Altria completes UST acquisition..

January 7, 2009 - Altria Group Inc said on Tuesday, January 6, 2009 it completed its $10.4 billion acquisition of UST, Inc. greatly expanding Altria's presence in the faster-growing smokeless tobacco segment. Altria, which owns Marlboro cigarette maker Philip Morris USA, will pay UST shareholders $69.50 a share and will also assume $1.3 billion in debt as part of the deal. UST net sales by segment 2005-2007.

Altria and rival Reynolds American Inc have been expanding the offerings of smokeless tobacco products in recent years as they try to find new sources of revenue in the face of a shrinking U.s. cigarette market. Altria held off on closing the deal until 2009 at the suggestion of its lenders, a sign of how tight the credit markets had become last fall. Altria shares were up 16 cents, or 1 percent, at $15.54 in Tuesday morning trading on the New York Stock Exchange.


Reference: UPDATE 1-Altria completes UST acquisition Reporting by Brad Dorfman, editing by Dave Zimmerman, Reuters, 1/6/2009.

Related news briefs (audit trail of events): UST shareholders approve proposed buyout by Altria..; Altria's Proposed Acquisition of UST Passes U.S. Regulatory Review..; Altria May Delay Purchase of UST Amid Tight Credit..; UST to become a wholly owned subsidiary of Altria..; Altria in advanced talks to buy UST, Inc..; Altria will continue to test Marlboro Smokeless Tobacco Products.. and Any interest Lorillard to acquire Swedish Match - NOT.

Read more...

Utah - increase tobacco tax eliminate tax on food..

January 7, 2009 - Gov. Jon Huntsman Jr. endorsed a $2.30 tax increase on a pack of cigarettes, that would give Utah the highest state cigarette tax in the country with a goal of wiping out the remaining state sales tax on food.

Huntsman said that the $3 per pack tax (tax now 30 cents/pack, 34th lowest state tax rate in country, has not been increase since 2002) would bring in $120 million to $150 million in revenue, beyond the $60 million the current tax generates. This would be "more than enough" to eliminate the sales tax on food. That would cost about $75 million. In 2006 and 2007, lawmakers sliced the state's share of sales taxes on food from 4.75 cents to 1.75 cents. The governor's proposal would not affect local sales taxes on food purchases.

The governor does not intend for the cigarette tax increase to be used to offset the state's budget shortfall.

Improved health is cited by lawmakers who are already looking at increasing the cigarette tax. Utah has the lowest per-capita tobacco use rates in the United States, with about 170,000 adults and 20,000 18 or younger Utahns who smoke. More than 1,100 deaths were attributed to smoking last year in Utah, according to the state Department of Health.

Reference: Huntsman wants to push cigarette tax to $3 by Robert Gehrke, The Salt Lake Tribune, 1/7/2009 and Huntsman wants hefty smoke tax by Lisa Riley and James Thalman, Mormon Times - Deseret News, 1/7/2009.

Related news briefs: Utah Bars Go Smokefree January 1, 2009..; Utah moves from a tax based on the percentage of sales price to one based on the weight - independent of price of smokeless tobacco product..;
It's Illegal for Women to Smoke in Public..; States Need Quick Influx of Revenue – Think Tobacco Tax..
Read more...

In Process - Some 2009 Predictions..

Altria completes purchase of UST, Inc. and moves to slow market share losses that have occurred over the lat 10 years. Most likely the price of Skoal and Copenhagen will be reduced to compete with Conwood's discount brand Grizzly.

Philip Morris International - targeting affluent people in developing countries. more spending money .. They see a market expansion opportunity in
developing countries, due to growing affluence in those countries;

Expansion legislation of the SCHIP (State Children's Health Insurance Program) program to provide health care to low-income children will be approved by the end of March 2009. The $35 billion expansion would enable the joint federal/state program to add 3 million children to its rolls, which currently includes about 6 million children whose families couldn't otherwise afford it. (SCHIP expansion legislation time to try again..

SNUS-like tobacco products will be phased out in the U.S.A.

