Background: Smoking soon will be snuffed out at sidewalk cafes, restaurant patios, movie and ATM lines, bingo halls and the common areas of housing complexes. The San Francisco Board of Supervisors voted Tuesday, March 10th to extend smoking restrictions to those places, along with lighting up near doorways and windows of offices, shops and restaurants. It already is illegal to smoke in offices and commercial establishments that don't have a legally designated smoking area.(San Francisco - further smoking restrictions..
But while San Francisco city government is willing to restrict the use of the product, a committee of the the Board of Supervisors drew the line Monday at setting further restrictions — geographic ones, this time — on the sale of tobacco.
The ordinance, introduced by Mayor Gavin Newsom earlier this year, would ban any new licenses to sell tobacco within 1,000 feet of a school. Stores that already have a license would not be affected, but if a store owner sells the business to someone who is not a member of his or her family, the new business owner would be subject to the restrictions.
A week from Tuesday, the full Board of Supervisors will vote on the proposed ordinance, which the City Operations and Neighborhood Services Committee voted against.
Tony Winnicker, communications director for Mayor Newsom’s office, said that they would be working with the board in the next week to find ways to modify the ordinance. Mr. Winnicker said that the mayor agreed with the board that enforcement of existing regulations was important, but that the proposed ordinance would fill a different role by taking aim at access to tobacco by young would-be smokers.
If the ordinance did pass, its initial effects would be minor — more symbolic than anything else — since it would exempt stores that already have a permit. But in a city as dense as San Francisco, where over 70 percent of tobacco retailers are within 1,000 feet of schools, the proposal could have an impact over time, as new retailers go into business and existing stores change hands.
The San Francisco Chamber of Commerce has not taken a position on the ordinance, but it is also looking at the long-term implications of the ban. Jim Lazarus, senior vice president of the chamber, said he was concerned that the ban might give some retailers an unfair competitive advantage. “Somebody is going to benefit from being the last person standing,” Mr. Lazarus said, while acknowledging that some merchants in the city have not been conscientious about restricting the sale of tobacco products to minors.
In a 2009 California Department of Public Health survey, 13.2% of San Francisco retailers admitted to selling tobacco to minors.
But how far should the city — or any government — go in regulating what individuals can buy or sell? The Supreme Court announced today, for example, that it would decide whether California could prohibit the sale or rental of violent video games to minors.
“We’re used to it in San Francisco, the concerns about soda consumption, fat content, cigarette, alcohol,” Mr. Lazarus said. He added, “Those things all on the surface are good restrictions. But when you add them up, you get a lot of government oversight in daily living.”
Reference: Mixed Smoke Signals in San Francisco by MELANIE MASON, BayArea.blogs.nytimes.com, 4/26/2010.
Some San Francisco related news briefs:
San Francisco - Walgreens tries to convince court it's a grocery store..;
San Francisco - further smoking restrictions..;
San Francisco (SF) - launches new anti-smoking campaign..;
San Francisco may expand smoking ban..;
San Francisco - mulls proposal to reduce the number of stores that can sell tobacco..;
San Francisco - Philip Morris has dropped its lawsuit challenging San Francisco's prohibition on tobacco sales at pharmacies..;
San Francisco - Michael Jordan caught smoking on public golf course..;
San Francisco - cigarettes cost a little more starting today, October 1, 2009..;
San Francisco can enforce its ban on tobacco sales in drugstores..;
San Francisco - fight about selling tobacco products in drugstores has flared up..
San Francisco - Judge threw out a Walgreens attempt to stop the ban of tobacco sales in pharmacies..;
Philip Morris appeals tobacco ban at San Francisco pharmacies;
Federal Judge Denies Bid To Stop San Francisco Pharmacy Tobacco Ban..;
Philip Morris USA request stop in San Francisco's ban on tobacco sales by pharmacies..;
San Francisco - cigarette sales rise sharply in c-stores..;
San Francisco files brief to oppose bid by PM USA to block the banning of tobacco sales in pharmacies..;
Philip Morris challenges San Francisco pharmacy tobacco ban..;
Walgreen: San Francisco’s Tobacco Ban Is Unfair..;
San Francisco - All Tobacco Products Banned in All Pharmacies..;
San Francisco critical vote - bar tobacco sales pharmacies..;
SAN FRANCISCO Ban on tobacco at drug stores sought...
Read more...
San Francisco - how much further?? restrictions on where you can smoke..
