Tag Archives: cigarettes

WHO Calls for Tobacco Taxes Increase


On May 31 the world would celebrate No Tobacco Day. In connection with this the WHO calls the countries in the entire world to increase taxes on tobacco in order to encourage smokers to quit and prevent youth from becoming smokers.

The WHO estimated that increasing tobacco taxes by 50% in all countries worldwide will help to reduce the number of smokers by 49 million within the next 3 years.

These days smoking incurs considerable costs for families, governments and businesses because treating smoking related diseases is quite expensive. Smoking-related disease affect negatively businesses because low productivity leads to income drop.

The WHO Director-General Dr Margaret Chan considers that increasing taxes on cigarettes is the most effective way to reduce tobacco use among people.

High prices on cigarettes are very effective in discouraging young people from starting smoking and becoming regular smokers. Moreover, they encourage existing young smokers to reduce their tobacco use or quit.

According to Dr Douglas Bettcher, Director of the Department for Prevention of Noncommunicable Diseases at WHO, increasing prices on cigarettes helps to reduce tobacco use among young people than among older adults. Adult smokers say that when taxes are increased they buy cheap cigarettes in the Internet.

The  WHO estimates that if all countries in the world increased tobacco taxes by 50% per pack, governments would gain US$ 101 billion in global revenue.  For example, fhose money could be used in social programmes.

Philippines and France are countries that increased taxes on cigarettes and this measure proved to be effective. Thus in France has reduced the number of people suffering from smoking related diseases, and in Philippines the Government gathered more money than it was expected and wants to spend them on health services.

Earlier FDA launched an anti-smoking campaign aimed at youth

Cigarettes and Stress


People who think that smoking relieves them from stress are mistaken. A new research was made on the subject.

It found that quitting smoking has same effects on the depression and anxiety as antidepressants do. Experts say that effects on quitting are even greater than from using medicines.

The researchers from the universities of Birmingham, Oxford, and King’s College London, examined 26 studies and found that people who quit smoking had a great drop in depression, anxiety and stress.

According to researchers, quitting smoking is connected with reduced anxiety, depression and stress and improved positive mood and quality of life in comparison with continuing to smoke.

In studies participated 44-years-old people who smoked around 20 cigarettes daily and were examined for an average of 6 months. The findings are very useful for doctors who treat mental disorders as they should provide smoking cessation advuce for people suffering from anxiety and depression.

Though a lot of smokers want to quit, many of them continue to smoke because they believe that smoking provides them with mental health benefits.  Regular smokers say smoking cigarettes imroves emotional problems, relieves from depression, anxiety and stress, stabilises mood.

The author of the study Gemma Taylor, the University of Birmingham said that it is  encouraging greatly to show that quitting smoking helps to improve mental health.

Generally, over the last 40 years smoking rates have declined significantly, but among people with mental disorders the situation is the same. The main reason for that is that people do believe that quitting will worsen their mental health.  Researchers claim that this is nothing but a myth.

It was estimated that almost 50% of all cigarettes sold in England annually are smoked by people with mental disorders, therefore latest research is expected to change the situation.

People suffering from menthal disorders do often smoke cigarettes in order to relax when they feel nervous, but they should know that smoking only worsens their condition.

Retailers in Ireland Worried About Introduction of Plain Packs

Plain Cigarette Pack

In Ireland the representatives of Convenience Stores and Newsagents Association ( CSNA) told that Australia adopted too strict measures in order to improve their legislation on tobacco packaging.

According to Vincent Jennings, who is CSNA chief executive, the introduction of plain cigarettes packaging in Ireland should be delayed. The initiative should be discussed first in order to determine all pros and cons.

On the meeting Joint Oireachtas Committee on Health and Children, Vincent Jennings said that he was worried that there was not estimated the regulatory impact of the plain packs proposal.

The Public Health Bill entitled Standardised Packaging of Tobacco will introduce standardised plain packaging on all tobacco products.  The Bill will clarify the position and size of health warnings displayed on cigarette packets.

The Australian anti-tobacco measures included a 25% annual increase in excise taxes during four years.  Australian government totally spent A$85m (€56.3m) on tobacco policy, and A$28m of them were spent on high-risk and disadvantaged groups.

Mr Jennings added that the Australian government reduced the number of duty-free cigarettes from 250 to 50.

Australia introduced plan cigarettes packs in 2011 and it is the first country in the world who did this. Now many countries worldwide want to follow this example.

Philip Morris International, Leading Maker of Cigarettes

Marlboro Cigarettes

Coca-Cola is a perfect model of a wonderful business. Altria Group and Philip Morris International are two tobacco companies that have so many important features with Coca-Cola that long-term investors ought to hold all three in the same regard

Coca-Cola, Altria and Philip Morris International are leading companies in their respective markets. Coca-Cola has a leading 17% of its market.

