Category Archives: Tobacco Articles

Philip Morris Earnings Preview

Marlboro

On April 17, Philip Morris International will present its 2014 first quarter earnings. Experts do expect data from Philippines, where an increase in indirect taxes implemented in 2013 affected negatively tobacco industry.

Experts say that Philip Morris business in European Union, Eastern Europe, Middle East and Africa was affected by numerous anti-tobacco regulations. Russia is company’s biggest tobacco market in the region and all regulations in this country do greatly affect Philip Morris sales volume.

These days Philip Morris International is a leading international tobacco company. Tobacco products manufactured by the company are sold in more than 180 countries worldwide. Its most popular and successful brand is Marlboro. Except the USA and China, Philip Morris holds more than 28 percent of the total cigarette market in the world. Till 2008 Philip Morris International was an operating company of Altria Group.

Representatives of Philip Morris International say that 47% of total volume decline are attributed to its operations in the Philippines. Thus due to significant increase of indirect taxes in the country, the company was forced to increase prices on Marlboro cigarettes by 60%. As a result, Philip Morris International recorded a excessive decline in cigarette shipments to the market in 2013. Today more and more people are looking for discount cigarettes online as it is most beneficail and convenient.

How to Protect Your Family from Tobacco Smoke

Smoking

You probably heard about Smokey and the Bandit, Smokey Robinson, Smokey Bear. Those smoky personages were popular few decades ago but even today may be observed their impact on pop culture. Same thing is with second- and thirdhand smoke.

Recently researchers found that even in case a woman never smoked cigarettes, her lifetime exposure to secondhand smoke increases her risks for tubal ectopic pregnancy,  birth of a dead child and miscarriage. There were examined adults exposed to secondhand smoke at home for 20 or more years, kids exposed for 10 or more years and adults exposured at their workplace for 10 or more years.

Earlier scientists found that exposure to secondhand smoke may result in stroke, heart disease, lung cancer and asthma.

Secondhand smoke becomes thirdhand smoke when it enters various surfaces such ascarpets, fabric, wallboard, furniture. Children do ingest it when they put objects or hands with thirdhand smoke into their mouth. Namely this may damage their DNA.

What is the best way to protect your family from tobacco smoke? It is necessary to create a smoke-free environment at home. No smoking at home! How to convince your spose? Do with love, respect and understanding, be persistent and you will win.

In case you live in a state where smoking is banned at workplaces and restaurants, but you see that people still smoke there, then you should address your state representatives and complain about this public health issue.

In case at your home lived a smoker, you should remove all second- or thirdhand smoke by washing carpets, furniture lining, fabric, and even your kid’s toys.

If tobacco smoke enters your home from smoking neighbors via ventilation system, talk with them about finding an appropriate solution. Everyone deserves a smoke-free environment!

New Jersey Ranks 51 in Protecting Kids from Smoking

Smoker

The Campaign for Tobacco-Free Kids has placed New Jersey at the end in the rating of American states which work to protect kids from smoking and tobacco use. It means that New Jersey shows very bad results in protecting kids from smoking and experts do recommend state authorities to reconsider using funds from the 1998 Tobacco Settlement to reestablish the state’s comprehensive Tobacco Control Program, which was removed in 2009.

According to Jill M.Williams, who is professor of psychiatry and chief of addiction psychiatry at Robert Wood Johnson Medical School, though New Jersey receives funds from the Tobacco Settlement and gains tobacco-generated revenue of more than $947 million in Fiscal Year 2014, it spends nothing to support tobacco prevention and treatment programs.

Data from other states showed that prevention and treatment programs help to save money on healthcare expenses related to smoking such as lung cancer and heart attacks.

Campaign for Tobacco Free Kids representatives say that in New Jersey each year healthcare costs related to smoking are $317 billion, $967 million of which is covered by the state Medicaid program. To note that Medicaid program offers primary health insurance for people with mental diseases in the USA.
In New Jersey there exist great health differences. It was found that highest smoking rates are registered among poor people and those with menthal disorders. Authorities ignore the need to provide most vulnerable groups with smoking cessation programs and this  leads to a number of diseases in them and increase of healthcare costs.

In March 2014 the Journal of the American Medical Association Psychiatry published an article where was highlighted the need for collaborative efforts in treating tobacco addiction. In order to improve education and access to quit smoking programs mental health services should work in collaboration with government-sponsored tobacco control programs.

Most Children from Rural Areas Exposed to Secondhand Smoke

Smoking Woman

Researchers from University of Kentucky say that secondhand smoke is main cause of a number of diseases in children, especially in rural areas,

According to one of authors of the research Ellen Hahn, who is a professor at the University of Kentucky College of Nursing and director of the Kentucky Center for Smoke-free Policy, told that the only way to protect children and non-smokers from secondhand smoke is to totally eliminate the source of tobacco smoke.

The research used data from a panel survey conducted in the Internet and administered to almost 500 residents in Kentucky each year from 2007 to 2012.

The vast majority of participants were females aged 35 to 54 having at least some college education.  50% of the participants were from a county where a comprehensive smoke-free law was adopted and smoking was prohibited in public places and 14% lived in a county with a moderate law, with some places excluded from the law.

The results of the research were published in the journal Nicotine and Tobacco Research Journal. Scientists discovered that survey respondents from urban counties were 2 times more likely to report a smoke-free home than those from rural.

Besides this, it was found that people who responded to the survey in the last 2 years of the survey were more likely to have a smoke-free home in comparison to those in 2007. Researchers were happy to find that since 2007 more Kentuckians have made their homes smoke-free. However, at the same time they found that having kids at home does not mean they live in a smoke-free home.

The authors of the research say that there is need to promote smoke-free homes in rural areas in order to prevent children exposure to secondhand smoke.

Students Should Lead the Way During Stoptober

Stop Smoking

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.

New Zealand: Children Need Protection from Smoking in Cars

Smoking in Cars

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.

Big Tobacco Earns €104m in Profits From Sales in Ireland

cigarettes

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.

South Africa Actively Fights Smoking

smoking

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 Increased Its Market Share

Philip Morris

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.

Tobacco companies evaded FDA ban on ‘light’ cigarette descriptors

Marlboro Lights is Marlboro Gold

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.