U.S. The people will rise up and prevent companies like R.J. Reynolds from marketing dissolvable products like candy-like pellets, toothpicks and edible film strips all laced with nicotine - also to a lesser extent flavored cigars.

U.S. Time to make revisions to the Senate's Version of "The Family Smoking Prevention and Tobacco Control Act" (H.R.1108/S.625). No longer necessary to get the Altria's input. Senator Michael B. Enzi (R-WY) has pointed out, "Poison peddlers shouldn’t get to decide how we as responsible legislators fight the war against their deadly products." (Revise Senate's Version FDA Tobacco Regulation Bill...

U.S. - Passage of the legislation to prevent the United Postal Service from delivering tobacco products - PACT - Prevent All Cigarette Trafficking Act. (PACT Legislation now in the U.S. Senate Judiciary Committee..)

Health insurance - increase the penalty tobacco user shave to pay to obtain health insurance.

Keep on taxing all tobacco products.. States Need Quick Influx of Revenue – Think Tobacco Tax..

U.S. signed the FCTC in May 10, 2004 but never ratified.. President Obama will submit the World Health Organization's Framework Convention on Tobacco Control - first world health treaty - to the U.S. Senate for ratification. The Bush administration signed the treaty in May 10, 2004 (the treaty was signed by Health and Human Services Secretary Tommy G. Thompson), but has opposed some of the limits on marketing and has not sent it to the Senate. The United States is one of only two populous countries--the other is Indonesia, another major tobacco producer and consumer--that have not yet ratified the treaty. Read more...

2008 Highlights - tobaccowatch.org..

Disappointment with the sales of SNUS in the United States.
UST, Inc. Executives Very Disappointed in Sales of the Entire SNUS Segment.. Camel Snus sales have been weak at best but RJ Reynolds (RJR) said it will roll out Camel Snus nationwide beginning early next year. Philip Morris first SNUS entry Taboka Tobaccopaks had poor sales and was discontinued. Marlboro Snus (introduced in August 2007) being test marketed in Dallas and now also available in c-stores in Indianapolis have been poor. In addition Marlboro Smokeless Tobacco entry has not been widely accepted. Altria being financially disciplined in test marketing their smokeless products.. According to a Lorillard sales person sales of Triumph Snus (made by Swedish Match for Lorillard) have also been poor.


Dissolvable Tobacco Products - In January 2009 R.J. Reynolds Tobacco will start test marketing in 3-cities the first dissolvable tobacco products by a major company. Each product in convenient user-friendly dosage forms (a flavored pellet like a Tic Tac or Life Saver Holes, a flavored toothpick (is it peppermint toothpick or a peppermint toothpick laced with nicotine) and an edible film strip for your tongue just like Listerine pocketpaks) candy-like containing amounts of the nicotine to render the users (most likely kids) a slaves to this addictive substance for many years to come. STOP the Release of Dissolvable Tobacco Products..



EU Scientific Committee Concludes: Insufficent Evidence to Lift Ban on SNUS..




Altria Group, Inc. in December 2007 completed the acquisition John Middleton, a leading manufacturer of machine-made cigars such as Black & Mild. The Black & Mild Brand generates 23% of machine-made large cigarettes sales. Altria completes Middleton acquisition.. In March 2008 Altria cut the Middleton sales force indicating that John Middleton merchandising and promotional resources will be available through the PM USA sales organization." Middleton Sales Team Cut..



U.S. Supreme Court ruled that federal law does not preempt a state lawsuit brought by Maine smokers claiming that Altria, parent company of Philip Morris, fraudulently advertised health benefits of "light" cigarettes. U.S. Supreme Court Rules Against Big Tobacco..



Altria Group, Inc. spins-off Philip Morris International
- The New Philip Morris International (PMI) and the Marlboro Man is finally free to roam the globe unfettered by the legal and marketing shackles of the U.S. domestic market..


Without the Philip Morris International that contributed about two-thirds of Altria's $13.2 billion in operating profit Altria is left with the challenge in finding a source of growth to offset the decline in U.S. cigarette sales Altria takes all required steps to acquire UST, Inc. The transaction is expected to close during the first full week of January 2009. UST shareholders approve proposed buyout by Altria ..



