Category Archives: Tobacco Articles
Those who every morning do walk up the same stretch of pavement outside Farringdon station on their way to work in order to enjoy fresh air cannot enjoy it on the whole way as there is always a crowd of people puffing on cigarettes.
You may wonder why? You see smokers everywhere; not only congregated outside Farringdon station, but outside lecture theatres as well. It is not just the health effects that make smoking seem like an unintelligent thing to do, but these days smoking is really expensive. The bill will be really large if you smoke premium cigarettes and buy them at your local store.
Eleanor Doughty does not mind smoking. When she was 15 and hanging out with her friends, everyone smoked, except Eleanor, because she was so scared of fire that she couldn’t use a lighter. Eleonor and several of her friends liked to hang around outside because some people smoked. Some people became lots of people, and then lots of people became everyone until a point at a party in 2010 when she was the only one left inside.
In the university students called her ‘the bore’, because she didn’t smoke, and Eleonor hardly expected it to be outlawed. If anything she expected university to be more liberal. There is a smoking zone ob campus because smoking is forbidden on university territory. Students hang out of windows in flats without setting off smoke alarms.
However, nothing changes: on packed nights at the SU, students are pulled towards the fresh air outside; where question ‘have you got a lighter?’ is a good start for a conversation. This is a way to meet Colin Firth, but certainly he had his own lighter.
Eleanor says smoking is anti-social. October has began and it brought Stoptober, a national stop smoking month for anyone who wants to sign up. Action on Smoking and Health (ASH) says that two thirds of smokers start smoking before age 18. It is planned that Stoptober will attract 200,000 people to quit smoking.
Recently was published a new study in a leading international journal which found that exposure of young people to secondhand smoke in cars in New Zealand still is high, especially among Pacific people, Māori and vunerable layers of society whose parents smoke. The research was published online in the latest edition of the international journal Tobacco Control
The researchers used surveys of more than 25,000 school students over a period from 2006 to 2012. Thus ASPIRE2025 researchers discovered that while exposure levels went down slightly in that time, 23 percent of kids said they were exposured to secondhand smoke in the previous week.
56% of kids reported exposure to secondhand smoke on three or more days. ASPIRE2025 Co-Director, Professor Richard Edwards says that marked differences in exposure to secondhand smoke by socio-economic position and ethnicity did not lower.
The slow descending trend and persisting differencies are out of keeping with New Zealand’s aim of absolute protection of kids from exposure to secondhand smoke and smoking.
Professor Edwards says that smoking in cars is a very important subject because secondhand smoke is dangerous to kids. He also says that secondhand smoke exposure in cars is connected with exposure to more frequent smoking and even initiation. Edwards thinks that Government should introduce smoke-free laws that prohibit smoking in cars in presence of children.
Many countries in the world who adopted these laws achieved great results in reduction of exposure to secondhand smoke. However, Edwards considers that New Zealand needs specific smoke-free laws to ban smoking in cars, that should go in hand with other major structural changes that lower tobacco supply and demand.
Earlier the information about how much tobacco companies earn in Ireland was hidden from public but today the value of the Irish market to Big Tobacco has been revealed for the first time.
A new study says that the Big Tobacco in Ireland in 2011 made €227 on sales and profits of €104m. Moreover, after excise duties they enjoyed profit margins of up to 55% which is 3 times more than achieved food and drink manufacturers.
The study was conducted by Dr Robert Branston of the University of Bath. He said that Ireland is one of the easiest markets in Europe for cigarette companies to get a profit. 79% of the cost of a cigarettes package goes to the state in form of taxes and the rest is profit for manufacturers.
The study showed that leading tobacco maker Japan Tobacco International, which produces Benson & Hedges and Silk Cut, sold €112m worth of tobacco to Irish consumers in 2011.
Imperial Tobacco, the maker of Davidoff and Richmond, made €80m. British American Tobacco which produces famous Lucky Strike cigarettes made about €35m. As to new competitors, these days it is hard for them to enter the Irish market due to severe control on tobacco ads.
Dr Branston said that while Ireland earned €1.42bn in taxes on tobacco during 2011, this amount dropped by €2bn cost of caring for smoking-related diseases.
Tobacco companies can continue to modify premium prices and make big profits because their products are very cheap to make and competition in such a highly regulated market is very limited. What makes tobacco companies to fight tobacco control measures is great profitability.
