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20 minutes for two cigarettes
03:52, 2008-Jul-18
According to the researches, all smoking
employees take a ten minute break for smoking one cigarette.
According to the researches carried out after the ban on smoking in closed
spaces, an employee take a ten minute break for smoking one cigarette a day.
Two cigarettes take 20 minutes
Smoking employees stay outside for smoking one
cigarette for around 10 minutes a day. Employers say: "we need to limit
the time of staying outside for smoking; because the employees already have a
30 minute lunch break and 30 minute tea break."
Eight companies have applied the company Meyer to start feasibility activities
for installation of smoking tracking system to their companies. Meyer installed
the first system in Turkish Airlines and will start the application in a plant
in Izmir. The companies are interested in the system as it gives the
opportunity to limit smoking breaks.
Higher tax brings lower cigarette sales
06:35, 2008-Jul-14
Local retailers are already feeling the
effects of the state’s recent cigarette tax hike, with some businesses seeing
tobacco sales decline by as much as 35 percent.
Justin Le, owner of B & K Liquors at 1212
Washington St. in Weymouth, said weekly cigarette sales in his store have
dropped by as much as 20 percent compared to a typical week since the
$1-per-pack tax increase went into effect on July 1.
Le said some customers have told him they will
go to New Hampshire to purchase cigarettes. Others have said they will buy cigarettes
on the Internet and others yet are promising themselves they will quit or cut
down – or at least switch to a cheaper brand – from Marlboro to USA Gold or
Sonoma, saving $1.25 a pack.
“The first week was very bad, but now they’re
getting used to it,” Le said.
Le also said because the bill was signed late
in the day, many customers were not aware of the increase and complained when
he tried to collect the extra dollar tax – so he sold them cigarettes at the
old price. But now he will have to pay the additional $1 tax on each pack he
sold at the old price – even though he didn’t collect it.
Before the tax went into effect, Gary Patel,
of Brennan’s on Hancock Street in Quincy, said he would sell a couple of
cartons of Marlboros a week. Now he said that judging from traffic in his
store, a lot of people have quit – or at least quit coming in. He said his
weekly cigarette sales have fallen by as much as 35 percent from a typical
week.
Brian Tenore, owner of Beale Street News in
Quincy’s Wollaston section, said many of his younger customers are teaming up
and going across the state line.
“They’re getting their buddies together and
one guy will take a list and money and drive up to New Hampshire,” Tenore said.
Cross-border sales and Internet traffic are
both issues that retailers have to deal with when facing a tax increase such as
this, said Bill Rennie, vice president at the Retailers Association of
Massachusetts.
The organization opposed the tax and sent out
a grass roots call-to-action urging its members to contact their legislator and
voice their opinions, Rennie said.
While Rennie said he expects retailers on and
around the border to feel the sting more sharply, he said, it’s not tough for
most Massachusetts residents to drive across the state line to shop.
“Many people live within an hour’s drive of
any border,” he said.
Pravin Patel, who owns Butts and Bets on North
Main Street in Randolph, said while he has only seen a slight drop in business
so far, he expects it go down further still.
“Business is still hard to figure out right
now but I think it is going to go down 20 to 30 percent,” Patel said. “People
are coming in and saying it is going to be their last pack or that they are
going to switch to a cheaper brand.”
The state Department of Revenue traditionally
sets a minimum price for cigarettes. The new tax, at $2.51 per pack, has pushed
the state’s minimum price of Marlboros up to $6.35 a pack for chain retail
stores and $6.44 a pack for non-chain stores.
The New Hampshire revenue department,
meanwhile, doesn’t set minimums. That, along with New Hampshire’s comparatively
low cigarette tax – $1.08 per pack – and the state’s lack of a sales tax, makes
it tough for Massachusetts retailers to compete.
Philip Blatsos, commissioner of the New Hampshire
Department of Revenue Administration, said each time Massachusetts increased
its cigarette tax and New Hampshire didn’t, his state saw a corresponding
increase in its sales of cigarettes.
Blatsos said past studies have shown that 40
percent of New Hampshire’s tobacco revenue comes from nonresidents. The
majority of those are from Massachusetts. New Hampshire also draws tobacco
sales from residents of Vermont, Maine, New York and, to a smaller degree,
Connecticut and Rhode Island.
Cigarette sales have been on the decline
nationwide for about eight years. But this year, New Hampshire officials expect
to see an increase in its tobacco revenue because of the $1-per-pack tax hike
in Massachusetts.
Leo Vercollone, president of Duxbury’s Verc
Enterprises chain of 20 gas station and convenience stores, said 40 percent of
his retail store income is derived from the sales of tobacco products –
excluding gasoline and lottery sales. Vercollone said before the new tax took
effect, sales of cigarettes in his company were on the decline.
“When the cost of a product goes up 20
percent, in this economy, it’s going to have an effect,” Vercollone said. “But,
from my perspective, if people are going to stop using it (tobacco), I look at
it as a plus. If they are driving to other states to purchase it, I look at it
as a negative.”
British American Tobacco denies breaking youth code on cigarette sales
04:09, 2008-Jul-4
LONDON - Tobacco giant British American Tobacco PLC has denied
claims made by a BBC investigation that it is breaking its code regarding the
sale of single cigarettes, seen as more attractive to child smokers.
In a BBC This World programme to be broadcast Tuesday, British
businessman Duncan Bannatyne says he discovered special pots in Mauritius which
BAT has distributed to shops to make it easier for them to sell single
cigarettes.
In Malawi and Nigeria, he says he found BAT posters depicting
single cigarettes and showing the price of a single cigarette.
BAT denied that it encouraged the sale of single cigarettes.
Tobacco industry fights back
03:14, 2008-Jul-4
The specifics on Christensen's proposal are not yet
clear, but it is clear that the tobacco industry plans to fight it.
Tobacco company lobbyists are
already fighting against the regulation, said Christensen. She said the
only company in favor of the menthol ban is Phillip Morris. But Lorillard, the cigarettes company that produces
Newport cigarettes, is mounting what the Times called a
"counteroffensive," sending out an email message to
customers recently urging them to call their Congressional
representatives.