Philip Morris International completes buyout of Canadian cigarette maker Rothmans Inc.






All tobacco sales banned in pharmacies in San Francisco and Boston.
San Francisco - Judge threw out a Walgreens attempt to stop the ban of tobacco sales in pharmacies..; Boston bans cigarette sales in drug stores..

Wegmans a Rochester, N.Y.-based grocer’s decision to stop the sale of tobacco products at all 70 of its locations. Wegmans Food Markets and DeCicco Markets Praised..









Scandinavian Tobacco changes name to British American Tobacco Latvia.




Imperial Tobacco Gets Approval to Sell Brands in U.S..




FDA Tobacco Regulation Bill Overwhelmingly Passed U.S. House.. FDA tobacco regulation - bill distorted in current form..





Imperial tobacco completes acquisition of Altadis, S.A. (Alliance Tobacco Distributors) completed.




Tobacco control initiatives - positive(top 2):


Australia – the State of New South Wales (NSW) Former Premier MORRIS IEMMA: We're announcing the toughest and most sweeping reforms to tobacco laws in the nation and it's all about protecting the health of our children and our grandchildren." More New South Wales - Sweeping Anti-Tobacco Measures.. Tobacco control expert Professor Simon Chapman tells the ABC's Philippa McDonald tough new NSW laws are the biggest anti-smoking step in Australia since 1976.





Canada – the Province of Ontario: Ontario poised to ban flavored cigarillos..; Congratulations to the Canadian Provinces of Quebec and Ontario for Eliminating the Display of Tobacco Signs and Tobacco Products in Retail Outlets.; Canadian province of Ontario bans smoking in cars with kids under 16..







Tobacco Initiatives – Disappointments (4):


Indonesia, the world’s fifth largest cigarette market is the only Asian nation that has not signed or ratified the Framework Convention on Tobacco Control (FCTC), WHO's first-ever international health treaty. The country has been reluctant to sign FCTC because of concern about the impact on the economy. The tobacco industry provides jobs for seven million people and contributes about 10% to the government coffers. Indonesia to increase tax on tobacco products..






Netherlands the ban on smoking in bars and restaurants that began July 1, 2008 has so far been a failure. Netherlands - ban on smoking in bars and restaurants NOT enforced..






Britain new national tobacco control strategy placed on hold - measures to help cut smoking and drinking are expected to be shelved because of fears they will alienate voters during the recession. Even the matter of adults smoking in cars when kids are present, there are unlikely to be any further developments until the smokefree legislation is reviewed in 2010.






United States - A number of jurisdictions around the world such as Canadian provinces/territories and Australian states have already intervened to limit signs and displays of tobacco products and packaging at retail. Meanwhile in the U.S.A. - Philip Morris is hard at work competing for prime tobacco display space in c-stores around the country.

"Please get tobacco out of our kids faces," - Dr. Harley Stanton - elected as President of the Asia-Pacific Association for the Control of Tobacco.


Read more...

Austria - January 1, 2009 - smoking ban large restaurants and bars..

January 3, 2009 - On January 1, 2009 an anti-smoking law in Austria goes into effect placing more restrictions on smoking in bars and restaurants. In line with the new law, restaurants and bars larger than 861 square feet have to create separate smoking sections. According to Agence France-Presse, if owners fail to comply with the new law, they will have to face a fine of up to E10,000.

Austria has one of the highest smoking rates on the continent, but is one of the last European nations to implement such smoking legislation, and its restrictions contain many loopholes. One out of two teens and adults smokes in Austria, one of the highest smoking rates in Europe. In 2007, 14,000 people died from smoking-related diseases out of an overall population of 8.2 million. Smoking is common among women and teenagers as well as men. Austrian girls light up, on average, before their 12th birthdays, the youngest age in Europe, according to the World Health Organization.

In the case of those bars and restaurants that are smaller than 538 square feet, owners can decide whether or not they want to allow smoking. The authorities will determine if the creation of a separate room is feasible for those bars and restaurants between 538 and 861 square feet. Furthermore, smoking is still permitted in college dorms, and tobacco companies can still dispense cigarettes for free.

