007 - Reynolds American Inc., the nation's second-largest tobacco company, will end a joint venture between its subsidiary R.J. Reynolds Tobacco CV and Gallaher Group PLC, according to a regulatory filing on Monday that was reported by the Associated Press.
In a filing with the Securities and Exchange Commission, Reynolds said Japan Tobacco Inc. acquired Gallaher in April and notified Reynolds it has elected to terminate the venture, formed in 2002 to market American-brand cigarettes in Italy, France and Spain.
The termination date has been set at Nov. 30.
After the venture ends, the value of all of the trademarks each joint venture member has licensed to the joint venture will be tallied. The company with trademarks with a greater value will be required to pay the other party an amount equal to one-half of the difference between the value of the parties' respective trademarks.
Shares fell 69 cents to $66.02 in morning trading.

Study - cut nicotine in cigarettes
Washington D.C., Wednesday, May 30, 2007 — The Food and Drug Administration should regulate tobacco and develop a plan to reduce nicotine levels in cigarettes, the Institute of Medicine urged Thursday. The statement was reported in the Atlanta Journal-Constitution, among many other news sources.
Its report calls on Congress and the president to give FDA the authority to enforce standards for nicotine reduction and to regulate companies' claims that their products reduce exposure or risk.
"We propose aggressive steps to end the tobacco problem — that is, to reduce tobacco use so substantially that it is no longer a significant public health problem. This report offers a blueprint for putting the nation on a course for achieving that goal over the next two decades," said Richard J. Bonnie, director of the Institute of Law, Psychiatry and Public Policy at the University of Virginia School of Law. Bonnie was chairman of the committee that prepared the report.
"Unfortunately, cigarettes are one of the most dangerous consumer products ever marketed," Bonnie said at a briefing.
The report notes that cigarettes are unique in that they contain carcinogens and other dangerous toxins and would be banned under federal law if these statutes did not expressly exempt tobacco.
A bill currently before Congress would give FDA authority to regulate tobacco, but the head of the agency has expressed skepticism.
Dr. Andrew von Eschenbach said that if the FDA reduced nicotine levels in cigarettes, people would change their smoking habits to maintain current levels of the addictive drug.
"We could find ourselves in the conundrum of having made a decision about nicotine only to have made the public health radically worse. And that is not the position FDA is in; we approve products that enhance health, not destroy it," von Eschenbach said in an AP interview in March.
Cigarette maker Philip Morris USA has been supporting the legislation that would give FDA power to regulate the industry.
"FDA regulation creates a uniform set of federal standards for the manufacture and marketing of all tobacco products," Michael E. Szymanczyk, chairman and chief executive officer of Philip Morris USA, said earlier this year.
In addition to requiring a cut in nicotine the institute — a branch of the National Academy of Sciences — called for higher taxes on tobacco, nationwide indoor smoking bans and other steps to reduce smoking.
The National Academy of Sciences is an independent organization chartered by Congress to advise the government on scientific matters. The report was sponsored by the American Legacy Foundation, the anti-smoking organization established in 1999 as part of the settlement between state attorneys general and the tobacco industry.
 Other recommendations of the report include dedicating $15 to $20 per capita annually of the proceeds from higher taxes or other resources to fund tobacco control efforts in each state; requiring all health insurance plans to provide smoking cessation program benefits; licensing retail outlets that sell tobacco products; launching additional efforts aimed at curbing youth interest in smoking and access to tobacco, including bans on online sales of tobacco products and direct-to-consumer shipments; limiting tobacco advertising and promotional displays to text-only, black-and-white formats; and requiring new, large pictorial warnings on the harmful effects of smoking — similar to those required in Canada — on all cigarette packs and cartons.

Universal swings to fourth-quarter profit as charges decline
Richmond, Va., Wednesday, May 31, 2007 - Universal Corp., a leaf tobacco distributor, said Monday it swung to a profit in its fiscal fourth quarter ended March 31, as the company recorded lower charges, according to Canadian Business Online.
Net income was $19.5 million, or 59 cents per share, compared with a loss of $24.7 million, or 96 cents per share, in the year-ago period.
The company's decision to end involvement in African flue-cured growing projects resulted a $15.1 million charge in the latest quarter. The fourth quarter of fiscal 2006 included $33.6 million in restructuring costs from the distributor's Zimbabwe and U.S. operations.
Revenue rose 24 percent, to $504.5 million from $407.6 million.
For the company's fiscal year, revenue rose to $2.01 billion from $1.78 billion, and net income more than quadrupled to $44.4 million, or $1.13 per share, from $7.9 million, or 31 cents per share.
Shares of Universal rose one cent to $66.60. Earlier, shares traded at a 52-week high of $67.03, topping a prior peak of $66.77.

Rothmans maintains profit in 'challenging' year as contraband rises
Toronto, Canada, Wednesday, May 30, 2007 - Rothmans Inc. continues to churn out steady profits and shareholder dividends while cigarette sales volumes decline and illegal competition rises, according to a report in The Canadian Press online.
Canada's only publicly traded tobacco company said Friday that it earned $99.8 million or $1.46 per diluted share in its "challenging" financial year that ended March 31, compared with the prior year's $99.5 million, $1.45 per share.
Rothmans, which owns 60 per cent of Rothmans, Benson & Hedges, Inc. with the other 40 per cent held by the U.S.-based Altria Group, said the subsidiary's net sales for the year rose 1.9 per cent to $618.6 million from $607.2 million.
RBH shipped 10.7 billion cigarettes into the domestic market during the year, down 4.4 per cent, as higher sales of so-called price category cigarettes were more than offset by declines in higher-priced brands and rolling tobacco.
Fourth-quarter earnings rose 10 percent to $18 million, or 26 cents per share, compared with $16.4 million or 23 cents per share in the January-March period of last year. RBH sales net of duty and taxes were up 3.2 per cent to $136.8 million from $132.6 million.
"Rising levels of contraband product, further regulation and increasing competition in the price cigarette category were all issues we had to face," Barnett told an investor conference call.

Water pipes just as bad
International, Wednesday, May 30, 2007—Water-pipe smoking may pose the same health risks as cigarettes, the World Health Organization said in an advisory note published on May 29. The UN health agency says more scientific research is needed into the link between hookah use and a number of smoking-related diseases.
            “Using a water pipe to smoke tobacco is not a safe alternative to cigarette smoking,” note says. “Contrary to ancient lore and poplar believe, the smoke that emerges from a water pipe contains numerous toxicants known to cause lung cancer, heart disease and other diseases.”
            Traditionally used in North Africa, the Middles East and Central and South Asia, the hookah has become increasingly popular in nontraditional markets such as the United States, Europe and Brazil.

EU goes “fire-safe”
Europe, Wednesday, May 30, 2007—The European Commission will ban traditional cigarettes by 2009-2010, and require smokers to buy “fire-safe” cigarettes that need constant drags to keep them alight, reports The Observer.
            An estimated 2,000 people across Europe are killed every year in house fires caused by cigarettes, and a further 7,500 injured. The Committee’s general safety product committee is expected to ask CEN, the body that regulates the quality of all consumer products sold in Europe, to devise an EU-wide standard for “fire-safer” cigarettes.
            The Commission has rejected claims from the tobacco industry that the new cigarettes will have little impact on fire-related injuries and that they will prove more toxic to smokers.
            Canada and several U.S. states already require “fire-safe” cigarettes, and Australia is considering passing a similar law.

10-packs banned
Ireland, Wednesday, May 30, 2007—Smokers will not be able to buy packs of 10 cigarettes in Ireland after Thursday, according to a report on Irishhealh.com.
            The Department of Health believes such packs attract underage smokers. Retailers violating the ban face fines of up to €3,000 or imprisonment for up to three months.

Hotline gives advice on suing smoking ban violators
Israel, Tuesday, May 29, 2007 - A special hot line will be open for two weeks starting Monday, manned by law students advising callers on how to file lawsuits against establishments that do not enforce no-smoking laws, according to an article in the Jerusalem Post.
The service will mark World No Smoking Day, which will be observed here and abroad on Thursday. Approximately 1,500 nonsmokers die in Israel from passive smoking each year.
On Tuesday, Health Minister Ya'acov Ben-Yizri will appear before a conference on smoking prevention and reduction at Kfar Hamaccabiah in Ramat Gan.
The hot line, organized by the Israel Cancer Association and the Academic Law College in Ramat Gan, will operate from 4 to 8 p.m., at (03) 612-9848.
Several people who have dined at restaurants and cafes that did not prevent smoking in no-smoking areas have won lawsuits and received damages of as much as NIS 2,000 from owners. Passive (sidestream) smoking has been proven to increase the risk of lung cancer, heart disease and asthma.
The law students will help callers present complaints against eating places and other establishments in small claims court. They received special training from attorney Amos Hausner, a leading anti-tobacco activist who heads the Israel Council for the Prevention of Smoking.
Seventy-five percent of adults do not smoke. According to the law, all public places must be smoke free, with the exception of restricted areas that are completed closed and ventilated, and which are not used by nonsmokers.
The Israel Cancer Association and the Academic Law College said they hoped hundreds of lawsuits would be filed against the owners of establishments that violate the law. No-smoking laws are supposed to be enforced by local authority inspectors, but in many cases, there is no one to whom to complain.

China ignites tobacco wars with smoke-free Olympic Games
Bejing, China, Tuesday, May 29, 2007 - Dozens of security guards wielding metal pipes made history this month when they spilt the first blood in the tobacco wars over the Beijing Olympic Games, according to Yahoo! News.
State media reported that on May 1 dozens of security guards beat up workers taking a cigarette break during construction work on the National Stadium, centerpiece of next year's Olympic Games.
Olympic organizers are planning a smoke-free Games next year and legislation imposing strict curbs on tobacco use at Olympic sites will be announced on Thursday, to coincide with World No Tobacco Day.
The new regulations to be announced Thursday will include bans in all of the 37 Olympic competition sites and dozens of other training sites during the August 8-24 Games next year.
The ban will spread to other areas including the Olympic village, designated Olympic hotels, restaurants, and entertainment areas.

Court rules in favor of would-be manufacturer
South Korea, Tuesday, May 29, 2007—The Seoul Administration Court has ruled in favor of a local company that was barred from setting up its own tobacco manufacturing plant because it had less capital than required by the government for that purpose, according to a Yonhap News Agency report.
The court said it was unfair for the government to allow only companies with capital of more than WON30 billion to run tobacco manufacturing plants.

Tobacco exports increase strongly
India, Tuesday, May 29, 2007—India’s tobacco exports during 2006-07, at 179.899 million kg, were up by 7.8 per cent on those of the previous year, 166.869 million kg, according to a Business Standard report. At the same time, the value of these exports increased by 21.0 per cent from Rs141.347 billion to Rs171.320 billion.
Tobacco Board chairman, J. Suresh Babu, was quoted as saying that exports comprised 152.779 million kg of leaf tobacco worth Rs124.311 billion and 27.120 million kg of tobacco products worth Rs47.009 billion. Flue-cured exports, at 121.073 million kg worth Rs106.794 billion, were increased by 10 per cent in quantity and by 24 per cent in value.

Tekel privatization scheduled for after elections
Turkey, Tuesday, May 29, 2007—Turkey plans to privatize Tekel after general elections in July, according to a Reuters report quoting remarks made by the Turkish Finance Minister, Kemal Unakitan, during an interview yesterday in Malaysia.

Parliament smoking over tobacco issue
EU, Tuesday, May 29, 2007—The European Parliament plans to introduce anti-smoking laws that go beyond those in force in many EU states, according to a Deutsche Presse-Agentur report quoting a German member of the legislature.
Karl-Heinz Florenz, described as a public health expert, was said to have told Bild am Sonntag that national regulations were inadequate. “We intend to do something to protect the health of the citizens of Europe," he said.

Moving closer to a public smoking ban
Germany, Tuesday, May 29, 2007—Germany’s Bundestag has approved a bill banning smoking in government buildings and on public transport that is likely to take effect on September 1, according to a Deutsche Welle report.
The bill, which still needs the approval of the country’s upper house of parliament, would ban smoking in all federal administration buildings, except in designated smoking areas. It would ban smoking in taxis and stations, and on trains. And it would also raise the legal age limit for buying tobacco from 16 years to 18.

Moving closer to a public smoking ban
Russia, Tuesday, May 29, 2007—Russia's State Duma has passed a bill that would impose wide-ranging restrictions on smoking in public places, according to an Associated Press report.
The bill would all but ban smoking in workplaces, on airplanes, trains and municipal transport, and in schools, hospitals and government buildings, though some provision has been made for the setting up of designated smoking areas.
The bill would also require restaurants and cafes to set up no-smoking areas.

Non-smoking week launched
Vietnam, Tuesday, May 29, 2007—Vietnam has launched a National Non-Smoking Week, according to a Vietnam Net report.
The Ministry of Health, the Ho Chi Minh Communist Youth Union Central Committee and the Swedish International Development Agency were said to have organized a meeting in Hanoi on May 25 to mark the event.
A recent national survey showed that 56 per cent of men and almost 1.8 per cent of women were regular smokers.

Northern Territory strikes gold
Australia, Tuesday, May 29, 2007—The Northern Territory has been handed the Dirty Ashtray Award for its government's poor performance in combating smoking, according to an Australian Associated Press report.
The Australian Medical Association and the Australian Council on Smoking and Health labeled the territory the worst performer for the second year in a row and created for it a special Golden Ashtray Award for its consistently low achievement.

Tiantai processing for Universal
China, Tuesday, May 29, 2007—A redrying company in China's Hunan province has won an order to process nearly 5,000 tons of tobacco for Universal Leaf (Asia) Pte Ltd, according to a Tobacco China Online report quoting the Chenzhou News.
The report said that this would be the first time that Chenzhou Tiantai Leaf Tobacco Redrying had processed tobacco for a foreign tobacco company.
Tiantai is a newly established joint-stock tobacco redrying enterprise.