Lorillard - highlights q1 2010 earnings..
April 27, 2010 -Lorillard’s domestic cigarette volumes during the first three months of this year, at 8.702 billion, were up by 12.7 per cent on those of the first three months of 2009. Comparing the same periods, total US domestic volumes were down by 2.4 per cent. Martin (Marty) Orlowsky, President and CEO suggests that any observations regarding industry and company trends for 2010 as compared with the prior year be deferred until a full six months worth of data is available for 2010 and then compare it with first six months of 2009. First quarter 2009 sales were impacted by last year's Federal excise tax increase.)
Lorillard’s volumes in Puerto Rico and US possessions were down by 12.7 per cent to 0.160 billion but, overall, volumes were up by 12.1 per cent to 8.863 billion.
Full price brand volumes increased by 9.5 per cent to 7.640 billion because of a 9.8 per cent increase in sales of Newport to 7.509 billion. Sales of Kent were down by 6.8 per cent, sales of True were down by 4.0 per cent and sales of Max were down by 5.4 per cent.
Price/value brand volumes increased by 42.4 per cent to 1.062 billion, with sales of Maverick up 48.7 per cent to 0.956 billion and sales of Old Gold up 3.1 per cent to 0.105 billion.
Lorillard’s share of the domestic market during the first three months of this year, at 12.61 per cent, was up by 1.17 percentage points. Newport’s share was up by 0.75 of a percentage point to 10.90 per cent, and Lorillard’s share of the domestic menthol market was up by 1.10 percentage points to 29.90 per cent.
Lorillard's first quarter domestic wholesale shipments totaled 8.863 billion, up 12.7% compared to the same period in 2009 versus a 2.4% decline in total domestic wholesale industry shipments.
Conference call..
Question: Marty, can you just comment on the share gain – I mean they were significant this quarter. Just wondering aside from wonderful management, what exactly is driving this magnitude of share gains?
Response: Our share gains are solely due to organic growth by the line extending filling pipelines with new versions of Newport. I think it is a continuation of our strategy as we said in our release and I think I said it in my own comments, the execution of our strategy which is the – very targeted with respect to where we support the Newport brand and market-by-market and conceivably certain decisions made by our competitors that are helping us is of course helping themselves.
Question: I realize it is early days in the process, but as it relates to the FDA and the menthol study, is there anything that has occurred so far that causes you to alter in any way your assessment of the likely ultimate outcome of the process?
Response: Marty - No, the additional meetings in our minds were not surprising in any real sense. We certainly expected the thrust of the meetings to be as they were, so nothing has really materially changed in our mind even though obviously it was the first of the interest in going through surrounding the meetings, but nothing has changed as far we are concerned. The issue remains the same. It does not make any difference, whether – any posturing might take place during the course of these meeting, any speculation might grow out of that posturing.
The reality is, as we have said repeatedly the weight of the evidence – from an epidemiological standpoint and other aspects of studies that have been conducted did not reflect that menthol is any different in terms of its effects on the public health than non-menthol cigarettes are. That does not change. We also agree that FDA will be obligated to review the contraband dimension associated with (inaudible) any thought about banning menthol cigarette what that might imply. None of that has changed...
Question: Marty, in mid-year this year “lights” and “medium” terminologies going to be removed. And the question is, isn’t there significant, rather sufficient distinction on the packaging of the various Newport brand for consumers to clearly identify and call out their preferred products or do you think you need to institute on some other smaller SKU, some differentiated graphics to what you currently have?
Response: I think we are fine. We did a thorough review of it a year ago. And we made certain modification to the graphic to ensure that they were differentiated, the graphic dimensions of the packaging, so we are not concerned about it. We think we have accomplished what we need to.
Question: I’ve got a question on Maverick’s distribution. If I understand what you said, you said you are taking the distribution national and my understanding is with Newport at least, you are more concentrated in eastern half and so, when you are taking Maverick beyond just sort of typical Newport borders?
Response: Marty - Let me clarify something. Newport is in national distribution. Newport is in probably at least 200 to 300,000 outlets maybe more, maybe 500,000. Whatever the number of the stores that are out there that sell cigarette, Newport is pretty well represented. So, Newport is nationally distributed. When we made the changes at Newport business development on a geographic basis, from a development standpoint and by that I mean, in terms of its market share achieved it varies by geography and yet northeast and the southeast tend to have above the average sales over the market share the Newport than does the west. But we do sell cigarettes in the west. We are not non-existent in any of those locations.