In addition, minors and pregnant women have been banned from working in spaces where they are exposed to smoke.

References: Europe's Smoking Culture Lingers, Despite Bans by CHRISTINA PASSARIELLO, Almut Schoenfeld and David Crawford in Berlin and Thomas Catan in Madrid contributed to this article, The Wall Street Journal, 1/2/2009; Austria approves new anti-smoking law,Datamonitor, 7/10/2008; Partial smoking ban in Austria: same difference, say critics, Agence France-Presse**
Read more...

Florida's $2.3 billion deficit - increase tax on cigarettes???

January 3, 2009 - One option is to increase tax on cigarettes to close Florida's $2.3 billion deficit. A special session of the legislators will get underway Monday, 1/5/2009 to discuss options to resolve the deficit. It seems that Governor Charlie Crist, House Speaker Ray Sansom and Senate President Jeff Atwater favor raiding the Lawson Chiles Endowment Fund that pays for health programs for children and the elderly. The 3-government leaders decided to carve up the fund despite Christ saying earlier that the state's poor, sick and elderly will be spared cuts.

State Represenative Jim Waldman who introduced a special $1-per-pack in additional taxes on cigarettes said the tax would raise $700 million, half of which would go toward cutting the deficit, the other half for medical research on smoking related and other diseases. At present the tax is 34-cents per pack (now 4th lowest in nation) would be raised to $1.34 - a move that could raise about $1 billion and place Florida more in line with the average $1.12 levy among states nationally.
It would be the first time that lawmakers increased Florida's cigarette tax in almost two decades.

The increase in the tobacco tax would nearly save 100,000 Floridians from smoking-related deaths, help 123,600 adults quit smoking and prevent 209,000 youth from ever starting. Florida’s Medicaid program incurs an estimated $1.25 billion in costs due to smoking per year. All these positives would improve the state's fiscal health.

References: Holy Smokes - We Think: Tallahassee love its cigarettes more than citizen's health, Orlando Sentinel, 1/3/2009; Proposal To Up Cigarette Tax Draws Cheers, Jeers by JIM KONKOLY, Highlands Today, 1/2/2009.

Related news brief: States Need Quick Influx of Revenue – Think Tobacco Tax..
Read more...

Alberta - tobacco banned in pharmacies and grocery stores..

January 3, 2009 - Effective January 1, 2009 pharmacies and grocery stores that carry pharmaceuticals are banned from selling tobacco except in gas stations, mall kiosks or separate enclosed spaces. Cigarette sales are also now outlawed in hospitals, universities and colleges.

Anti-smoking advocates applauded the Alberta government when it last year banned smoking in all public places and work sites, bringing the province's smoking laws up to par with several other provinces. Tobacco displays at convenience stores were drastically curtailed in the summer, as cigarette "power wall" were taken down and packages stored out of sight.


The government's most recent research shows smoking rates for Albertans 15 years and older have decreased slightly, from 23 per cent in 2002 to 21 per cent in 2007. The province estimates smoking costs the Alberta economy $1.8 billion annually, mostly in medical bills and sick days from work. More than 3,000 Albertans die every year from tobacco-related illnesses. (Alberta tobacco reduction strategy is working..)

Les Hagen of Action on Smoking and Health believes the government's smoking restrictions and recent cigarette tax hikes are making a difference. He points to the government's dwindling tobacco revenues, on track to tally $50 million less than expected this fiscal year.

Both Hagen and Tony Hudson, president of the Lung Association of Alberta, want the province to hike tobacco taxes further, adding at least $2 to a cigarette pack. "It's one of the biggest levers you can push," Hudson said. "It has a really strong effect on young people. It really hits them in the pocketbook." Also these individuals are pushing to outlaw flavored cigarettes and Hudson would also like to see the entire province, like the Town of Okotoks take aim at drivers and passengers who smoke in vehicles carrying children.

Bill 45 Smoke-free Places (Tobacco Reduction) Amendment Act/Smoke-Free Public Places & Workplaces Implementation - January 1, 2008..