The study was commissioned by the Irish Heart Foundation and the Irish Cancer Society. They say that the Department of Health is allowing these big profit margins through ineffective tax policies. They require tobacco taxes to be increased.
In South Africa governemnt will continue to actively fight smoking, said this week Aaron Motsoaledi, the Health Minister. He said that there is no study that proves that tobacco usage is healthy, therefore tobacco usage should be limited as much as possible.
Motsoaledi made these declarations during his speech in Pretoria at the release of the SA National Health and Nutrition Examination Survey by the Human Sciences Research Council (HSRC).
There was made a research called SANHANES-1, during which it was revealed that government’s tobacco control plan had succeeded in halving the lower number of smokers over the past 20 years. Though there was noted a reduction in number of smokers, but it was also noted that numbers of people exposed to tobacco smoke still is big.
SANHANES-1 recommends to totally ban tobacco. Motsoaledi said that in many countries of the world governments were tightening regulation dealing with the illegal cigarette markets.
Health Minister says it is important to create an efficient instrument to control tobacco market in South Africa in order to eliminate the possibility of illegal production to appear on it.
Another study was made by HSRC and it concerned foods. Its report concluded that price is the most important factor for most people from South Africa when they make shopping for food.
Professor Demetre Labadarios says that South Africans prefer to buy cheap grocery products and this resulted in consumption of more sugar and fats. For 65% of women who make grocery shopping, the price is most important factor when they want to buy something. It makes sense, but has negative consequences. Another important factor is the taste of food. The fact that the food they buy is delicious matters more to females than to males.
According to SANHANES-1 report, only 1 in 7 shoppers were interested in the health implications of the food they bought. Thus the prevaling disease among adults is anemia: 22% of women and 12.2 of men suffer from it.
As to weight issues, number of underweight people in South Africa was reduced. The survey revealed that more women were obese than men.
In comparison with demographic and health survey made in 2003, the study by SANHANES-1 showed the percentage of underweight people and people with normal body mass had decreased, while percentage of overweight people had increased.
The SANHANES-1 survey was supported by the health department and the UK’s department for international development. It was made by a research consortium comprising the HSRC and the Medical Research Council,
Philip Morris International presented this week a report which revels that in the first quarter its market share grew on many markets in such countries as United Kingdom, France, Italy, Germany, Canada, and Indonesia.
This year Philip Morris reduced its 2013 earnings guidance to between $5.55 and $5.65 per share. Due to recent changes in foreign exchange rates here it excluded one-time items. The estimate includes a one-year general productivity and cost savings target for 2013 of about $300 million.
The American dollar is rising against other currencies in many countries of the world, therefore companies which sell goods internationally lose money when it comes to converting revenue in foreign currencies back into the dollar. This affects Philip Morris International because most of his businesses he does in different countries in the world.
Tobacco industry analysts wait for new tobacco products from the company. Philip Morris International announced about launch of new generation prodcuts in 2016 and 2017. They told about a new development that heats tobacco in a cigarette with a controlled heating mechanism.
Philip Morris International is the largest cigarette company in the wrold which has its offices in the USA (New York) and Switzerland (Lausanne). It produces such cigarette brands as Marlboro, L&M, Parliament.
Altria Group Inc. is the owner of Philip Morris USA from 2008. Today Altria is the largest U.S. cigarette seller. Analysts expect Philip Morris to report profits of $1.41 per share on revenue of $8.17 milliard. Philip Morris International reported net income of $1.36 per share on revenue of $8.12 billion, excluding excise taxes.
New study from Harvard School of Public Health (HPSH) reveals that a year after the federal government approved a law prohibiting word descriptors such as “light,” “mild,” and “low” on cigarette packages, smokers can still without difficulty find their brands as tobacco companies added color-coding to “light” packs after the prohibition. These data indicate that the companies have been able to avert the ban on confusing words.
“The tobacco companies were recognized guilty by a federal court in 2006 for deceptively advertising ‘light’ cigarettes as safer. After a new federal law was approved in 2009 to end the tobacco companies’ deceptive marketing methods, the industry has obviously circumvented it by applying new and innovative techniques to trick consumers,” stated Gregory Connolly, director of the Center for Global Tobacco Control at HSPH and professor of the practice of public health in the Department of Social and Behavioral Sciences.
In 2006, a U.S. federal court decided that tobacco companies should use no more descriptive words that share a misleading health message.