"Urgent! Urgent!...Congress wants to make
it illegal to smoke Newports and other menthol cigarettes. Call your member of
Congress now and tell them to oppose any amendment to ban menthol cigarettes," the email said. Newport is the number one selling menthol
cigarette in the U.S.
Located in Greensboro, North Carolina,
Lorillard is the nation's oldest and third largest tobacco company.
It was started in 1760 by Pierre Lorillard and now manufactures a wide
range of brands, including Kent, True, Old Gold, Maverick, Satin and
Max.
Television ads from decades ago depict
menthol cigarettes as harmless additives that enhanced the flavor of
cigarettes. "Newport is smoother," according to the jingle of one
popular television commercial (shown below), "than any other menthol
cigarette." All the people depicted in the ads are, of course,
white.
But as times changed, Newport's demographics seem to have
changed too, and now African Americans are among the biggest consumers of the
menthol cigarettes sold by the company that produces Newport.
Blacks have also been the target of the
industry's advertising efforts, as seen by the two print ads in this article.
Perhaps as a result of the marketing efforts,
Newport cigarettes have become popular in the black community. Just walk down
125th Street in Harlem or some other black inner city neighborhoods, and you
might hear a familiar refrain: "Newport, Newport!" That's
the call of unlicensed cigarette dealers selling the cigarettes by the pack.
With the cost of Newports at $8 in New York City, sometimes the cigarettes
are even sold individually as "loosies" on the black market. 
The combination of high cigarette prices and
high demand have also fueled the black market. In Kansas City over the weekend,
a robber broke into a
convenience store and stole thousands of dollars of
cigarettes, mostly Marlboros and Newports. In another incident a few weeks
ago, a robber broke into a store and stole Newport and Kool cigarettes.
And in Florida last month, a gas station was robbed and a thief again stole Newport cigarettes.
The debate over menthol cigarettes, like the debate over malt
liquor -- a beer with a high alcohol content -- has been going on for years.
Both are popular in the African American community, and many health advocates
are concerned about the racial health disparities that may be caused by the use
of these controversial products.
R.J. Reynolds Tobacco names Gilchrist
01:58, 2008-Jun-30
R.J. Reynolds Tobacco Co. has named Andrew
Gilchrist executive vice president, chief financial officer and chief
information officer, effective July 1.
Gilchrist, who has served as senior vice
president and chief financial officer since 2006, will replace Donald Lamonds,
who is retiring Aug. 1 after 30 years.
Gilchrist joined Brown & Williamson
Tobacco Corp. in 1997 and held a number of management positions there and with
the company's former parent company, British American Tobacco. Gilchrist later
held executive positions at R.J. Reynolds or its parent company, Reynolds
American Inc.
Kirsten Valle
County officials have issued a stop-work order
for the luxury condo tower at the EpiCentre, a project already brought to a
standstill because of a dispute between the EpiCentre and its residential building's
developers.
Mecklenburg County Code Enforcement announced
the order Thursday, citing safety reasons. Work on the 50-story 210 Trade
building stopped in February, with two floors built, because of a disagreement
over technical building-code issues.
The dispute has prompted lawsuits from both
affiliates of Indianapolis-based Flaherty & Collins Properties, which is
developing the condo tower, and the Charlotte-based Ghazi Co., which is
developing the rest of the EpiCentre, a high-profile mixed-use complex being
built at Trade and College streets.
The county's stop-work order, which affects
the residential portion of the project only, will remain in place, with
decisions on the remaining issues deferred until Sept. 15, according to a news
release. Code enforcement Director James Bartl said the order simply keeps
developers from starting work again without talking to the county. The
building's final certificate of occupancy will not be issued until the code
issues are resolved, the release said.
The code enforcement office and Charlotte Fire
Department have seen “some evidence over the past 15 days that the owners of
the property are considering taking steps to resolve their code issues,” the
release said. The county's decision allows those groups to continue to work
toward solving the problems, it said. Kirsten Valle
Over 90% of county businesses comply with tobacco laws
01:55, 2008-Jun-30
During a recent tobacco enforcement “sting” in
Delta County, slightly more than 90 percent of Delta County businesses passed
with flying colors — refusing to sell cigarettes or chewing tobacco without
proper identification.
On July 1, a state law goes into effect requiring
employees to card anyone who appears to be under the age of 30.
The new legislation clarifies previous regulations which stated that anyone who
“knowingly” sells tobacco products to anyone under the age of 18 could be held
criminally liable.
According to Larry Mullen, a criminal investigator with the state
liquor/tobacco enforcement unit, a Palisade woman who was cited for unlawfully
selling tobacco to a minor claimed she did not do so “knowingly” because she
never asked the customer for identification.
The employee who violates the law can be fined for the sale, as well as the
failure to ask for ID, Mullen said.
Mullen was a speaker at a Delta County Tobacco Education Coalition meeting on
Friday, June 20.
Earlier in the meeting, Karen O’Brien, tobacco education coordinator for Delta
County, gave an overview of the many incentives offered to teens, new moms and
adults who want to quit smoking.
“Those are the carrots,” Mullen said. “My job is the stick side.”
During the course of his career with the Colorado Department of Revenue, the
former cop has visited virtually every store on the Western Slope which sells
tobacco products. He uses teens under the legal age of 18 as decoys in his
“sting” operations. In Delta County, he sent females into the stores to try to
purchase cigarettes.
“Delta County did much better than I expected,” he said, adding that females
tend to be turned down more than males.
As a state, Colorado has to demonstrate that 80 percent of the time underage
purchases of tobacco products are denied. The requirement stems from the
tobacco litigation which resulted in billions of dollars targeted for tobacco
education and cessation. The states involved in the settlement, including
Colorado, must demonstrate that a significant portion of the settlement funds
are being used to attack the public health problem posed by tobacco use.
Mullen says his enforcement team visits every store in Delta County at least
once year, and returns in 90 days to re-check violators.
According to the Healthy Kids survey conducted in Delta County last fall, 50
percent of middle and high schoolers find it’s pretty easy to purchase tobacco.