Click to enlarge:
Maverick again, is in national distribution. It has always been in national distribution. And when we have added distribution, we added more packings or SKUs as the brand has grown, but both Newport and Maverick, I can emphasize enough is in national distribution.
Question: So, strategically you are saying you are not planning on distributing Maverick any more or less than Newport?
Response: Marty - no, not at all.
Lorillard, which was spun off from Loews Corp. in June 2008, has been battling to keep its nearly 35% share of the relatively strong menthol market. Competitors Philip Morris USA, owned by Altria Group, and Reynolds American have ramped up efforts to market menthols.
Last week Reynolds American and Altria Group reported declines in cigarette sales for q1 2010. Reynolds and Altria are betting on cigarette alternatives such as snuff and chewing tobacco for future sales growth as tax increases, smoking bans, health concerns and social stigma make the cigarette business more difficult.
References: Lorillard, Inc. Q1 2010 Earnings Call Transcript, Seeking Alpha, 4/26/2010; Lorillard outperforms market in first quarter Apr 27, 2010, Tobacco Reporter, 4/27/2010; Lorillard Q1 Results Beat Estimates, Alpha Earnings, 4/26/2010; Lorillard 1Q profit rises as cigarette sales climb, The Associated Press - Bismarck Tribune, 4/26/2010.
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Scotland - retailers can provide input on future to ban the display of tobacco..
April 26, 2010 - Ministers will unveil detailed plans on Tuesday, April 27th for a consultation on how the ban is going to work.
In late January 2010 an end to the display of cigarettes and tobacco products in shops was approved by the Scottish parliament, along with a ban on cigarette sales from vending machines.
There will be a three-month consultation (will begin on 28 April and run until the end of July) on the proposals, which include:
Limiting displays during a sale to an area approximately the size of a cigarette packet.
Temporary, incidental, displays to be allowed while stocktaking, staff training, pricing and refurbishment are taking place – for no longer than necessary to undertake the activities.
Fixed penalty of £50 (76.34 USD) for people who buy, or attempt to buy, tobacco products for under-18s.
Fixed penalty of £200 (305.35 USD) for retailers, rising by £200 for every offence committed within a one-year period.
Displays will be allowed in cash and carry and duty-free premises, as long as the displays are in an area where only tobacco products for sale and which is not visible from other parts of the store.
The costs for refitting shops to comply with the display ban are estimated to start at £160 (244.287 USD) for a corner shop, rising to £320 (488.56 USD) for a medium-sized shop and £640 (977.04 USD) for a large store.
The display ban comes into force next year for large retailers and in 2013 for small shops.
Shona Robison, the public health minister, said: “Cigarettes kill and we’re determined to do all we can both to help people quit and dissuade today’s children from becoming tomorrow’s smokers. It’s a stark fact that a child who starts smoking at 14 or younger is five times more likely to die of lung cancer than someone who starts to smoke at age 24 or over.“The ban on cigarette displays, coupled with a ban on the sale of cigarettes from vending machines, is designed to make cigarettes less attractive and less accessible to children. I know some retailers had concerns about proposals to ban cigarette displays but the display ban is now law and I would urge retailers to use this consultation as an opportunity to shape the future of tobacco retailing in Scotland.”
Under the Tobacco and Primary Medical Services (Scotland) Act, which received Royal Assent earlier this year, it is an offence for a shop to display tobacco products or smoking-related products (cigarette papers, tubes, filters and holders, as well as apparatus for making cigarettes and pipes for smoking tobacco).
Specialist tobacconists are exempt from the legislation. To qualify as a specialist tobacconist, at least half of a shop’s income must come from the sale of cigars, snuff, pipe tobacco and smoking accessories – not including cigarettes.
Reference: Shops to have say over crackdown on tobacco displays by Hamish Macdonell, Caledonian Mercury, 4/25/2010.
