Ghana - WHO FCTC meeting - alternatives to growing tobacco..


April 18, 2010 - Ghana is to host the Second Working Group meeting on World Health Organisation (WHO) Framework Convention on Tobacco Control in Accra, the capital, from April 21-23. This second meeting of the working group is also the first time a working group meeting is being held in Africa.

A statement issued in Accra on Friday by the Ministry of Health (MOH) said Dr. Benjamin Kunbuor would address the opening session. It said the meeting would come up with policy options and recommendations for countries to follow as they seek alternative livelihoods for tobacco growers and traders.

"Most producers of tobacco growing and manufacturers are in developing countries and those with economies in transition and they suffer the double burden of the negative effects of tobacco production and consumption", it said.

African countries with such heavy burden of growing and production include Zambia, Zimbabwe, Malawi, Kenya, Tanzania, Mozambique and Nigeria. The statement said these countries needed support to be able to offer their farmers and producers alternative livelihood.

The meeting would be attended by 40 delegates from 18-member countries of the working group including Ghana, the Head of WHO Framework Convention on Tobacco Control Secretariat, representatives of WHO and civil society organisations. The meeting attended by about 25 health journalists discussed, identified and suggested how the commitment made could be effectively and efficiently achieved.

As a prelude to the meeting a media workshop has been organised in Accra to discuss progress made by Ghana with regard to the implementation of the WHO conventions on tobacco control.

Reference: 2nd WHO-FCTC Meeting opens in Accra by GBC News, 4/16/2010; Ghana to host meeting on WHO Framework Convention on Tobacco control, GhanaNewsAgency.org, 4/16/2010.

Related news briefs:
Ghanaians - spend more on alcohol and tobacco than on food and other beverages..;
Africa - the increase in tobacco use must be prevented..;
Ghana - Tobacco Control Bill to parliament this month, July 2009..;
Ghana to ban smoking in public places in November 2008..;
FCTC Member Ghana - NO Law Banning Sales of Tobacco to Minors..
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U.S. - Convenience Store In-Store Sales Grew in 2009..


April 16, 2010 - CHICAGO -- Convenience store in-store sales grew 4.9% in 2009, one of the lone bright spots in a battered U.S. economy that saw overall retail sales drop 7.0%, according to figures released today by NACS (National Association of Convenience Stores).

The industry numbers were announced in Chicago at the annual NACS State of the Industry Summit, a two-day conference that reviews and analyzes the industry’s key economic indicators.

While in-store sales rose to $182.4 billion, the sharp decline in gas prices from a record $4.11 per gallon in July 2008 to under $2 per gallon by the beginning of 2009 led to a dramatic drop in motor fuels revenues for the industry that sells an estimated 80% of the fuels purchased in the United States. The average price for a gallon of gas dropped 28.5% to $2.28 in 2009, and pulled down motor fuels revenues 26.9% to $328.7 billion. Still, motor fuels sales continue to dominate industry revenues, accounting for 68.4% of all sales dollars.

While motor fuels revenues plummeted because of the lower price per gallon, total gallons sold rose 1.3%. Motor fuels gross margins for 2009 were slim—13.8 cents per gallon—and the effect of these tight margins can be seen in motor fuels’ contribution to overall gross margin dollars. Only 27.3% of the industry’s profit dollars came from motor fuels sales, compared to 72.7% of profits from in-store sales.

Overall, convenience store sales in 2009 were $511.1 billion, accounting for 3.5% of the total U.S. Gross Domestic Product—one of every 28 dollars spent in 2009. Industry profits fell 7.6% to $4.8 billion, but were still the fourth largest in the industry’s history. The importance of foodservice—a category that includes food prepared on site, commissary items and hot, cold and frozen dispensed beverages – continues to grow, with the category now contributing 20.2% of overall industry profits.

“Our strong industry numbers show that our value proposition of convenience continues to resonate with consumers,” said NACS vice chairman of research Greg Parker, president and CEO of The Parker Cos., Savannah, Ga. “It is astounding that we have grown in-store sales during the worst economic downturn in more than half a century and it shows that our passionate focus on the customer may make us recession resistant.”

