Cigarette counterfeiting worse because of global economic downturn..


July 18, 2009 - Americas Watchdog’s Global Piracy & Counterfeiting Consultants is warning all US and global consumers to not purchase pharmaceuticals or cigarettes on the Internet, unless the consumer can verify the product is coming from the legitimate manufacturer. According to the group, “With the severe global economic downturn, we are expecting counterfeiting of pharmaceuticals & cigarettes to go through the roof in 2009. (Americas Watchdog Warns The World About Chinese Counterfeit Pharmaceuticals & Cigarettes by Thomas Martin, AmericanWatchdog (National Advocacy Group for Consumer Protection and Corporate Fair Play), July 2009)

China seized nearly 2.4 billion counterfeit cigarettes in the first six months of this year nationwide, the State Tobacco Monopoly Administration (STMA) said here Friday. Law enforcement agencies raided 61 large counterfeit cigarette warehouses, rounded up 3,070 people in connection with the counterfeit brands and prosecuted 1,535 of them, said STMA. The agencies also resolved 2,693 cases, each involving a value of more than 50,000 yuan (7,320 U.S. dollars).

China's tobacco industry generated 270 billion yuan in taxes and profits in the first half, according to the STMA.

Last year, 8.3 billion counterfeit cigarettes were seized in the country.

Reference: China seizes 2.4 bln counterfeit cigarettes, Editor: Anne Tang, ChinaView.cn.

A few related news briefs: Chinese made fake Marlboro cigarettes showing up around Wasington, D.C..; Counterfeit products continue to flood EU, U.S. markets..; China - iIllicit cigarette operations..; Made-in-China Marlboros - a major mistake by Philip Morris International...

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Swedish Match - sales up for SNUS in Sweden, Norway and U.S. type SNUFF in the U.S.A...


July 18, 2009 - Snus sales and volumes grew in all Scandinavian markets. In the US we continued to gain market share for snuff, and volumes grew by 21 percent. The strong volume gain was aided by the replenishment of trade inventories following the federal excise tax related destocking at the end of the first quarter. Our US mass market cigar business delivered an unusually strong operating margin, as increased demand for cigars in the new "foil fresh" packaging to a large extent compensated for the expected volume drop following the tax related hoarding in the first quarter.

Last month Swedish Match raised its prizes of snuff with 4 percent on the Swedish and American market.

On July 2, 2009, Swedish Match AB announced the agreement to sell its South African operations, Swedish Match South Africa (Proprietary) Limited. In this half year report, Swedish Match's South African operations have therefore been reported as discontinued operations.

Snuff/Snus Sweden is the world's largest snuff market measured by per capita consumption. A substantially larger proportion of the male population uses the Swedish type of moist snuff called snus compared to cigarettes. The Norwegian market is smaller than the Swedish market but has in recent years experienced strong volume growth. The US is the world's largest snuff market measured in number of cans and is approximately six times larger than the Swedish market. In Sweden and Norway, Swedish Match has a leading position. In the US, the Group is well positioned as the third largest player. Some of the best known brands include General, Ettan and Grov in Sweden, and Red Man, Timber Wolf and Longhorn in the US.

During the second quarter, sales increased by 17 percent compared to the same quarter of the previous and operating profit increased by 15 percent. Sales and operating profit improved in Scandinavia as well as in the US.

In Scandinavia, sales volumes measured in number of cans, increased by 6 percent during the second quarter compared to the second quarter of the previous year, as volumes increased in all markets (Sweden, Norway and Travel Retail). Sales revenues in Scandinavia grew by 8 percent in the second quarter, while operating profit grew by 5 percent as the production costs increased somewhat more than the net sales price per can. Since February, General White Portion snus has been available throughout Sweden in an upgraded "star formation" packaging, following the successful introduction of this redesign initiative in Norway in 2008. This new packaging has been well received in Sweden, and the product has gained volume during the quarter.

In the US, sales volumes during the second quarter were unusually strong and up by 21 percent compared to the same period in the previous year. Sales volumes toward the end of the first quarter of 2009 declined sharply due to trade destocking related to the US federal excise tax increase. This was reversed in the second quarter. Swedish Match consumer volumes as measured by ACNielsen for the year to date period through June 13 increased by 9.2 percent compared to the same period of the previous year. Market growth in the same period was 2.3 percent according to ACNielsen. The strong shipment volumes were a contributor to the sales and operating profit growth in the US snuff business.

From April 1, excise taxes in the US increased by 91.5 cents per pound (about 7 cents per can for most products). Swedish Match maintained pricing for most of the quarter, thus absorbing the tax increase. On June 23, Swedish Match snuff prices were increased by 7-10 cents per can, thereby compensating for the tax increase going forward and reverting to net prices closer to the levels before the increase.

Cigars Swedish Match is one of the world's largest producers of cigars and cigarillos. Swedish Match offers a full range of different cigars and brands. Well known brands include Macanudo, La Gloria Cubana, White Owl, Garcia y Vega, La Paz, Hajenius, Hollandia, Justus van Maurik, Willem II and Salsa. The US is the largest cigar market in the world. Swedish Match has a leading position in the premium segment and is well established in the segment for machine made cigars. After the US, the most important cigar markets are in Europe, where Swedish Match is well represented in most countries. The largest markets for Swedish Match in sales terms in Europe are France, Benelux, Finland and Spain.

During the second quarter, US premium cigar sales, which includes Internet and mail order, were down less than 1 percent from the previous year in local currency. During the first quarter of 2009 substantial hoarding of premium cigars occurred in connection with the federal excise tax increases. Much of this hoarding was reversed during the second quarter. Sales of mass market cigars in the US were negatively impacted by the first quarter hoarding as well, but the year on year volume decline of 6 percent in the second quarter was better than expected, mainly as a result of the strong performance of the "foil fresh" packaged small cigars. In anticipation of sharper volume declines, costs were reduced to below normal levels in the second quarter, which in combination with price increases resulted in a sharp increase of the operating profit and margin in this product area. Cigar sales in Europe declined somewhat in local currencies as a result of mix effects and lower volumes, particularly in France, Belgium, and the Netherlands.

Chewing tobacco Chewing tobacco is sold primarily on the North American market, mainly in the southern US. Swedish Match is the leading producer of chewing tobacco in the US. Well known brands include Red Man and Southern Pride. The chewing tobacco segment shows a declining trend.

During the second quarter, the Company began producing chewing tobacco as part of a production agreement with National Tobacco. Production will be fully up and running during the second half of the year.

Lights Swedish Match is the market leader in a number of markets for matches. The brands are mostly local, with leading positions in their home countries. Larger brands include Solstickan, Three Stars, Fiat Lux, and Redheads. The Group's main brand for disposable lighters is Cricket. Swedish Match's largest market for lighters is Russia.

Reference: Swedish Match's profit up as snuff sales swells, Johan Nylander, The Swedish Wire, 7/17/2009; Swedish Match: Half Year Report January - June 2009, Swedish Match (STO: SWMA): CEO Lars Dahlgren comments: 7/17/2009.
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Turkish Government - makes major move to improve the health of its citizens..


July 18, 2009 -





Turkey will on Sunday, July 19, 2009 introduce a tight ban on smoking in cafes, restaurants and bars, wielding fines for offenders, in a bid to break a national habit blamed for tens of thousands of deaths each year.

"Our primary objective is to reduce the proportion of smokers to 20 percent of the adult population," said Toker Erguder, who runs the World Health Organization's tobacco-control project in Turkey. Erguder is optimistic that the ban will contribute to the changing mentality in Turkey. "Five or ten years ago, people would offer cigarettes to guests. They no longer do that. People also tend not to smoke near children any more," he said. "We are on the eve of a great change."

Prime Minister Recep Tayyip Erdogan's Islamic-rooted government is keen to reduce smoking rates and the effects of second-hand smoke on people's health. He insists the battle against cigarette usage is as crucial as the "struggle against terrorism."

Official statistics say almost one in three adults smoke in Turkey -- a rate that reaches 48 percent among men -- putting the country in 10th place in tobacco consumption in the world.

Smoking-related illnesses are responsible for nearly 100,000 deaths a year, according to the Turkish Temperance Society.

Non-compliance with the ban will result in a fine of 69 liras (45 US dollars, 32 euros) for smokers while the establishment itself will have to pay 560 liras for a first-time offence and up to 5,600 liras for repeat offences.