Altria and Philip Morris International  produce Marlboro, most popular cigarette brand, which has a biggest share of tobacco market. Marlboro enjoys a 42.6% share of the U.S. and international market.

Altria, that produces and distributes Marlboro within in the USA, has a 50% share of the U.S. cigarette market, 30% of the U.S. cigar market, and 50% of smokeless tobacco market.

Philip Morris International, that distributes Marlboro worldwide, was spun off from Altria in March 2008. Besides Marlboro, it owns 7 of the top 15 international cigarette brands that includes Philip Morris, L&M and Bond Street. Philip Morris International’s cigarettes brands have a 29% share of the world cigarette market, excluding China and the U.S.

Leading market share provide Altria, and Philip Morris International significant advantages. Smokers are literally addicted to cigarettes and show their favorite brand loyalty.

Besides pricing power, Philip Morris International and Altria, and have significant economies of scale in manufacturing and distribution. Each of these tobacco companies has fixed costs across a number of tobacco products sold in comparison with its competitors, which helps then to get higher operating profits.

Warnings on Every Cigarette Encourage More Smokers to Quit

cigarette packs

A research showed that health warnings on every cigarette would encourage more people to quit smoking.

The talk is about timelines that demonstrate smokers that every cigarette shortens their life by 11 minutes and a list of toxic substances found in cigarettes that affect health negatively.The results of the study were published in Tobacco Control Journal.

Researchers from Bangor University intend to continue work over this subject and want to encourage Government to take its results into consideration.  It should be noted that in November, ministers agreed to introduce plain cigarettes packs in order to make smoking less attractive for youth.

The Government  told about a review of the policy which could make tobacco companies use plain packaging by 2015.

In a study by Bangor University’s Business School there was found that people were 16% more likely to quit smoking if they used cigarettes with health warnings.

In the study participated 200 smokers from Greece and Scotland and there were given different regular cigarettes with warnings and without them. One cigarette variety had a timeline of 11 minutes printed on each cigarette to demonstrate how much each puff shortens smoker’s life. Another variety had a list of most toxic substances that it contains.

In 2012 Australia first introduced plain packaging for cigarettes and today all cigarettes brands are sold in olive-coloured packs with health warnings.  A study found that this measure is extremely effective and such warnings do encourage more smokers to quit.

New York City to Ban Display of Cigarettes


New York plans to raise legal smoking age to 21 and besides this to ban dispay of cigarettes in the stores. These anti-tobacco measures to be adopted soon as Michael R. Bloomberg intends to make New York a smoke-free city.

However, authorities of the New York city say that e-cigarettes escape display ban in their city. The opponents and supporters of e-cigarettes, consider that the Mr. Bloomberg choses to revoke a measure that was strongly opposed by a group of retail stores and probably is to meet a serious constitutional encounter.

This week the City Council is going to vote on a number of anti-tobacco measures such as increasing the smoking age from 18 to 21 and ban the sale of discounted tobacco products.

Mr. Bloomberg  says that ban of dispaly of tobacco products in stores will help to prevent kids from tobacco marketing and to keep people quitting smoking from chance purchases of cigarettes. However, tobacco retailers said that it would affect negatively their business. Several parts of the bill were also opposed by supporters for e-cigarettes, as they say that nicotine-delivery devices are healthier alternatives to smoking tobacco.

Zoe Tobin, a spokeswoman for the City Council, and Jean Weinberg, a spokeswoman for the Health Department, said that it is evident that the display of tobacco products encourages children and teenagers to smoke, but it is unclear what to do with e-cigarettes, because they rise controversial opinions.

It is expected that FDA will publish this week regulations on e-cigarettes. Greg Conley, the head of the Consumer Advocates for Smoke-Free Alternatives Association, said that the regulation would not affect a law that keeps regular cigarettes out of sight.  He said also that the display ban is absolutely unconstitutional.

In 2010, a federal judge rejected a law that imposed tobacco retailers to post horrible images of damage caused by smoking.

Russia Introduces Fines for Smoking in Public Places


Lower house of parliament in Russia on Tuesday, October 15, approved the final reading of a bill which tightens anti-smoking legislation in the country by introducing fines for smoking in public places. The initiators of the bill say that it would help to prevent teens and kids from smoking.

The bill is part of a large anti-smoking legislation that came into action in June current year. It establishes fines of around 3,000 rubles ($93) for smoking in public places that have “no smoking” signs. The highest fine is established for smoking in playgrounds. The bill comes into action on November 15 and it also prohibits advertising tobacco products.

Public places where smoking is prohibited include government buildings, cultural places, healthcare and educational facilities, stadiums and public transport. Ban on smoking in trains, restaurants and hotels comes into action the next year.

The law also puts restrictions on display of tobacco products in stores. Sales from retail kiosks will prohibited from June 2014, and there will be established minimum cigarettes prices. These days Russia has cheapest cigarettes in the world and some of them cost 40 rubles ($1.24) a pack.

