UST Inc. will increase marketing and introduce new products to counter increased competition from Altria Group Inc. and Reynolds American Inc.

December 21, 2007 - UST Inc. (principal subsidiaries: U.S. Smokeless Tobacco Company and Ste. Michelle Wine Estates), the largest U.S. snuff-maker, said yesterday (12/19/2007) that it will increase marketing and introduce new products to counter increased competition from Altria Group Inc. and Reynolds American Inc. Americans are smoking nearly 2 percent fewer cigarettes each year, prompting Philip Morris USA to begin selling a Marlboro snus product in Atlanta (actually Dallas/Ft. Worth - TW) and Reynolds to test a Camel Snus product in seven markets, including Greensboro, High Point and the Triangle. New UST products include wintergreen-flavored Skoal Edge and new varieties of Skoal Dry, a spitless snuff in small pouches. UST said it plans to spend more than $100 million in 2008 on marketing and other steps to increased sales. ( "UST snuff-maker to crank up marketing, fight competition" Winston-Salem Journal, December 20, 2007)

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New Life for Ariva®, Stonewall® Dissolvable Smokeless Tobacco Products...

December 21, 2007 - New Life for Ariva®, Stonewall® Dissolvable Smokeless Tobacco Products... ( These tobacco lozenges have been around for a few years with lackluster sales; in fact, some retail stores refused to even carry these nicotine addicting products.) Star Scientific, Inc. held its annual shareholder’s meeting on Friday, December 14, 2007 in Washington, DC. Star executives were gratified with the results of two studies from the University of Minnesota Transdisciplinary Tobacco Use Research Center that favored their tobacco lozenge products. One study examined the potential health risks and benefits of potential harm reduction products. Tobacco-specific carcinogen uptake was greater from Exalt (SNUS product by Swedish Match) than from the MNL (medicinal nicotine lozenge), and was comparable between the MNL and Ariva. Physiological effects and subjective effects on withdrawal and craving were comparable among Exalt, Ariva, and the MNL. Ariva was preferred over the MNL, which was preferred over Exalt. It was concluded that with the exception of medicinal nicotine products, low-nitrosamine ST products have the greatest potential to result in reduced toxicant exposure compared with other combustible reduced exposure products and have promise for reducing individual risk for disease. ( "Pilot study on lower nitrosamine smokeless tobacco products compared with medicinal nicotine," M. Irene Mendoza-Baumgart et al., Nicotine & Tobacco Research 9(12): 1309-1323, 2007) In another study tobacco specific nitrosamine levels were analyzed in Ariva, Stonewall, Exalt, Rebel, Smokey Mountain (a tobacco free snuff product) and Quest and compared their TSNAs levels with those in NRT (nicotine replacement therapy) and conventional smokeless tobacco and cigarette brands. The lowest levels containing tobacco were in the two Star Scientific products Ariva and Stonewall. "Tobacco-specific nitrosamines in new tobacco products," Irene Stepanov et al., Nicotine & Tobacco Research 8(2):309-313, 2006. All of a sudden Star has 130 new distributors (an 166% increase over 2006) - at retail outlets Ariva and/or Stonewall can be found at Food Lion Grocery stores, a number Kroger Stores and drug store chains like Walgreens and Rite Aid. Star is now convinced they are the leader in the low-TSNA dissolvable smokeless tobacco category. Tobacco products that look like candy containing compressed tobacco powder along with sweeteners, mint and other flavorings, and resembles a brand of popular breath mints. (The Cancer Blog)

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Congress Sends An Extension of the SCHIP to President Bush..

December 20, 2007 - Congress Sends An Extension of the SCHIP to President Bush.. Bush vetoed the 2nd bill expanding the State Children's Health Insurance Program (SCHIP)on December 12. The extension through March 2009 was part of legislation that also gave physicians a 0.5 percent rate increase when they treat the elderly and disabled in Medicare. Physicians had been scheduled to take a 10 percent cut. The reprieve for doctors will last until June 30. The House leadership has scheduled a vote for January 23, 2008 to attempt to override that veto. It appears that the House will not be able to muster the 2/3 vote necessary to override the veto. Late last week there was talk regarding a short term extension of the current SCHIP program through March 31, 2008. However, on December 17, negotiators agreed to extend the current SCHIP program through March 31, 2009 with a small increase in funding necessary for the states to maintain their current enrollment through that date. There will be no increase in tobacco taxes to fund that modest increase. While it is always possible that the Democrats will introduce another SCHIP bill in 2008 to force the Republicans to vote on the issue, it now appears likely that the issue will be pushed into 2009. ( "Current SCHIP Program to be Extended to 2009 Veto Override Attempt of Current SCHIP Legislation Unlikely" by Chris McCalla, Ligislative Director, International Premium Cigar and Pipe Retailers Assoc., 12/18/2007) Dr. Marina L. Weiss of the March of Dimes, "It is extremely unfortunate Read more...

Weighing the Benefits - An independent Lorillard opens acquisition, cash-flow opportunities by Steve Holtz..

December 19, 2007 - Weighing the Benefits - An independent Lorillard opens acquisition, cash-flow opportunities by Steve Holtz.. Citigroup analyst Bonnie Herzog wrote: "In our opinion, the most appealing aspect of this spinoff will be Lorillard's ability to act as an independent company, without the 'confinement' of the Loews Corp. board." "Lorillard will be free to make acquisitions using its own stock as currency or conduct share buybacks as it sees fit." Added Herzog, "Post spin, Lorillard will no longer be under the 'control' of parent company Loews, and will be free to pursue its expansion plans and balance sheet restructuring (increased leverage for buybacks or acquisitions), Lorillard won't trade with a tracking stock discount, the new Lorillard stock may attract new investors previously turned off by the tracking stock nature of Carolina Group, and Lorillard will be debt free." As reported on Monday (12/17/2007), Lorillard will soon begin test marketing its own snus, under the brand Triumph - NO Newport SNUS yet. Meanwhile Newport smokers are complaining about the Lorillard price increase that recently went into effect - c-store news. (TobaccoWatch.org) Read more...

Tobacco industry adapts to smoking bans by developing dozens of new ways for the body to absorb nicotine..

December 19, 2007 - Tobacco industry adapts to smoking bans by developing dozens of new ways for the body to absorb nicotine.. Big tobacco is developing dozens of new ways for the body to absorb nicotine - from hookahs to snus to lozenges ( see also SNUS.biz) to smokeless nicotine delivery systems. And, in a clear attempt to attract younger users, they come in more flavors than you can find at a Ben & Jerry's ice cream store. That new terrain in the world of tobacco was sketched out by Dorothy Hatsukami, a tobacco researcher at the University of Minnesota, for some of the approximately 3,000 anti-tobacco experts from around the world who met in Minneapolis in late fall at the National Conference on Tobacco or Health. "Is it a gateway drug to cigarette smoking?" she said. "Does it help them quit smoking? We don't know." ( "Smoke and mirrors" by Josephine Marcotty/Scripps Howard News Service, The MetroWest Daily News, 12/18/2007) We also have to be concerned with the cigarettes with less tobacco smell being introduced in Canada. Click on image to enlarge - some of the many tobacco products now available.. Read more...