What do you think?? A fellow comes into the c-store to buy a can of cheap moist snuff - which would he buy the same size container of Husky at 99 cents or Grizzly at $2.39??
TobaccoWatch.org - answer later next week..
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Price value/discount moist snuff - UST's/ Husky vs. Conwood's/Grizzly..
Altria May Delay Purchase of UST Amid Tight Credit..
October 4, 2008 - The $10.3 billion deal, would unite the Altria**, the parent of Philip Morris USA, the nation's biggest cigarette maker with UST Inc., the nation's largest smokeless tobacco company.
Altria said its lenders, Goldman Sachs Group, Inc. and J.P. Morgan Chase & Co. asked it to wait until next year to try to raise the funds to complete the deal. These financial houses had previously committed to provide up to $7 billion in bridge loan financing for the deal. Altria declined to comment beyond its statement, which said that its lenders advised that it would be "preferable" to close the deal in 2009 (possibly early January 2009).
Related news briefs: UST to become a wholly owned subsidiary of Altria..; Altria in advanced talks to buy UST, Inc..; Altria will continue to test Marlboro Smokeless Tobacco Products.. and Any interest Lorillard to acquire Swedish Match - NOT.
Reference: Altria says lenders want UST deal pushed into 2009 by Jessica Wohl, Reuters, 10/3/2008 and Altria May Delay Purchase of UST Amid Tight Credit by PETER LATTMAN and LIZ RAPPAPORT, The Wall Street Journal, 10/4/2008.
** - Altria owns approximately 28.5% of SABMiller (South African Breweries - Miller) plc.
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Japan Tobacco Starts Petition To Fight Tax Increase..
The company is enlisting customers in a campaign to stop the proposed tax hike. It has asked consumers opposed to the proposal to fill in a petition at tobacco retailers, by mobile phone or on the Internet. Japan Tobacco said it will submit its petition to the government after the campaign, which the company plans to end in December, in time for the Japanese government's internal discussions on proposed taxes.
The campaign comes as the maker of Camel and Mild Seven cigarettes battles higher tobacco prices, a falling smoking rate and controls on vending-machine purchases that account for more than half its $31.4 billion in domestic tobacco sales. JTL's operating income from cigarette sales in the country slid 9.4 percent to 222 billion yen ($2.1 billion) in the 12 months through March 2008.
Besides JTL, organizations representing tobacco farmers and stores have jointly voiced opposition to a possible tobacco tax hike, arguing that higher tobacco prices would dampen consumption and not lead to increased tax revenue.
JTI claims that the tax hike could destroy Japan's tobacco industry; 50% of JTI is owned by the Japanese government.
References: “Tax hike could destroy Japan’s tobacco industry”, Tobacco Reporter, 10/3/2008 and Japan Tobacco Starts Petition Against Cigarette Tax Increase by Maki Shiraki, Bloomberg.com, 10/1/2008.
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New Hampshire - cigarette tax increase - ON HOLD..
October 3, 2008 - An expected 25-cent increase in New Hampshire's cigarette tax was put on hold yesterday, October 1, 2008 as state officials review recent tax receipts to see if an increase is necessary. If the state determines that it raised at least $50 million in cigarette taxes over the past three months, there will be no tax increase. But if tax revenue falls short of that mark, the 25-cent increase will take effect. State revenue counters have until Oct. 15 to determine whether the $50 million mark had been reached. New Hampshire cigarette tax currently stands at $1.08 per pack of 20 cigarettes.
Massachusetts's recent tax increase may have resulted in a boost in New Hampshire cigarette sales.
Reference: Cigarette tax increase on hold for two weeks by DANIEL BARRICK, Concord Monitor, 10/2/2008.
A law requiring cigarettes sold in New Hampshire be self-extinguishing started in Oct. 1, 2007.
Related news brief: Kentucky to go ‘fire safe’ by next year..
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C-store update - tobacco product displays at checkout counter..
A child seven years old is tall enough to look these products directly in the eye. There should be NO doubt that tobacco displays encourage children to start using tobacco products.
You see Swisher, the U.S.A.'s largest manufacturer of little cigars, Cigarillos for 99 cents a pack, Imperial Tobacco/Altadis Phillies in various types and flavors - note the Phillies cigarillos come in various colored tubes (containers), Altria/John Middleton varieties of Black & Mild Cigars as cheap as 50 cents/each, Swedish Match's White Owl Cigars with a B1G1 free offer (latest flavor - pineapple) and many more items all designed to get the attention of those that frequent the c-stores.
Cigarette sales mainly take place in c-stores.
Related news briefs (lots of them - here's a few): Link Between Convenience Stores and Tobacco Use..; *Convenience Store Update - hanging tobacco signs from the ceiling.. and Big 3 cigarette companies continue to compete for c-store space - the PM T-SET...
Other news: In November 2008 - Marlboro products will go down one dollar a carton and in December 2008 Philip Morris will be promoting a Marlboro gift package (get one pack free)- they do not want it called B1G1 free.
C-store owners wonder how Altria will tweak the UST's premium brands - Copenhagen and Skoal - to return these brands to some modest share growth..
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