NY Looking For Ways to Tax Cigarettes on Reservations
23:19, 2008-Jun-22
New York State lawmakers are considering a
different way to collect taxes from cigarettes sold on Indian reservations.
Native Americans say they don't have to charge New York State taxes on
cigarettes because they're on sovereign territory. But some state lawmakers,
including Antoine Thompson, say they want to level the playing field for stores
in New York that do collect taxes.
One potential plan is to make it illegal for cigarette manufacturers to sell to
wholesalers that sell to tax-free stores on reservations.
Thompson, a Democrat from Western New York, says lawmakers including himself
are considering further "bold" ideas, including charging the
non-Indian customers a sales tax once they leave Native territory. He says one
idea is to set up a mechanism around Indian territory where consumers would be
asked whether they made any purchases. Consumers would either pay the tax at
that point, or risk being charged with tax evasion if they don't declare their
cigarette purchase.
Thompson also says these proposals or eventual laws could convince all the
affected parties, including the Senecas, to work toward a compromise.
No word tonight on whether the Senecas would entertain a compromise, but the
leaders of the sovereign nation have not considered a compromise before.
Kool Boost Cigarettes Have a Ball with Menthol
23:10, 2008-Jun-22
I'm not a smoker, but I have to admire the creativity of
Japan's cigarette companies when it comes to promoting their products.
With Kool Boost, BAT Japan offers menthol smokers more
of what they already love: cool, refreshing mint flavor that soothes the throat
and adds a unique "buzz" ordinary smokes can't match.
The key to Kool Boost is the powerball
- a cobalt blue plastic globe of concentrated menthol flavor that responds to
pressure by releasing more menthol into the smoke stream. In effect, smokers
can adjust each cigarette to their preferred level of coolness. That's, well,
kinda cool!
For smokers, a sense of defiance, defeat over tax hike
05:03, 2008-Jun-4
Ducking into SoHo smoke shop Cigarillios yesterday afternoon for a regular fix of Camel No. 9, hairstylist Lindsey Mollenhaufer was struck by sticker shock. "Nine dollars!" she gasped at the extra $1.50 she ended up paying. "It's another reason to quit smoking, which I guess I will have to do sooner or later, anyway," said Mollenhaufer, 23, of Harlem. She is not alone. Defiance and defeat wafted across the area yesterday as a $1.25 tax hike brought the total state levy on cigarettes to $2.75, the most expensive in the country. New York City collects an extra $1.50 per pack on top of that. John Costa, 27, who has been smoking for 14 years, began cutting back to a half-pack two months ago because "the city just got too expensive." "I tried to quit before," said Costa, a real estate manager from Sheepshead Bay. "It doesn't work. Now I got to go to Jersey for cigarettes and gas." New York University student Oksana Yakunenko, 20, says she already tried to quit once because of the expense. "I smoke less when I am really broke. I go back to smoking when I have more money," she said. Others were ready to buckle. Eugene Everett, 48, a nursing assistant from Staten Island, has been trying to wean himself off his 15-year habit. He's already been prescribed the patch and has cut back from half a pack to five cigarettes a day, buying them loose at two for $1. "Last time, I could afford it, but that's it," Everett said of the tax. "It's too much money."
Fire-safe cigarettes?
05:02, 2008-Jun-4
Cigarette-related fires are a leading cause of home-fire
fatalities in the United States, according to numerous safety groups. Each year
700 to 900 people lose their lives because of fires caused by cigarettes.
A new law in New Jersey, however, may help to bring that
number down with the introduction of self-extinguishing cigarettes.
According to New Jersey's Division of Fire Safety, 204 fires
were started by the improper use of smoking materials in 2006. The study also
says 14 percent of fire fatalities in the state that year were caused by
cigarettes.
The new cigarettes, being sold as of June 1, will have extra
band of paper around them that puts out the cigarette if it isn't being puffed.
Officials hope the law will prevent fatalities and damage
caused by cigarette-related fires. Stores selling non-complying cigarettes
could face penalties of up to $250,000.
Smokers say they like the new law but not the new taste.
Meanwhile cigarette companies say that the health risks, other than the risk of
fire, remain the same.
Imperial Tobacco's ?5bn cash call
02:16, 2008-May-20
Imperial Tobacco today
launched one of Britain's
biggest rights issues asking shareholders for ?4.9bn to repay some of the debt
it owes following the acquisition of Altadis.
The tobacco giant,
which owns the Lambert & Butler, Davidoff and JPS cigarettes brands, is offering
shareholders one new share at ?14.75 for every two existing shares they own.
That is a 44pc discount to the ?26.18 share price when the market closed
yesterday.
The rights issue is
fully underwritten by Hoare Govett, Morgan Stanley, Citi and Lehman Brothers.
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Imperial Tobacco had
already hinted that it would raise up to ?5bn so that it could keep up its
investment-grade credit rating following the ?12.6bn (?10m) purchase of
Altadis.
The acquisition of
Altadis, which makes Gauloises and Glamour cigarettes, was
completed in January.
Imperial Tobacco is
also trying to buy out the remaining 40pc of Logista, a Spanish logistics
company in which Altadis owned a 59.6pc stake. It could cost the tobacco
company, which is run by chief executive Gareth Davis, around ?910m.
The rights issue comes
as some of Britain's largest
banking companies - including Royal Bank of Scotland, HBOS and Bradford & Bingley
- have gone to their shareholders to ask for extra funds amid the credit
crisis.
Some of these banks
have priced their rights issues at a substantial discount to their prevailing
share prices.
Kansas doing a better job at keeping cigarettes away from minors
01:36, 2008-May-16
TOPEKA | Kansas is improving its rate of federal compliance
with rules regarding the sale of tobacco products to minors.
The federal Synar Amendment requires states to maintain a
compliance rate of 80 percent or higher. In 2004 the state fell below that target
rate.
Each year the Kansas Division of Alcohol
Beverage Control and the Department of Social and Rehabilitation Services
conducts random checks of Marlboro cigarettes retailers to
make sure they are not selling these products to underage youths.
Of those inspected last year, 87.1 percent did not sell
tobacco products to minors.