Further support for FDA regulation
US, Friday, May 25, 2007—Philip Morris USA has welcomed a call by the Institute of Medicine (IOM) for the US Food and Drug Administration (FDA) to be given broad regulatory authority over tobacco products, including their production, packaging, marketing, distribution and sale.
            But PM USA does not concur with some of the other recommendations made in an IOM report, which calls also for higher excise taxes.
            In a message posted on its website, PM USA said that the IOM’s latest report on tobacco use in the US demonstrated the critical importance of effective regulation of tobacco products by the FDA.  ‘Legislation introduced by Senators Edward Kennedy … and John Cornyn … and Representatives Henry Waxman … and Tom Davis … would address many of the issues the report raises, without the unintended consequences that some of the report's other recommendations may create,’ according to the PM USA message.
            "These bills provide the framework for comprehensive FDA regulation of tobacco products and provide important policy solutions to many of the complex issues involving tobacco products," Howard Willard, PM USA's executive vice-president of corporate responsibility was quoted as saying. "FDA regulation, as introduced in Congress, would be the most effective way to address the Institute of Medicine's concerns."
            PM USA said it believed that regulation of tobacco products by the FDA could potentially create a new framework within which manufacturers could refocus their efforts to pursue reduced harm products. The company believed regulation should also bring predictability and clear standards to the tobacco industry in the US.
            ‘In addition to our shared support of FDA regulation of tobacco products, we also agree states should devote more resources to smoking cessation and youth smoking prevention initiatives,’ continued the PM USA message. ‘PM USA has paid more than $38 billion to the states through the tobacco settlement agreements and over $836 million to the American Legacy Foundation since 1997. According to the Government Accountability Office, in fiscal years 2000-2005, about three percent of the money states received from the master settlement agreement from all participating manufacturers was spent on tobacco control programs – such as youth smoking prevention. This represents less than two billion dollars.’
            "We believe the tobacco settlement agreements represent a massive funding source that states could better use to help achieve youth smoking prevention goals,” said Willard. “The IOM’s recommended actions to combat youth smoking could more quickly be addressed by tapping into this existing funding source – rather than attempting to create a new one. Philip Morris USA continues to encourage the states to fund smoking cessation and youth smoking prevention initiatives."
            PM USA said it did not believe a federal excise tax increase or excessive excise tax increases at state level comprised the best approach. ‘We believe cigarette excise tax increases can cause more problems than they solve because they often yield lower than expected revenue and create an additional incentive for tobacco users to seek alternative avenues to purchase tobacco products – such as the Internet – and create increased incentives for smuggling,’ the message continued. ‘Since 2000, federal and state governments have increased their cigarette excise tax rates 73 times. In fiscal year 2006, federal and state governments received $21.5 billion in cigarette excise tax revenues.’

Sampoerna's first-quarter profit surges
Indonesia, Friday, May 25, 2007—PT HM Sampoerna, Indonesia's largest cigarette manufacturer, reported a 15.7 percent rise in net profit during the first quarter from a year earlier, reports The Jakarta Post.
            Sampoerna's net profit rose to IDR1.095 trillion (US$125. 7 million) in the first three months of the year from IDR947 billion during in the same period last year. Overall sales, which consist of machine-rolled filter cigarettes, hand-rolled kretek cigarettes and machine-rolled kretek cigarettes, amounted to IDR7.26 trillion, up 1.9 percent from IDR7.13 trillion previously
            Most of the increase was accounted for by Sampoerna A Hijau hand-rolled cigarettes, whose sales volume rose to 8.1 billion from 7.4 billion previously. The company's machine-rolled cigarettes also recorded increased sales volume, rising to 6.4 billion cigarettes from 6.2 billion previously. The increase was attributed to A Mild brand cigarettes.
            President director Martin King said the company had put in a healthy performance despite a 7 percent rise in retail cigarette prices, which entered into effect on March 1. "We have managed to enhance the efficiency of our operation and control our production costs," he said.
            To strengthen its market share, Sampoerna company has invested IDR2.8 trillion on building a new factory in Karawang, West Java.
            The new factory, which has been under construction since last July, was expected to come on-stream by the end of next year with an initial capacity of 9 billion cigarettes per year.
            At present, the company operates five factories in East Java, including its main factory in Pandaan, with an annual production capacity of 25 billion cigarettes.
            The new Sampoerna plant, that is located on a 58-hectare site, will consist of a primary processing plant to process cloves and tobacco, a secondary processing plant to produce machine-rolled cigarettes, and warehouses to store non-tobacco materials, finished goods, tobacco and cloves.

New York perfect breeding ground for black market
US, Friday, May 25, 2007—If New York’s mayor, Michael Bloomberg, is able to implement a proposed 50¢-a-pack tax increase, demand for illicit cigarettes will get worse and add to the ‘stream’ of such products already flowing into the city, according to a report by Christopher Faherty for the New York Sun.
            Faherty quotes Scott Bessette, a vice-president of SICPA Product Security, as saying that New York represents the ‘perfect storm’ for a black market in cigarettes. The city had a high tax rate going higher; many points of entry, including large ports; state and international borders; and a lack of tools effectively to monitor and enforce the market. SICPA Product Security investigates counterfeits around the world.

Smoking banned in three quarters of homes
US, Friday, May 25, 2007—Nearly three out of four US households do not allow smoking, according to a study published recently in the Centers for Disease Control's Morbidity and Mortality Weekly Report. The study found that the proportion of US households with smoke-free rules increased from 43 per cent in 1992-1993 to 72 per cent in 2003.
            The proportions of households with smoke-free rules were said to have increased in every state over this period, though they varied widely from state to state. Kentucky had the lowest and Utah had the highest proportions of households reporting smoke-free rules for both reported periods. The proportion of smoke-free homes in Kentucky increased from 25.7 per cent to 53.4 per cent between 1992-93 and 2003, while the proportion in Utah went from 69.6 per cent to 88.8 per cent.

Smoking partly blamed for demographic crisis
Russia, Friday, May 25, 2007—The deputy head of the Duma's Health and Safety Committee, Nikolai Gerasimenko, has blamed smoking for being one of the main causes of the “demographic crisis” in Russia. Smoking killed about 700 Russians each day, he said.
            A recent report on Russian Spy quoting Gerasimenko said that Russia led the world in per capita smoking and underage smoking.
            Gerasimenko, who is an academic with the Russian Academy of Medical Sciences, added that cigarette production in Russia had risen from 206 billion during 1996 to 413 billion last year, and that Russia was the third-largest producer of tobacco products after China and the US. 

Graphic warnings draw near
India, Friday, May 25, 2007—From the start of next month all cigarette, bidi and gutkha packs sold in India will be required to carry graphic health warnings.
         A recent Hindu Times report quoted the Health Minister, Anbumani Ramadoss, as saying that in India more than 46 per cent of men and 13 per cent of women used tobacco, which caused 40 per cent of all cancers.
            Ramadoss said that graphic health warnings were necessary because many tobacco users could not read written health warnings.
            The pack warnings will illustrate an ulcerated mouth, a lung tumor, stroke and heart damage, and impotence.
            About 250 million people in India use tobacco products: 44 per cent smoke bidis, 16 per cent smoke cigarettes and the rest use other products including gutkha, mishri (roasted black tobacco powder applied to the gums) and chewing tobacco.

Smoking ban an infringement of human rights
UK, Friday, May 25, 2007—A patient at a UK psychiatric hospital has launched a challenge to a ban on smoking at the institution, according to a report in the Daily Mail.
         Terrence Grimwood’s counsel, Paul Bowen, says the hospital is Grimwood’s home and to prevent him from smoking there, when he is not free to go anywhere else to smoke, is a disproportionate interference with his rights.
            Grimwood was one of a number of detained patients to complain about the ban at Rampton Hospital, Retford, Nottinghamshire, which came into force in March.
            The Daily Mail report says that the action is being taken in the High Court under Article 8 of the European Convention on Human Rights.

Lagos sues tobacco firms for N2.7 trillion over health hazards
Lagos, Nigeria, Thursday, May 24, 2007 - The Nigerian state government of Lagos has filed suit for a compensation package worth 2.7 trillion Nirias ($21.1 billion USD) against cigarette makers in their country for health hazards resulting from cigarette smoking.
LAGOS State government and a non-governmental organization, Environmental Rights Action (ERA) yesterday began before a Lagos High Court a compensation suit against British-American Tobacco Nigeria Limited, International Tobacco Limited and four others for health hazards resulting from cigarette smokers in the state.
The suit, endorsed by the state Attorney-General and Commissioner for Justice, Prof. Yemi Osinbajo (SAN) also named British-American Plc, British-American Tobacco (Investment) Limited, Phillip Morris International and The Tobacco Institute as defendants.
The overall effect of the defendants' course of conduct is that the state government is called upon to expend its resources in treating tobacco-related ailments caused by the use of defendants' products. In the year 2006 alone, there were 9,527 reported cases of tobacco-related diseases in Lagos State hospitals. The state government spends at least N316,000 per month ($2,400 USD) on each of these cases.

Cigarette, gutkha packs to carry skull and crossbones
India, Thursday, May 24, 2007 - Starting June 1, all cigarette, bidi and gutkha packets will carry prominent pictorial health warnings. The move isn't coming a day too soon - official statistics show every second man and every seventh woman in India is a tobacco-user.
"In our country, 46.5 per cent men and 13.8 per cent women use tobacco, which causes 40 per cent of all cancers," Health Minister Anbumani Ramadoss told an Indian media source.
"To encourage people to quit tobacco, all cigarette, bidi and gutkha packs will carry pictorial health warnings from June 1. We need graphic warnings,because many tobacco users are illiterate and cannot read the health warning," Ramadoss said.
From June 1, the packs will carry pictures of an ulcerated mouth, a lung tumor, a brain after a stroke, a damaged heart and, as part of a warning that smoking causes impotence, a limp cigarette.
About 250 million people in India use tobacco products like gutkha, cigarettes and bidis. Sixteen per cent are cigarette smokers, 44 per cent smoke bidis and the rest use gutkha, mishri (roasted black tobacco powder applied to the gums) and chewing tobacco in betel-quid. Consumption of tobacco leads to a million deaths every year in India, according to the Indian Council of Medical Research.
"Pictures definitely have an impact. Pictorial warnings will not only remind the tobacco user of the dangers but also those around them, such as friends and family. Children, for example, can become strong pressure group to encourage their parents to give up tobacco use," Ramadoss said.
Countries like Canada, Brazil and Australia already use graphic warnings to discourage smoking. They led to a 3 per cent drop in smoking in Canada — which can translate to 6 million people giving up tobacco in India if the same figure is applied.
"Everyone knows that smoking causes lung cancer, what some don't know is that it also causes impotence, birth defects, heart attacks and strokes. Graphic health warnings covering over 50 per cent of tobacco packaging will let people know the risks they are running when they smoke or chew tobacco," Ramadoss said.
Graphic warnings are mandatory under the Cigarettes and Other Tobacco Products (Packaging and Labelling) Rules, which are being implemented in phases.

Deadline nears for Green Paper responses
EU, Thursday, May 24, 2007—Tobacco industry stakeholders have until June 1 to respond to the EU’s Green Paper, ‘Towards a Europe free from tobacco smoke: policy options at EU level’, which was launched at the end of January as a way of promoting ‘consultation on the best way to promote smoke-free environments in the EU’.
In a recent press note that saw also the release of data from a Eurobarometer on Tobacco report, the European Commission said that it would analyze the responses to its Green paper, report on its main findings and then consider further steps.
At the same time, the Commission is preparing a report on the implementation of European Council recommendations on the prevention of smoking and on initiatives to improve tobacco control. The report will include an analysis of national tobacco control policies and regulations.
The Commission says the Eurobarometer report indicates that support for smoke-free policies is highest among citizens in countries where such policies have already been introduced, such as Ireland, Sweden and Italy. However, overall, a majority of EU citizens are said to be in favor of smoke-free bars (62 per cent) and restaurants (77 per cent). Smokers tend also to be in favor of smoke-free restaurants, workplaces and other indoor public spaces.
Currently, 33 per cent of EU citizens working in enclosed workplaces say that they are exposed to tobacco smoke at work, but proportions vary widely. In Ireland, 96 per cent of workers say that they are never exposed to tobacco smoke at work, while in Greece that figure drops to 15 per cent. About 70 per cent of those who work in restaurants, pubs and bars report that they are exposed to tobacco smoke daily.
Around half of EU homes are said to be free of tobacco smoke, though, once again, figures vary: from 83 per cent in Finland to 17 per cent in Croatia. Twenty two per cent of those who responded to the survey said that smoking was completely banned on their properties, 19 per cent said that smoking was only allowed outside and 8 per cent said that people voluntarily did not smoke in their homes.
Eighty per cent of EU citizens believe that second-hand smoke can cause health problems, while 3 per cent believe that second-hand smoke poses no danger at all. Only five per cent of smokers said they would smoke in a car in the company of pregnant women, while nine per cent said they would smoke in a car when they were with children.
According to the results of the survey, almost 33 per cent of EU smokers tried to quit their habit at least once during the past 12 months, though this figure rises to 46 per cent in the UK, the country with the biggest proportion of smokers saying that they have tried to quit.
Less than 20 per cent of smokers asked for help from health professionals during their last attempt to quit smoking, though, in the UK, this figure reaches 41 per cent. About 33 per cent of smokers said that they had used pharmaceutical and other treatments on the last occasion they attempted to give up smoking.
On average, 70 per cent of quit attempts last less than two months, with most smokers quoting stress (33 per cent) as the main reason for failure.