To find out whether the tobacco companies were observing the ban, the HSPH scientists analyzed retailer manuals from the tobacco company Philip Morris; companies’ yearly reports filed with the Massachusetts Department of Public Health; countrywide cigarette sales records; and the results of a 2011 national public view survey that involved questions about smokers’ ideas of their brands being “light” or regular.
The research explains how Philip Morris got rid of the terms “light,” “ultra-light,” and “mild” from cigarette packs and replaced new brand names and colors. For instance, the “Marlboro Light” brand was called “Marlboro Gold,” “Marlboro Mild” was called “Marlboro Blue,” and Marlboro Ultra-light” was called “Marlboro Silver.” Other cigarette companies followed Philip Morris. The cigarettes themselves continued to be the same, however, the percentage of ventilation in each category of “light” sub-brands was unchanged after being recalled and supplied with a new color descriptor. Ventilation is the principle determinant of whether a cigarette is named “light.”
In the public opinion review, over 90% of the smoker answerers said that, a year after the FDA ban, they saw it either “somewhat easy” (11%) or “very easy” (81%) to recognize their cigarette brand – nonetheless, they still considered certain brands as “light” even though tehre are no “light” descriptors on the packages.
During the last several years Imperial Tobacco has made great efforts in changing its tactical target to put customers at the center of its business and push organic sales growth. It’s been a quick change and the company was happy with the growth it is making, creating quality growth from high quality brands to push sustainable earnings.
Imperial Tobacco‘s success is constructed around a differentiated strategy that’s aimed at using its understanding of consumer reasons to appreciate the potential of its portfolio and provide consumers with the best tobacco experiences.
The company’s target at pushing sales has provided numerous highlights in 2012. Imperial has raised tobacco net profits by 4% to .7.0 billion, as it continued to develop momentum behind its total tobacco portfolio.
Its total volumes restored strongly from its first quarter and the cigarette maker finished the year with general stick equivalent volumes decreasing 2.7%, a lot of which was caused by current market weakness in Ukraine and Poland and compliance with international trade sanctions in Syria.
The quality of Imperial’s brands and the growth it is delivering is shown in the strong portfolio benefits the company made in 2012. The excellent performance of its key strategic brands, Davidoff, Gauloises Blondes, West and JPS, led to combined volume growth of 7% and net income growth of 13 %. Its fine cut tobacco volumes were firm, with net profits increased by 13%. The tobacco company presented further strong benefits from premium cigars growing volumes by 11% and profits by 10% and increased Scandinavian snus volumes by 53% and net profits by 46%.
Key Strategic Brand Success
Driving momentum behind Imperial Tobacco’s major strategic brands is a current goal. In 2010, Davidoff, Gauloises Blondes and West generated 26% of the company’s overall stick equivalent volumes; currently they represent 30%. Increasing the sales momentum behind Davidoff has been a special target in 2012. The company provided volume growth of 9% and made great progress in Asia, the Middle East and Eastern Europe, getting volume and share in profitable consumer growth segments such as kingsize superslims and queen size.
Altria is the biggest tobacco company in the U.S. The stock is a in demand because of its high dividend yield, and the firms’s powerful cigarette brands such as Marlboro and L&M. Nevertheless, there are several inherent threats in the U.S. cigarette industry which Altria investors should be cautious with. These contain the decreasing market for cigarettes in the U.S., increasing excise duties and the risk of raised and tough regulation from the government against the industry.
The firm has already entered into smokeless tobacco, and by means of its Copenhagen and Skoal, has obtained the leading spot in the market. It as well lately introduced a nicotine flavored lozenge with the brand name Verve. It can be estimated potential entry of Altria into the market for electronic cigarettes.
The market for e-cigarettes, which is presently about $300 million in size, may increase to over $1 billion over the next three years, in accordance with some projections. This results in yearly growth rate of almost 50 percent over the next three years.
Why does Altria need to enter this market?
Altria is presently the leader in U.S. cigarette market but confronts decreasing earnings and a shrinking user base caused by the aspects mentioned earlier. In 2011, the cigarette market size in the U.S. was about 270 billion cigarettes. With the market for cigarettes decreasing, Altria is limited to driving top line growth for the division through price boosts, which is unsustainable.
Altria’s rivals, such as Lorillard and Reynold’s, have already entered e-cigarette market via the acquisition of Blu cigs. Altria, on the other hand, has yet to take a step and stands to miss the opportunity on what could be a highly profitable and quickly growing market if it does not take action soon.
How will Altria enter the market?