That was a 7 percent improvement over similar inspections the
previous year, according to department officials.
Group fights ‘La Rose’ cigarettes
01:43, 2008-May-12
State-owned Taiwan Tobacco and Liquor Corp came under fire yesterday from the anti-tobacco John Tung Foundation over last week’s relaunch of “La Rose 520” menthol cigarettes, which the group said was obviously aimed at expanding the smoking population among women and the young. “In the 21st century, when other advanced countries are devoting increased efforts to tobacco control among women and the youth, it is inconceivable that a government-owned corporation would conspire to harm the health of this group in our nation,” said Lin Ching-li director of the non-governmental organization’s tobacco control division. The Marlboro cigarettes sport heart-shaped filters, pink packaging and are rose-flavored, Lin said, adding that the number “520” corresponds to president-elect Ma Ying-jeou’s inauguration date. “The number is also commonly used by younger generations as meaning ‘I love you’ because the number sounds like the phrase in Mandarin,” he said. Since cigarette smokers have a 70 percent loyalty rate to their brands of choice, Lin said the new product could only be interpreted as TTL’s effort to open new markets. “The cuteness factor of the product is obviously made to appeal to young girls,” she said. The product was first developed in 1999, Lin said, but anti-tobacco activists got wind from an anonymous source within the TTL before the Marlboro cigarettes hit the shelves and managed to stall the launch during a three-month fight in the legislature. “Seeing it resurrected on the market nine years after such a battle, I worry that peer influence and the delicate packaging will bend young girls’ minds about smoking,” she said. In addition to the obvious health risks, littering of cigarette butts and the prevalence of fires started by cigarettes — as much as 15 percent of all accidental fires — make tobacco a costly social burden, Lin said. “Since the implementation of health and welfare taxes on cigarette sales in 2002, a lot of money has been spent on tobacco control. The results, however, have been far from positive,” she said. While 40 percent of adult males are smokers today — down from 47 percent in 2002 — the figures aren’t as good as they might appear, she said. “Overall tobacco sales have increased from 2002, indicating that the smoking population has shifted to teenagers and females. The sale of 520 La Rose would very likely aggravate this problem,” she said. As for a solution to the problem, Lin said the issue was now in the hands of the government. “Any anti-La Rose 520 efforts could turn into a marketing campaign for the new cigarettes; instead, the problem would be very easily fixed if the government realizes the dire consequences the cigarettes would bring and removes them from the market,” she said.
Questions of "Fire Safe Cigarettes"
01:07, 2008-May-6
To many smokers in the Pioneer Valley, a cigarette is just cigarettes. But five months ago, Massachusetts joined 22 other states in a mandate that stores begin phasing in cigarettes that self-extinguish, and phasing out those that do not. Despite the measure, in the past month alone, there have been three fires in Northampton among several others in Western Mass. that have all been started by a cigarette. "In the last month, we've been busier in Northampton in relation to structure fires and other significant incidents, than we've been in the last decade combined," said Brian Duggan, Northampton's Fire Chief. A rooming house at Bridge and Hawley Streets is just the latest in a series of fires ignited by what firefighters call unattended smoking materials. The residents walk away or fall asleep, and the still-lit cigarette goes to work. Soon, residents are burned out of their home, or worse. But a "Fire Safe Cigarette" has special bands of less porous paper that self-extinguishes at specific intervals. Chief Duggan said this type of cigarettes helps prevent fires on upholstery and bedding material only. "But even with that standard, and that higher level of safety in place, it will still ignite mulch, a trash barrel, a dumpster, and things like that. And all too frequently in Northampton, we've had some of those experiences," he said. Some area smokers said they are adapting to the new cigarettes, and some even like the idea.  "If I put it in the ashtray, it burns itself out. So, it's not continuously smoking," said Melissa Nelson, a Springfield resident and smoker. Other smokers have never heard of the fire safe cigarettes but admit that sometimes it can come in handy. "I work in a nursing home, so you still have some older residents who smoke, and sometimes they forget and the cigarettes fall, so it would be good," said Marinda Hannans, another smoker. State fire officials are still investigating to uncover what type of cigarette started these fires, because even though it is law to start selling fire safe cigarettes, stores that still had the old variety in stock are allowed to continue selling off the remainder. If you are a smoker and want to know if your cigarettes are "fire safe," check the label on the pack. The "fire safe" kind says "FSC".