Credit card fees continue to be the industry’s top pain point and second largest expense item—behind only labor costs. While overall credit card fees dropped 11.9% to $7.4 billion, the drop was significantly less than what would be expected with the drop in the industry’s revenue dollars. As a percentage of overall sales, credit card actually fees increased, from 1.35 to 1.45% of total industry sales dollars, factoring in all forms of payment, including cash and check. Total credit card fees also surpassed overall convenience store industry profits for the fourth straight year.

The sour employment outlook was also reflected in the convenience store industry’s employment numbers. Employment dropped 8.7% to 1.58 million. Indicative of the tight employment market, turnover dropped to record low levels in 2009. Manager turnover dropped from 29.0 to 21.8% and non-manager turnover dropped from 109.0 to 82.4%.

Cigarettes once again led in-store sales, and increased share to 35.8% of in-store sales. The increase in sales dollars was driven by the $1 per pack increase in the federal tax on cigarettes that took effect in April 2009, as well as additional state tax increases. Foodservice showed strong growth, rising to first in terms of in-store margin dollars and second in in-store revenue dollars.

More than 75% of in-store sales were from the top five categories:

1. Cigarettes (35.8% of in-store sales)
2. Foodservice (17.3%)
3. Packaged beverages (14.0%)
4. Beer (7.7%)
5. Salty snacks (3.9%)

Nearly 75% of in-store gross margin dollars were from the top five categories:

1. Foodservice (29.7% of in-store gross margin dollars)
2. Packaged beverages (17.7%)
3. Cigarettes (17.5%)
4. Beer (4.9%)
5. Salty snacks (4.5%)

The industry’s 2009 metrics are based on the NACS State of the Industry survey powered by its wholly owned subsidiary CSX, the industry’s largest purpose-designed business development tool, and based on data from 197 firms representing more than 23,000 stores. Complete data tables and analysis will be released in June in the NACS State of the Industry Report of 2009 Data.

Founded in 1961 as the National Association of Convenience Stores, NACS is the international association for convenience and petroleum retailing, representing more than 2,100 retail and 1,500 supplier member companies. The U.S. convenience store industry, with nearly 145,000 stores across the country, posted $511 billion in total sales in 2009, with $328 billion in motor fuels sales.

Keep up with the NACS 2010 State of the Industry Summit in real time by following us on Twitter at www.twitter.com/CSPInfoGroup.

Reference: CSP Daily News flash.. Despite Battered Economy, Convenience Store In-Store Sales Grew in 2009, published by CSP Information Group, 4/14/2010.
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California - small tobacco companies non-participants in the Master Settlement Agreement..



April 16, 2010 - California officials want money from the nation's small tobacco companies that have avoided paying into an escrow account for the states.

In the mid-1990s, all 50 states and two U.S. territories sued the country's major cigarette manufacturers to recover Medicaid costs related to cigarette smoking. They also sought to impose restrictions on the makers' sales and ad practices. The lawsuits were settled in 1998. As part of the Master Settlement Agreement, manufacturers were banned from targeting youth in their advertising and were ordered to make payments to the states for all future cigarette sales. The states, in exchange, agreed not to file future claims.

The agreement allowed manufacturers who were not parties to the lawsuit to join the master agreement within 90 days, making them exempt from having to make future payments with certain restrictions.

Unlike the Participating Manufacturers to the Master Settlement Agreement (MSA), Non-Participating Manufacturers (NPMs) have not been released from State claims. Some small tobacco companies were not a party to the original lawsuit or the subsequent agreement, and opted not to participate in the master agreement. But the master agreement allows states - including California - to enact statutes forcing such non-participating manufacturers to place money into escrow each year to settle future judgments based on the number of cigarettes sold in that state.

The California Department of Justice, led by Attorney General Jerry Brown, is sponsoring legislation this session (California State Legislature, 2009–2010 session) that would allow the attorney general's office to pursue tobacco companies that are not paying the state for treating smoking-related illnesses.

The legislation, outlined in Assembly Bill 2496, would amend the California Cigarette and Tobacco Products Licensing Act of 2003 to allow the attorney general to pursue tobacco companies that ship their products into the state without being licensed to do so.