Owners of bars and cafes have long been appealing for a delay in the introduction of the ban, especially in the midst of an economic crisis, but the health ministry has refused to budge and drafted in some 5,000 inspectors to make sure it is implemented.

Recent surveys suggest the majority of the public is behind the ban.

Also targeted by the ban are the water-pipe cafes which have sprung up in Tophane on the shore of the Bosphorus after the century-old tradition became fashionable again in recent years. Mehmet Sirkeci, the owner of Cafe Parma, said he has put his hopes in herbal molasses to smoke with a water pipe before wintertime deals a heavy blow to his business.

Reference: Turkey readies for drastic smoking ban, Nicolas Cheviron, The Sydney Morning Herald - AFP, 7/18/2009.

Turkey - related news briefs:
Turkey - smoking ban starting July 19th will be enforced - these guys are serious..;
Turkey - poll indicates employers, their employees and customers support smoking ban in cafes, bars and restaurants..;
Turkey - July 19th total smoking ban, will employees lose jobs..;
Turkey - on July 19, 2009 will mark the beginning of “100 percent smoke-free air” in this country..;
Turkey - national smoking ban starts July 19, 2009..;
Turkey - quit smoking photo displayed in İstanbul's Taksim Square..;
Turkey - data on tobacco usage - Turkish Statistics Institution..;
Turkey - smoking ban in all bars, restaurants and coffeehouses starting July 19, 2009..;
Smoking ban in Turkey lowers cigarette consumption..; Turkey's ban on pubic smoking goes into effect on Monday, May 19, 2008..;
British American Tobacco (BAT) reported group volume sales up for first quarter 2008..; More on the quick fix for outdoor smokers..;
BAT to Acquire Most of Denmark's ST..;
More on Philip Morris International of the Future..;
WHO Report on the Global Tobacco Epidemic 2008...

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PMI - second quarter 2009 results, webcast Thursday, July 23, 2009..


July 17, 2009 - Philip Morris International Inc. (PMI) To Host Webcast of 2009 Second-Quarter Results.

Philip Morris International Inc. (NYSE / Euronext Paris: PM) will host a live audio webcast at //www.pmintl.com on Thursday, July 23, 2009 at 9:00 a.m. ET to discuss 2009 second-quarter results, which will be issued at approximately 7:00 a.m. ET the same day.

During the webcast, Hermann Waldemer, Chief Financial Officer, will discuss the company’s 2009 second-quarter results and answer questions from the investment community and news media. The webcast will be in a listen-only mode.

An archived copy of the webcast will be available until 5:00 p.m. ET on Friday, August 21, 2009 at //www.pmintl.com.

Reference: Philip Morris International Inc. (PMI) To Host Webcast of 2009 Second-Quarter Results, Source: Philip Morris International Inc., 7/16/2009.
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New York City youth baseball organization lets players use dip..


July 17, 2009 - The Outsiders Baseball Association are an ever-expanding beacon of hope for youth baseball players in the Bronx,(New York City) an organization dedicated to improving the lives of the players, including their health and well-being.

So when you attend an Outsiders game and hear the inevitable "Who's got dip?" chorus, (dip = MST = moist snuff tobacco) it can be jarring.
But the truth is, tobacco use - especially "dipping" with snuff - has been synonymous with the Outsiders ever since they were founded in 2003. For an organization that prides itself on education, there seems to be a serious and disturbing lack of recognition of the dangers of smokeless tobacco. The preferred tobacco among Outsiders players is snuff, a moist form of tobacco sold in tins.

Outsiders organizers must be educated on what is important for improving the lives of players especially when it comes to their health and well-being: this information then should be passed on to all baseball players.

Of the 14 players polled on the 18-and-under Outsiders team, 11 of them say they have chewed tobacco. And not because it tastes good - most of the players interviewed say "dip" - or snuff - helps them focus and gives them extra energy, and that they do not view it in the same way as they do cigarettes.

Interestingly, on a team that sometimes struggles with mental lapses on the field, many of the players asked about smokeless tobacco mentioned how snuff gets their head in the game. Clean-up hitter Darlyn Gonzalez says that dip "relaxes me."

Chewing tobacco has long been part of the fabric of baseball in the U.S. The tobacco craze began in the 1900s, when baseball players would chew to keep their mouths moist, then would spit on the baseball in order to throw spitballs. Baseball legend Babe Ruth died during this age of heavy tobacco use at 52 from a cancerous tumor caused by chewing tobacco.

Today, according to the American Cancer Society, it is estimated that 40% of all Major League Baseball players and 30% of all minor league players chew tobacco on a daily basis. In addition, one ACS study found that 59% of major league players who chew smokeless tobacco already have lesions that may develop into cancer. Unfortunately, athletes provide the largest source of marketing for tobacco companies, and are often seen chewing tobacco during televised games. Big league players are the No. 1 influence on tobacco abuse by underage kids.

Read more: The Outsiders are an ever-expanding beacon of hope for youth baseball players in the Bronx, an organization dedicated to improving the lives of the players, including their health and well-being.

So when you attend an Outsiders game and hear the inevitable "Who's got dip?" chorus, it can be jarring.

But the truth is, tobacco use - especially "dipping" with snuff - has been synonymous with the Outsiders ever since they were founded in 2003. For an organization that prides itself on education, there seems to be a serious and disturbing lack of recognition of the dangers of smokeless tobacco.

Of the 14 players polled on the 18-and-under Outsiders team, 11 of them say they have chewed tobacco. And not because it tastes good - most of the players interviewed say "dip" - or snuff - helps them focus and gives them extra energy, and that they do not view it in the same way as they do cigarettes.

Outsiders star catcher and team captain Victor Figueroa has been using snuff since he was 15. "Dip gives me energy," he says. "It puts me in my zone."

Fellow 18-year-old teammate Edison Montalvo says he dips only during baseball games, "to keep me hyped and focused."

Interestingly, on a team that sometimes struggles with mental lapses on the field, many of the players asked about smokeless tobacco mentioned how snuff gets their head in the game. Clean-up hitter Darlyn Gonzalez says that dip "relaxes me."

Chewing tobacco has long been part of the fabric of baseball in the U.S. The tobacco craze began in the 1900s, when baseball players would chew to keep their mouths moist, then would spit on the baseball in order to throw spitballs. Baseball legend Babe Ruth died during this age of heavy tobacco use at 52 from a cancerous tumor caused by chewing tobacco.

Today, according to the American Cancer Society, it is estimated that 40% of all Major League Baseball players and 30% of all minor league players chew tobacco on a daily basis.

In addition, one ACS study found that 59% of major league players who chew smokeless tobacco already have lesions that may develop into cancer. Unfortunately, athletes provide the largest source of marketing for tobacco companies, and are often seen chewing tobacco during televised games. Big league players are the No. 1 influence on tobacco abuse by underage kids.

Many young players mistakenly believe that smokeless tobacco is not as harmful as the tobacco found in cigarettes. However, an average serving of snuff delivers 3.6 milligrams of nicotine while one cigarette delivers only 1 mg, making dip three times as potent as cigarettes.

The Outsiders use of snuff is a microcosm of the much bigger issue of underage tobacco use in youth baseball. A CDC study reveals that 6% of adult males are current users of smokeless tobacco but that 13% of high school males and 4% of middle school males are current smokeless tobacco users. The startling data shows that the percentage of underage snuff users outnumber adult users 3 to 1. Unfortunately, the earlier a kid starts dipping, the more of a chance he or she will be addicted for life.

Reference: Chew on this: Outsiders not immune to troubling use of chewing tobacco among high school athletes by Kyle Finck, New York Daily News, 7/16/2009.
(spit, chew, chewing, dipping))
Click on image to enlarge; former baseball player.

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African-American homes might be less likely to ban smoking at home..



July 16, 2009 - Prohibiting tobacco use at home could reduce adolescent smoking rates, but the practice might be less common in black families than in white ones, a new study found. "African-American homes have fewer full bans, and more people are allowed to smoke in those homes," said Jessica Muilenburg, Ph.D., an assistant professor in the department of health promotion and behavior at the University of Georgia.

