Philip Morris USA (PM) continues to stumble in the smokeless tobacco arena..

January 12, 2008 - Taboka the first product in PM's adjacency growth strategy had has poor sales and will be discontinued, Marlboro SNUS introduced in August, 2007 now available in about 4,000 stores in the Dallas area has not been widely accepted and now there are problems with Marlboro Moist Smokeless Tobacco (MST) that was introduced into the Atlanta test market in October 2007.(TobaccoWatch.org) On January 10, 2008, Davenport & Company, a Virginia investment firm, released a research report analyzing the recent test launch of Altria's (NYSE: MO) MST. The price for a can of Marlboro Moist Smokeless Tobacco was initially set at $3, a dollar cheaper than either of UST's popular brands -- Copenhagen and Skoal (each worth more than $1 billion at retail - TW) -- which are consistently priced at $4 per can in the area. As Davenport's checks went around to different convenience stores in the Atlanta test market, they surprisingly discovered that many stores had to lower their prices on cans of the Marlboro brand to $1.50. The retailers said they had to cut the price on the Marlboro brand as the product was either already old or just about to be, and needed to be sold or thrown away. Almost every retailer (Wal-Mart was the exception) that was testing the Marlboro product said they saw noticeably slow sales, despite the smokeless tobacco product being brand new. Most retailers also noted a strong brand loyalty for UST's products: clerks would specifically ask customers buying smokeless tobacco products if they would try the new Marlboro brand for a cheaper price, but the majority of the consumers would respond 'no' and ask again for their favorite brand. Going on, retailers noted to Davenport's checks that they had seen little or no return buyers out of the consumers who did try the Marlboro Moist Smokeless Tobacco. In fact, one store said it had not sold a single can of the Marlboro product for two weeks, at a time when UST brand sales remained solid. Initially, consumers seemed some-what interested in the Marlboro product and would at least ask questions about it, but as the trial period went on, fewer and fewer buyers of tobacco would inquire about the new Marlboro product. ( Altria's (MO) New Product Not Up to Snuff, StreetInsider.com, January 11, 2008 11:55 AM EST) Related Marlboro MST news briefs: January 4, 2008 and August 21, 2007. There has been speculation that PM might acquire a smokeless company to gain a foothold in the category. Read more...

C-store: RJR replaces large entrance Camel SNUS sign with Camel No. 9 sign..

January 11, 2008 - R.J. Reynolds Tobacco Co. said on November 27, 2007 that it will not advertise its cigarette brands like Camel No. 9 in newspapers and consumer magazines in 2008. The company indicated it would focus marketing in three areas - one of these being the retail outlet - point of sale advertising. Camel SNUS along with the other SNUS products being test marketed have not sold well and the majority of smokers have rejected this alternative tobacco product. Remember nine of 10 smokers who try smokeless reject the product.. Tobacco companies are in agreement for SNUS to catch on and be a strong seller it's going to require more public awareness and education. But even programs to station a person in c-stores passing out coupons for a free can of Camel SNUS don't seem to work. It is a difficult task to learn the art of snusing especially for the inveterate (hard-nosed, long established, deep-rooted) cigarette smokers public health SNUS advocates are targeting. You have to wonder if Philip Morris USA wants to associate the Marlboro name, one of the strongest brand names in consumer packaged goods, with a loser - Marlboro SNUS. (TobaccoWatch.org) Click on either image to enlarge.. Read more...

Philip Morris USA (PM)To Also Test Marlboro Snus In Indianapolis..