Cigarette duty hike needed in Bulgaria, says BAT official
Tuesday, 22 May 2007 – Bulgaria has to increase the excise on tobacco products in order to meet European Union requirements, manager of tobacco taxation in Europe at the Belgian representation of British American Tobacco (BAT) Francois Osete said in a report from Sofia Echo.com.
BAT held a conference on the tobacco products market development. The meeting focused on the excise duty on cigarettes and illicit trade.
According to current EU requirements for excise on tobacco products, each country should reach the minimum level of 64 euro per 1000 cigarettes and 57 per cent of the retail price.
“Bulgaria has not reached the minimum level of 64 euro,” Osete said.
Once it has reached the level, the country can exceed those figures since there is no maximum fixed. The period for reaching the requirement is 2010 for Bulgaria.
“Bulgaria should reach the minimum excise levels bit by bit,” Osete said.
European governments should also apply a mixed taxation regime combining ad valorem and specific component of taxation tools.
Ad valorem component is a percentage of the retail price and the specific component is a fixed sum in euro per 1000 cigarettes.
Senior investigations manager at BAT headquarters in London Terry Hobbs also took part in the discussion.
“Counterfeit is not the biggest problem but tax evasion is,” Hobbs said. The company's annual losses from illicit trade amount to 60 million pounds, Hobbs said.
The figures for Bulgaria show that between five and 12 per cent of consumption results from illicit trade.
Sensible taxation and more effective control in free trade zones feature among BAT recommendations for the prevention of illicit trade problems, Hobbs said.

$15 million tobacco sold at auction floors
Zimbabwe, Tuesday, May 22, 2007 - A total of 9.5 million kilograms of tobacco worth $15 million USD has been sold on three auction floors since the start of the selling season four weeks ago, with prices firming from $1.75 USD a kilogram to $1.95. The report was from Business Reporter magazine.
"Farmers are very happy with the move taken by the Government and since the beginning of May, deliveries have significantly picked up. Prices have also been very good, averaging US$1.95 per kg compared to US$1.72 per kg during the same time last year," said Tobacco Industry Marketing Board chief executive Dr. Andrew Matibiri in a telephone interview.
He attributed the upsurge in deliveries to a clutch of new incentives announced by the Government last month.
For example, tobacco growers are now entitled to a support price of $40,000 for every kg of tobacco that fetches US$1.50. Any crop that fetches below US$1.50 or above would attract a support price calculated pro-rata to the $40,000 per kg.
All three tobacco auction floors have started paying farmers the incentives after the Reserve Bank of Zimbabwe last week released $4 billion for the 54 million kilograms of the golden leaf delivered last year.
Dr. Matibiri said the tobacco industry welcomed the policies unveiled by the central bank to boost production.
Tobacco output has fallen from an all-time high of 220 million kilograms in 2000 to a projected 80 million kilograms this year.
Zimbabwe Tobacco Growers Trust vice-president Mr. Wilfanos Mashingaidze said growers were committed to increasing production.
"The growers are satisfied with everything going on so far and if this trend continues we are likely to witness a situation whereby the country will regain its status as one of the top three tobacco producing nations in the world," he said. “In order to ensure that tobacco growers return to the fields in the 2007/08 season, the Government and the RBZ have introduced special facilities on foreign currency retention.

Zimbabwe government pays $256 billion as tobacco support price Zimbabwe, Monday, May 21, 2007 - Government has so far paid out $256,4 billion as tobacco support price to growers since the marketing season began last month. According to a report in the Zimbabwe Herald.

According to statistics released by the Tobacco Industry and Marketing Board on Wednesday, this represents a vast increase from the $150.3 million the Government paid out to growers over the same period last year.

Saudis to sue tobacco firms for more than $2.7 billion
Ryadh, Saudi Arabia, Saturday, May 19  - Saudi Arabia will seek more than $2.7 billion in damages from international tobacco companies in a lawsuit due to go on trial in the capital Riyadh on Sept. 11 this year, the kingdom's health ministry said on Saturday. The reports was released by Reuters.
In November, the ministry threatened to sue international tobacco companies unless they paid the government and patients the full cost of treatment for tobacco-related illnesses. This is the first time it has put a value on the claim.
The suit will require companies to pay a lump sum of 10 billion riyals ($2.67 billion), plus 500 million riyals a year for the treatment of tobacco-related illnesses, the ministry said in a statement on its Web site. It did not say what period the compensation would cover.
The ministry did not name any companies, but Philip Morris, British American Tobacco Plc and Altadis are among the foreign firms that sell tobacco products in Saudi Arabia.

Tobacco production down 12 percent
in Cuba's top cigar-producing region
Havana, Cuba, Wednesday, May 23, 2007 - The tobacco harvest in Cuba's main cigar-producing province fell 12 percent this year compared to 2006 as excessive rain in the region took a heavy toll, state media reported Wednesday on CubaNet.
Exact figures on the harvest in Pinar del Rio province were not given, but the Communist Party newspaper Granma put the year-to-year decline at 12 percent. It said increased humidity made it possible to harvest the leaves of just 47,880 acres instead of the planned 53,090 acres.
The newspaper also reported that officials have already begun efforts to hire 11,700 workers for the next tobacco harvest. It did not say if they would increase or trim future work forces.
Pinar del Rio in westernmost Cuba is the island's top producer of premium cigar tobacco.

ST Cigar Group acquires Belgian cigar activities from BAT
Wednesday, May 23, 2007 - Scandinavian Tobacco’s ST Cigar Group Holding B.V. (STCG) will purchase Belgian cigar company Tabacofina-VanderElst and its associated brands from British American Tobacco. The actual acquisition is expected to take effect within a few months.
"This move is a further step in realizing our objective to reinforce our position in the cigar market, both through acquisitions and organic growth,” said STCG‘s CEO Rob Zwarts, who added that the competition between the players on the international cigar market is expected to intensify.
“Growing economies of scale is one of the key elements in defending and improving our current position,” Zwarts said. “We have now strengthened our position as the leading cigar company in Europe, and have clearly become one of the top three players worldwide.”
Tabacofina-VanderElst manufactured 420 million cigars in 2006, of which some 200 million cigars were for the Belgian market, where the company is market leader with a share of more than 40%
The rest of the total volume is either sold to various export markets or consists of contract manufacturing for third parties. The main export markets are France, the Netherlands, and Italy. The main brands are the Belgian market leader Mercator, Corps Diplomatique, Schimmelpenninck and Don Pablo.
ST Cigar Group, also known to the trade and consumers as Henri Wintermans, is one of the largest cigar companies in the world.
Today ST Cigar Group has 11 subsidiaries in nine different countries. There are six production companies and five commercial organizations. The group employs some 2,200 people.
In total more than 1.3 billion cigars are being sold by the group and its main markets are the U.K., France, Canada and Denmark.
With the brand “Café Crème” the group holds the best-sold small cigar in the world. Other important brand names are Henri Wintermans, Reas, Colts, Nobel Petit, Che and Blues.
Just a few months ago ST Cigar Group acquired CAO International Inc. in Nashville, a major player in the premium handmade cigar market, a growing segment in the USA.

Ag firms asked  to assist farmers
Zimbabwe, Wednesday, May 23, 2007—Zimbabwe Growers’ Trust Chairman Wilfanos Mashingaidze has asked agricultural companies to help tobacco growers without bank accounts access inputs and cash, reports The Herald. He says the majority of smallholder growers in Zimbabwe do not have bank accounts and are having difficulties cashing their checks.
Mashingaidze urged input suppliers to arrange with their banks for growers to buy inputs with their checks and then be paid the balance by the banks. He said growers were aiming to double tobacco production in the coming season, but indicated that this could only be achieved if farmers accessed inputs early.
n estimated 80 million kg is expected to be sold at auction this year, up from 55 million kg produced last year.

Minister resigns after cigarette-ban comments
Venezuela, Wednesday, May 23, 2007—Erick Rodriguez was forced to resign as Venezuela’s Health Minister after saying that the country was considering banning the production of leaf tobacco and cigarettes, according to an Associated Press report.
In an interview with a local radio station, Rodriguez was said to have added that anyone who wanted a cigarette should bring it from abroad.
The comments, later retracted, were said to have caused public uproar in a country where the tobacco industry generates thousands of jobs and is one of the biggest taxpayers.

Liberty smoking in Chile
Chile, Wednesday, May 23, 2007—Chile has the world’s highest percentage of female smokers according to a report in the Santiago Times quoting a recent World Health Organization study of 193 nations.
Almost 37 per cent of Chile’s female population smokes an average of eight cigarettes a day, and 30 per cent of females under the age of 15 are said to be tobacco users.
The study, published on Friday, attributed female smoking to the tobacco industry’s success in making female smoking ‘en vogue’ and relating it to women’s liberty and sexual freedoms.

Aiming for EU public-places ban by 2009
EU, Wednesday, May 23, 2007—A majority of European citizens are in favor of smoke-free policies, according to the results of a new Eurobarometer on Tobacco presented by EU Health Commissioner, Markos Kyprianou, to the European Parliament ahead of World No Tobacco Day on May 31.
Kyprianou said this high level of public support would strengthen the momentum towards making EU public- and work-places smoke-free by 2009.
According to the survey, 88 per cent – up from 86 per cent last year – support smoke-free indoor workplaces and public spaces.
The survey found that one in three smokers had tried to give up smoking during the past 12 months but that more than 70 per cent of them had relapsed within less than two months.
Kyprianou said that the EU would launch on May 31 an ‘e-mail coaching service’ to support people as they tried to quit smoking.

Government to ban middlemen
Malawi, Wednesday, May 23, 2007—Malawi is to ban tobacco middlemen from next year in an attempt to reduce the number of mixed-grade bales being presented to the country’s auction floors, according to a Tobacco China Online report quoting the Deputy Minister of Agriculture and Food Security, Bintony Kutsaira.
Some of the middlemen are said to buy leaf from different farmers and to mix it into one bale without grading it, a practice that is having the effect of increasing the number of bales being rejected on the floors.
The presence of the mixed bales was said by Kutsaira to give buyers “room” to offer low prices.
However, at the same time he described the current selling season as one of the country’s most successful in respect of the average prices being offered to farmers.
The so-called intermediate buying system mushroomed in 1995 when a new government changed the buying system to enable people other than tobacco growers and auction floor buyers to enter the sales chain.

Shanghai group enjoys record growth
China, Wednesday, May 23, 2007—The Shanghai Tobacco Group enjoyed record growth during the first quarter of this year when it sold 32.545 billion cigarettes, 8.12 per cent more than it sold during the first three months of 2006.
Production, at 32.46 billion, was up 6.81 per cent, and manufacturing and commercial taxes, at Yuan9.047 billion, were increased by 29.31 per cent.
The group’s profits, which at Yuan3.384 billion were up by 31.26 per cent, included Yuan111 million and Yuan11 million generated respectively by its subsidiaries, the Beijing Cigarette Factory and the Tianjin Cigarette Factory.

Honghe Tobacco Group goes with the flow
China, Wednesday, May 23, 2007—A period of more rapid development has been forecast for the Honghe tobacco industry following recent changes that have seen the Honghe General Cigarette Factory become the limited liability company, Honghe Tobacco Group Co Ltd.
This single-brand tobacco manufacturer has seen its Honghe (Red River) cigarette develop into a brand with 13 versions and one that, for many years, has ranked among the top Chinese brands in respect of production and sales volume. Last year, Honghe produced 71.39 billion cigarettes and, in doing so, generated Yuan8.397 billion in taxes and profits.
But it wasn’t always this way. The Honghe cigarette factory was established in 1985 and went into trial production in 1987. In the first few years it manufactured a number of different brands including Red River, Wild Grass, Propitious Bird, Iron Horse and Tin Capital, but at that time it had an annual cigarette output of not more than 2.5 billion cigarettes.
Its success dated from 1992 and a decision to phase out its smaller brands and to concentrate on Red River. And it was helped by a large-scale technical transformation that it undertook between 1994 and 1996.
In August 2004, the former Honghe Cigarette Factory acquired another Yunnan-based enterprise, the Zhaotong Cigarette Factory, to form Honghe General Cigarette Factory. And in December 2005, Honghe General Cigarette Factory acquired Xinjiang Cigarette Factory in China's Xinjiang Uygur Autonomous Region.

Reynolds mounts forthright defense
US, Wednesday, May 23, 2007—R.J. Reynolds Tobacco has hit back at criticisms leveled at it by the anti-tobacco organization, The Campaign for Tobacco-Free Kids.
‘The Campaign for Tobacco-Free Kids’ press release today [May 22] alleging R.J. Reynolds Tobacco Company is “circumventing” its 2006 agreement with state attorneys general is grossly inaccurate,’ Reynolds says in a statement on its website. ‘The company requests that the Campaign for Tobacco-Free Kids retract its statement.’
“Voicing an opinion is one thing; ignoring the facts to achieve your goals is just plain wrong,” said Tommy Payne, executive vice-president – public affairs for Reynolds American Inc. “These misrepresentations perpetuate an atmosphere of mistrust and conflict, and prevent any reasonable dialogue to resolve the issues that surround the tobacco industry.”
‘The agreement signed by 40 state attorneys general permits the marketing of specialty blends, like R.J. Reynolds Tobacco Company’s Camel Signature styles, while restricting the use of fruit, candy and alcohol descriptors in brand names or in non-age-restricted communications,’ according to Reynolds’ statement. ‘Camel Signature is in full compliance with this agreement.’
“The Campaign for Tobacco-Free Kids seizes every opportunity to criticize tobacco manufacturers as part of their effort to advocate FDA regulatory authority over tobacco products,” Payne said. “We support their right to do so but believe it requires full and fair disclosure of the facts so that people can draw their own objective conclusions.
“We believe the long-standing controversies regarding the manufacturing, marketing and use of tobacco products need to be resolved. The time has come to set aside the ‘accusation and rebuttal’ form of debate that has prevented constructive discussions from occurring. We would welcome discussions that lead to a reasonable and realistic national regulatory structure. And we would welcome the opportunity to sit down with Mr. Myers and the Campaign for Tobacco-Free Kids to discuss these important issues, Camel Signature, and the marketing policies and programs of our operating companies.”