Some Tobacco Manufacturers, Retailers Fixed Prices
01:49, 2008-Apr-29
LONDON -The U.K. Office of Fair Trading said Friday that it has issued a statement of objections alleging that certain tobacco manufacturers and retailers have engaged in unlawful practices in relation to retail prices for tobacco products in the U.K. The statement of objections sets out the OFT's proposed findings against tobacco manufacturers Imperial Tobacco and Gallaher, and eleven retailers - Asda, the Co-operative Group, First Quench, Morrisons, Safeway, Sainsbury, Shell, Somerfield, T&S Stores, Tesco and TM Retail. The OFT alleges that these tobacco manufacturers and retailers variously engaged in one or more unlawful practices in relation to retail prices for some or all of a number of tobacco products in breach of the Competition Act 1998. The alleged practices comprised: * Arrangements between each manufacturer and each retailer that restricted the ability of each of these retailers to determine its selling prices independently, by linking the retail price of a manufacturer's brand to the retail price of a competing brand of another manufacturer. The alleged infringements span different periods for different parties between 2000 and 2003; and * In the case of Gallaher, Imperial Tobacco, Asda, Sainsbury, Shell, Somerfield and Tesco, the indirect exchange of proposed future retail prices between competitors. The alleged infringements span different periods for different parties between 2001 and 2003. John Fingleton, OFT Chief Executive, said: "At this stage it should not be assumed that the parties involved have broken the law, and the OFT will decide if the law has been breached after it has reviewed any responses to the statement of objections". The addressees to the statement of objections are the following companies: Imperial Tobacco Limited; Gallaher Limited; Asda Stores Limited; Co-operative Group (CWS); First Quench Retailing Limited (which trades under several retail brands, including Threshers); Wm Morrison Supermarkets; Safeway Stores; Sainsbury's Supermarkets; Shell UK; Somerfield Stores; T&S Stores; Tesco Stores; and TM Retail. The infringements alleged against each party include: * Linking the retail price of a manufacturer's brand to the retail price of a competing brand of another manufacturer: * March 2000 to at least mid 2003: Gallaher, Imperial Tobacco, Asda, the Co- operative Group, First Quench, Morrisons, Safeway, Shell, Somerfield, T&S Stores and TM Retail * March 2000 to early 2003: Gallaher, Imperial Tobacco and Sainsbury * March 2000 to mid 2003: Gallaher, Imperial Tobacco and Tesco Indirect exchange of proposed future retail prices between competitors: * Late 2001: Sainsbury to Tesco via Imperial Tobacco * Early 2002: Imperial Tobacco to Gallaher via Asda * Early 2002: Imperial Tobacco to Gallaher via Somerfield * Mid 2002: Imperial Tobacco to Gallaher via Shell * Early 2003: Gallaher to Imperial Tobacco via Shell - -
Britain's OFT alleges tobacco companies and retailers fixed prices
01:06, 2008-Apr-29
LONDON -- The Office of Fair Trading said Friday it will investigate possible price fixing by two tobacco manufacturers and 11 retailers on tobacco products in the U.K. In a statement of objections, the OFT outlined its proposed findings against Imperial Tobacco Group PLC The alleged price fixing occurred between 2000 and 2003. The proposed claims against Gallaher, Imperial Tobacco, Asda, Sainsbury, Shell, Somerfield and Tesco say they may have colluded before setting retail prices, the consumer protection watchdog said. John Fingleton, OFT Chief Executive, said: "If we find evidence of anti-competitive activity, we are prepared to use the appropriate powers to punish the companies involved and to deter other businesses from taking part in such behavior." The companies involved have yet to see the detail of the allegations and their responses were therefore muted. Tesco said the investigation appeared to center on major tobacco companies rather than retailers. "We do not believe that Tesco has acted in a way that has harmed consumers and we will make this clear to the OFT when we see the details of their allegations," it said in a statement. Imperial Tobacco - which controls 46.4% of the U.K tobacco market - rejected the allegations. "We take compliance with competition law very seriously and reject any suggestion that we have acted in any way contrary to the interest of consumers," a spokesman said. The other companies were either unavailable for comment or declined to comment. The OFT has been monitoring the operation of the U.K. tobacco supply chain since 2003, with information submitted by Imperial Tobacco as long ago as April 2005. The companies now have the opportunity to respond to the OFT's findings before a final decision is made, after which the companies will have an opportunity to appeal any decision. The level of the fine could be up to 10% of a company's U.K. revenue if the offense was committed before May 2004. If the offense was committed after that date, each company could theoretically be fined 10% of its worldwide revenue. The OFT has stepped up its investigations into the consumer industries in the U.K. since Fingleton became chief executive in October 2005. As well as launching a wide-ranging investigation into the U.K.'s supermarket industry, last year the OFT fined a number of U.K. supermarkets and dairy producers up to GBP116 million after it found they had colluded to raise the price of milk, butter and cheese. Earlier this week, the regulator apologized to Morrison after wrongly identifying it in the probe. The OFT agreed to pay GBP100,000 damages to the supermarket.
Tobacco groups, retailers face OFT price fixing allegations
01:16, 2008-Apr-25
LONDON - The United Kingdom Office of Fair Trade is set to unveil wide-ranging allegations that tobacco companies and retailers fixed cigarettesprices, the Financial Times reported citing people familiar with the tobacco investigation. The allegations come two days after the OFT was forced to apologise to Wm Morrisons and agreed to pay 100,000 pounds in damages and costs after admitting inaccuracies in another antitrust probe. Cigarettes announcement, expected today, relates to alleged deals between the tobacco companies and a range of retailers, with cigarette suppliers the main focus of the enquiry, the report added. The OFT launched the probe in 2003 and both Gallaher and Imperial Tobacco have previously said they are complying with requests for information. Companies involved in price-fixing face fines of up to 10 percent of annual turnover although this is usually lower if companies co-operate with an investigation.
‘Powerwall’ pain for smoke sellers?
03:39, 2008-Apr-22
In just over six weeks, cigarettes will become invisible in stores across Ontario and Quebec, but city vendors say the new law will only cost them money. On May 31, the final phase of the 2006 Smoke-Free Ontario Act will be to force vendors to dismantle so-called “powerwalls” — the prominent cigarettes displays generally positioned behind retail checkouts — but a representative for retailers predicted yesterday that it would be costly and difficult for stores to comply.  Though retailers have had two years’ notice, Chris Wilcox, chair of the Ontario Convenience Store Association, said details of the law were not distributed until last month, leaving stores scrambling. “It’s going to be a rush. Even for us,” said Wilcox, who is also general manager of 46 Quickie Convenience Stores in Ottawa. “You’re going to see a few places using curtains and bed sheets.” Wilcox said larger chains such as Quickie will have the resources to make changes on time, but that it will be difficult for smaller businesses. Walid Norat, the owner of O’Connor Smoke Shop, is concerned about the loss of revenue, but said his store will not lose as much business as others, because he tends to get specific clientele who know his wares, even if they’re not displayed. “People who come in here tend to know what they’re looking for,” he said. Roland Comerford, who was celebrating his 60th year of operating Comerford’s Cigar Shop on Bank Street yesterday, will be forced to cover his pipe and cigar displays with frosted glass. “We’re going to have a catalogue for people to browse, but they have to ask for it and we have to put it back under the counter when they’re done,” he said. Comerford expects to see a drop in sales, because of the “out of sight, out of mind” effect. Comerford’s store generates more than 50 per cent of revenue from cigarettes and tobacco. Wilcox doubts that concealing cigarettes in stores will help reduce youth smoking rates, noting powerwall bans in Saskatchewan and Manitoba have not had any effect. According to Health Canada, in 2004, 22 per cent of people over 15 years old smoked. Last year that was around 25 per cent.