Researchers led by Muilenburg surveyed 4,296 Mississippi high school students about their smoking habits and home smoking rules. About three quarters of the teens surveyed were African-American; nearly one quarter were white. Sixty-one percent of teens reported having smoking bans at home that disallowed any smoking; 32 percent of teens noted they were not allowed to smoke at home although adults were; and 7 percent of teens reported no restrictions on smoking at home. Students whose parents did not ban smoking were more likely to try smoking and smoke daily, and less likely to feel that smoking was dangerous to their health.

Overall, about 66 percent of white parents banned smoking at home completely, compared with 60 percent of African American parents.

PAPER: The Home Smoking Environment: Influence on Behaviors and Attitudes in a Racially Diverse Adolescent Population">; Jessica Legge Muilenburg, PhD, MPH; Teaniese Latham, MPH; Lucy Annang, PhD, MPH; William D Johnson, PhD; Alexandra C Burdell; Sabra J West; Dixie L Clayton, MPH; Health Education and Behavior - August issue, ABSTRACT..

Reference: Home Smoking Rules Tend to Vary by RaceHealth Behavior News Service, InterestAlert.com, 7/15/2009.

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South Dakota - Secretary of State's Office still counting disputed signatures on the smoking ban petitions..


July 16, 2009 - The Legislature earlier this year passed a ban on smoking in virtually all public places. It was to have gone into effect July 1, but opponents of the ban in late June filed petitions with an estimated 25,000 signatures to block the ban and force a vote. They needed 16,776 valid signatures to trigger the vote.

Earlier this month, however, a coalition of health advocates challenged almost 10,000 of the signatures. They identified about 25 flaws with the signatures, including the listing of unregistered voters, improper notarization, duplicate signatures and incomplete information.

Secretary of State Chris Nelson and three workers are checking the validity of 9,891 signatures on petitions that would force a 2010 vote on banning smoking in South Dakota bars and restaurants. On Wednesday, July 15th Nelson wouldn't speculate on when the job will be done or comment on how many signatures have been invalidated so far. State workers are about 40 percent of the way through a list of disputed signatures on the smoking ban petitions. Nelson said, "This is a very tedious process."

If the challenge is successful, Nelson said he assumes smoking in bars and restaurants across the state will become illegal. Nelson: "Hypothetically, the law would go into effect immediately." He added that he and Attorney General Larry Long would have to decide exactly how to implement the law if the challenge is successful. "This is unchartered territory, and we are not sure how things will unfold," Nelson said.

If the challenge is successful, opponents of the ban still could delay it by filing a lawsuit, Nelson said. Larry Mann, who coordinated the petition drive, said he isn't sure whether his group would go to court. "I have met with clients, and we have said we will probably need to think about what our next step might be, but right now we are waiting," he said.

Darrin Smith, a senior director for the American Heart Association and a steering committee member for the South Dakota Tobacco Free Kids Network, said his group is waiting to hear how many signatures are tossed out. Depending on that decision, we'll see where we're at and go from there. He added that his group has not discussed filing a lawsuit.

Reference: Petition challenge creates 'tedious process' for state Verification task 40 percent done, Meredith Moriak, ArgusLeader.com, 7/16/2009.

Related news briefs: South Dakota - anti-smoking leaders challenge petition..; South Dakota - smoking ban to start July 1, 2009 may be delayed..; South Dakota - opponents try to stop extended smoking ban..; South Dakota - extends smoking ban effective July 1, 2009...

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Greek betting firm - July 1st smokng ban has resulted in a further fall in sales..


July 16, 2009 - Agents for Greek betting firm OPAP (OPAr.AT), Europe's biggest, went on strike on Thursday, July 16th over a tax on winnings and said a new smoking ban in public places in Greece had added to a fall in sales.

OPAP sales agents union head Kyriakos Toptsidis: "There was already a drop due to the global downturn but with the smoking ban the fall came to 25-30 percent (year on year)."

The union, which represents about 5,300 retail outlets selling lottery cards and sports betting games across Greece, went on strike to protest a tax on betting winnings.

Greece passed a law this week which scrapped tax-free betting winnings and set the tax at 10 percent, a move which could hit OPAP's profit.

The smoking ban took effect on July 1, 2009.

Toptsidis said all OPAP retail outlets were closed and called on the government to repeal the tax.

"The participation rate is close to 100 percent," he said, adding that agents had also seized OPAP's data processing centers in Athens and Thessaloniki, the country's two biggest cities. He said the new tax would discourage players from wagering their profits in OPAP's flagship games Stihima and Kino.

Reference: UPDATE 1-OPAP agents strike, say smoking ban hitting sales by Angeliki Koutantou (Editing by Jason Neely), Reuters, 7/16/2009.

Related news briefs: Greece - will the July 1st smoking ban work??; Greece - ban on smoking in workplace starts July 1, 2009..; Greece starts anti-smoking campaign..; Greece May Have the Highest Cigarette Consumption Per Person in the World...
(Hellenic Republic)

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Missouri - some cities becoming smoke free but NOT the state..


July 16, 2009 - Missouri has NO smoking ban and has resisted any increase in the cigarette tax last increased in 1993. The tax on a pack of cigarettes stands at 17 cents the second lowest in the nation and second lowest behind only South Carolina at seven cents a pack. Restaurant and bar lobbyists have blocked any statewide smoking bans.

According to the Missouri Foundation for Health Missouri has the third highest adult smoking rate in the country at 24.5 percent, costing the state $4.8 billion in health care, according to the American Lung Association. The rate of teen smoking is among the highest in the nation.

In November 2006, Missouri voters rejected "Amendment 3," (Failed Yes – 48 percent , No – 52 percent (95.6 percent of precincts reporting.) would have raised the tax on a pack of cigarettes by 80 cents, from 17 cents to 97 cents and increase the tax on other tobacco products by 20 percent., with revenues to fund tobacco prevention and cessation programs and other health initiatives. Tobacco companies have spent at least $5.1 million against the initiative, with R.J. Reynolds contributing the bulk of the money. (Tobacco Companies Spending $84 Million to Mislead Voters and Oppose Ballot Initiatives to Reduce Smoking, Save Lives, Campaign for Tobacco-Free Kids, 11/1/2006)

Clayton, the county seat of St. Louis County, has joined the few other cities such as Columbia (January 9, 2007), Kansas City, the largest city (June 8, 2008), Independence (March 2007), and Kirksville (July 1, 2007) in Missouri with smoking bans.

In Tuesday (July 14th) night Clayton City Council meeting, members voted unanimously to outlaw indoor smoking. The Clayton ban goes into effect a year from now, i.e. July 2010. Clayton joins Ballwin and Arnold as the only St. Louis area municipalities in Missouri to pass a smoking ban.

Many other cities, including St. Louis, have rejected attempts to ban smoking in public places. Much of the anti-ban argument has revolved around the feared economic impact of such a measure, especially at bars and restaurants.

Just last Thursday, July 16th, Kirkwood's, called the "Queen of the St. Louis Suburbs, City Council voted down a measure that would have banned smoking in restaurants and bars. (Kirkwood Council Votes Down Smoking Ban Voters Will Weigh In On Election Day in November by Charles Jaco and Roche Madden, FOX-2 Saint Louis, 7/16/2009).

Click on image to enlarge..

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Turkey - smoking ban starting July 19th will be enforced - these guys are serious..


July 16, 2009 - On Sunday July 19, 2009 a year-old ban on indoor public smoking will be widened to include bars, restaurants, and even smoky, hazy village coffeehouses and hookah bars, despite protests from owners who fear it will bring ruin to businesses already suffering from the effects of an economic crisis. The ban already covers offices, public transport and shopping malls.

Turkey's government is setting up a 4,500-strong team to help enforce an upcoming no-smoking ban in bars, restaurants and coffeehouses in this country of heavy smokers, a Health Ministry official said Thursday, July 16th.

Prime Minister Recep Tayyip Erdogan's Islamic-rooted government is keen to reduce smoking rates and the effects of second-hand smoke on people's health. He insists the battle against cigarette usage is as crucial as the "struggle against terrorism." Prime Minister Erdogan is now the driving force behind the next phase of a popular ban taking effect on July 19, which aims to curb the habit in a country where 22 million people, including around half the adult male population, smoke. (Smoke like a Turk?’ Not after looming ban But unlike in 17th-century Istanbul, violators won't be executed, MSNNBC - Reuters, 7/16/2009)

A Health Ministry official said the force would carry out surprise checks on bars, restaurants and coffeehouses where men traditionally pass time lighting up, drinking tea or coffee and playing backgammon and card games. He spoke on condition of anonymity in line with government rules barring civil servants from speaking to journalists without prior authorization.