Bukenya warns tobacco growing harmful
Koboko, Uganda, May 22, 2007 - Tobacco growing should be abandoned in favor of other cash crops, Vice President Gilbert Bukenya has told the people of West Nile. He said tobacco growing had made the people poorer since the only good houses in the villages were tobacco curing barns, according to an African web site.
Prof. Bukenya was speaking in Koboko over the weekend on his week-long mobilisation tour of the seven districts of the region. Last year, the West Nile districts of Arua, Koboko, Yumbe and Nyadri produced about 10 million kilograms of flu-cured Virginia tobacco from which the farmers earned nearly 18 billion shillings ($10.8 million USD), but the benefits of the money cannot be seen in terms of physical development.
Prof. Bukenya said fish and dairy farming as well as chicken rearing for egg business and honey production are the biggest sure means of wealth accumulation because the products have a ready market.
"I don't want you people to do something that makes you work at a loss," he said while addressing residents of Aringili village in Koboko district. Prof. Bukenya who addressed residents who braved a heavy downpour praised the Koboko people for electing NRM supporters as MPs and LC officials.
He cited State Minister in his office James Baba and Margaret Baba Diri as good ambassadors of the Movement government and development. He, however, cut short the Koboko tour due to heavy rains and promised to return on June 5 to continue with the prosperity for all campaign.
The VP's Press Secretary Linda Nabusayi later explained that Prof. Bukenya recognizes tobacco as a good cash crop but discourages it because the process of production and curing is laborious and destructive to the environment.
"The Vice President thinks tobacco growing does not empower the farmers for economic development. That’s why he is not promoting it under the Bonna Baggagawale scheme," she said.

Judge wants Philip Morris suit reopened
Edwardsville, Illinois, USA, Tuesday, May 22, 2007 - A judge whose $10.1 billion judgment against Philip Morris USA in a lawsuit over light cigarettes was thrown out on appeal is asking a court whether he can revive the case, according to an Associated Press report.
Madison County Circuit Judge Nicholas Byron this month asked the Mount Vernon-based 5th District Appellate Court of Illinois to rule whether he has authority to reopen the lawsuit, citing possible new evidence stemming from a separate tobacco case pending before the U.S. Supreme Court.
Byron ruled in favor of smokers in March 2003, saying that Philip Morris - now the nation's biggest cigarette maker - misled customers into believing they were buying a less harmful cigarette.
That lawsuit, involving 1.1 million people who bought "light" cigarettes in Illinois, claimed Philip Morris - a unit of New York-based Altria Group Inc. - knew when it introduced such cigarettes in 1971 that they were no healthier than regular cigarettes. But the company hid that information and the fact that light cigarettes actually had a more toxic form of tar, the lawsuit claimed.
But the state's Supreme Court overturned Byron's ruling, saying the Federal Trade Commission allowed companies to characterize or label their cigarettes as "light" and "low tar," so Philip Morris could not be held liable under state law even if such terms could be found false or misleading.
The U.S. Supreme Court last November let that ruling stand and Byron dismissed the case the next month.
But the attorney in that suit, Stephen Tillery of St. Louis, now says his original argument is supported by the U.S. solicitor general in a separate case before the nation's high court. Paul Clement - the Bush administration's top Supreme Court lawyer - said in the new case, Watson v. Philip Morris, that the FTC never authorized or ordered Marlboro Lights to be labeled as "lights" or use the words "lower tar and nicotine."
"There is no question the Supreme Court of Illinois got it wrong when it said the words were authorized by the FTC," Tillery said Monday. "The question now is what the courts can do about it."
Former Illinois Gov. James Thompson, an attorney representing Philip Morris, claims the appellate court has no authority to decide whether the case can be reopened and last week asked the Illinois Supreme Court to "put a stop once and for all to plantiffs' futile efforts to resurrect their case."
"Only this court has the power to set the circuit court straight," Thompson wrote in his filing with the Supreme Court.
Philip Morris considers the lawsuit "over," William Ohlemeyer, Philip Morris' vice president and associate general counsel, said in a statement Monday.
Byron's inquiry about reviving the case "has threatened to plunge (Philip Morris USA) once again into lengthy and expensive litigation, which can result in only one conclusion: that the dismissal of plaintiffs' claims ordered by this (state Supreme) Court must stand," Thompson wrote on the company's behalf.

Time is right to spin off PMI
US, Tuesday, May 22, 2007—Citigroup is almost certain that the Altria Group will announce this year that it is to spin off Philip Morris International to shareholders.
In an in-depth examination of Altria, Citigroup’s Bonnie Herzog and Jonathan Loveless said they believed that, from an operational standpoint, the company was ready to ‘break apart’ and that, indeed, the international and US tobacco businesses had been operating ‘on their own for quite some time’.
The next step, they said, was for the board of directors to give its approval. It was possible that the board could announce such a move on June 1, the date of its next scheduled meeting. However, a more realistic timing might be August 29, the date of another scheduled meeting, or during one of its subsequent meetings, one of which has been tentatively set for October 31 and another of which was due to be held in December.
The idea behind Altria’s restructuring, which had already seen the recent tax-free spin off of Kraft Foods, was to unlock shareholder value by enabling the individual companies to focus entirely on their own businesses and by removing any constraints (litigation or otherwise) that might be hindering those businesses from growing their top lines and/or margins.
Citigroup would expect a stand-alone PMI to become much more aggressive in respect of innovations and acquisitions.

Universal makes “substantial progress”
US, Tuesday, May 22, 2007—Universal Corp’s income from continuing operations during its fourth quarter to March 31, at $21.1 million, was a significant improvement on the $25.3 million loss it reported during the fourth quarter of fiscal 2006.
Chairman and CEO, Allen B. King, said that fourth quarter earnings for fiscal year 2007 included about $15.1 million in impairment costs, primarily related to the company's decision to end its direct involvement in its African flue-cured growing projects, but also related to charges related to the value of a corporate aircraft currently being marketed. Results for the fourth quarter of fiscal 2006 had included about $33.6 million in restructuring and impairment charges related to investments in its Zimbabwe and US operations. But while the significant improvement was largely due to the reduced restructuring and impairment costs, it was down also to improvements in the company's flue-cured and Burley operations.
Revenues during the quarter to the end of March, at $504 million, were up 24%, while net income, which includes results from discontinued operations, was $19.5 million, compared to a net loss of $24.7 million during the quarter to the end of March 2006.
Income from continuing operations during the year to the end of March was $80.4 million, including restructuring and impairment charges of about $31 million, which were primarily composed of impairment charges on long-lived assets and company-managed farming operations in Africa. Those charges, combined with related tax effects, reduced net income by $24.2 million.
Full-year income from continuing operations was said to have shown a marked improvement reflecting better results in all segments. Revenues increased by about 13% to $2 billion while net income was $44.4 million, up from $7.9 million during the previous year.
"We are very pleased with our recovery in fiscal year 2007,” said Mr. King. “While it will take time to restore our profitability to prior levels, we have made substantial progress.”
King said that Universal had made the decision to end its direct involvement in various flue-cured growing projects in Africa and was taking steps to “right-size” its operations, which meant that the company had reduced its Brazilian flue-cured production. Nevertheless, King said that smaller Burley crops in Africa, along with higher costs in most of the major producing areas of the world, would present challenges next year.
In the year to the end of March 2007, the company’s North American operations had benefited from the sale of old-crop Burley tobacco, but fiscal year 2008 would not enjoy the same benefit. Tobacco production in Canada had fallen severely over the past few years and was forecast to decline by about one third during fiscal year 2008, King added.

Pace of sales faster than last year’s
Zimbabwe, Tuesday, May 22, 2007—At least 6.35 million kg of flue-cured tobacco valued at US$11.7 million were sold during the two weeks since the beginning of Zimbabwe’s selling season on April 24, according to a Zimbabwe Independent report quoting Tobacco Industry Marketing Board figures.
Deliveries were up by more than 83 per cent on those of the first two weeks of the previous season, while the value of those sales in US dollars was up by more than 102 per cent.
Contract sales accounted for about 3.9 million kg of this season’s sales and for about US$6.9 million of their value. Of Zimbabwe's three auction floors, Burley Marketing Zimbabwe had sold 979,974 kg worth US$1.9 million, Tobacco Sales Floor had sold 853,200 kg worth US$1.7 million, and the Zimbabwe Industry Tobacco Auction Centre had sold 568,484 kg worth US$1.1 million.

China maintains momentum
China, Monday, May 21, 2007—At 573.8 billion, cigarette sales in China during the first three months of this year were up by 37.0 billion, or 6.9 per cent, on those of the first three months of 2006.
Production, at 572.9 billion, was up by 40.3 billion, or 7.6 per cent. But while the output of grades one, two and three cigarettes rose by 1.4 per cent, 1.9 per cent and 3.7 per cent respectively, the output of grades four and five cigarettes fell by 3.3 per cent and 3.7 per cent.
At the end of March, tobacco inventories included 118.3 billion cigarettes, down by 5.2 billion, or 4.2 per cent, from the level at the end of March 2006.
The ratio of inventories to sales of grade one cigarettes, at 0.72, was down from 1.05; while the corresponding ratios for the other grades of cigarettes were: grade two, 0.56 (0.57, 2006); grade three, 0.51 (0.67); grade four, 0.47 (0.53); and grade five, 0.63 (0.51).
At Yuan113.528 billion, the amount of manufacturing and commercial taxes and profits earned by China’s tobacco industry during the first three months of this year was up by Yuan24.45 billion, or 27.4 per cent, on those of the same period of 2006. Manufacturing taxes and profits reached Yuan74.878 billion, which was up by 26.9 per cent, while commercial taxes and profits totaled Yuan38.65 billion, which was up 28.5 per cent.
Manufacturing and commercial profits, at Yuan49.06 billion, were up by Yuan11.86 billion, or 31.9 per cent. Manufacturing profits were up by 32.3 per cent to Yuan18.5 billion, while commercial profits rose by 31.6 per cent to Yuan30.56 billion.

Health experts visit Canada from China
Canada, Monday, May 21, 2007—Health experts from China visited Canada last week to hear how Canadian authorities approached smoking prevention, according to a CBC news report.
The delegation included Jiang Yuen, the deputy director of the Chinese Centre for Disease Control.

Plan to push tobacco sales out of mainstream
Canada, Monday, May 21, 2007—Alberta is considering a proposal that would see tobacco sales limited to liquor stores and other outlets where young people were not allowed to enter, according to a report by Jason Markusoff of the Edmonton Journal.
"If you want to denormalize tobacco, if you want to make sure it's socially unacceptable, you put it in with liquor stores, and you put it out of the environment near where children hang out," said Thomas Lukaszuk, a member of the legislative assembly and the person who suggested the idea.
Meanwhile, Health Minister, Dave Hancock, has put forward proposals that would see a ban on smoking in public places, outlaw retail displays of tobacco products and ban tobacco sales in pharmacies.

Prisoners at liberty to smoke
UK, Monday, May 21, 2007—Prisoners in England will be able to choose between smoking and no smoking cells when the ban on smoking in public places comes into effect on July 1, according to a report by Philip Johnston for the Electronic Telegraph.
Cells are exempted from the ban because they are classed as an inmate's home. And, as Johnston pointed out, prisoners do not have the option of going outside for a smoke.
There must be some question, however, about whether or not the authorities will be able to make such a system work within a jail system notoriously over-crowded.

ITC buys out King Maker Marketing
US, Monday, May 21, 2007—ITC Ltd has announced that it has bought the remaining 49.02 per cent shareholding in US-based King Maker Marketing, but without disclosing how much it paid, according to a Tobacco China Online report quoting Newkerala.com.
KMM, which is now a wholly-owned subsidiary of ITC, offers on the US market cigarettes manufactured by ITC.

Saudi seeking $2.7 billion in damages
Saudi Arabia, Monday, May 21, 2007—Saudi Arabia will seek more than $2.7 billion in damages from international tobacco companies in a lawsuit due to go on trial on September 11, according to a Reuters report quoting the kingdom's Health Ministry.
In November, the ministry threatened to sue international tobacco companies unless they paid the government and patients the full cost of treatment for tobacco-related illnesses.

Former FBI agent center of global saga
New York, Friday, May 18, 2007 - A former FBI agent who vanished in Iran two months ago was apparently investigating a cigarette-smuggling operation, according to a hunted assassin who says he was with the American on the day he disappeared, according to an Associated Press report.
What happened to the burly, 6-foot-4 Robert Levinson in the weeks since then remains an international mystery and a subject of whispers and conjecture.
The FBI said it has no information on Levinson's whereabouts, adding that he had not worked for the bureau for years. State Department officials have said they are skeptical of Iran's claim that it knows nothing about the former agent's fate.
Details of Levinson's trip to Iran are murky.
Dawud Salahuddin, an American who lives in Iran and is wanted for the 1980 assassination of an Iranian dissident outside the diplomat's Maryland home, told The Associated Press in a series of telephone interviews and e-mail exchanges that he met with Levinson two months ago on Iran's Kish Island, a seedy Persian Gulf resort that is a free-trade zone where Americans do not need a visa.
Salahuddin said Levinson told him he was seeking information on cigarette-smuggling that apparently was affecting his client, a British tobacco company.
On March 8, while they were both in the hotel lobby, Salahuddin said, he was approached by Iranian police officers and taken into custody. He said he was released hours later and returned to the hotel to discover Levinson was gone.
With authorities saying so little about the case, Salahuddin's account could not be corroborated.
Levinson's wife met with officials at the State Department for several hours Wednesday to press for information. She came away with nothing new.