In April Russian Prime Minister Dmitry Medvedev said that smoking ban in public places could save up to 200,000 lives every year in the country. Today Russia has the highest rates of smoking in the world.

Scotland Plans to Introduce Plain Packs for Cigarettes

plain cigarettes packs

A new study suggests that hundreds of shops in Scotland will be forced to close and thousands jobs will be lost if the Scottish Government will introduce plain box packaging for cigarettes.

A paper by the Centre for Economics and Business Research (CEBR), supported by tobacco giant Philip Morris which produces Marlboro cigarettes, states that the goverment’s plan would deal a blow to business.

Ministers say they want to introduce new law which prohibits branding of cigarettes. Removing the charm of glamorous packaging will prevent children from taking up a cigarette.

The CEBR paper refers to a study made in Australia which has shown how smokers avoid small shops because it takes too much time to find their favorite brand among identical packages. Thus smokers go to supermarkets to buy cigarettes or to the black market, or abroad.

CEBR head of microeconomics, Oliver Hogan, says that their research reveals that the potential impact of this plain packaging policy may be upsetting for business. In Scotland it is expected a loss of £30 million in tobacco and non-tobacco earnings  to small independent sellers and the loss of 700 shops  and over 3,200 jobs. .

This will make smokers buy cigarettes on illegal markets, abroad and supermarkets. Thousands of customers will have no patience to wait in a line in a local shop while cashier finds right cigarettes among the plain packs.

These days Scottish government promotes anti-tobacco policy in order to reduce number of smokers in the country. The idea of introduction of plain packaging came from Australia where such law was already adopted.

Scotland is first part in the UK which banned smoking in public places, also there were banned displays of tobacco products in big stores which lead to a lawsuit. Experts say that the same consequences may have the law which bans usage of plain packaging.

Tobacco companies will use  European Union law to demand compensation for any losses caused by plain packaging.

Scottish Government representative said that the Government stays devoted to the introduction of plain cigarette packs argumenting that this will be an important step in reducing the number of smokers among teenagers in the country. The main goal of such tobacco control policy is to improve public health.

The CEBR paper suggests that the new law would reduce sales of cigarettes by 4 — 8%.

Pack of cigarettes in Russia to bite smokers by 2020

Some Cigarettes

Cigarettes can turn into even more expensive product in Russia and it will be more difficult to buy tobacco products, the Russian Ministry of Health alerts.

The World Health Organization (WHO) suggests Russia to increase the excise tax on tobacco products more than 5 times, precisely seven times. As outlined by the WHO demands, the standard price for a cigarette pack will be 238 rubles ($7.5) by 2020. Present prices vary from 30 to 80 rubles per pack ($1-3).

Not only regular smokers, but also the Ministry of Finance did not approve the step. The ministry offers to reduce the growth of excise duties after 2016. The math is simple.

One cannot permit a greater gap in retail prices on tobacco products with companions in the Customs Union. As outlined by the Ministry of Finance, such measures will result in the stream of contraband from nearby countries. Agreements on these issues between participants of the Customs Union already occur, and before 2016, the growth rate of excise taxes shall not surpass 25%.

Cigarette Marketing Increases as Tobacco Use Drops

Cigarette Rows

Cigarette volumes have been dropping for many years, but that has not prevented cigarette makers from launching their wallets for advertising and promotion dollars.

As outlined by the Federal Trade Commission, the biggest tobacco firms invested $8.37 billion in 2011 on advertising and special offers in comparison to $8.05 billion in 2010. The boost primarily came from an uptick in investing in price discounts, or discounts paid to cigarette stores so as to lower the price of cigarettes to customers. Particularly, investing in price discounts raised from $6.49 billion in 2010 to $7 billion in 2011.

Price discounts were the greatest investing category in 2011, as it has been annually since 2002.

At the same time, the quantity of cigarettes marketed to bulk suppliers and retail dealers in the USA dropped from 281.6 billion in 2010 to 273.6 billion in 2011.

Cigarette producers have also increased advertising and promotion investing on smokeless tobacco products — from $444.2 million in 2010 to $451.7 million in 2011. Just like cigarette advertising, price discounts form up the biggest investing category for smokeless — making up $168.8 million.

But, in contrast to cigarettes, the vending of smokeless tobacco products is on a rise. The dollar value of sales by tobacco companies went up from $2.78 billion in 2010 to $2.94 billion in 2011. The weight of smokeless tobacco sold increased from 120.5 million pounds in 2010 to 122.7 million pounds in 2011.

The information from the commission’s newest tobacco says, “The Federal Trade Commission Cigarettes Report for 2011” and “The Federal Trade Commission Smokeless Tobacco Report for 2011.” The FTC has released the cigarettes report regularly since 1967 and the smokeless tobacco report regularly since 1987.