A way in which Altria can enter the e-cigarette market is to obtain a well established e-cigarette manufacturer in the United States, just like Lorillard’s purchase of Blu ecigs. Reported by Wells Fargo analyst Bonnie Herzog, Altria may be searching to obtain NJOY, an e-cigarette company with a 40 percent share of the U.S. e-cigarette market.
Canada’s globe ranking for cigarette pack warning labels went up to 4th in 2012 from 15th in 2010 when new Canadian health warnings covering 75% of cigarette pack were introduced, an worldwide review reveals.
The Canadian Cancer Society posts a review every two years rating cigarette warning labels. The most recent review was launched on November 14 at the World Health Organization’s Framework Convention on Tobacco Control conference in Seoul, South Korea.
In 2011, Health Canada declared that it would renew warning labels on tobacco products packs. Canada’s health-related warnings now cover 75% of the front and 75% of the back of cigarette packs.
Rob Cunningham, senior policy analyst for the Canadian Cancer Society, commended Health Minister Leona Aglukkaq for the new health-related labels, but also obliged the federal government to comply with Australia’s lead in introduction of plain packaging.
Australia, which obtained the top ranking, has the biggest warning labels, covering 82.5% of the pack front and back of pack (75% front, 90% back). Australia as well forbids cigarette giants colours, logo and design features on the branded part of the package.
“Plain packaging would reduce the tobacco companies’ use of the package as a promotional element, would boost the effectiveness of package health labels, would lower package deception, and would minimize tobacco consumption,” the review’s authors stated.
Tobacco companies challenged the Australian rules on the grounds that they infringe intellectual property rights and devalued their logos. The Australia’s highest court upheld the law in August.
After the Australian ruling, Health Canada said that it is watching what result the plain packaging law has in Australia, and did not exclude promoting similar laws.
The other top-ranked countries for health label sizes in the review were:
- Uruguay fixed at second place with Sri Lanka at 80% of front, 80% of back,
- Brunei and Canada at fourth place at 75% .
Another report posted on November 14 by the Cochrane Collaboration came to the conclusion that providing smokers text or video information for at least six months can help people to give up smoking.
The text messages presented motivation, support and tips for smoking cessation.
Smartphone applications weren’t included in the report.
Usage of little cigars, which have lower taxes and fewer marketing limitations than cigarettes, has enhanced significantly during the last three years. And while convenience store sellers can use the usual promoting strategies to them, an in-depth study of their potential, said one retailer, must begin.
“There are two separate types of little cigars on the market,” Andrew Kerstein, president and owner of five Smoker’s Haven stores in Matawan, N.J. and the chairman of the National Association of Tobacco Outlets (NATO) explained.
“There are the little cigars that are bought by a quantity of mainly older, senior citizens who can no longer afford the price of produced cigarettes because of the considerable increased in SCHIP (State Children’s Health Insurance Program) or to roll their own cigarettes. They are switching to little cigars.”
Little cigars are seasonal products. Product sales in a cold weather have a tendency to increase considerably. “In most markets there are considerable enough limitations on indoor smoking so most people must smoke outdoors,” Kerstein said.
“The younger consumers are not excited about little cigars. People who are aged between 20-30 years have enough disposable earnings to purchase cigarettes and that’s what they are purchasing,” Kerstein said.
“Little cigars, because of tax gaps between cigars and cigarettes, become appealing to cigarette smokers,” said Andrea Myers, a board member of NATO, who works in 12 Fast Max convenience stores as well as 19 Smokers Host Discount Tobacco stores throughout Indiana. “There are a lot of people who switched from cigarettes to little cigars. Little cigars look like a cigarette, act like a cigarette, and they sell for about a quarter of the price of cigarettes, influenced by which brands a smoker uses of both.
While the strategies of selling little cigars possibly aren’t all that different from most other products at least in Kocolene’s stores, to lend themselves more easily to effective selling, which has implications on employee education and training.
“Little cigars are an easy product to sell to low-income smokers,” Myers said.
While little cigars and electronic cigarettes have enjoyed a rise in popularity, the jury is still largely out on e-cigars.
Kerstein defined what he sees as a lack of catching strength by electronic cigars by returning to the original premise behind e-cigarettes.
“What aided prompt electronic cigarettes were a need influenced by smoking limitations and price issues. So if there are considerable limitations, again on where adult smokers can smoke lawfully, electronic cigarettes are not subject to the same limitations. Smokers can use them indoors and that makes a big opportunity.