Rothmans profit rises to $18 million
Toronto, Canada, May 18, 2007 - Cigarette maker Rothmans Inc. says its fourth-quarter profit rose to $18 million ($16.5 million USD) from a year-earlier $16.4 million ($15  million USD), while full-year sales volumes declined.
Earnings for the quarter ended March 31 amounted to 27 cents a share, compared with 24 cents per share a year earlier, the Toronto-based company reported Friday.
For the full 2007 financial year, earnings increased to $99.8 million ($91.5 million USD) or $1.47 per share from $99.5 million ($91.3 million USD) or $1.47 a share in per basic share in fiscal 2006.
Annual sales at 60 per cent-owned subsidiary Rothmans, Benson & Hedges Inc., after excise duty and taxes, for the 2007 fiscal year rose to $618.6 million ($567.6 million USD) from $607.2 million ($577.1 million USD). And investment income of $9 million ($8.26 million USD) was up $3.7 million ($3.4 million USD).

Negotiations continue for flue exit package; Canadian crop size not set yet
Tillsonburg, Ontario, Friday May 18, 2007 - Victoria Day weekend is traditionally thought of as the start of planting for tobacco farmers.
Planting 2007’s crop is something many growers thought wouldn’t happen as they have been waiting for an exit strategy to be announced by the federal government. No exit plan is in sight, and no crop size has been set.
This isn’t the first time growers have planted without knowing a crop size, however.
Fred Neukamm, chairman of the Ontario Flue-Cured Tobacco Growers’ Marketing Board, said an exit package won’t be announced before planting starts but added an exit package for this spring can’t be ruled out either.
"As time ticks on it becomes more difficult to fathom something will happen prior to the issuance of quota and the crop going in the ground," he said.
The chairman wouldn’t speculate if a 2007 crop is a part of any possible exit package. Growers who are planting have already made significant investments. Fumigant costs, for example, can run as high as $250 per acre.
Board members are getting somewhat frustrated with the pace of negotiations, Neukamm said. The board’s initial exit proposal of $3.30 per pound ($3.03 a pound USD) was rejected by the government as too expensive. A lower bid of $2.62 per pound ($2.40 a pound USD) was also turned down, with government representatives indicating it too was outside a reasonable range.
Neukamm said the board has told the government there is room for some additional flexibility and wants to sit down and negotiate an appropriate solution with officials.

Bhutan ponders ‘tobacco free’ status
Bhutan, Friday, May 18, 2007—Bhutan’s supposedly tobacco-free status is currently under negotiation, according to a report by Phuntsho Choden for Kuensel online.
The government banned the sale of tobacco products in Bhutan on December 17, 2004, and, two months later, it banned smoking in public places, but the authorities have found it difficult to enforce the bans totally in the face of a thriving black market.
This situation has arisen partly because the bans seemingly do not have proper legal backing and, on Tuesday, stakeholders met in Thimphu to discuss draft tobacco control legislation that would provide the necessary backing to enforce the bans.
The draft tobacco legislation initiated by the Health Ministry would ban smoking in public places, including parks; entertainment venues; sports centers and playing fields; commercial centers, taking in shops, bars and restaurants; institutions such as hospitals, schools, and offices; public transport; places of worship; and areas where there were public gatherings such as traditional celebrations and vegetable markets.
However, one of the matters discussed at the meeting concerned whether entertainment centers such as discotheques, snooker rooms and bars should be allowed to have designated smoking rooms or areas.
“It has been a total struggle to enforce the ban especially in these entertainment places,” Choden quoted one of the participants at the meeting as saying. “The legislation would be subjected to criticism if we do not consider having separate designated areas for smokers near or in the entertainment centers,” said the participant.
Another participant suggested that areas for smokers should be located at some distance from the venue so as to allow smoking but, at the same time, discourage it.
But the director of Public Health, Dr. Ugyen Dophu, apparently told Kuensel that while enforcing the ban in entertainment centers had been a problem, designating smoking areas in or near them was not the solution. “This does not support the move to make Bhutan a smoke-free nation and we run a risk of encouraging the smokers,” he said.
He said that the ban was not infringing the rights of the smokers. “They can smoke, but only in their houses or rooms because we want to protect the larger number of non-smokers,” he added.
Some people believe that with proper legislation in place, the entertainment centers would co-operate in enforcing the ban, but, meanwhile, discussions about the establishment of smoking areas will continue.

New tobacco restrictions imposed
Vietnam, Friday, May 18, 2007—The Vietnamese government has banned smoking and selling cigarettes in offices, production facilities, schools, hospitals, and on public transport, according to a Xinhua Newswire report quoting the local Vietnam News.
Bans have been imposed, too, on all forms of advertisements, trade promotions, and sponsorships by tobacco companies, as well as on cigarette sales through vending machines, by telephone or on the Internet.
From next March, the warning, Smoking causes lung cancer, will have to appear on cigarette packs.

Universal declares quarterly dividend
US, Friday, May 18, 2007—Universal Corp’s board of directors yesterday declared a quarterly dividend of 44¢ per share on the company’s common shares payable on August 13 to shareholders of record at the close of business on July 9. And it declared a quarterly dividend of $16.875 per share in respect of the Series B 6.75% Convertible Perpetual Preferred Stock, payable on June 15 to shareholders of record as of 17.00 hours Eastern Time on June 1.
The Board of Directors fixed the voting record date as June 19 for the annual meeting of shareholders to be held on August 7.

Production down 12% in Cuba's top tobacco region
Havana, Cuba, Thursday, May 17, 2007 - The tobacco harvest fell 12 percent this year compared to 2006 in Cuba's main cigar-producing province, and officials plan to trim the number of workers dedicated to production in the region, state media reported Wednesday.
Exact figures on the harvest in Pinar del Rio province were not given, but the Communist Party newspaper Granma put the year-to-year decline at 12 percent. It said that heavy rainfall made it possible to harvest the leaves of just 47,880 acres instead of the planned 53,090 acres.
Government officials also told the newspaper they planned to reduce the more than 11,700 workers involved in tobacco harvests, but they did not say by how much.
Pinar del Rio in westernmost Cuba is the island's top producer of premium cigar tobacco.

Smoking ban mayor wins new term in landslide victory,
defeats recall by same margin
Big Spring, Texas, Thursday, April 17, 2007 - If their were any questions regarding Big Spring, Texas Mayor Russ McEwen’s popularity with the voters, they were washed away Saturday night as he took the mayoral race with 72 percent of the vote. Challengers Shannon Thomason garnered 23 percent of the vote, and James “Jim” Hicks managed four percent of the ballot. The election was reported in the local Big Spring newspaper.
Also on the ballot was an attempted recall of McEwen, brought about by Thomason and Robert “Steve” Campbell. The two men filed an affidavit with the city to recall the mayor and four city council members. They failed to generate enough signatures to force a recall election for any of the council members, but did acquire enough — by 25 signatures — to prompt an attempt to recall McEwen.
Their affidavit charged that the council “circumvented the will of the majority of electors” in passing a law banning smoking in public places.
Ironically, the recall attempt failed with only 524 voters supporting a recall and 1,471 voting against it, leaving it with no bearing on the race.
“I’m just thrilled to death,” said McEwen just moments after receiving the results of the election. “I’m looking forward to being able to serve Big Spring. It really is humbling to see the voters turn out and support me like they did.”

Anti-smoking ads banned in UK
Great Britain, Thursday, May 17, 2007 - Department of Health ads deemed too 'distressing' for children
An anti-smoking poster campaign from the British Department of Health that featured images of people with fish hooks in their faces has been banned following a slew of complaints, according to an article in The Publican.
The Advertising Standards Authority told the Department of Health not to repeat the campaign after receiving complaints that the images used in the posters were offensive, frightening and distressing – with 152 people complaining the adverts had upset their children.
The watchdog said the addicted smokers looked ‘distressed and in pain’ and although the posters had not been placed near schools, they had appeared in places where they could easily be seen by children.
The ASA also found that TV ads featuring the hooks breached advertising rules by being broadcast when older children could be watching, but ruled against complaints about the ads on the internet, in magazines and papers.
The Health Department said the ads did not encourage or condone violence or cruelty, and said the hook image was used to encourage people to stop smoking and prevent harm.
It added that, since the launch of the campaign, 83,606 smokers had phoned the NHS Smoking Helpline; 545,564 had visited the gosmokefree website; 195,000 had had interactions with the TV pages and 6,743 had made contact via SMS.

Over 5 million kilograms of Zimbabwe tobacco sold so far
Zimbabwe, Thursday, May 17, 2007 - A total of 5.3 million kilograms of flue-cured tobacco worth $2.3 billion ($9.6 million USD) were sold in the first 13 days of the tobacco marketing season in Zimbabwe that commenced three weeks ago, according to a report in The Herald.
This year’s figure is almost double the 2.5 million kilograms, worth $429 million of the "golden leaf" delivered during the corresponding period last year.
In terms of US cents per kilogram, tobacco sales remained almost the same as last year with the average price ranging between US $1.68 and $1.69.
Statistics compiled by the Tobacco Industry and Marketing Board on Tuesday revealed that deliveries to the floors have continued to firm with a total of 512,658 kilograms valued at $244,104,584 going under the hammer on Friday last week, compared to 107, 584 kilograms or $18,495,969 in monetary terms over last year’s corresponding period.

The figures, however, dropped on Monday to 306,247 kilograms valued at $160,997,384, although they were still higher than last year’s.
Friday’s figures were almost double the quantity of tobacco delivered on Wednesday and Tuesday of the same week.
Of the total deliveries to date, 2 million kilograms worth $967,401,368 ($3,869,805 USD) changed hands while 3.4 million kilograms valued at $1.4 billion ($5,743,900 USD) went under the hammer in the contract sales.
Of the total deliveries to date, Zitac has received 432,324 kilograms, BMZ 823,377 kilograms  and TSF 754,242 kilograms.
BMZ continues to hold pole position, accounting for 16 percent. TSF has 14 percent and Zitac 8 percent, while contract sales take up the remainder.
TIMB acting chief executive Dr Andrew Matibiri expressed optimism that this year would be better in terms of both quality and deliveries as more farmers gained experience in tobacco production, formerly a preserve of the whites.
Meanwhile, the Reserve Bank of Zimbabwe has released over $4 billion to all auction floors to pay tobacco growers the bonuses carried over from last year.

Police raid Bulgartabac’s headquarters
Bulgaria, Thursday, May 17, 2007—Prosecutors in Bulgaria have launched pre-trial proceedings against officials from Bulgartabac, according to a Novinite report quoting ‘city prosecutor’, Roman Vassilev.
The proceedings were said to relate to allegations of embezzlement.
News of the proceedings, which were announced by Vassilev yesterday evening, broke hours after representatives of the police and the prosecutor's office visited Bulgartabac’s headquarters in downtown Sofia.
Bulgartabac's head, Hristo Lachev, was quoted as saying that he found nothing extraordinary about the visit and said that his company was co-operating fully with the authorities and providing the documents requested.

Anti tobacco campaign that frightened children ‘effective’
UK, Thursday, May 17, 2007—Government posters and television propaganda campaigns showing smokers being dragged along with fishing lines whose hooks had pierced their mouths broke advertising rules, according to the BBC quoting an advertising watchdog.
The campaigns, which appeared on posters and television, and in the press, attracted 774 complaints.
The Advertising Standards Authority said the posters were likely to ‘frighten and distress children’.
The Department of Health said the campaign had been ‘highly effective’.

Smoking not the greatest health threat
US, Thursday, May 17, 2007—North Carolinians think that drug abuse, obesity and alcohol abuse are greater threats to the state’s public health than is smoking, according to a Business Wire report quoting the results of a survey.
When asked which of the four was the greatest threat, 38 per cent of respondents placed drug abuse first, 30.8 per cent cited obesity, 18.1 per cent cited alcohol abuse and 11.7 per cent cited smoking.
The survey was carried out by Brogan & Partners, a Raleigh-based marketing company that conducts the statewide Brogan Survey.
The 600-person telephone poll indicated that 30 per cent of the state’s residents would support a total ban on all tobacco products, that 64 per cent would support a ban on smoking in all indoor public places, and that 61 per cent would support a ban in all bars and restaurants.

Public opinion in favor of FDA regulation
US, Thursday, May 17, 2007—A new national poll has indicated that 77 per cent of US voters support Congress passing a bill to give the Food and Drug Administration the authority to regulate tobacco products, according to a US Newswire report.
The poll was conducted by Public Opinion Strategies and the Mellman Group on behalf of the Campaign for Tobacco-Free Kids.

Website users opposed to smoking at home
Germany, Thursday, May 17, 2007—Seventy per cent of German citizens who took part in a website survey said they were against smoking in their homes, according to a Handelsblatt report quoting a survey by Immowelt.de.
More than one-third of respondents who identified themselves as smokers said they kept their houses smoke-free by going out on to their balconies when they wanted to smoke. Only 12 per cent of those who identified themselves as non-smokers said they were willing to let someone smoke in their home.
More than 1,660 Germans took part in the survey by visiting the Immowelt.de site.

Universal to webcast results
US, Thursday, May 17, 2007—Universal Corp will webcast a conference call on May 21 following the release of its results for the fiscal year 2007. The conference call will begin at 17:00 hours Eastern Time and will be hosted by Karen M. L. Whelan, vice-president and treasurer.
A live webcast of the call will be available online on a listen-only basis at http://www.universalcorp.com. And a replay will be available at that site for three months. A taped replay of the call will be available for one week from 20.00 hours Eastern Time on May 21 at (888) 203-1112 using the pass code 1174672.

Fewer smokers in Japan
Japan, Wednesday, May 16, 2007—The percentage of smokers among Japanese men dropped below 40 percent for the first time in two decades, according to a government study published on May 16. The annual survey, conducted by the Health Ministry, showed 39.3 percent of all Japanese adult men smoked as of the end of 2005, down four percentage points from a year before.
            A Health Ministry official said the declining trend could be largely attributed to a rising awareness of the health risks and stricter smoking regulations.
            The rate of female smokers also dipped by 0.7 percentage point to 11.3 percent in 2005 from a year earlier, the survey showed. But that was higher than the 8.6 percentage points for two decades ago when the ministry took the first survey. 