Introduced by state Assemblyman Pedro Nava, D-Santa Barbara, the Tobacco Damages Recovery Act is aimed at closing loopholes in the Master Settlement Agreement that major tobacco companies signed in 1998.

But Nava said many smaller tobacco companies have avoided paying California and other states. "My legislation will make smaller tobacco companies pay their fair share and not allow them to continue to break the law," said Nava, a candidate for attorney general. "We will hold them accountable for all sales of cigarettes in California and the corresponding health care costs caused by smoking which are passed on to all of us."

Assembly Bill 2496 on Monday, April 12th passed the Assembly Governmental Organization Committee with bipartisan support. The bill will next be heard in the Assembly Judiciary Committee on April 20.

Reference: Calif. officials target small tobacco companies by CHRIS RIZO, LegalNewsline.com, 4/13/2010.

Related new briefs:
Kansas - cigarette makers fined, failed to pay into escrow accounts..;
Arkansas - escrow accounts Master Settlement Agreement, non-participating manufacturers..;
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U.S. FDA CTP - To Launch Stakeholder Listening Series in 2010..


April 15, 2010 - The U.S. Food and Drug Administration (FDA) Center for Tobacco Products (CTP)—charged with implementing the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act) with the goal of reducing the tremendous toll of disease and death caused by tobacco use—will launch a Stakeholder Listening Series in 2010.

FDA To Launch Stakeholder Listening Series..

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Michigan - smoking ban takes effect May 1, 2010 but may be difficult to enforce..


April 15, 2010 -

Even with enforcement limitations County Executive believes smoking ban is going to be 95-98 percent self enforced by the businesses and patrons. - Which Would Be Excellent..



Oakland County Executive L. Brooks Patterson retreated from a legal battle over a smoking ban this afternoon. Early this morning, April 15th he said he was suing the state over the smoking ban in restaurants and bars, that was set to take effect May 1, 2010. But six hours later, after receiving about 100 phone calls and e-mails opposing his position, he reversed himself and said he was withdrawing the lawsuit filed with the Michigan Court of Appeals. “If the public doesn’t want me to challenge this unfunded mandate, I’m going to withdraw the lawsuit,” he said. “If I don’t have public support for what I’m doing, I’m going to reverse myself.”

Governor Jennifer Granholm signed the smoking ban into law on December 18, 2009..

Patterson supports the ban, but not the possibility that his health department will have to enforce the smoke free workplace law. Patterson: “I have 26 sanitarians stretched thin already. They can’t take on any more responsibilities."

While the county is going to try and figure out some way to comply with the law, Patterson predicted it would be a disaster. “It’s destined to fail. I think it’s going to 95-98% self enforced by the businesses and patrons,” he said. “If we get 10,000 calls, there are going to be a lot of unanswered complaints.”

A spokeswoman for Gov. Jennifer Granholm said shortly after noon that the governor wants to see the smoking ban enforced. “We support the smoking ban,” said spokeswoman Liz Boyd.

Boyd said the state Department of Community Health had provided some financial assistance to counties in preparation for the May 1 implementation of the law. But she declined to comment on whether the requirements imposed on county health departments overall violated the Headlee amendment, as Patterson alleged.

Reference: Patterson retreats, won't sue over smoking ban by KATHLEEN GRAY,
FREE PRESS STAFF WRITER (Staff writers Dawson Bell and Matt Helms contributed to this report), Detroit Free Press, 4/15/2010.

Michigan - some related news briefs:
Michigan - governor signs state smoking ban..;
Michigan - will be 38th state to ban smoking in public areas..;
Michigan - state smoking ban will be approved soon..;
Michigan - possible increase in tax on tobacco products coming..;
Michigan - counties can pass smoking rules..;
More evidence - Casino workers face greater chance of disease..;
Detroit Area Hiller's Markets to STOP Selling Tobacco Products..;
Michigan public smoking ban fizzles..;
Will Michigan Pass Smoking Ban Before the End of Year..;
Michigan Falls Short Again on Ban in Public Places..;
Michigan Senate Deals Blow To Smoking Ban...
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