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03:13, 2008-Apr-18
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Drugs, sex in sports are not as bad since ‘Hippy’ movement
22:42, 2008-Apr-16
Through the years, several members of the different media outlets have expressed the opinion that the “Hippy” movement caused many problems. The “Hippy” movement has been blamed for many of the drug problems we have experienced since the 1960s. As a sports fan, it really bothers me when people blame the “Hippy” movement for many of today's problems. To be a good athlete, one must be in good physical condition. Drugs harm the health of a person and hurt the ability to play sports. Fortunately, contrary to popular belief, society is better off than it once was with drugs and, as a result, athletes are in better condition and play better. In turn, playing sports will make the athletes even healthier. From the perspective of a sports fan, I realize the more we learn about drugs, the more exciting it will be to watch games. Improving health and being in good condition is something I am able to appreciate because I struggle with weight problems I continue to try to fix. It is true some “Hippies” smoked marijuana, cocaine, heroine and other physically and mentally addictive drugs. However, they did not represent the majority of rebels from the 1960s. Furthermore, we have progressed in so many ways and we have become far more educated with drugs than we once were. Prior to the 1960s, no one knew how bad it was to smoke cigarettes. Now, by law, there must a Surgeon General Warning on every pack of cigarettes. Second-hand smoke is no longer accepted as part of society. Smoking in many public places is outlawed in several states including Arkansas. Just back in the 1980s, Dave Corzine, a former center for the Chicago Bulls, was known for smoking cigarettes at halftime of basketball games. I doubt that would go over too well today. I always knew the evils of cigarettes from the time I was a little boy because I was fortunate enough to have parents who were in the right places at the right times to know how bad smoking was. One of my parents had a relative who smoked and had a horrible time dealing with second-hand smoke in places such as the home and car. In fact, as a kid, this parent was able to buy cigarettes at the store for this relative and the store sold them without a problem. My other parent had a relative who was a doctor that explained the evils of smoking, which was not common knowledge, unlike today. The state legislature passed a new law about smoking in most public places back in 2006. Because of that bill, smoking in most public places in Arkansas is banned. At the time, I worked in Lake Village and interviewed State Sen. Jimmy Jeffress, who used to smoke and was also instrumental in the bill. When I wrote that article, I was reminded of how far we have come in the fight against drugs.
Lawsuits, Light Cigarettes and Fear-Based Marketing Strategies
01:49, 2008-Apr-11
The Second Circuit of the United States Court of Appeals missed a great opportunity this week to hold the tobacco industry accountable for one of its worst marketing tactics -- positioning cigarettes brands in response to smokers' medical concerns. The April 7, 2008, issue of the New York Times has an article about the dismissal of a huge, class-action lawsuit against the tobacco industry that was brought by smokers of "light" cigarettes who claimed they were misled about the relative safety of "light" cigarettes compared to regular, "full flavor" cigarettes. The suit, and its dismissal by the court, brought to mind a little-recognized tobacco industry marketing survival tactic that weighs heavily on the public's perception of exactly what "light" means.  The tobacco industry has long had a remarkable ability to rescue itself from damaging health claims by turning allegations against its products into marketing opportunities. Inside the industry, the fact that cigarettes cause widespread illness and death is referred to as the "smoking and health" issue, or "S&H issue" for short. Tobacco marketers consider "S&H issues" to be little more than "external marketing forces" that require re-positioning of products, through changes in advertising copy strategy, so that smokers will get an illusion of safety from the dangers they perceive. Cigarette marketers refer to smokers who use "low-tar, low-nicotine" cigarettes as the "concerned segment" of the market. They market cigarettes to "concerned" smokers in ways that leverage their deep-seated, emotional fears about the damaging effects of smoking.
Tobacco prices soar in Gujarat
02:31, 2008-Apr-8
AHMEDABAD: Farmers in the Charotar region of central Gujarat are a happy lot. For the first time, tobacco is being traded for over Rs 1,000 for a 20-kg lot. A month back, tobacco traded for Rs 800-850 for a 20-kg lot, while it was just Rs 300-400 in May last year. Charotar, consisting of Anand and Kheda districts, largely grows desi and kalkatti cigarettes, which is consumed for manufacturing bidi and gutka. The word Charotar stands for the area of golden leaves. It produces about 75,000-90,000 tonne tobacco a year. “Bidi makers are having tough time in procurement on account of sudden price rise of tobacco. We are expecting bidi prices to escalate further in days to come,” All-India Bidi Manufacturers’ Association president Rajnikant Patel told ET. According to market sources, majority of the tobacco production in Charotar goes to other states for bidi manufacturing. It is estimated that the productivity of Charotar region has been decreasing by 5% per annum in last few years due to repetitive cultivation of the same crop for years. Lately, some of the tobacco growers are also focusing more on floriculture and horticulture. According to Dinesh Patel, a farmer from Navli village of Anand district, there is still some crop in the farms and cigarettes traders are hunting for the sellers. “Usually, it is the middlemen who call the shots. But for a change, farmers are calling shots this time with tobacco prices hovering over Rs 1,100 for a 20-kg lot,” Mr Patel said. Traders are competing aggressively to procure tobacco since the demands for chewing tobacco and bidi are increasing rapidly. “There have been cases where traders are also compromising and buying unprocessed tobacco and cleaning it on their own. On the top of it, unseasoned showers on Friday have taken toll on tobacco crop in farms. We are anticipating prices to shoot up further during next week since projections for crop are not very enthusiastic now,” said Nadiad-based leading tobacco trader Vijaybhai Patel. Interestingly, tobacco cultivation, processing, trading and even bidi and gutkha manufacturing is largely in control of Patel community. Cash-rich Patel community also own bidi and gutkha manufacturing units out of Gujarat, in states like Karnataka and Bihar.
California OKs first step for cigarette tax measure
01:20, 2008-Apr-4
SAN FRANCISCO - Supporters of a California measure that would impose an additional sales tax of 75 cents on a pack of cigarettes may begin collecting signatures to qualify it for the ballot, the state's top election official said on Tuesday. The measure would raise revenues to increase the number of children who could enroll in California's Medi-Cal and Healthy Families programs and for programs that discourage the use of tobacco and cigarettes products. The measure would initially raise an estimated $750 million annually, according to estimates by California's Legislative Analyst's Office. If proponents collect 694,354 signatures of registered voters by late June, California's secretary of state could place the measure on the November ballot.