Tobacco too “sensitive” for foreign investment
India, Wednesday, May 16, 2007—Indian trade unions today opposed foreign direct investment (FDI) in the country’s tobacco sector, asking the government not to experiment in such “socially sensitive” areas, reports The Business Standard.
            In a letter to Prime Minister Manmohan Singh, five major trade unions said it was “immensely worrying” to learn that the Union Commerce Minister has been talking of allowing FDI in the tobacco sector and free entry to cigarette manufacturing companies (MNC).
            “The entry of foreign cigarette companies and MNCs will directly impact bidis and local producers of cigarettes,” the unions wrote. “The MNCs will introduce cheap cigarettes and eventually take away bidi users through high-powered advertising and sales.”
            Referring to studies carried out by the Labor Ministry, the trade unions disputed the argument that foreign investors would help increase exports of tobacco products and offer better value for tobacco growers
            “Tobacco is a sensitive sector,” the unions added in their letter. “It employs millions of poor people. Any negative impact will destroy their lives and government has no social security net to help workers and farmers.”

No tobacco ban in Venezuela
Venezuela, Wednesday, May 16, 2007—Venezuelan Health Minister Erick Rodríguez yesterday denied reports of a pending ban on tobacco production. Rodríguez said local media had taken his words out of context.
            The government is implementing a campaign to raise awareness about the risks of tobacco use, and has been debating restrictions on public smoking. However, the health minister made clear he has no authority to dictate laws in the economic field. 

Cigarette ad ban on radio pulls Manila Broadcasting's earnings
Manila, Monday, May 14, 2007 - Manila Broadcasting Co. (MBC), the owner and operator of radio stations DZRH and Yes FM, said its first-quarter profit dipped as revenues decreased due to the ban on cigarette ads on TV and radio that began in January, according to a report in the Manila Times.
In a disclosure to the Philippine Stock Exchange, MBC said its net income during the period was 10.3 percent lower at 3 million pesos ($63,500 USD) compared to the previous year, as the company's aggregate revenue slid by 3.9 percent to 141.2 million pesos ($3 million USD).
MBC said the ban on cigarette advertisements starting this year hurt the company's revenues, which are mainly derived from advertising.
Total cost and expenses during the period slipped by 3.7 percent to 136.6 million pesos ($2.9 million USD) as commissions of advertising agencies and sales personnel declined.

PMPMI bucks additional increase in excise tax on cigarettes
Manila, Friday, May 11, 2007 - Philip Morris Philippines Manufacturing Inc. (PMPMI) urged the government in Manila to stick to its original schedule for a gradual increase in excise taxes on cigarettes and not give in to suggestions by some political figures to raise additional revenues by making further increases.
In a talk with newsmen and reported by The Philippine Star, PMPMI managing director Chris Nelson said PMPMI has worked with the government on the excise tax issues and has done its duty as a corporate citizen by paying the proper taxes.
He said PMPMI has been paying approximately 1 billion pesos ($21.1 million USD) a month in excise taxes or about 12 billion pesos per annum ($447 million USD) aside from its corporate taxes of 300 million pesos ($6.3 million USD).
Nelson said a regular increase in the excise tax is affected every two years, with the most recent one done in January this year. The next increases are scheduled in January 2009 and in January 2011. Some political figures, however, are suggesting that the government raise additional revenues by implementing further increases on top of those that have been scheduled.
Not only PMPMI, but tobacco farmers and other industry stakeholders as well would be adversely affected by such a move, Nelson said, adding "we have done our contribution and we hope they keep to those increases."
"I would be concerned if they increase it," Nelson said.

Cigar expansion planned in Chongqing
China, Monday, May 14, 2007—Sichuan-Chongqing Regional China Tobacco Industry Corp (S-CRCTIC) and Chongqing City Tobacco Co have agreed to turn Chongqing City into a ‘model cigar market’. S-CRCTIC is the operator of the tobacco industry’s manufacturing sector in Sichuan Province and Chongqing City.
A package of agreements provides for the development of five cigar brands, 10 or more district- or county-level markets for the wholesale and retail of cigars, and the realization of Yuan10 million in annual cigar sales.
The agreement also involves the establishment of cigar showcase shops in one or two ‘high-class’ areas of Chongqing city, and 10 convenience stores to display cigars.

Nanchang factory set for expansion
China, Monday, May 14, 2007—The expansion of the Jiangxi Province’s Nanchang General Cigarette Factory (NGCF) will play a key role in the development by the provincial government of the Jinsheng Industrial and Scientific-Technological Park, according to a report by the Chinese Enterprise newspaper.
Earlier this year, the provincial government decided to develop a number of large enterprise groups and industrial parks in the province, each capable of generating annual sales of at least Yuan10 billion, and taxes and profits of Yuan1 billion.
In essence, the plan requires that the NGCF is capable annually of producing and selling 50 billion cigarettes and paying Yuan5 billion in taxes by the year 2010.
To meet these targets, the NGCF will have to reform further the structure of its products and develop a large number of new products capable of generating high levels of added value. As part of this effort, the NGCF, which doubles as the Jiangxi Provincial China Tobacco Industry Corp, will continue to try to develop its Jinsheng cigarette brand into a ‘national-level famous and high-quality’ cigarette brand.
Between January 1 and April 24 this year, the NGCF sold 15.26 billion cigarettes, an increase of 13.3 per cent over its sales for the same period of 2006. Sales of its Jinsheng and Mount Lushan brands rose by 44 per cent and 66 per cent respectively. And sales of hard-pack versions of Jinsheng and Jipin Jinsheng, and the soft-pack version of Jinsheng went up 32.1 per cent, 71.9 per cent and 169.8 per cent respectively.
Meanwhile, the NGCF's cigarette sales to other Chinese regions reached 3.45 billion cigarettes, up 53.7 per cent.

Town becomes first to ban smoking
Kenya, Monday, May 14, 2007—Nakuru has become the first town in Kenya to ban smoking in public places, according to a Nation Media report.
The ban follows the approval by the Ministry of Local Government of a municipal council by-law, which is independent of the Tobacco Control Bill that is expected before parliament soon.

Small kretek producers shut down
Indonesia, Monday, May 14, 2007—Indonesia’s customs and excise service has ordered a temporary halt to the operations of more than 20 small-scale kretek manufacturers in Malang, East Java, for allegedly violating excise regulations, according to a Jakarta Post report.
The closures are said to be set to affect directly 15,000 of the companies’ workers.
The Indonesian Cigarette Producers’ Union chairman, Ismanu Soemiran, was quoted as saying that he had not been informed as to the reasons for the closures. He said it was likely that the companies had misunderstood the regulations, given that they were only small-time players and the regulations were frequently amended. However, he said that he appreciated the government's efforts to uphold the law. "If the authorities did find violations, then this would benefit the industry as a whole as we are all suffering from illegal tobacco sales," he said.

Gold ranking for Imperial’s corporate responsibility
UK, Monday, May 14, 2007—The Imperial Tobacco Group has been named one of the top 100 ‘Companies That Count 2007’ in the Business in the Community’s fifth annual Corporate Responsibility Index (CRI).
In its second year of participation in the CRI, Imperial improved its performance from 86 per cent last year to 91 per cent this year and was awarded a 'Gold' ranking.
Each participant was evaluated on its corporate responsibility strategy, its integration of that strategy into the business, management of corporate responsibility within the organization, and performance in a range of social and environmental impact areas.
Imperial participated also in the assessment conducted by SAM Research for the Dow Jones Sustainability Index 2006, where its overall score was 73 per cent compared with a sector average of 66 per cent.

Smoking ban requirements anger churches
UK, Monday, May 14, 2007—Senior clerics in England were said to be angry over government regulations giving churches and cathedrals until July 1 to post ‘no smoking’ signs at their entrances, according to a report by Jonathan Petre for the Telegraph. July 1 is the date on which a public-places smoking ban comes into effect in England.
Bishops and cathedral deans pointed out that it was almost unheard of for someone to light a cigarette in the pews.

Proposal to ban smoking while driving
UK, Monday, May 14, 2007—The Department of Health is considering a proposal that drivers should be banned from smoking while at the wheel, according to a report by Marie Woolf for The Independent.
The Local Authority Road Safety Officers' Association, which represents 180 of the UK's 200 local roads authorities, apparently fears that more people than previously will smoke while driving home from the pub once a smoking ban on public places comes into force on July 1.

Bidi workers on strike over health warnings
India, Monday, May 14, 2007—Workers involved in the making of bidis have gone on an indefinite strike against a government directive that requires bidi packs to carry health warnings, according to a Yahoo! India News report.
Poor and impoverished workers, most of whom are women, say the ban on smoking in public places has already crippled the tobacco industry and that the warning directive will add to their woes.

More than half of medical students smokers
India, Monday, May 14, 2007—A survey of medical students in north India has found that 56 per cent of them are smokers and 35 per cent of them are ‘nicotine-dependent’, according to a Yahoo! India News report.
The year-long study, which was carried out by the AIIMS medical college, was based on students from major medical colleges answering questionnaires based on their smoking habits.

Rothmans to host conference call
Canada, Monday, May 14, 2007—Rothmans Inc is to host a conference call at which analysts and portfolio managers will be able to discuss with the company's management fourth-quarter and year-end results to March 31, 2007. Shareholders and media representatives are also invited to listen to the call by telephone or to take part through a webcast on www.rothmansinc.ca.
The conference call will be held at 08.30 hours Toronto time on 1-866-898-9626 or 416-340-2216.
After the conference call, a recording will be available until May 25 by calling 1-800-408-3053 or 416-695-5800 and entering reservation number 3222436. It will be available also through the investor website.

Reynolds American Board Declares Quarterly Cash Dividend
Friday,  May 11, 2007 –  The board of directors of Reynolds American Inc. (NYSE: RAI) declared a quarterly dividend of $0.75 per share as part of its annual shareholder's meeting.
During the annual meeting, shareholders approved an amendment to Reynolds American’s Articles of Incorporation that increases the number of authorized shares of RAI common stock from 400 million to 800 million.  The company’s two-for-one stock split in August 2006 doubled the number of outstanding shares, which reduced the number of common shares available for issuance. Today’s action restores the pre-split ratio of shares available for issuance compared with the total number of authorized shares.
At a board meeting following the annual shareholders’ meeting, the RAI board declared a quarterly cash dividend on the company’s common stock of $0.75 per share ($3 per share annualized).  The dividend will be payable on July 2, 2007, to shareholders of record on June 11, 2007.  This is the 12th consecutive quarterly cash dividend that Reynolds American has declared since it became a publicly traded company on July 30, 2004.

Altadis bid may spark bidding war
Thursday, May 10, 2007 - A bidding war could be about to break out for Spanish tobacco firm Altadis, after it unveiled a potential 12.8 billion euro ($17.4 billion US, £8.7 billion British pounds) offer.
The 50 euros ($50 US) a share offer from private equity groups CVC Capital and PAI Partners trumps an earlier bid of 12 billion euros ($16.2 billion US) from UK firm Imperial Tobacco.
Altadis, maker of Gauloise cigarettes and Cohiba cigars, said its board would meet soon to discuss the latest offer.
It has already spurned two approaches from Bristol-based Imperial as too low.
The bid from UK-based CVC and France's PAI is conditional on approval from the Altadis board and acceptance from shareholders representing 75 percent of the firm's holdings.
Analysts widely expect the approach to trigger another offer from Imperial, but the group refused to be drawn on whether it would table an improved bid.
The tobacco sector has seen a spate of takeovers recently as the industry consolidates in the face of numerous smoking bans.
In December last year, Japan Tobacco agreed to buy Silk Cut maker Gallaher for $19 billion US.
And in February, Imperial Tobacco - which employs 14,500 staff in 130 countries - agreed to buy the US cigarette maker Commonwealth Brands for £974m ($1.3 billion US.
A deal between Imperial and Altadis would narrow the gap on larger rivals Philip Morris, Japan Tobacco and British American Tobacco.

Vector group announces increases in profits
Thursday, May 10, 2007 - Vector Group Ltd. today announced financial results for the first quarter ended March 31, 2007.
First quarter 2007 revenues were $133.9 million, compared to revenues of $117.7 million for the first quarter of 2006. The Company recorded operating income of $25.7 million for the 2007 first quarter, compared to operating income of $20.2 million for the first quarter of 2006. Net income for the 2007 first quarter was $23.1 million, or $0.37 per diluted share, compared to $10.0 million, or $0.17 per diluted share, for the 2006 first quarter. The 2007 results included an approximate $19.6 million pre-tax gain related to the Company’s previously announced NASA settlement. 
For the three months ended March 31, 2007, the Company’s conventional cigarette business, which includes Liggett Group cigarettes and USA brand cigarettes, had revenues of $132.8 million, compared to $115.7 million for the three months ended March 31, 2006. Operating income was $35.5 million for the first quarter of 2007, compared to $30.4 million for the first quarter of 2006.

Smoking to influence movie classifications
US, Friday, May 11, 2007—Smoking is to become one of the factors considered when movies in the US are given viewer classifications.
These classifications, which determine audience age restrictions, can have enormous impact on box office returns.
But not all movies with smoking scenes will be given an R rating as some people had advocated. An R rating excludes all people under 17 unless they are accompanied by an adult, and is presumably intended to stop those under 17 seeing things they would not normally see as part of their daily lives.
In announcing the new arrangements, the Motion Picture Association of America’s (MPAA) chairman and CEO, Dan Glickman, said the MPAA film rating system had existed for nearly 40 years as an educational tool for parents to assist them in making decisions about what movies were appropriate for their children. “It is a system that is designed to evolve alongside modern parental concerns,” he said. “I am pleased that this system continues to receive overwhelming approval from parents, and is consistently described as a valuable tool they rely upon in making movie-going decisions for their families. With that in mind, the rating board chaired by Joan Graves will now consider smoking as a factor — among many other factors, including violence, sexual situations and language—in the rating of films.”
The MPAA oversees the Classification and Ratings Administration jointly with the National Association of Theatre Owners.