January 11, 2008 - Philip Morris USA (PM)To Also Test Marlboro Snus In Indianapolis.. Altria Group Inc.'s (MO) Philip Morris USA said it will be introducing Marlboro Snus into an additional test market in the Indianapolis area. The cigarette maker said Marlboro Snus is a tobacco pouch product designed for adult smokers who are interested in smokeless tobacco alternatives to cigarettes. The company said it is "pleased" with the initial reaction by adult consumers, wholesalers and retailers to Marlboro Snus in the Dallas/Fort Worth test market. Marlboro Snus will be available in the Indianapolis area in March, 2008. At present, Taboka Tobaccopaks, the original PM Snus pouch product is being test marketed in Indianapolis with little success. It has been reported that PM will discontinue its Indianapolis test market of Taboka, which it introduced in July 2006. ( "Philip Morris Revises Smokeless Tobacco Market Tests" by JOHN REID BLACKWELL/Richmond Times-Dispatch Jan 11, 2008) See related news brief: Altria - NOT in Any Hurry to Expand Marlboro SNUS Distribution.. Click on image to enlarge..

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Cigarette Makers Face Thousands of New Florida Lawsuits..

January 11, 2008 - Florida lawyers rushed to beat this week's deadline to file individual claims after the Florida Supreme Court in July 2006 overturned a $145 billion punitive-damage verdict, the biggest in history, saying plaintiffs couldn't proceed as a group. The court upheld jury findings that the companies were negligent and sold defective products, which will apply in the individual cases. Plaintiffs' lawyers said the total number of claims filed against the industry may reach 10,000. Philip Morris, the biggest U.S. cigarette maker, faces new Florida suits filed on behalf of about 1,700 dead and injured smokers so far, said spokesman John Sorrells. Reynolds American Inc.'s R.J. Reynolds unit has received claims from about 1,650 plaintiffs, spokesman David Howard said. There is some overlap in the companies' tallies because plaintiffs who smoked more than one brand may name several manufacturers as defendants. Plaintiffs' lawyers are hoping that Florida trial courts interpret the ruling to mean they must do little more than prove the amount of their clients' damages. (Bob Van Voris Bloomberg.com, 1/10/2008) This action may cause foreign tobacco companies to think twice about entering the lucrative U.S. tobacco market. Click on image to enlarge..

Reference: Tobacco Companies Face Thousands of Florida Lawsuits, Parker Waichman Alonso LLP, 1/14/2008.
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Encouraging smokeless tobacco use is not only a dangerous tactic in the drive to reduce smoking rates, but scientifically unproven as well..

January 10, 2008 - "This approach puts us at great risk of repeating the fiasco of ‘Light’ and ‘Mild’ cigarettes," says Michael Thun, MD, ACS Vice President of Epidemiology and Surveillance Research. "There is no evidence that smokers will switch to smokeless tobacco products and give up smoking. In fact, the tobacco companies market these products as a ‘bridge’ that provides smokers with nicotine in settings where smoking is prohibited. Any product that encourages smokers to postpone quitting will increase rather than decrease their risk of lung cancer, as was the case with ‘Light’ and ‘Mild’ cigarettes." Thun adds another problem with promoting smokeless tobacco over cigarettes is the danger of youth uptake. "Now that all of the large tobacco companies have introduced their own lines of smokeless products, their marketing strategies will inevitably target susceptible adolescents. They have already introduced flavors such as apple, peach, and mint." ( SMOKELESS TOBACCO: HARM REDUCTION DEBATABLE, CA Cancer J Clin 2008 doi: 10.3322/CA.2007.0006,© 2008 American Cancer Society) Britain’s Royal College of Physicians (RCP) says tobacco harm-reduction strategies are urgently needed to help hard-core smokers who can’t kick the habit—and smokeless tobacco should be among the options. There chief spokesman, Dr. John Britton agrees that more research on the long term effects of SNUS (smokeless tobacco) would be helpful. Professor Britton is also concerned about our youngsters being enticed to use smokless tobacco. "It's their (tobacco companies) job to sell as much tobacco as possible, so they will be targeting non-smokers rather than current ones, that's the worry." An example high school kids on SNUS. In a recent debate on this subject in the UK Dr. Britton lost badly to Dr. Keir Lewis, a physician against the use of smokeless tobacco. (TobaccoWatch.org) Read more...