Around 1,000 inspectors will be assigned to monitor bars, cafes and restaurants in Turkey's three largest cities - Istanbul, Ankara and Izmir, while the rest will be scattered around other parts of the country. The official said the number of inspectors could be increased in the future.

Patrons breaking the ban will be fined 69 Turkish Lira ($45; euro32), while owners who do not enforce the ban could be fined between 560 and 5,600 Turkish Lira ($366-$3,660; euro260-euro2,600).

More than 100,000 people die annually in Turkey from smoking-related illnesses, according to official figures. "To smoke like a Turk" is a common expression in many European countries to describe someone who smokes a lot.

Enforcing smoking bans has proven difficult in the country where, according to Yesilay, an organization devoted to fighting alcohol and tobacco consumption, around 40 percent of Turks over the age of 15 are smokers, consuming around 17 million packs a day.

Davut Kaya, the owner of a smoke-filled coffeehouse in Ankara's Dikmen neighborhood, says he fears for his business. "Ninety percent of my customers are smokers. They come here to get rid of their stress by smoking and playing cards. I cannot see them going outdoors to smoke every 10 minutes. They will stop coming here," he said.

Reference: 4,500-person team to enforce Turkish smoking ban, Suzan Fraser, Associated Press - Ankara, 7/16/2009.

Related news briefs: Turkey - poll indicates employers, their employees and customers support smoking ban in cafes, bars and restaurants..; Turkey - July 19th total smoking ban, will employees lose jobs..; Turkey - on July 19, 2009 will mark the beginning of “100 percent smoke-free air” in this country..; Turkey - national smoking ban starts July 19, 2009..; Turkey - quit smoking photo displayed in İstanbul's Taksim Square..; Turkey - data on tobacco usage - Turkish Statistics Institution..; Turkey - smoking ban in all bars, restaurants and coffeehouses starting July 19, 2009..; Smoking ban in Turkey lowers cigarette consumption..; Turkey's ban on pubic smoking goes into effect on Monday, May 19, 2008..; British American Tobacco (BAT) reported group volume sales up for first quarter 2008..; More on the quick fix for outdoor smokers..; BAT to Acquire Most of Denmark's ST..; More on Philip Morris International of the Future..; WHO Report on the Global Tobacco Epidemic 2008...

Click on 1st image to enlarge..

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Australia - smoking bans must be enforced, especially at hospitals..


July 16, 2009 - Australia - South Eastern Sydney and Illawarra Area Health Service (SESIAHS) was formed in 2005 from the amalgamation of the Illawarra Area Health Service and South Eastern Sydney Area Health Service. It is a statutory body (written law set down by a legislature) of the New South Wales (NSW) Government, operating under the New South Wales Department of Health, charged with the provision of public health services in eastern and southern Sydney. One of the major facilities is the Southern Hospital Network where Wollongong Hospital is one of its facilities.

In March 2008 as part of NSW Health's Smoke Free Workplace Policy, a smoking ban went into effect for all South Eastern Sydney Illawarra Health premises including hospitals, community health centers and car parks. Patients and visitors to Wollongong Hospital were left with no doubt about the directive as six signs of varying descriptions were placed at the Crown St entrance, a traditional hangout for smokers.

The problem there is no enforcement of the smoking ban to protect patients and visitors to the region's health facilities. Defiant smokers vs young cancer patient by Angela Thompson, IllawarraMercury.com.au, 7/15/2009. Young Cancer Patient..

The NSW health minister is standing by a plan to rid cigarettes from hospital grounds by monitoring the number of smokers who disobey no smoking signs. The Opposition branded the study a "total cop-out", and called for NSW Health's smoke-free policy to be enforced by fines, a spokesman for John Della Bosca's (represents the Australian Labor Party in NSW) office told the Mercury the problem was in hand.

Reference: Govt criticised for sticking to smoking strategy by Angela Thompson, IllawarraMercury.com.au, 7/16/2009.

Click on image to enlarge; Butts piled up beneath a no-smoking sign at Wollongong Hospital.

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Lorillard's 2nd quarter 2009 conference call..



July 16, 2009 - GREENSBORO, N.C., - Lorillard, Inc., the third largest manufacturer of cigarettes in the United States, today announced that it will release second quarter 2009 earnings on Monday, July 27, 2009.

A conference call for analysts and investors will begin at 10:00 am Eastern Time on July 27, 2009 which will be hosted by Martin L. Orlowsky, Chairman, President and Chief Executive Officer, and David H. Taylor, Executive Vice President, Finance and Planning and Chief Financial Officer. Investors can participate in the conference call by dialing (888) 679-8038 (domestic) or (617) 213-4850 (international). The passcode for this event is: 39001786.

The news release and a live webcast of the conference call will also be available under the Investor Relations part of Lorillard's website at www.lorillard.com.

The conference will be available for replay in its entirety through August 3, 2009. If you wish to listen to the replay of this conference call, please visit Lorillard's website at www.lorillard.com or dial (888) 286-8010 (domestic) or (617) 801-6888 (international) and enter passcode: 37595225.

Reference: Lorillard to Release Second Quarter 2009 Results on Monday, July 27, 2009, SOURCE Lorillard, Inc., 7/15/2009.
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Rhode Island - c-store, another case of selling cigarettes that lack state tax stamp..


July 16, 2009 - The Pawtucket, R.I. police have charged the owner of a convenience store with offenses that include selling cigarettes that lacked a Rhode Island tax stamp and with counterfeiting the tax stamp.

We have previously reported that dishonest Rhode Island retailers often buy cigarettes from Virginia where the tax is just 30 cents, then scratch the Virginia name away and sell the cigarettes at Rhode Island prices, pocketing more than 2 bucks a pack. The state tax in Rhode Island on cigarettes is $3.46 a pack, the highest in the nation. (Rhode Island retailers finding ways to avoid paying tobacco tax..)

In this latest case Abdulkhalek Darwich, 40, of 48 Johnson St., pleaded not guilty in District Court Tuesday and was released pending a court appearance, according to Maj. Arthur Martins of the police. Darwich also was charged with receiving stolen goods and importation of cigarettes with intent to evade tax. The police said they used an informant and conducted surveillance on the One Stop Deli, 454 Pawtucket Ave. Investigators obtained search warrants after receiving information that stolen items were being sold at the store, they said.

Items confiscated via the warrants included personal care products and other household goods, electronic items and 10 cartons of cigarettes with Virginia and Massachusetts tax stamps. Investigators also found more than 70 cartons of cigarettes in a parked car belonging to the suspect, they reported, all with Virginia tax stamps.

Reference: Store owner charged with selling illegal cigarettes, Thomas J. Morgan, Projo 7 to 7 News Blog, 7/15/2009.

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Japan - tobacco control people upset with smoker-only cafes..


July 15, 2009 - Japan has banned smoking from most public places, including many city streets, but one company has given refuge to the dwindling ranks of tobacco addicts -- by opening smokers-only cafes. Thick cigarette smoke wafts through the 'Cafe Tobacco' shops in the heart of Tokyo, filled with office workers and shoppers looking to take a quick puff, a habit increasingly frowned upon in a country long seen as a smokers' paradise.

Related brief: Japan - Tokyo smoking cafes, people with children, those under 20 NOT allowed..

"Nowadays smoking is considered an evil," said Tadashi Horiguchi, a board director of the coffee shop operator Towa Food Service Co, which recently opened its second smokers-only cafe in Tokyo and hopes to grow the business. "We want to provide an oasis for smokers," Horiguchi said as air purifiers overhead sucked up clouds of blueish smoke from the crowded cafe in Shimbashi, a bar-lined city district known as "salaryman town."

Outside, a red sign with a picture of a smoking cigarette drew more customers, about 600 a day according to the manager Kazuhiro Kawano.

Inhaling from his cigarette and sipping an iced coffee, Koki Takeda, a 24-year-old property salesman, said he was pleasantly surprised when he first saw the 'smokers only' sign outside, near a commuter railway station.

"I thought it's great," he said between drags from his cigarette. "Starbucks bans smoking, and many other coffee shops are non-smoking, or they have a limited number of smoking seats that are often occupied." Coming to the smokers-only cafe takes the shame out of lighting up, Kawano said. "You don't have to feel guilty here," he said, as he sat surrounded by other smokers, all of them aged over 20 as stipulated by a sign outside.