Turnover hit by smoking ban
Sri Lanka, Friday, May 11, 2007—Ceylon Tobacco Co’s turnover and profit during the first three months of this year were hit by the effects of a law that banned smoking in public places from the end of last year, according to a Lanka Business Online report quoting company sources.
The company’s turnover during the first quarter of 2007, at Rs10,832 million, was up only marginally from Rs10,811 million during the first three months of last year, while profit climbed by 4.5 per cent to Rs277 million.
The company was quoted as saying that the total sales volume in Sri Lanka had declined during the first quarter at a higher rate than the historical average due to the implementation of the National Alcohol and Tobacco Act in December 2006.

Leaf prices fall
Malawi, Friday, May 11, 2007—A day after a story appeared in a Harare newspaper describing how Malawian tobacco growers were fearful that this season’s good prices would cause a production stampede, another report has described how falling prices are causing growers to withhold their tobacco from the auction floors.
There seemed to be some discrepancy about prices, but one report had it that the average had fallen by more than 40 per cent from the high point, while another indicated that tobacco was selling for less than the minimum selling price of US$1.10 set by the government.

Altadis’ cigarette sales forge ahead
Spain, Thursday, May 10, 2007—Altadis’ cigarettes sales volume during the first quarter of this year, at 26.7 billion, was up by 10.4 per cent on that of the first quarter of 2006, due mainly to sales improvements in a number of areas, but particularly in Russia and countries of the Middle East.
But the value of its cigarette sales, at €413 million, was up by only 5.0 per cent, despite the 10.4 per cent increase in volumes, higher prices in Spain and a reportedly good performance on the Moroccan market.
The value of blond cigarette sales, at €308 million, was increased overall by 4.8 per cent, but the value of these sales grew by 9.4 per cent, 19.7 per cent and 113.2 per cent respectively in Spain, Morocco and Russia. And the value of sales in the Middle East grew by 12.7 per cent.
Blond cigarette sales now account for 75 per cent of the value of Altadis’ cigarette sales.
Volume sales of Altadis’ key international blond brands, Gauloises, Fortuna and Gitanes, increased by 4.8 per cent, but the value of those sales was down by 2.5 per cent, partly because of tough market conditions in Germany but also because of the relatively high level of the value of sales during the first quarter of last year.
Sales of these key blond brands, at 9.8 billion worth €177 million, accounted for 49 per cent of the total volume of the company’s blond cigarettes sales during the quarter and for 58 per cent of the value of those sales.
The value of cigar sales, at €188 million, was down by 11.4 per cent due to unfavorable exchange rate variations, challenging market conditions in the US and the very strong comparison base of the first quarter of 2006.
Despite the challenging conditions in the US, 55 per cent of sales were recorded there, but they were down by 10.7 per cent in dollars, and by 18.1 per cent in euro to €102 million.
Otherwise, 17 per cent of sales were made in Europe and 19 per cent were recorded as Havana cigar sales. Sales of Havana cigars were said to have been outstanding, growing by 7.0 per cent to €35 million. They were said to have performed very well in the mature markets of Spain, Germany and Italy, and to have performed ‘encouragingly’ in emerging markets, such as Russia and countries of the Asia Pacific region.
In Europe, while sales decreased slightly in France, they performed ‘outstandingly’ in Spain, where they recovered from the fall at the beginning of last year when new regulations restricting retail distribution came into force.
Sales at the company’s tobacco logistics operations increased by 48 per cent to €155 million, while its general logistics increased by 12.0 per cent.
Group Ebitda, at €268 million, was up by 6.6%; net income, at €110 million, was up by 6.2%; and earnings per share, at 43.5¢, were up by 11.6 per cent.

Snus offers potential health benefit …
UK, Thursday, May 10, 2007—Swedish snus has proven much less harmful to health than has ‘conventional smoking tobacco’, according to findings highlighted in two articles and a comment on The Lancet online.
Snus is said to have the potential to produce a net health benefit to the population if smokers were to switch to using it rather than cigarettes.
Snus is said to cause no increased risk for lung or mouth cancer for people who have never smoked, but snus users are twice as likely to contract pancreatic cancer as are people who have never smoked.

… but not in Canada
Canada, Thursday, May 10, 2007—Imperial Tobacco Canada is to introduce snus to Canada within a year, according to a CBC news report quoting Benjamin Kemball, the company's president and CEO.
But François Damphousse, director of the Non-Smokers' Rights Association, was reported to have said that while products such as chewing tobacco were not combustible and did not produce second-hand smoke, they were still toxic products. "Smokeless can also be a problem for mouth cancer, lip cancer and so on and so forth and should not be sanctioned by the health community," he said.

University likely to continue to accept tobacco money
US, Thursday, May 10, 2007—Faculty leaders at the University of California decided yesterday to recommend that the university should continue to accept research funds provided by tobacco companies, according to a report by Tanya Schevitz in the San Francisco Chronicle.
The Academic Senate voted 43 to 4, with three abstentions, against a proposed ban on tobacco funding. Its recommendation will go to the university's governing Board of Regents, which is expected to accept the recommendation when it considers the issue in July.

Processing factory to close
US, Thursday, May 10, 2007—Philip Morris International is to close a tobacco processing plant in Virginia, US, by the end of this year, according to an Associated Press report.
The factory, just outside McKenney, in Dinwiddie County, processes and blends tobacco for export to the company's cigarette manufacturing operations outside the US.

Harare sales under way
Zimbabwe, Thursday, May 10, 2007—More than 1.4 million kg of flue-cured tobacco was sold in the first seven days of Zimbabwe’s 2007 selling season, which opened on April 24, according to a report in The Herald quoting Tobacco Industry and Marketing Board figures.

Oh no, the prices are far too high
Malawi, Thursday, May 10, 2007—In a seeming affirmation of the maxim that farmers will always complain, Malawi’s tobacco growers, faced this season with increased prices, have already expressed their concern that too much tobacco might be grown next season.
Since the tobacco auction floors opened in Lilongwe, Limbe and Mzuzu last month, tobacco has been selling at between US$1.60- US$1.70 per kg, while last year opening average prices stood at about US$1 per kg, according to a report in The Herald (Harare).
Tobacco growers, the paper reports, fear that the good prices might attract more growers unless the government puts in place a control mechanism to ensure that there will be no overproduction.

Altadis to open books to private equity group
Europe, Wednesday, May 9, 2007—Altadis is going to open its books to a private equity consortium and allow the Imperial Tobacco Group access to the information it has sought, according to a note posted on Altadis’ website.
Imperial Tobacco has had preliminary offers of €45 and €47 per share turned down by Altadis’ board of directors, which is currently considering a subsequent, preliminary offer from CVC Capital Partners and PAI Partners of €50 per share.
Altadis said that its board of directors believed the preliminary offer by CVC and PAI showed ‘progress towards the real value of the company’ and that it had therefore decided to authorise due diligence solicited by CVC and PAI.
‘At this stage of the process, the board has also decided to authorise adequate access to the information solicited by Imperial Tobacco Group, in terms legally and commercially appropriate,’ the Altadis note added.
‘Finally, the board of directors reiterates its commitment to continue analysing the best options for the company, its shareholders and its employees.’

WHO found to be lacking evidence
International, Wednesday, May 9, 2007—The World Health Organization (WHO) routinely forgets to include the evidence when developing ‘evidence-based’ guidelines, according to a report by Maria Cheng for The Associated Press that cites the verdict from a study published in The Lancet online.
WHO was found by the study to be too reliant on expert opinion in particular fields in developing its policies and recommendations. The study’s authors concluded that the organization should use more systematic reviews of relevant research and seek the views of representatives who would have to live with its recommendations.
Cheng quoted the Lancet editor, Dr. Richard Horton, as saying, "This is a pretty seismic event. It undermines the very purpose of WHO." Horton was not involved in the research.
WHO's director of research policy, Dr. Tikki Pang, was said to have admitted that the criticism had merit. He apparently explained that time pressures and a lack of both information and money sometimes compromised WHO’s work. "We know our credibility is at stake, and we are now going to get our act together," Pang was quoted as saying.

Joint venture plant reported
Nigeria, Wednesday, May 9, 2007—The Imperial Tobacco Group and Japan Tobacco Inc is planning to establish a joint venture cigarette manufacturing plant in Nigeria, according to a report by John Okeh for The Weekly Trust and Daily Trust.

Health groups spurn invitation to dialogue
Canada, Wednesday, May 9, 2007—Imperial Tobacco Canada has announced that it will take decisive action during the next 12 months on three key issues that were identified during discussions between its social responsibility committee and 80 individuals and organizations, according to a number of local reports.
A Canada Newswire report quoting an Imperial announcement said that the three issues were harm reduction in relation to tobacco consumption, the reduction and elimination of illicit trade and youth smoking prevention. “A tobacco company can be responsible, we must be and we are,” said Imperial’s president and CEO, Benjamin J. Kemball, who made public the company’s plans during an address to the Canadian Club of Montreal. “These actions are a concrete demonstration of our responsibility," he added.
Imperial described the consultation as an ‘innovative, independently-audited dialogue process’, but Mike King, writing for the Montreal Gazette, pointed out that Catherine Doyle, Imperial's manager of corporate communications, had acknowledged that while invitations for the discussions had been extended to pressure and health groups, all had declined to participate.

Crossing the border to eat
Belgium, Tuesday, May 8, 2007—The public-places smoking ban in Belgium that has been in effect since the beginning of the year has had a negative impact mainly on Belgian restaurants and cafés near the border with the Netherlands, according to an Expatica report.
For businesses on the Dutch side it has been a different story.
Businesses in municipalities such as Maaseik are seeing more and more customers cross the border to the Netherlands where smoking is still allowed in the hospitality sector. In fact, restaurants in the Belgian part of this border region saw their turnover decrease by 25 per cent during the first three months of this year.

Tobacco farmers in crisis
Canada, Tuesday, May 8, 2007—Canadian tobacco growers are saying that federal government inaction on a buyout plan for their industry could lead to a more militant stand by farmers and even suicides, according to a report in the Brantford Expositor.
“The way politicians are treating farm families is shameful,” Mark Bannister, vice-president of Tobacco Farmers in Crisis, was quoted as saying. “If something is not done in the near future, there will be suicides. And we will not have blood on our hands. It will be on the government’s hands.”
The tobacco growers have been negotiating with the federal government for a $1-billion plan allowing all growers to exit tobacco production. But last week, the director of communications for the federal Agriculture Minister, Chuck Strahl, said a straight buyout of growers was not being considered and that the government would work to move farmers to other crops.

UST closes “difficult” antitrust chapter
US, Monday, May 7, 2007—UST announced on Friday that it had settled its last significant remaining indirect purchaser antitrust case.
‘As stated in the company's first quarter earnings release issued on April 26, 2007, UST was actively engaged in court mandated mediation to resolve what the company believes was its last major antitrust case, California,’ UST said in an announcement posted on its website. ‘These negotiations proved to be productive, and earlier this week, UST reached an agreement to settle the case in a manner it believes is in the best interest of the Company and its shareholders. The agreement is subject to court approval.’
"This settlement essentially closes a difficult chapter in the history of our company, which we have been dealing with for nearly a decade," said Murray S. Kessler, president and chief executive officer. "With legal uncertainty having been even further reduced, major distractions to the organization removed, robust growth in the categories in which we compete and solid fundamentals in our smokeless tobacco and wine businesses, I remain optimistic about achieving our targets for the year and our company's future."

Private equity consortium bids for Altadis
EU, Friday, May 4, 2007—Altadis’ board of directors is to meet in the next few days to consider a preliminary offer by a private equity consortium.
CVC Capital Partners and PAI Partners have offered €50 a share, which values Altadis at €12.8 billion and which tops the latest €47 per share offer by Imperial Tobacco.
In a note posted on its website, Altadis said that the offer was subject to due diligence, and approval by the consortium and by Altadis’ board. ‘The sponsors have specified that any formal offer … shall be subject to the condition of its acceptance by 75% of Altadis´ shares and the removal of the 10% voting rights limitation ...’ the note said.

Cigarette sales continue to fall
Canada, Friday, May 4, 2007—Cigarette sales by Canadian manufacturers during March, at 1.1 billion, were down by 53.9 per cent on those of March 2006 and down by 8.1 per cent on sales during February this year. These figures from Statistics Canada exclude imports, so much of the decrease between March 2006 and March this year can be attributed to Imperial Tobacco Canada having shifted its manufacturing to Mexico. The figures exclude, too, illicit sales.
Cigarette production in Canada during March, at 1.1 billion, was down by 55.4 per cent on that of March 2006 and down by 16.6% on production during February this year.
At 1.7 billion cigarettes, the closing inventory for March was down by 55.7 per cent on that of March last year and down by 0.7% on that of February this year.

Nicotine addiction vaccine successful in trials
US, Friday, May 4, 2007—Nabi Biopharmaceuticals said on Wednesday that its vaccine to treat nicotine addiction had helped a statistically significant number of smokers break the habit during the first six months of its Phase IIb clinical trial, according to a report by Brian Bandell for the Washington Business Journal.
The company said that it would continue with the trial of Nicotine Conjugate Vaccine (NicVAX) until its 12-month completion date, but, having met its goals at the halfway point, Nabi is already planning a final Phase III clinical trial.

