Japan Tobacco said on Friday that it was going to close its Moscow factory by the middle of next year because of the serious contraction that had occurred on Russia’s tobacco market.
‘The operating environment has changed dramatically in Russia, with significant declines in tobacco demand driven by tax increases, tighter regulations and a challenging economic situation,’ JT said in a note posted on its website.
‘The company came to this conclusion following a thorough analysis of the situation and of all available options.
‘The Moscow factory will cease to operate by mid-2016, with production moving to the company’s St. Petersburg factory.
‘This move will affect 573 jobs. Impacted employees will be offered generous compensation, significantly above the labor legislation requirements in Russia.’
JT said it was committed to maintaining a strong market presence in Russia and would continue to invest for sustainable business growth in the mid- to long-term.
The factory closure was expected to have minor effect on the group’s consolidated performance for the fiscal year 2015.
Draft legislation introduced in Greece on Thursday is aimed at reducing the country’s black market in tobacco products, according to a story by A. Makris for greekreporter.com.
As described, the law would affect all aspects of manufactured tobacco, from packing to retail sales, based on the application of an electronically readable tax and security band.
Greek State Minister, Panagiotis Nikoloudis, who presented the draft legislation, said it was aimed at reducing tax avoidance while ‘cleaning up’ the sector for the benefit of licit players, who would regain their competitive advantage.
The CORESTA Secretariat said today that the following documents had been published in July and could be downloaded from: www.coresta.org.
• CRM No. 60 “Determination of 1,2-Propylene Glycol and Glycerol in Tobacco and Tobacco Products by Gas Chromatography” (update) (2015-07-06)
• CRM No. 61 “Determination of 1,2-Propylene Glycol, Glycerol and Sorbitol in Tobacco and Tobacco Products by High Performance Liquid Chromatography (HPLC)” (update) (2015-07-06)
• PTM SG CTR “2014 Proficiency Test Report – The Measurement of Diffusion Capacity of Cigarette Papers” (2015-07-28).
Imperial Tobacco’s Altadis Foundation has helped improve living conditions and transport infrastructure in the Dong Nai Province of Vietnam.
‘Working with our local partner the Dong Nai Food Industrial Corporation (DOFICO) we’ve supported the building of 10 new homes and have helped fund the opening of a new road in the Vinh Cuu district of the province to significantly improve communications,’ Imperial said in a note posted on its website.
“This is an underdeveloped area with limited economic resources,” said Jon Fernandez de Barrena, Imperial’s Indochina Cluster general manager.
“The people there depend on agriculture for their livelihoods but the poor condition of roads in the region makes it difficult for them to sell their produce.
“This new road is essential for improving the lives of the local population.
“Their homes were also of a very poor standard so, working with DOFICO and the Altadis Foundation, we’ve replaced some temporary structures with proper housing.”
Malaysia’s steering committee of the World Health Organization’s Framework Convention on Tobacco Control (FCTC) has decided that cigarette prices should be raised twice in a year, according to a story in The Star.
Health Minister Datuk Seri Dr S. Subramaniam said the decision had been agreed to by the steering committee on Thursday.
Under the decision, the minimum retail price of cigarettes would be increased from RM7 to RM9 from August 1.
And it would be increased again, to RM10, after a year.
“This is in line with the FCTC pledge that we signed in 2003,” Subramaniam told a press conference.
The committee agreed also to designate all public parks and public areas in national parks as no-tobacco-smoking zones. The areas include campsites, canopy walks and observation towers.
And it agreed to declare air-conditioned eateries as non-tobacco-smoking areas.
Subramaniam said that for the time being the authorities would concentrate on educating the public about the no-tobacco-smoking bans, but that they hoped fully to enforce the bans from the start of next year.
So far this year, Zimbabwe has earned US$322 million from exporting 59.0 million kg of tobacco at an average price of US$5.46 per kg, according to a story in the Bulawayo Chronicle citing Tobacco Industry and Marketing Board (TIMB) figures.
During the same period of last year, the country earned US$211 million from exporting 45.8 million kg at an average price of US$4.61 per kg.
This year China has been Zimbabwe’s biggest customer, so far paying US$176.8 million for 20.8 million kg, representing an average price of US$8.48 per kg.
Last year, Zimbabwe earned close to US$1 billion from tobacco exports.
Meanwhile, the Chronicle reported that the 2015 marketing season had closed with growers having been paid an average of US$2.94 per kg for 191.9 million kg.
In 2014, growers sold 209.1 million kg for an average price of US$3.17 per kg.
So, during the same period – though not involving the same tobacco – export prices rose by 18.4 percent as grower prices fell by 7.2 percent.