Official anti-smoking policies have reduced smoking rates in Japan, where the cigarette was once ubiquitous -- but many campaigners say much remains to be done to stamp out the cancer-causing habit. Japan's smoking rate is on the decline but still higher than in other developed countries, with some 40 percent of men and 13 percent of women lighting up, according to Japan Tobacco, the former government monopoly.

The central government has yet to pass any wide-scale smoking bans.

The 2002 Health Promotion Law says schools, hospitals, department stores and other public places must make efforts to protect clients from second-hand smoke, but there is no punishment for non-compliance.

Instead many local governments and institutions have taken anti-smoking measures themselves. Central Tokyo districts have prohibited or strongly discouraged smoking on the streets except for designated areas.

Smoking has also been banned in most Tokyo taxis since last year and in railway stations as of earlier this year. Many bars, cafes and restaurants, however, still have smoking sections, to the annoyance of health campaigners.

He argued that Japan's problem with high smoking rates stems from the government, which still owns about half of Japan Tobacco, the country's only cigarette maker with almost 100 brands on the market. Japanese law still stipulates the goal of a "healthy development" of the tobacco industry to generate income and for stable tax revenue -- a position Watanabe said contradicts World Health Organisation rules and is out of step with the public health policies of most other industrialised countries.

Japan Tobacco campaigns for "coexistence between smokers and non-smokers in public spaces" and has deployed at public events a so-called "SmoCar" camper truck equipped with air-purifiers and a deodoriser, to allow people to smoke.

Total cigarette sales fell five percent in Japan in the last fiscal year to March, but still came to 3.73 trillion yen (38 billion dollars), according to data from the private Tobacco Institute of Japan.

Cigarettes now carry warning labels, but they remain much cheaper in Japan than in most other developed countries, with a pack of 20 cigarettes selling for about three dollars.

Reference: Campaigners fume over Japan's smokers-only cafes by Miwa Suzuki, Agence France Presse (AFP), 7/14/2009.

Some more related news briefs - Japan: Japan - Tokyo smoking cafes, people with children, those under 20 NOT allowed..; Japan - Kanagawa - bans smoking in public places starting April 2010..; Japan shelves tobacco tax hike for 2009.., Japan - Ruling party plans tobacco tax hike in 2009..; Japan Tobacco Starts Petition To Fight Tax Increase..; How to get most smokers to quit?? - Keep On Raising The Price..; Japanese lawmakers want to triple cigarette prices..; Japanese tobacco giants focus on point-of-sales cigarette purchases..; Japan - photos can be used to fool the age-verification cameras on some vending machines..; Vending Machines - Japanese protecting their children from becoming life-long nicotine addicts...

Click on image to enlarge..
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Holland - smoking ban temporarily halted for smaller cafes run by their owners alone..


July 15, 2009 - The smoking ban in Dutch cafes and restaurants has been partially suspended after a second appeal court - the Leeuwarden appeal court - ruled that the law does not apply to small cafes that do not employ staff.

Consequently, the Ab Klink, the Dutch health minister has temporarily halted enforcement of the smoking ban on possibly thousands of these smaller cafes run by their owners alone. Checks and fines imposed by the Food and Consumer Product Safety Authority will cease until the law is changed, in what is seen as a public health "disaster."

The law remains in force for larger cafes that employ staff.

Mr Klink plans to amend the law, to remove any "lack of clarity" and to create a completely smoke-free hospitality industry "without exceptions." But this must first go before parliament and so cannot come into force until the third week in September.
(Holland, Netherlands, Dutch)

Reference: Legal loophole sees hundreds of Dutch cafes escape smoking ban, Tony Sheldon, BMJ 2009;339:b2824, 7/13/2009.

Related news briefs: Netherlands - spot checks on smoking in small cafes suspended temporarily..; Dutch bar owners without staff when victory against smoking ban..; Netherlands - Marijuana /Tobacco Cigarettes - Confusion..; Netherlands - small bars/cafes with no staff could be exempt from smoking ban..; Court spares small Dutch cafe over smoking ban..; Netherlands - 1st court case for flouting smoking ban..; Netherlands - ban on smoking in bars and restaurants NOT enforced..; 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...
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Bavaria - state's parliament loosened regulation on smoking ban..


July 15, 2009 - Smokers in Bavaria rejoiced on Wednesday, July 15th as the state’s parliament loosened the regulations on a smoking ban instituted 18 months ago.



January 1, 2008 eight German states are marking the new year by introducing smoking bans in public places including restaurants and bars. The eight states, Berlin, Bavaria, Brandenburg, Bremen, Hamburg, Mecklenburg Western Pomerania, Saxony-Anhalt and Schleswig-Holstein will join Lower Saxony, Baden-Württemburg and Hessen in the crackdown on smokers' freedoms. Saxony, Saarland and North Rhine-Westphalia will impose their smoking restrictions within the next two months, while Thuringia is introducing its ban in July 2008. Typically for Germany, many states will have their own particular variations. For example, Bavaria intoduced the strictest curbs, enforcing a ban in beer tents as well as pubs and restaurants -- resulting in a smoke-free Oktoberfest in 2008. And many states won't enforce fines for breaking the rules until a few months have passed. (German States to Ring in 2008 with Smoking Ban, Spiegel Online International, 12/31/2007)


From August 1, smokers will be allowed to puff away in pubs smaller than 75 square metres. Restaurants and beer tents that create smoking sections in side rooms will also be open to tobacco lovers. The health ministry may also allow smoking at establishments that can insure limited second-hand smoke with special ventilations systems. Children will not be admitted into the smoking areas.

The legislation has been roundly criticised by anti-smoking advocates, but many voters in the state were in favour of dropping the ban.

“The vast majority of the smoking clubs showed us that the previous law would fail,” Health Minister Markus Söder told news agency DDP. A loophole in the ban created a wave of members-only smoking clubs, but the new law no longer allows these.

Söder said that the new law reflects reality and Bavaria’s “live and let live” attitude.

While smoking was banned in bars and restaurants in most German states starting January 1, 2008, it has been widely flouted. For example, many bars in Berlin set ashtrays on the tables after dark. And legal exceptions in many states have weakened the smoking ban.

Six months after the ban began, top courts ruled against the restrictions in Berlin and Baden-Württemberg, allowing smoking in bars smaller than 75 square metres (807 square feet) where no food is served.

Many German smokers also responded by starting grassroots groups and petitions to roll back the ban.

Reference: Bavaria to filter smoking ban, The Local Germany's News in English, 7/15/2009.

Related news brief: WHO Report on the Global Tobacco Epidemic 2008..; German sales rise in Germany amid moves to impose smoking ban..

Click on image to enlarge; Bavarian Coat-of_Arms..
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Needham, Massachusetts pharmacies will soon not be able to sell tobacco products..


July 15, 2009 - Needham is a town in Norfolk County, in the Boston-Cambridge-Quincy metro area. (Needham is 10 miles southwest of Boston.)

On July 14th the Board of Health voted 2-0 on July 14th in favor of the ban, with one member absent. The ban will go into effect on October 1, 2009. This comes five months after Boston banned cigarettes from pharmacies. The new regulations also include language preventing the sale of non-cigarette tobacco products, including “blunt wraps,” to minors. Board of Health Chairman Stephen Epstein: “We found cigarette sales to be inconsistent with the mission of promoting health. At the same time, Boston proposed its regulations. We realized pharmacies are health-care institutions.”

The technical language in the ban states, “No health-care facility, per our regulations, located in the Town of Needham shall sell or cause to be sold tobacco products.” In addition, it specifically singles out pharmacies in saying, “Additionally, no retail establishment that operates or has a health-care facility within it, such as a pharmacy or drug store, shall sell or cause to be sold tobacco products."

The new regulations also include language specifically regulating the sale of tobacco products aside from cigarettes to minors. This includes “blunt wraps.” These wraps, which are designed to hold loose tobacco, are often made with tobacco and may be appealing to children, Epstein said. The new blunt wrap regulation in Needham only bans the sale to minors under 21, unlike Boston, which recently banned the sale of blunt wraps altogether.

“Some are flavored, colorful and are essentially aimed at kids,” Epstein said. “It’s something we wanted the new regulations to include.”

The Needham Health Department plans to work with schools to educate children about those products.