BAT’s volumes down in first quarter
UK, Thursday, May 3, 2007—British American Tobacco’s volume sales during the three months to the end of March, at 156 billion, were three per cent lower than they were during the first three months of last year. Volume sales of the company’s four global drive brands increased by six per cent, but even here results were patchy. Kent and Dunhill volumes grew by 10 per cent and nine per cent respectively, Pall Mall volume was up by two per cent and Lucky Strike volume fell by one per cent.
The drop in overall volume sales was attributed to high levels of trade buying in some markets at the end of last year, supply chain disruptions in the Middle East and the loss of StiX in Germany.
Kent enjoyed good growth in Japan, Russia, Romania, Ukraine, Chile and Switzerland, and its volume was boosted by sales in Azerbaijan and Kazakhstan, which were new markets for this brand. Dunhill’s volume was driven by strong sales in South Korea, Malaysia, South Africa, Russia and Saudi Arabia, but volume was lower in Taiwan.
Pall Mall’s performance was said to have been set back by the loss of sales of Pall Mall StiX in Germany. Lucky Strike volume sales grew in Spain, France, Argentina and the Czech Republic, but this growth was more than offset by declines in Japan and the Netherlands.
BAT this morning reported revenue down by three per cent to £2,232 million, profit from operations up 11 per cent to £684 million and adjusted diluted earnings per share up 10 per cent to 24.31p.
The company’s chairman, Jan du Plessis, said BAT had made a “solid” start to 2007 with its 10 per cent growth in adjusted diluted earnings per share. “Profit from operations was ahead by six per cent at current rates of exchange, if exceptional items are excluded,” he said. “The results have been particularly affected by foreign exchange and profit from operations would have increased by 18 per cent at comparable rates.
“Similarly, revenue declined by three per cent at current rates but grew by six per cent at comparable rates, despite volumes being down three per cent. Our good performance is the result of better pricing and the continued growth in our global drive brands, which is improving our product mix. The lower volumes are largely the result of temporary patterns in a number of markets, with Russia and the Middle East being the most significant.
“This performance, together with the benefit of successful cost savings programs, drove the improvement in profit from operations. Profit grew in every region apart from America-Pacific, where the impact of illicit trade and higher distribution costs in Canada more than offset the good results from Japan.”

Call for Bulgartabac to close three factories
Bulgaria, Thursday, May 3, 2007—Bulgartabac must close three of its four factories and cut its workforce by half if it is to remain competitive, according to a Novinite report quoting the company’s CEO, Hristo Lachev.
Lachev said the factory closures would be necessary in the event that Bulgartabac were not privatized. And he added that, in this case, it would be best to operate with just the Blagoevgrad factory, which has the highest production capacity.
Lachev, who reported this week that Bulgartabac’s cigarette sales had increased by 30 per cent since the start of the year, believes that if Bulgartabac is to be moved out of state ownership, it should be privatized through the stock exchange.
Meanwhile, the dismissal of Bulgaria’s chief investigator has been called for following allegations that he demanded money from Bulgartabac, according to a separate Novinite report.
The chairman of the Socialist Parliamentary Group, Mihail Mikov, has called for the dismissal of Anguel Alexandrov if he refuses to resign from his post. Alexandrov is alleged to have demanded money from Bulgartabac’s CEO, Hristo Lachev, for use by the organization he heads.
Lachev has not indicated when the request for money was made or how much was asked for.

Lorillard profit up in first quarter
US, Wednesday, May 2, 2007—Lorillard’s profit during the first quarter of 2007 increased by 26 per cent to $188.7 million and earnings per share at the Carolina Group, a tracking stock for Lorillard, increased from $0.86 to $1.08, which was above market expectations, according to Citigroup’s Bonnie Herzog.
The company was said to have benefited from decreased promotional spending and higher pricing in December 2006.
Lorillard’s operating profit per 1,000 pieces was $34.19, up from $29.55 during the first quarter of 2006.
However, total shipments were down by about one per cent and Newport’s volume declined by about 0.6 per cent, though this was when set against a first quarter 2006 performance that had seen Newport’s volume increase by three per cent.
Jonathan Stempel, writing for Reuters, quoted Lorillard chief executive, Martin Orlowsky, as saying that the company’s US market share had risen to 9.95 per cent from 9.62 per cent a year earlier.
Meanwhile, Stempel reported that net income at Loews Corp rose by 42 per cent to $768.3 million, helped by the better than expected results from Lorillard and from Loews’ insurance and oil drilling units.

Bhutan ban to get legal backing
Bhutan, Wednesday, May 2, 2007—More than two years after Bhutan’s total ban on tobacco, legislation is being prepared to give the ban legal backing, writes Phuntsho Choden for Kuensel Online.
“The ban has been there but only through notifications and warnings serving as a deterrent, but there was no specific legal backing to penalize or fine people breaking the ban,” Dr. Nyo Nyo Kyaing, a consultant from Myanmar was quoted as saying. He has been recruited with World Health Organization assistance to work on the tobacco legislation, which now exists in draft form.
The draft will be presented to the national steering committee on tobacco control on Friday, and it is intended that it will be put out for public consultation.
Meanwhile, the joint director of the Health Ministry’s Information and Communication Bureau, Sonam Phuntsho, said that though there had been no study conducted into the rate of consumption after the ban, health officials knew that consumption had decreased.
The enforcement of the ban had not been as strict as it could have been, he added, but the legislation would assist with the formation of a tobacco control unit to execute measures for tobacco control.

UST declares quarterly dividend
US, Wednesday, May 2, 2007—The Board of Directors of UST yesterday declared a regular quarterly dividend of 60¢ per common share, payable on June 29 to stockholders of record at the close of business on June 15.
The company says that it has paid cash dividends without interruption since 1912.

Imperial’s volumes up 5% in first six months
UK, Tuesday, May 1, 2007—Imperial Tobacco’s cigarette volumes rose by five per cent to 90.7 billion during the six months to the end of March. Revenue before tax was up one per cent to £1,514 million, profit from operations was up 11 per cent to £658 million, and adjusted profit from operations was up by seven per cent to £633 million.
"In the first half of 2007 we delivered another strong performance, reflecting the continued successful execution of our growth strategy,” said chief executive, Gareth Davis, announcing the company’s interim results. “We maintained our organic growth momentum of the last two years, increasing our global cigarette volumes by five per cent and making further cigarette market share gains across all our regions.
"Our success reflected the continued growth of our key cigarette brands Davidoff, West and JPS, supported by robust performances from other brands. We have focused on accelerating the international development of Davidoff since acquiring the worldwide cigarette trademark last year, increasing volumes by 10 per cent and launching the brand in several new markets as well as introducing additional brand variants.”
In Saudi Arabia, Davidoff sales were up by 44 per cent; they were up by 32 per cent in Russia and by 11 per cent in Greece. West’s volumes were up by 14 per cent, with particularly strong performances in Poland and the Caucasus. And JPS, whose volumes were up by 25 per cent, also saw strong performances in particular markets. In Germany, the brand was up 90 per cent and now accounts for more than six per cent of the market there. And it was up by 29 per cent in the Netherlands.
"We will continue to develop our brand and product portfolio in order to build on our cigarette volume growth and strengthen our world leading position in other tobacco products,” said Davis. “Further extending our geographic footprint provides additional growth opportunities and through the completion of the $1.9 billion acquisition of Commonwealth Brands, the fourth largest cigarette manufacturer in the US, we now have a sizeable presence in this vast and highly profitable market.”
Imperial increased its productivity during the six months by seven per cent, and that fed through into a reduction in unit costs of four per cent for cigarettes and 11 per cent for fine cut.
In an interview posted on the Imperial website, Davis indicated that while Imperial was still looking at a possible Altadis acquisition, it did not intend to overpay while there were some “sweet prizes” in other parts of the tobacco world.
“We've increased our proposal significantly to €47 a share, and we think that represents a fair and full value for the business,” Davis said. “I think one has to see it in the context that it represents a multiple of 13.5 times the Altadis 2006 EBITDA. Furthermore, it's a 26 per cent premium over their closing share price on March 12, which was €37.84.”
However, Davis said that Imperial was still trying to gain access to the business and get into a constructive dialogue so that it could evaluate if there were any significant areas of value that it had missed. But Imperial had strict acquisition criteria, he added. “We do have discipline. We're not going to get into a situation of overpaying. We never have, and we won't do. But there are plenty of other opportunities out there in all parts of the world, maybe not on the large scale that we talk about with Altadis, but there are some very sweet prizes, I would say, in other parts of the tobacco world.”
Imperial reported basic earnings per share for its first six months up by 11 per cent to 62.4p, adjusted earnings per share up 13 per cent to 61.4p, and its interim dividend up by 14 per cent to 21.0p.

Restrictions will stop short of total ban
Austria, Tuesday, May 1, 2007—Austria is to reinforce its rules on smoking, but it will stop short of introducing a comprehensive ban in public places, according to an Agence France Presse report quoting the Health Minister, Andrea Kdolsky.
At present, a 2005 law that forbids smoking in public places excludes cafés and restaurants, but, from the start of next year, larger restaurants will have to divide their dining areas with half being made smoke free. The proprietors of smaller restaurants will be able to choose whether their establishments are to allow smoking or not, and display signs accordingly.

Smoking to be banned at official Olympic hotels
China, Tuesday, May 1, 2007—Smoking is to be banned in official Olympic hotels and restaurants in Beijing, according to a China CSR report quoting a recent circular.
According to the circular, the bans, which are to be brought in before June next year, are to include the Olympic Games Village and ‘famous Chinese scenic spots’. Additionally, no-smoking areas occupying not less than 75 per cent of the total area are to be set up in some non-official medium and large restaurants across Beijing.
It was not clear whether the bans were meant only for the duration of the Games, which take place next year.
The circular was issued jointly by the Beijing Municipal Department of Health, the Beijing Municipal Bureau of Commerce, the Beijing Municipal Tourism Administration and the Beijing Aiguo Weisheng.

Bidi smoking in decline
India, Tuesday, May 1, 2007—Bidi smoking within rural and urban households in India dropped sharply during the years from 1993-94 to 2004-2005, according to a report by The Times of India quoting a National Sample Survey.
The proportion of households with at least one bidi smoker declined by 26 per cent in rural India and 35 per cent in urban areas. And the per capita consumption of bidis dropped by about 31 per cent in rural areas and 42 per cent in urban areas.

UST to take part in consumer symposium
US, Tuesday, May 1, 2007—UST Inc’s president and CEO, Murray S. Kessler, and the president of its largest subsidiary, US Smokeless Tobacco Co, Daniel W. Butler, will make presentations at the Goldman Sachs & Co Consumer Products Symposium on May 8, at 11.15 hours.
The audio part of the presentation will be webcast live at http://www.ustinc.com, and the webcast will be archived for 60 days.

Tobacco exports rise sharply
Pakistan, Monday, April 30, 2007—The value of Pakistan's tobacco exports increased by 48 per cent during the first nine months of the current financial year (the beginning of July 2006 to the end of March 2007) to US$7.005 million, according to a report in The News.
The volume of exports rose by about 25 per cent from 3,596 tonnes to 4,508 tonnes.

Cigarette exports quadruple
Romania, Monday, April 30, 2007—The value of Romania’s tobacco ‘exports’ more than quadrupled in January to almost €6 million, from €1.4 million in December, according to a Rompres report. More than half of January's tobacco ‘exports’ went to other EU countries.
The high demand for Romania’s cigarettes is being fuelled by their lower prices.

Warning branded ‘unreasonable’
India, Monday, April 30, 2007—A bidi manufacturer has challenged in Mumbai’s High Court a regulation that requires all tobacco packs to bear a warning that occupies at least 50 per cent of their display area, according to a telegraphindia.com report.
M.S. Walekar, the manufacturer of Ghoda Chhap bidi, is challenging the regulation on the grounds that it is ‘unreasonable’.
Walekar is questioning too the requirement that a skull-and-crossbones sign and graphic warnings should be part of the statutory health warning.

Excise tax rise to meet EU minimum
Hungary, Monday, April 30, 2007—Hungary’s excise tax on tobacco products is expected to be increased by seven per cent next year, according to an EcoNews report quoting the Hungarian Tobacco Industry Federation. Andras Patai, acting president of the federation, told reporters that the increase would be necessary for Hungary to meet the EU's minimum excise requirement of €64 per 1,000 cigarettes.
Patai said that the 15.4 billion cigarettes sold in Hungary last year had generated excise revenues of Fo223 billion, and a further Fo67 billion in VAT.

Hotel group extends welcome to smokers
US, Monday, April 30, 2007—Extended Stay Hotels, which operates 682 North American properties, recently announced that it plans to continue to welcome smokers, according to a report by Paul B. Brown for the New York Times quoting Hotels magazine.
The Extended Stay group includes the Extended Stay America, Homestead Studio Suites and Crossland Economy Studios brands.
Tim Groves, Extended Stay’s executive vice-president for sales and marketing, was quoted as saying there were no plans to restrict smoking anytime soon. Smokers were welcome to light up in common areas and designated rooms.

More outrage in Australia
Australia, Monday, April 30, 2007—A fashion industry party at which people were given packs of cigarettes is being investigated by health department officials, according to a report by Holly Byrnes and Luke McIlveen for News Ltd.
Guests at what was described as the ‘swanky’ Fashion TV Red Ribbon Foundation party at the Sydney Opera House forecourt marquee on Thursday night were given packs of Davidoff cigarettes by ‘scantily dressed promotional girls’.
The writers said that the preview party to Australian Fashion Week was branded a disgrace by anti-smoking campaigners, who were said to have accused the fashion industry of glamorizing a deadly habit.

Anti-tobacco bill passed on first reading
Czech Republic, Monday, April 30, 2007—The Czech Chamber of Deputies passed on its first reading an anti-tobacco bill that will limit smoking in restaurants and some other public areas, such as the corridors of apartment houses and children's playgrounds, according to a CTK Daily News report. The bill will now be discussed by the Chamber's committees.