Reference: Alberta limits sales in war on smoking by Renata D'Aliesio, Calgary Herald, 1/2/2009

Other Alberta related news briefs: duMaurier SNUS - Comments Regarding Smokeless Tobacco from Dave Hancock, Minister of Health & Wellness, Province of Alberta, Canada..; duMaurier SNUS - Edmonton, Alberta - Imperial Tobacco Canada...; Conflict Exists With the Acceptance of Tobacco Industry Money...

Read more...

New Brunswick - January 1, 2009 Tobacco products to be hidden from view..

January 2, 2009 - Retailers who sell cigarettes and tobacco products have to "go dark" on advertising January 1, 2009. That's when new regulations come into effect under the Tobacco Sales Act. The government says that means large racks or displays of tobacco products and signs - sometimes called power walls - have to be out of sight.

But the province isn't telling gas bars, convenience store owners (2,000) or grocery stores what to do to hide the tobacco products from being in public view. "As long as it's hidden from the public's view, however the retailers want to accomplish that, that's fine," said Meghan Cumby, spokeswoman at the Department of Health. "It can be a curtain, a cupboard. However, they want to hide them, as long as it's hidden from the public's view."

Framework Convention Alliance - Tobacco Displays - The Facts

Reference: Tobacco products to be hidden from view new roles some retailers confused about changes to how they display items by HEATHER MCLAUGHLIN (mclaughlin.heather@dailygleaner.com), The Daily Gleaner, 1/1/2009.

Related news brief: New Brunswick to ban smoking in cars with children or youth present..; Tobacco displays are on their way out in an increasing number of countries..
Read more...

Netherlands - ban on smoking in bars and restaurants NOT enforced..

January 1, 2009 - The pressure group, Clean Air Netherlands, says the ban on smoking in bars and restaurants that began July 1, 2008 has so far been a failure. It maintains a majority of bars are not observing the new legislation because the authorities are not enforcing it strictly enough.

The group wants establishments taken to court if they are regularly found flouting the ban, but it also wants individual smokers fined. Clean Air Netherlands says it received 3,000 complaints in a single month about people still smoking, mostly from people who work in bars and restaurants.

Reference: Group slams smoking ban, Radio Netherlands, 12/31/2008.

Related news briefs: Netherlands - ban on smoking in bars and restaurants NOT enforced..; Netherlands the smoking ban must be enforced - Ab Klink, Health Minister...; Congratulations are in order: Netherlands, Romania & Alberta...
Read more...

Malaysia - January 1, 2009 pictorial cigarette warnings..

January 1, 2009 - On May 31, 2008, the Malaysian Minister of Health announced that pictoral warnings would appear on cigarette packages in that country and on September 15, 2008, the 6 required images were gazetted.

On January 1, 2009, each manufacturer must ensure that 2-brands display the warning messages and by March 1, 2009, all brands must display these warnings. From March 2009, all cigarette packs sold in Malaysia have to carry graphic pictures to warn people of the dangers of smoking. On June 1, 2009, all cigarettes without the new warnings must be removed from the market. (source: Dr. Mohamad Haniki Nik Mohamed)

More on picture based cigarette health warnings..

References: Pictorial image of health warnings on cigarette boxes from next year Written by zen, MalaysiaToday.com, 10/29/2008; Pictorial health warnings on cigarette packs by Jan 1, 2009 by SIM LEOI LEOI, the Star, 10/29/2008; Graphic warnings appear on Malaysian cigarette packsAsiaOneHealth, 1/13/2009; Pictorial health warnings on cigarette packs by Jan 1, saimatkong.com, 11/9/2008.

Related news briefs: Malaysia to hike cigarette prices..; Malaysia - 25% of all cigarettes sales are illegal...
Read more...

John Middleton challenges ban on single cigar sales..

January 1, 2009 - John Middleton Co., operating company of Altria Group Inc., joined fellow cigar manufacturers Altadis U.S.A. Inc., Swedish Match North America Inc. and Swisher International, Inc., Maryland distributor Century Distributors Inc., and the Cigar Association of America Inc. in asking a Maryland circuit court to overturn a recently enacted Prince George County’s law that bans the sale of single cigars.