San Francisco has also banned the sale of tobacco products in pharmacies starting on October 1, 2008.

Reference: Needham bans cigarette sales in pharmacies by Steven Ryan, Wicked Local Needham, 7/14/2009.
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C-store update, more on Marlboro No. 54..


July 15, 2009








In the last C-store update on July 8th we reported that Philip Morris' (PM) new menthol Marlboro No. 54 cigarettes were a big seller, in fact, the c-store owners can't keep enough in stock and the wholesaler had limited distribution. It was felt that sales were probably strong because of the price was $2.42 a pack compared to Newport at $4.63 a pack (North Carolina>.

Now we find that the problem with the distribution was that there were problems in the manufacture of these cigarettes. But instead of extending the promotion period PM has ended it so prices have been returned to $4.42 a pack.

Marlboro 72s - the shorter Marlboro cigarettes are still a $1 off a pack. We still believe that Marlboro 72s are the same as Philip Morris International's Intense cigarettes..

In this one c-store PM is satisfied with the placement of their cigarettes (the t-set) and the moist snuff products (e.g., Skoal, Copenhagen) but not with the location of Black & Mild cigars. This c-store owner refuses to move these cigars so they are easier to view by patrons. As a result the owner is not eligible for the $30 monthly rebate.

Previous c-store update.,
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More on Philip Morris' New Menthol Marlboro 54..


July 14, 2009 - July 15 2009







Marlboro Menthol 54 - The promotion period, i.e., June 17, 2009 - July 26, 2009, the introductory price was reduced $2 off per pack and $20 off per carton.

We reported in the last C-store update that these cigarettes were a big seller, in fact, the c-store owner can't keep enough in stock and the wholesaler has limited distribution. Sales are probably strong because of the price at $2.42 a pack compared to Newport at $4.63 a pack (North Carolina>.

Now we have found that it has been difficult stocking these menthol cigarettes because of manufacturing problems. But instead of extending the promotion period Philip Morris has stopped the promotion and prices are not back to the regular price. The price during the promotion was $2.42 per pack and now the price is $4.42 - in this one convenience store Newport cigarettes are priced at $4.63 per pack.



Click on image to enlarge..


More on Marlboro Blend No. 54..

< Rolling Stone still seeks readers who are "hip and young." Read more...

Chinese made fake Marlboro cigarettes showing up around Wasington, D.C..


July 15, 2009 - Federal authorities seized 12 million counterfeit Marlboro cigarettes made in China from a Springfield, Virginia storage unit, the largest bogus cigarette bust in the region's history, a Bureau of Alcohol, Tobacco, Firearms (ATF) and Explosives spokesman told The Washington Examiner.

Back in July 2008 we warned that Philip Morris International (PMI) was making a mistake when it licensed production of its Marlboro cigarettes to China National Tobacco. Changsha Cigarette Factory of China Tobacco Hunan Industrial Corporation has established a partnership with Philip Morris to produce Marlboro cigarettes for the latter company. The factory plans to produce 1,000 cases of Marlboro cigarettes in August, 2008. There's a strong possibility that fake Marlboro cigarettes just might flood the world markets.

Agents came across the 60,000 packs of smokes July 2 after they arrested Bing Feng Mai who had agreed to trade the counterfeit cigarettes for untaxed cigarettes with an undercover ATF agent, court documents filed in Alexandria's federal court said. By then, the undercover agent had sold Mai $2 million of untaxed cigarettes over a period of four months, an ATF agent wrote in a sworn statement.

As taxes on cigarettes have climbed in some jurisdictions, the shipping of untaxed smokes has become big business, authorities say. For example, New York City slaps $1.50 onto the state's $2.75 cigarette tax, and in Fairfax County the state and local tax combined is 80 cents.

Cigarette counterfeiting is immensely lucrative, with profits easily rivaling those of the narcotics trade. While a pack of fake Marlboros costs 20 cents to make in China, it can fetch up to 20 times that amount in the United States. And though a drug trafficker might land a life sentence if caught, a cigarette counterfeiter usually receives a comparative slap on the wrist—a handful of years in jail or possibly a fine. (China's Marlboro Country The strange, underground world of counterfeit cigarettes by Te-Ping Chen, Slate, 6/29/2009.)

Meanwhile, Chinese counterfeiters have seized the opportunity for profit and have been flooding the market with hundreds of millions of fake cigarettes, according to U.S. Customs estimates.

"Counterfeit cigarettes are a big problem," said ATF spokesman Mike Campbell. "We know what goes into our cigarettes, but we don't know what goes into the counterfeits." Campbell said the fakes can be poisonous and often contain higher levels of harmful chemicals than their legitimate counterparts do.

The cigarettes Mai was holding in two public storage units in Springfield were Marlboro Reds and they were determined to be counterfeit by analysts in a Philip Morris lab, the statement said. The fakes were found in large cardboard boxes with "Made in China" printed on the side.

The undercover agent told Mai he wanted to sell the bogus smokes in Puerto Rico and asked if it would be possible to purchase 60,000 cartons every six months, documents said. Mai reportedly responded that it would be "easy" to keep the agent supplied, and added that he could have the cigarettes sent directly from China to Puerto Rico.

Mai is being held without bail, court records show.

Reference: ATF seizes 12 million counterfeit Marlboro cigarettes made in China by Freeman Klopott, Washington Examiner Staff Writer, 7/14/2009.

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U.S. - Retailers may carry less inventory since the federal tax increase of April 1, 2009..


July 15, 2009 - This is the final story in a three-part series analyzing the effect this spring's federal excise tax (FET) hike has had on tobacco retailing thus far.

According to an exclusive tobacco survey of the convenience store channel conducted by Convenience Store / Petroleum (CSP) Daily News and UBS tobacco analyst Nik Modi—the first to solely focus on the c-store sector—many retailers are consciously carrying less inventory today than they were before the FET hike took effect on April 1, 2009.

Asked, "How many days of inventory are you holding and what is this down from prior years?" virtually every retailer nodded that he or she had slashed inventory to control merchandise costs. From the responses of more than 50 chains representing upwards of 20,000 c-stores, many retailers have shaved tobacco stock anywhere from two days to two weeks.

Among the comments: "Approximately 1.2 weeks per store...down from 1.5 weeks prior; " "15 days currently, down from 22 days; " "Holding 10-14 days when past practice was 30 days; " "14 days now; 21 days prior year." And then there was this continual drop from an operator: "We are down to 21 days from 28.

Efforts will continue to move the number to a goal of 14 days."

Modi isn't surprised by the inventory downturn. "A reduction in inventory was expected given the cost of buying cigarettes post the federal excise tax," he said. "The brands most likely to be impacted will be the slow-turners."

Not everyone has cut inventory levels, though. Some retailers said they continue to carry a 14-day supply, others maintain a week or so, and one retailer tries to hold a 38-day supply.

Modi said the balance of eliminating slow-movers and carrying a broad assortment will be decided on a chain-by-chain, store-by-store basis. "The time has never been more important for retailers to have a good handle on SKU (stockkeeping unit, sometimes spelled "Sku" is an identification, of a particular product that allows it to be tracked for inventory purposes) efficiency within their stores," he said. "The last thing you want to do is cut down on brands/SKUs that the consumer wants."

Reference: Exclusive Tobacco Analysis, Part 3:
Dropping Inventory
Spurred by the floor-stock tax, retailers keeping fewer SKUs, cartons on hand
, CSP Daily News, 7/15/2009.
Floor-stock tax..

Part 2 of 3-part series: Altria - did tweaking of Skoal and Copenhagen pricing help regain market share..

Part 1 of 3-part series: US - Effect of April 1st FET increase on tobacco retailing..

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Richmond, CA strictest secondhand smoking laws in the San Francisco Bay Area..


July 14, 2009 - Richmond, California officials will require multiunit housing to go smoke-free by January 1, 2011. That includes individual apartment units and common areas such as lobbies and patios, where experts say secondhand smoke can seep through cracks, vents and wall sockets. Apartment owners can designate a smoking area, but it must be at least 25 feet away from where smoking is prohibited.

Fines for violating the new ban on smoking in multiunit housing start at $100.

The new ordinance, which the City Council approved this month, is on top of additional regulations created in May that bar smoking in public places such as parks, trails and where parades, farmers markets and other public events are held. Smoking is prohibited indoors where people congregate and work — regardless of whether it’s publicly or privately owned — including restaurants, bars and conference rooms.

