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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.
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