The law is aimed primarily at small cigars sold individually at convenience stores and gas stations. Such cigars are often marketed in youth-friendly flavors such as cherry, apple and lime and are sold for as little as 80 cents to $1.

Kathleen Dachille, Director of the Center for Tobacco Regulation at the University of School of Law: Studies have shown that the cigars have become increasingly popular among young people in predominantly black communities and can be a gateway to a lifelong cigarette habit. Many young people smoke cigars for the tobacco, but they can also be easily hollowed out and filled with marijuana. She said requiring that cigars be sold in packs of five will raise their price enough to deter some young people, who will also balk at having to keep and store the packs. If we can prevent children in Prince George's County from initiating smoking with a very popular attraction, we may prevent a tobacco user from growing up.

Black & Mild is the most popular brand of cigars for smokers 12 and older. Nearly a quarter of 18- to 24-year-old blacks in the Baltimore smoke B&M cigars.

Dachille and Quinton who works with the Suitland-based Substance Abuse Treatment Education Prevention Network, said they will again support a state law when the legislature meets in January 2009.

Dachille said she thinks that Prince George's is the only jurisdiction in the nation to ban the sale of single cigars, but New York City and Rhode Island are considering similar measures. A similar law in Philadelphia was struck down by a court for other provisions. Baltimore is also considering new health regulations that would have the same effect, and a District law targets cigar products, such as wrappers, as drug paraphernalia.

References: Council Bans Sale of Single Cigars in Bid to Curb Youths' Marijuana Useby Rosalind S. Helderman, Washington Post, 11/19/2008; John Middleton Challenges Sales Ban Joins others in fight for single cigars, Convenience Stores/Petroleum Daily News, 12/31/2008.

Click on image to enlarge..

Read more...

Smoking bans lower heart attacks..

January 1, 2008 - A smoking ban caused heart attacks to drop by more than 40 percent in Pueblo, Colorado and the decrease lasted three years, federal health experts reported Wednesday (12/31/2008). In 2003 (July 1, 2003) this city passed a municipal law making workplaces and public places smokefree and the U.S. Centers for Disease Control and Prevention (CDC) tracked hospitalizations for heart attacks afterward.

They found there were 399 hospital admissions for heart attacks in Pueblo in the 18 months before the ban and 237 heart attack hospitalizations in the next year and a half -- a decline of 41 percent. The effect lasted three years, the team reported in the CDC's weekly report on death and disease.

"We know that exposure to second-hand smoke (SHS, passive, sidestream, environmental, involuntary) has immediate harmful effects on people's cardiovascular systems, and that prolonged exposure to it can cause heart disease in nonsmoking adults," said Janet Collins, director of CDC's National Center for Chronic Disease Prevention and Health Promotion. Long-term exposure to secondhand smoke can raise heart disease rates in adult nonsmokers by 25 percent to 30 percent, the CDC says. Secondhand smoke kills an estimated 46,000 Americans every year from heart disease and 3,000 lung cancer deaths among non-smokers each year. Smoking also causes a variety of cancers, as well as stroke and emphysema or chronic obstructive pulmonary disease.

This study adds to existing evidence that smoke-free policies can dramatically reduce illness and death from heart disease. Dr. Michael Thun, American Cancer Society: 'This is now the ninth study, so it is clear that smoke-free laws are one of the most effective and cost-effective (ways) to reduce heart attacks."

Reference: Smoking ban lowers heart attacks in one U.S. city, Reporting by Maggie Fox; Editing by Bill Trott, Reuters, 12/31/2008; Colorado study links smoking ban to major drop in heart attacks, Associated Press, 12/31/2008.

CDC Publication: Reduced Hospitalizations for Acute Myocardial Infarction After Implementation of a Smoke-Free Ordinance --- City of Pueblo, Colorado, 2002--2006

Some related news briefs: U.S. - Children Remain Especially Vulnerable to Secondhand Smoke; Massachusettes - Smoking ban drop in fatal heart attacks..; Nicotine Dependence in Kids Exposed to Second-Hand Smoke..
Read more...