That’s a big change from more than a decade ago when people hoping to keep secondhand smoke at bay created smoking and nonsmoking sections in restaurants and airplanes.

“We’re on the right side of history,” Councilman Tom Butt said. “This idea that somehow you could bifurcate buildings and make portions of it smoking, portions of it nonsmoking, it just doesn’t work.”

Richmond now has on the books the strictest batch of secondhand smoking laws in the region, said Serena Chen, a regional director at the American Lung Association in California. Other cities have some of the same laws, but not all of them.

Secondhand smoke is listed as a human carcinogen by the U.S. Environmental Protection Agency.

It was an F grade on an American Lung Association report card in January that spurred Richmond officials to toughen their laws. That report card graded cities on how well they discouraged smoking by developing laws that ban smoking outdoors and in multiunit housing and that regulate tobacco sales. Most cities in the Bay Area got a D or F. No one got an A; five jurisdictions — Contra Costa County, Oakland, Berkeley, Novato and Belmont — got Bs.

Belmont made national headlines in 2007 when it became the first in the country to ban smoking in multiunit housing; that went into effect in January, 2009. Dublin followed suit in 2008 with a less-restrictive requirement that half the units in buildings with more than 16 rentals be smoke-free by 2010.

In Richmond, people can continue to smoke at home if it is a single-family house and on sidewalks and streets, but not within 25 feet of a door, window or vent that leads to a place where smoking is prohibited. Tobacco retailers are required to get a permit.

Reference: Richmond tightens smoking rules, Tobacco Facts, July 13, 2009.
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Washington State - R.J. Reynolds found guilty of violating ban on cartoons..


July 14, 2009 - Attorneys general from 8 states have filed a motion against R.J. Reynolds Tobacco Co. (RJR) alleging that RJR is illegally marketing cigarettes to youth through a current advertising campaign violating the 1998 Tobacco Master Settlement Agreement (MSA). That agreement, which the tobacco industry signed to end the national tobacco litigation, expressly prohibits the use of cartoons to advertise or promote cigarettes.

At least eight states – Maine, Ohio, California, Illinois, Maryland, Pennsylvania, Connecticut and Washington – sued the Winston-Salem, N.C.-based company after the fold-out advertisement appeared in one of (November 15, 2007) Rolling Stone’s special 40th anniversary issues.

On Monday, July 13th the Washington state Court of Appeals overturned a lower court’s finding that content Reynolds produced for the 2007 Rolling Stone advertisement did not include cartoons. Though the photographic images weren’t Disney-style illustrations, the appeals court said they were cartoonishly arranged in a bucolic collage. The theme of the “Camel Farm” ad campaign was that Reynolds was helping to support – grow – independent music.


The Maine and Ohio judges sided with the company and California came back with a split decision. In May, a Pennsylvania judge became the first to hold Reynolds liable, ordering the company to pay $302,000 or run a full-page anti-smoking ad in Rolling Stone. Reynolds vowed to appeal.

Washington’s court said that Reynolds couldn’t be held liable for content produced by Rolling Stone without the company’s knowledge, but that the company’s own content fell within the settlement’s cartoon prohibition, aimed at restricting the tobacco industry’s ability to market to young people.

The decision overturned a ruling by King County Superior Court Judge William Downing, who determined that the ad did not include traditional cartoons and that its overall effect was thought-provoking rather than humorous.

“The trial court looked at the cartoon provision and assumed that if an advertisement wasn’t targeting children, it wasn’t a cartoon,” Assistant Attorney General Rene David Tomisser said Monday. “That’s not what the cartoon provision was intended to be.”

The appeals court ordered the lower court to calculate damages. Tomisser said he does not know what the state will request; previously, the state sought $100 for each of the 35,000 copies of the magazine sold in Washington. Tomisser said he would seek additional damages for every time the ad appeared on Web sites or on billboards or signs at concerts in the state.

It wasn’t known if Reynolds planned to appeal.

Reference: Camel ads included cartoons, court says Damages at stake for RJ Reynolds, Gene Johnson, Associated Press, 7/14/2009.

Related news brief: Pennsylvania - Judge rules Camel Ads Violated Ban On Cartoons..

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U.S. - Altria - did tweaking of Skoal and Copenhagen pricing help regain market share..


July 14, 2009 - This is the second in a three-part series analyzing the effect this spring's federal-excise-tax (FET) hike has had on tobacco retailing thus far.

Background: 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. Michael E. Szymanczyk - Chairman and Chief Executive Officer at Altria has indicated a little tweaking is necessary for the UST's premium brands - Copenhagen and Skoal to return these brands to some modest share growth. (Altria Group, Inc. Agrees to Acquire UST Inc. - Altria Group and UST Conference Call, Seeking Alpha, 9/10/2008.)

Altria's first attempt at tweaking the UST's premium brands was to lower the price of Skoal and Copenhagen by one-dollar. As of February 1, 2009 the price of Skoal and Copenhagen was reduced - the promotion was suppose to last until March 28, 2009. For further details on the arrangement C-store update - the battle for market share is on...

After this promotion ended Altria cut the wholesale prices of its premium products about 20 percent. Daniel Butler, president of U.S. Smokeless Tobacco Company: "While we are very pleased with the success of our strategy to drive category growth in moist smokeless tobacco, we've been less than pleased with our ability to hold our share of the category."


Part 2 of 3-part series.. According to a recent analysis by Convenience Store / Petroleum (CSP) and UBS, New York, tobacco analyst Nik Modi. Despite a 62-cent drop in prices (cut the wholesale prices of its premium products about 20 percent) for Altria Group-owned U.S. Smokeless Tobacco Co.'s Copenhagen and Skoal brands in March—timed to coincide with the April 1 across-the-board increase of the federal tobacco excise tax—premium-moist-smokeless can volume continues to slip.

According to Modi volumes of the two brands (Skoal, Copenhagen) now controlled by the Altria Group have continued to fall and lose share. Meanwhile, budget brands such as Grizzly are enjoying double-digit gains. It is clear that Altria's strategy has delivered mixed results. (Where's The Growth in Smokeless Tobacco Products...

Asked whether the price reduction of Copenhagen and Skoal have rendered a positive impact on volumes, 55% of retailer respondents said yes, while 45% answered in the negative. And within these two groups, a consensus emerged that the price reduction, while growing brand sales for some, has not grown the overall moist smokeless category.

Two other retailers offered contrasting experiences. "It has had a positive impact on Copenhagen and Skoal, and has slowed the growth of Grizzly product for right now," wrote one. Yet another operator said, "Not sure why, but these brands have slowed down in our area. Grizzly is the king in sales here."

Modi said he's not surprised by the mixed response. "Based on our field work, it seems that Copenhagen and Skoal continue to lose share at the expense of Grizzly and other low-priced brands," Modi said. "I expect the trend to improve over time, but consumers will have to get used to the new everyday low pricing vs. UST's old strategy of pushing two-pack deals."

Reference:
Altria Group's Big Promotion Tobacco-maker took a risk with its MST pricing strategy to mixed results
by Mitch Morrison, CSP Daily News, 7/14/2009.

Part 1 of 3-part series: US - Effect of April 1st FET increase on tobacco retailing..

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Turkey - poll indicates employers, their employees and customers support smoking ban in cafes, bars and restaurants..


July 14, 2009 - The survey, conducted by the Association of Public Health Experts (HASUDER) revealed widespread support for the new ban. The study showed that 89.9 percent of all employers and employees of establishments that will be smoke-free areas under the law are in favor of the ban. Their customers also showed strong approval of the law, which will come into effect on Sunday, July 19, 2009. A full 85.9 percent of respondent customers said they support the application of the ban.

With the amendment made to Law 4207 on Prevention of Tobacco's and Tobacco Products' Harms, smoking will not be permitted in indoor sections of cafes, bars, restaurants and the like. The operators of such businesses will be responsible for monitoring their clients' compliance with the law and reporting any violation by telephoning the closest police station or by directly calling 184, the Ministry of Health's Communication Center (SABİM). Any violation on the part of operators and clients will be penalized by fines of TL 560 (362.76USD) to 5600 (3629.70USD) and TL 69 (44.73USD) respectively.