Graffiti wall will tell toll of tobacco
02:19, 2008-Mar-31
WINNEBAGO -- Young people here will erect a memorial graffiti wall today with messages about cigarettestoll on their loved ones. The youth at St. Augustine's School in Winnebago will display the messages at 11 a.m. at the school located at Mission Road 1 South. Graffiti walls will also be made at the local Boys and Girls Club. The wall is being erected in conjunction with the 13th annual Kick Butts Day, where thousands of children across Nebraska rally against tobacco on April 2. The day is sponsored by the Campaign for Tobacco-Free Kids. This year, Kick Butts Day is seeking to raise awareness about continued cigarettes marketing and sales to children. The organization believes Congress should crack down on these practices by passing legislation granting the U.S. Food and Drug Administration authority to regulate tobacco products.
Eelectronic cigarette!
06:59, 2008-Mar-28
A woman smokes an E-cigarettes, an electronic substitute in the form of a rod, slightly longer than a normal cigarettes, in Bordeaux, southwestern France, March 25, 2008. A changeable filter contains a liquid with nicotine and propylene glycol. When the user inhales as he would when smoking, air flow is detected by a sensor and a micro-processor activates an atomizer which injects tiny droplets of the liquid into the flowing air, producing a vapour. The E cigarette, which retails for 78 euros, is powered by a rechargeable battery.
Ontario needs to go after tobacco firms
06:29, 2008-Mar-25
Ontario should follow the leads of New Brunswick and British Columbia and pass legislation enabling it to sue the big cigarettes companies to recover health-care costs associated with tobacco-related diseases. The way has been paved by those two provinces, and some American states, and it makes no sense for Ontario not to follow suit in a bid to recoup some of the funds paid by taxpayers that are directly attributable to the use of a cigarettes product. Make no mistake, the big tobacco companies knew decades ago that their products are deadly. Heart disease, stroke, high blood pressure, cancer - the list of tobacco health ills goes on. Dr. Richard Schabas, medical officer of health for the Hastings and Prince Edward Counties Health Unit, was one of about 100 mostly health officials who, in a letter sent about two years ago, urged Premier Dalton McGuinty to file the lawsuit. The province declined without really explaining why. McGuinty should spell out the reasons for his decision to Ontarians. New Brunswick passed legislation earlier this month that gave the province the legal authority to file the lawsuit against the tobacco companies. Attorney General T.J. Burke said those firms must be held accountable and that the province is moving ahead "aggressively with legal action." Why not Ontario? The Liberals imposed a new health tax in 2004, $750 deducted annually from pay and pensions in the form of an income tax. The government said the tax was necessary to keep the expensive health-care system running. Yet the lawsuit is a potential source of income that could negate the need for a regressive tax and provide funds to pump into health care - a system that is straining to counter the effects that tobacco has brought on our hospitals and cancer care system. Tapping into tobacco riches is the way to go - clearly provincial citizens deserve and need the money. In Ontario, it is estimated that tobacco-related diseases cost the economy at least $1.7 billion in health-care annually, result in more than $2.6 billion in productivity losses and account for at least 500,000 hospital days each year, according to the Ministry of Health and Long-Term Care. Meanwhile, tobacco taxes generated about $1.4 billion in 2004-05, the ministry estimated. Ontario is clearly losing more in health-care to tobacco than the weed is bringing into provincial tax coffers. For tax masters like McGuinty, that should tip the balance in favour of legal action. Schabas made the point - correctly - that if a lawsuit is filed, it places tobacco companies in financial jeopardy.
Tax cigarettes
02:49, 2008-Mar-21
Chances of passage this year of a proposed cigarette tax increase virtually disappear with Sen. Hob Bryan's decision not to act on the House's bill in the Senate's Public Health Committee, which he chairs. Bryan, a Democrat from Amory, said Tuesday he remains committed to a cigarette tax increase but believes the better strategy is to wait until the 2009 session. Bryan believes there’s no chance for approval in the Senate, where the bill is also referred to the Finance Committee, chaired by tax opponent Dean Kirby, R-Pearl. Bryan reasons that calling the bill for consideration in his committee is fruitless because both committees must approve it for floor action. We believe even minimal action retains the issue’s visibility and ultimate viability by putting people on the record on both sides of the vote. Gov. Barbour’s special tax study committee is expected to make recommendations about revenue and tax policy before the next session. It is that context, plus another year of experience for newly elected senators, that makes Bryan believe waiting is better. We disagree. A delay is a delay, and waiting another year offers no guarantees. Former Sen. Tommy Robertson, R-Moss Point, opposed a cigarette tax increase and blocked action as Finance Committee chairman in 2007 on grounds it would fail. He lost a bid for re-election. While Bryan is an unequivocal supporter of the cigarette tax increase and Robertson was a staunch opponent, the result of their posture as committee chairmen is the same: The bill is dead without action. The House's significant majority passage of the tax increase included "yes" votes by freshmen representatives. Does that mean House members mature faster than senators? The legislation would increase the cigarette tax, now at 18 cents per pack, by $1 per pack. Our state is 49th in cigarette taxes. Taxation would increase the price of cigarettes, discouraging smoking and ultimately the health problems associated with it. It makes sense to increase the cigarette tax to shore up the Medicaid budget. Medicaid needs an immediate infusion of $90 million to make ends meet, and additional, increased funding will be required in the 2008-2009 budget cycle. The rationale in adopting a higher cigarette tax is simple: Mississippi's Medicaid budget bears a heavy load paying for tobacco-induced illnesses. Tax the product that is the greatest cause. The alternative proposed by Gov. Barbour and supported by Bryan, among others, is a fee/tax on hospitals, the institutions treating illnesses related to tobacco use, mainly cigarette smoking. We oppose that tax. We hope Bryan - a progressive and innovative leader in the Senate since 1984 - rethinks the strategy. The cigarette tax revenue is needed this year.