Scotland - related news briefs:
Scotland - campaigners want more to be done to protect young people from passive smoking..;
Scotland - government no plans to ban smoking in cars and public places used by children..;
Scotland - smokers will be banned from fostering or adopting children, comments from Professor Banzhaf..;
Scotland - parliament votes to ban retail cigarette displays and vending machines..;
Scotland - health minister urges smokers to quit..;
Scotland - some men beginning to lead a healthier lifestyle and therefore living longer..;
Scotland - self-reporting of smoking by pregnant women underestimates true number of pregnant smokers..;
Scotland - tobacco firms claim proposed display ban is unnecessary..;
"Glasgow effect" - prevalence of cigarette smoking impact on poor health..;
Scotland - tobacco industry will try to stop attempts to curb sales to young people..;
Scotland - cigarette vending machines removal..;
Scottish politicans most have the courage to protect the health of their constituents..;
Scotland - small businesses given extra 2-years to remove tobacco displays..;
Northern Ireland - assembly approves ban on display of tobacco items..;
Scotland to ban cigarette displays and outlaw cigarette vending machines..;
Bar workers who smoke also benefit from smoking ban..;
17 countries in the world ban indoor smoking - ENFORCEMENT..;
England, Wales to ban tobacco displays in shops..;
Definite Health Benefits of Smoking Bans..;
Northern Ireland raising age for sale of tobacco from 16 to 18 joining the other three United Kingdom (UK) countries..;
Scotland proposes to implement more measures to discourage tobacco use including the banning of tobacco displays..;
Raise Age to 21 to Purchase Tobacco Products...
Read more...
Michigan - smoking ban, established cigars bars can sell food and drink..
And patrons in cigar bars can't smoke cigarettes, pipes, so-called little cigars or any other tobacco products. Only tobacco-wrapped cigars that retail for more than $1 each can be smoked in cigar bars.
The smoking ban includes all workplaces, restaurants and bars and enclosed public places such as shopping malls, arenas and health facilities. Smoking will be allowed on the gaming floors of Detroit casinos, and at cigar bars and tobacco shops that qualify under the rules. The casino restaurants and bars must be smoke-free. The smoking ban does not apply to American Indian-owned casinos.
The rule clarification was sought by cigar bars that serve food and drinks. To qualify for the exemption, cigar bars must prove that at least 10% of their monthly income is from the sale of cigars and the rental of humidors.
"To fail to recognize how cigar bars will generate the other 90% of their gross annual income would be absurd," DCH director Janet Olszewski wrote in a memo Friday.
She said the Legislature intended to allow eating and drinking in cigar bars when it wrote the new law. Tobacco shops and hookah lounges can't serve food and drinks, according to the ban.
Reference: Cigar bars around Michigan get OK to sell food, drinks by CHRIS CHRISTOFF, FREE PRESS LANSING BUREAU CHIEF, FREEP.com, 4/24/2010.
Michigan - some related news briefs:
Michigan - smoking ban takes effect May 1, 2010 but may be difficult to enforce..;
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...
Read more...
Lithuania - must control illicit tobacco in order for tobacco control to work..
Cigarette smuggling causes losses of EUR 10 billion annually to the European Union (EU). Under the Counter & Over the Border How Government Inflames The Illicit Cigarette Trade, Dr Patrick Basham, Democracy Institute, Social Risk Series Paper, 2/23/2010.
Mr Nicholas Ilett, acting Director General of European Anti-Fraud Office (OLAF), said that the number of illegal factories producing counterfeit cigarettes in the EU has risen quite dramatically over the last five years.
"I would like to congratulate the Director General of Lithuanian Customs, Mr Antanas Šipavičius, and his staff for this great result. Lithuanian Customs and OLAF have cooperated closely in this investigation and OLAF investigators were present when the factory was raided. This type of cooperation is essential if the criminal gangs responsible for defrauding European taxpayers out of hundreds of millions of euro are to be brought to justice. We are looking forward to continuing to work closely with the Lithuanian authorities".
This operation is one of a number of actions OLAF is currently involved in to target the illicit production of cigarettes in the EU. Since the first illegal factory was discovered in 2003, over 50 illicit manufacturing facilities have been closed by EU law enforcement agencies.
In order to have an effective tobacco control program the availability of illegal (illicit, contraband, black market, smuggling) must be controlled. Philip Morris International reported a 72 percent volume decrease in their tobacco products in Romania (for 1st quarter 2010) where tax increases have made it difficult for the average consumer to afford cigarette. You got to suspect some smokers are finding cheaper illegal cigarettes to satisfy their addiction. We are all counting on World Health Organization (WHO) to provide solution to control the booming worldwide cigarette smuggling (illicit, illegal, contraband) problem. (WHO - session on global pact on cigarette smuggling stalled..
Lithuania - September 1, 2009 - excise duty on cigarettes increased..
Reference: Illegal Cigarette Factory Raided, European Anti-Fraud Office (OLAF), 4/22/2010.
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