The recent survey also showed that there is not an information gap on the part of business owners about the new regulation. Fully 60.6 percent of all employers interviewed as part of the survey were reported to be active smokers. Turkey has a huge tobacco market, with immense domestic production, and almost 30 percent of its population are active smokers.

According to the survey, the support for the ban is high among smokers, too. Respectively, 86.5 percent and 76.2 percent of such employees and customers back the ban and think that there is just cause to ban people from smoking indoors for the sake of non-smokers, who extended even greater support for the ban.

Assessing HASUDER's findings, Professor Hilal Özcebe drew attention to strong popular support for the ban and said a non-smoker who is in a room where people smoke is affected as much as if he smoked a pack of 20 cigarettes. In that regard, she underlined that being with smokers in closed-door areas is equally as harmful as smoking.

Meanwhile, a previous ban went into effect on May 19 prohibiting smoking in shopping malls and was found to have no effect on the number of visitors to such places, according to another study carried out in a large shopping mall in Ankara.

Reference: Employers, employees, all support smoking ban, poll shows, Today's Zaman, 7/13/2009.

Related news briefs: Turkey - July 19th total smoking ban, will employees lose jobs..; Turkey - on July 19, 2009 will mark the beginning of “100 percent smoke-free air” in this country..; Turkey - national smoking ban starts July 19, 2009..; Turkey - quit smoking photo displayed in İstanbul's Taksim Square..; Turkey - data on tobacco usage - Turkish Statistics Institution..; Turkey - smoking ban in all bars, restaurants and coffeehouses starting July 19, 2009..; Smoking ban in Turkey lowers cigarette consumption..; Turkey's ban on pubic smoking goes into effect on Monday, May 19, 2008..; British American Tobacco (BAT) reported group volume sales up for first quarter 2008..; More on the quick fix for outdoor smokers..; BAT to Acquire Most of Denmark's ST..; More on Philip Morris International of the Future..; WHO Report on the Global Tobacco Epidemic 2008...

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Old Military Cigarette Ads - SouthFlorida.Sun-Sentinel.com


July 13, 2009 - Old Military Cigarette Ads..

Related news briefs: U.S soldiers. - video game-based educational program to battle rising tobacco use..; U.S. Military - phased in ban on smoking..; U.S. Department of Defense is endorsing the observance of World No Tobacco Day...
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U.S soldiers. - video game-based educational program to battle rising tobacco use..


July 13, 2009 - It seems the rate of tobacco use amongst soldiers in the US Army is rising, and therefore, it has been suggested that a researcher from the University of Texas M.D. Anderson Cancer Center create a video game to battle this unfortunate increase. They have a budget of $3.7 million to create the game and Alexander Prokhorov, MD, PhD, and professor in M.D. Anderson's behavioral science department, is already working on it.

Alexander Prokhorov, MD, PhD: ,"The tobacco use rates in the Army are alarming – 38 percent of service members smoke cigarettes and 15 percent use smokeless tobacco. Wars boosted the use of tobacco. Research shows tobacco use in the military increased during World War II...Tobacco is typically regarded by young people as a dull subject. The video game-based education program is anything but boring. It provides a highly interactive, engaging and exciting experience."

It's an intriguing idea and of course, the good doctor reminds us all that tobacco "may increase fatigue, dull the senses and cause shortness of breath." The game will be called Project Combat and 2,000 troops in Fort Hood, Texas will be the first to test it out. And believe it or not, this will be the second title based on this very concept; Prokhorov already made Escape with Your Life. As for Project Combat, it will "feature animation, audio, video and interactive activities that provide facts about smoking and tobacco use, as well as a customized Avatar." Players will go through several scenarios that include resisting peer pressure and dealing with withdrawal symptoms.

Reference: Video game to batte risng tobacco use amongst US soldiers, Ben Dutka, PSXextreme.com7/11/2009.

Related news briefs: U.S. Military - phased in ban on smoking..; U.S. Department of Defense is endorsing the observance of World No Tobacco Day...
Read more...

UK - Campaign to modify July 2007 smoking ban fails..


July 13, 2009 - Back on Tuesday, June 23rd celebrity chef Antony Worrall Thompson joined the 'Save Our Pubs and Clubs campaign' to overturn the smoking ban. The TV chef joined members of parliament (MPs) from the three main political parties in calling for the comprehensive ban to be relaxed to help establishments losing revenue, laying off staff or facing closure. (TV chef Antony Worrall Thompson joins campaign for limited pub smoking by Laura Harding, Press Association, The Independent, 6/23/2009)

But Martin Couchman, deputy chief executive of the British Hospitality Association (BHA), said that to reverse the ruling "would open up enormous difficulties". The BHA supported the ban, not least because employees affected by the smoke were taking their former employers to court. It may have impacted on businesses, but I don't see how amending the ban can practically work."

A spokesman for the British Beer & Pub Association added that the industry has moved on since the ban. "The industry has adapted to the challenge. Pubs have invested £100m on outside smoking areas and there is no going back now," he said.

Worrall Thompson admitted that restaurants should remain smoke-free, but that pubs not serving food should have the right to choose.

Reference: AWT's smoking campaign fails to catch fire, CatererSearch.com, 7/9/2009.

(UK, United Kingdom, Britain, England, Wales, Scotland, Northern Ireland)_

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FDA approves OTC smoking cessation lozenges..


July 13, 2009 - The Perrigo Company today announced that it has received approval from the U.S. Food and Drug Administration (FDA) to market over-the-counter coated nicotine polacrilex lozenge USP, 2 mg and 4 mg in cherry and cinnamon flavors.

The new products will be marketed under store brand labels and are comparable to GlaxoSmithKline's Commit(R) lozenge, which is an aid to smoking cessation.

Perrigo's Chairman and CEO Joseph C. Papa stated, "These two approvals expand our exclusive position in the store brand nicotine lozenge category. The expanded range of smoking cessation products also includes coated mint and Fruit Chill(TM) flavored gum, uncoated gum and lozenges." The smoking cessation category is selling at an annual rate estimated at approximately $1 billion at all retail outlets. We expect to begin shipments in the near future.

Reference: Perrigo Receives FDA Approval to Market Cherry and Cinnamon Flavored Nicotine Lozenges, SOURCE Perrigo Company, prnewswire.com, 7/13/2009.
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Malawi - how can this country survive without tobacco??

July 13, 2009 - Landlocked Malawi, one of the poorest in the world, derives up to 70 percent of its foreign exchange earnings from tobacco and 80 percent of the country's labor force works in the tobacco industry. Tobacco accounts for 13 percent of the country's gross domestic product and makes up 23 percent of the tax base. Historically, the leaf has been regarded as an economic lifeline in a country without rich mineral endowments.

For 2009 tobacco earnings in Malawi, the world’s largest producer of the burley variety, have fallen 31 percent after 14 weeks of trading compared with a year earlier, according to Auction Holdings Ltd., a buyer. Earnings from tobacco fetched $161.2 million by June 23, 2009 compared with $233.9 million during the same period a year earlier, Auction said in a statement handed to reporters in Blantyre today.

During the period, farmers sold 99.5 million kilograms (219 million pounds) of tobacco at an average price of $2.08 per kilogram, compared with 98.7 million kilograms at an average price of $2.24 last year.

While the government has set a minimum price of $2.15 per kilogram, buyers are offering farmers less than that because the leaf is of a poorer quality than last year and as the global recession curbs demand.

This Sub-Saharan Africa country is a major tobacco exporter in the world, accounting for five percent of the world's total exports and two percent of world's total production. In terms of burley tobacco, Malawi produces about 20 percent of the world's total, according to the World Bank.

From Tobacco Journal International (JTL) - Malawi, one of the smallest countries in Africa as far as land surface goes, has largely expanded its production of filler-style Burley over recent years. The tobacco industry fears a flooding of the world market and the impact on leaf price.

Teen smoking up in Malawi by Kondwani Munthali, December 2008.

Related news brief: BAT using illegal tactics to get African youths to start smoking..; British American Tobacco (BAT) - 100 years in Africa...

References: Malawi’s Tobacco Earnings Down 31% After 14 Weeks of Trading Share, /storiesonmalawi.blogspot.com, 7/6/2009; Malawi’s Tobacco Earnings Down 31% After 14 Weeks of Trading by Frank Jomo, Bloomberg.com, 7/6/2009; Malawi tobacco output undershoots target, Reuters News, 7/12/2009.

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