Orlowsky Defends Lorillard's Marketing of Menthol Cigarettes..


September 2, 2008 - Defending the marketing of menthol cigarettes by Martin L. Orlowsky, Chairman, President and Chief executive officer, Lorillard Tobacco Co., 8/21/2008. In brief, Orlowsky claims that Lorillard markets its Newport brand cigarettes to adult smokers of all ethnicities. He writes: the truth is that our marketing is not disproportionately directed to African-Americans. The truth is that we do not target underage smokers.

Mr. Orlowsky (Marty)has been a Director of Lorillard since January of 1999, and has served in that capacity while the Company was still owned by Loews Corporation until June 10, 2008. Mr. Orlowsky has served as President and Chief Executive Officer of Lorillard since January of 1999 and added the Chairman’s position in January 2001. Previously, he served as President and Chief Operating Officer and prior to this position he was Executive Vice President, Marketing & Sales. He has been with Lorillard since 1990. (Lorillard, Inc.)

Sales of Newport are the highest in Eastern United States (US) especially in urban centers of the Northeast and this is where marketing activities are concentrated. In 1993 Newport became the #1 menthol cigarette in the US. Lorillard has for decades concentrated on building the Newport brand among the young. A 1978 Lorillard document, which said that the brand's growth was driven by "black people (all ages)" and "young adults (usually college age)" but added that "the base of our business is the high school student." By 1983, Newport had the youngest franchise of any brand, with 53 percent of sales to people aged 18 to 24, and it had doubled its penetration of the young black market, according to an RJR document. Newport succeeded because Lorillard relentlessly focused its ads at blacks living in the Northeast, according to industry analysts. A 1969 memo by rival R.J. Reynolds noted that Lorillard's "Negro market budget was increased 87 percent over 1968." The majority of the increase went to build Newport among black Americans. (Slugfest in the Smoke Ring by Brett D. Fromson, Washington Post, 3/1/1998; Page H01))

Menthol is much more than a flavoring agent - it has many uses as a chemical cooling agent, e.g., in cold cures to reduce nasal congestion and coughing.

While in a local convenience store I watched the Lorillard salesperson place a new Newport promotion sign behind the checkout counter. He could select either side of the sign - one side with a Caucasian couple and the other with an African-American couple - which side do you think he chose??

More on menthol and tobacco smoking.

Click on image to enlarge.. (TobaccoWatch.org)
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Denmark - Must Be 18 to Buy Ciagrettes..


September 1, 2008 - As of today, 9/1/2008 a new law takes effect making it illegal for young people under the age of 18 to purchase tobacco or to introduce tobacco to Denmark from abroad.

Health Minister Jakob Axel Nielsen (Cons.) says the new law is designed to postpone the age at which some young people begin smoking. “Research shows that the younger children are when they start smoking, the greater the risk that they will become addicted. At the same time we know that most smokers begin smoking before their 17th birthday. By increasing the age limit we are targeting a group that could otherwise become addicted to tobacco,” says Nielsen.

As of Monday, all outlets that sell tobacco must sport signs with the new age limit. At the same time, personnel will be reminded that they are to ask for identity cards with pictures if young people enter a shop to buy alcohol or tobacco. The new age limit puts Denmark in line with the other Nordic countries.

Reference: Age limit for tobacco goes up, edited by Julian Isherwood, Politiken.DK, 8/29/2008.
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Northern Ireland - Must Be 18 to Buy Cigarettes..



September 1, 2008 - as of today (9/1/2008)Northern Ireland has joined the other three United Kingdom (UK) countries raising age for sale of tobacco from 16 to 18.
The Assembly passed the required legislation at the end of June, just before the summer recess.

The change in the law is part of the drive by the North's Health Minister Michael McGimpsey to reduce smoking among young people, which is not prohibited by law. A recent study showed that some nine per cent of the 11-16 age group are smokers in Northern Ireland - a figure which has been reduced from 13.5 per cent as the anti-smoking message gradually gets through. The minister said although he believed the sale ban was necessary, he hoped young people would decide for themselves not to smoke. Mr McGimpsey has also extended to Northern Ireland a Department of Health consultation seeking views on the future of tobacco controls, including those likely to impact on children’s smoking such as advertising at point of sale and access to tobacco vending machines. The consultation ends on September 8th.

The Republic of Ireland introduced a similar ban four years ago - in 2004.

Reference: NI introduces prohibition on cigarette sale, RTE News, 8/31/2008 and Tobacco sales to unders 18s banned in NI, IrishTimes.com, 9/1/2008.

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Latest mailing of free coupons for Camel SNUS..














As part of their public awareness and education program to get suckers (i.e., tobacco suckers) to try Camel SNUS R.J. Reynolds (RJR) mailed out two coupons for free cans.
Camel is no longer Swedish - it's made in the RJR plant in Winston Salem, North Carolina and the price is just about the same but now they give you 15 pouches down from 20.

Sales of Camel SNUS have been poor at best. They have tried so many promotions but we bet they have had to give away more cans than they have sold. We just could not believe how RJR could expand their test marketing to more metropolitan markets.

A few related news briefs: RJ Reynolds (RJR) still giving away free cans of Camel SNUS; R.J. Reynolds Tobacco pulling out all the stops with Camel SNUS.. and SNUS Awareness Programs on the Increase... There are many more news briefs, do a random search, e.g., enter: Camel SNUS..

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NY Governor Paterson to negotiate with Native Americans over cigarette taxes..


August 27, 2008 - Gov. David A. Paterson insists the New York State has a legal right to collect taxes on Indian retailer cigarette sales but says he wants to negotiate with the tribes to end the years-long stalemate instead of trying to force an immediate halt to the tax-free sales.

In the interview, Paterson said he wants to treat talks with Indian leaders “almost like international diplomacy.” He said he wants to reach an “accommodation” with the tribes on the tax issue; he did not say precisely what that may entail.

Paterson recalled the confrontations between Indian protesters and former governors Mario M. Cuomo and George E. Pataki. In 1995, the Thruway was shut down during violent clashes between Indians and state troopers when Pataki tried to collect the tax. He immediately backed off the effort. Former Gov. Eliot L. Spitzer also talked tough on the topic but backed down and sought a conciliatory approach.

Reference: Paterson to negotiate with Native Americans over cigarette taxes
Governor pins hopes on diplomatic approach
by Tom Precious, The Buffalo News, 08/21/08.

Related news brief:State Legislature passes surprise bill to tax Indian cigarettes; Philip Morris, supports the tax collection.

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