Online Fine Wines, Tobacco
06:11, 2008-Mar-18
When asked to which states her employer was legally allowed to ship its product, Jessie Carrico said it would probably be easier to list the states it can't be shipped. Until just recently, the Baroda, Mich.-based Round Barn Winery wine couldn't even ship cigarettes product just across the nearby state line. "We were really struggling to get to Indiana. We just got our permit recently," said Carrico, an employee in the tasting room at Round Barn. "We weren't allowed there for the longest time." While wineries have had trouble shipping to Indiana in recent years, the practice is gaining steam nationwide as local growers are finding customers all over the country. Of the 50 states, Round Barn ships to only 18, as well as to Washington, D.C. Their roster, though, is growing. That's thanks in part to changes in laws like the one that allowed out-of-state wineries to begin shipping to Indiana. Indiana Alcohol and Tobacco Commission Manager Shirley Kirby said laws restricting wineries from shipping directly to customers changed two years ago, opening up a new line of profit. "We had a three-tier law in Indiana in which the manufacturer had to ship directly to a wholesaler who then would ship to a retailer," she said. "Now the law has reversed. Wineries like those now can direct ship to individuals." Kirby said the winery must have not sold to a wholesaler within the past 120 days and must secure a surety bond and pay a yearly fee of $100 to be able to ship directly to individuals. "Our out-of-state business is growing," Carrico said. "Our popularity is growing, so it helps to be able to ship to people in so many different states." The market on mail- or Internet-order premium items hasn't been cornered by wineries, but by cigar sellers, as well. Wholesalers like North Carolina-based J.R. Cigars and Thompson Cigars make millions each year shipping premium cigars throughout the world. Their selections are vast and their prices are usually competitive, so much so that at times they give private cigar store owners a run for their money. Maj. Robin Poindexter, with the Indiana Excise Police, said a 24-percent tax is called the "other cigarettes products" tax, or OTP, and it's charged to wholesalers and distributors and collected by the state department of revenue. It was introduced in the 1990s after several of the nation's most prominent tobacco companies settled several high-dollar lawsuits. Poindexter said the tax shouldn't necessarily push online sales. The state of Indiana requires online sellers to keep track of Indiana residents who buy through them then give the buyers' information to the state. The state then sends buyers a bill requiring the pay the taxes that weren't paid at the time of purchase. "Now whether or not they do, that is a different story," Poindexter said. "I can't speak to how effective it is, but that's the intent, to somehow level the playing field."
Zimbabwe: 2008 Tobacco Deliveries to Rise
04:53, 2008-Mar-18
A total of 75 million to 80 million kilogrammes of flue-cured tobacco is expected to be delivered to the auction floors this season. The figure compares favourably with the 73 million kg of tobacco that was delivered to the floors during the entire selling season last year. According to figures released by the Tobacco Industry Marketing Board in January a total of 58 048 hectares had been planted since the beginning of the current season representing over 96 percent of the targeted hectarage planted to date. TIMB statistics show that a total of 48 123ha of tobacco was planted under dryland across the country representing 80,2 percent of the targeted hectarage. At least 9 907ha was planted under the irrigated crop across the country representing 16,5 percent of the targeted hectarage. The irrigated crop, which is already being cured was reported to be of very good quality. The Tobacco Industry Marketing Board has agreed on April 22 as the tentative date for the official opening of the 2008 tobacco-selling season while burley sales would begin on April 29. TIMB's acting chief executive Dr Andrew Matibiri said the date was still to be endorsed by Agriculture Minister, Mr Rugare Gumbo and Finance Minister, Dr Samuel Mumbengegwi. Dr Matibiri said there could be some good news in the offing for tobacco farmers in terms of cigarettes prices. "Judging by indications from the region, we are expecting a price that is better than that of last year," he said. Last year the average price for contract sales was US$2,26 while for auction sales it was US$2,40 per kg and the overall seasonal average price was US$2,32 per kg. Dr Matibiri said they were now actively pursuing a number of sticky issues that have to be addressed before the start of the season to ensure a smooth flow of the season. These included the shortage of wrapping paper, which led to the temporary suspension of tobacco deliveries to the auction floors last year. Dr Matibiri said they were engaging the Reserve Bank of Zimbabwe on foreign currency provisions to be made for the sourcing of the material ahead of the start of the new season. In addition, he said they were also pursuing the issue of out-standing foreign currency payments under the Foreign Currency Retention facility. Reserve Bank of Zimbabwe governor Dr Gideon Gono had indicated in his midyear monetary policy in October last year that all outstanding payments would be paid before the end of that month. Other outstanding issues to be discussed included the exchange rate, which farmers want revised so as to cover them from loses incurred due to ever increasing costs. The cost of producing a cigarettes crop had risen drastically with at least $40 billion now required to grow tobacco per hectare. During the last season farmers demanded the review of the exchange rate applying then of US$1 to $250 and the reinstatement of the foreign currency retention facility. The exchange rate was subsequently moved to US$1 to $30 000, which the farmers believe is still low. Dr Matibiri said stakeholders wanted a price that was reflective of such changes in production costs and they were also approaching Government on the issue. A total of 17 companies have been have been approved as contract growing and buying companies for the 2007/08 flue-cured (Virginia) tobacco season. These included Chidziva Tobacco Processors, Gold Driven Investments, Manellie Investments, Saltlakes, Tian Ze, ZESA Enterprises, Zimbabwe Leaf Tobacco Company and Zimbabwe Tobacco Growing Company. Mashonaland Tobacco Company, Intercontinental Leaf Tobacco Company, Shasha Tobacco, NOCZIM, Business Development Group, Double Bridge Industries, Tobacco Sales Administration Services, Zimbabwe Farmers Development Company and the Zimbabwe Global Agric Development. Contract sales proved to be the best mode through which tobacco is marketed last season with the systems accounting for 60 percent of the 73 million kilogram's of flue-cured tobacco that went under the hammer during the extended 2007 cigarettes selling season. Contract sales accounted for 43,5 million kg of 73 million kg followed by auction sales, which at 29,5 million kg, accounted for 40 percent of the total crop.
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