Breaking News

Fighting Andalucía’s illegal trade

| October 9, 2014

Imperial Tobacco’s Spanish business is backing a major awareness campaign in Andalucía to tackle what it says is the growing problem caused by illicit tobacco. The Stop Contrabando de Tabaco initiative is led by the Mesa del Tabaco industry body in Spain with support from Altadis.

‘The four-week campaign makes use of impactful advertising on local TV, radio and newspapers as well as posters, billboards and wristbands,’ according to a note posted on Imperial’s website. ‘Andalucía was chosen as it has illicit tobacco consumption rates as high as 40 per cent in some parts of the region.’

The campaign uses the slogan: ‘There’s a part of tobacco smuggling you do not see’, combined with images of people covering one of their eyes.

“This is intended as a wake-up call for the public, to emphasise the illegal trade doesn’t pay taxes, it finances crime and is easily accessible to minors,” said Rocio Ingelmo, corporate and legal affairs manager Spain. “The aim is to tell people this affects us all.”

Tobacco fails JT’s radioactive testing

| October 9, 2014

Japan Tobacco Inc. has completed its pre-purchase radioactive material testing of this year’s Japanese domestic leaf tobacco with the completion of tests on Burley and native varieties.

Testing started in late July on the country’s flue-cured Virginia tobacco, the results of which were announced on August 7.

In a note posted on its website, JT said that following the Burley and native tobacco testing in 128 areas, the results from 126 areas fell within the JT standard value (radioactive cesium of 100 Bq/kg).

They exceeded the standard value in two areas and JT said it would not buy this year’s leaf tobacco produced in these areas. JT said it would continue with its scheme of testing domestic leaf tobacco after purchase, and testing and monitoring it a number of times at each stage of the production process.

Smoking hit by market forces

| October 9, 2014

Bangkok’s deputy governor, Pussadee Tamtai, yesterday warned people that they risked being fined more than Bt2,000 if they smoked tobacco in the city’s markets, according to a story in The Nation.

There are said to be 338 markets in Bangkok where smoking is prohibited.

The deputy governor said markets that failed to enforce anti-smoking laws faced fines of up to Bt20,000. She was speaking at the launch of a campaign aimed at forcing markets to be tobacco-smoke free. The Thai Health Office had previously distributed pamphlets, stickers and banners to the markets in support of the campaign.

However, a survey earlier this year showed that only about 20 per cent of respondents had seen the campaign material.

And it showed that about 73 per cent of people had witnessed smoking in the markets.

RAI to webcast results conference

| October 9, 2014

Reynolds American Inc. is due to host a conference call and webcast following the release of its third-quarter 2014 financial results before the market opens on October 21.

The conference call, which will begin at 09.00 hours Eastern Time, will involve Susan M. Cameron, president and chief executive officer, Thomas R. Adams, chief financial officer, and Morris L. Moore, vice president of investor relations.

It will be available on line on a listen-only basis at, where registration is already available and where a replay will be made available.

And it will be available at (877) 390-5533 (toll-free) and (678) 894-3969 (international).

JT considers major restructuring in EU

| October 7, 2014

Japan Tobacco today announced a proposal to restructure its manufacturing facilities in the European Union (EU) for the purpose of optimizing its operations and strengthening its competitive position in a challenging operating environment. The company will undertake appropriate consultations with employees’ representatives and the European Works Council on the proposal to change its product sourcing, which could lead to the closure of some of its manufacturing sites.

The prolonged challenging economic environment and excise tax pressure has triggered industry volume contraction in key European countries. This is compounded by the need to comply with legislation, including the revised EU Tobacco Products Directive, which will significantly reduce the number of pack formats to be produced for various markets. These developments have forced the company to review its manufacturing operations.

Under the proposal, the company’s facilities in Lisnafillan, Northern Ireland, and Wervik, Belgium would cease to operate, with production moving to other facilities, potentially in Poland and Romania.

Other tobacco product manufacturing in Trier, Germany, would also be relocated, with the exception of Ploom-related production.

Support for affected employees will be discussed as part of the consultation process. This proposal would affect approximately 1,100 full-time jobs across the EU.

JT says the restructuring proposal will be implemented in phases, recognizing the needs of each country, with factory closures completed between 2016 and 2018.

E-cig maker to challenge Tobacco Directive

| October 7, 2014

Totally Wicked, a leading U.K. e-cigarette manufacturer, has won the right to formally challenge the validity of the EU Tobacco Products Directive (TPD) at the Court of Justice of the EU (CJEU) in Luxembourg.

At a hearing at the Royal Courts of Justice, Justice Green decided that a preliminary ruling reference should be made to the CJEU, to determine whether Article 20 of the TPD breaches EU law. It is expected that a hearing will take place at the CJEU in 2015.

Totally Wicked becomes the first e-cigarette manufacturer to win the right to challenge a directive that will bring e-cigarettes and e-liquid within its regulatory scope as a tobacco-related product and subject e-cigarettes to more stringent regulation than some conventional tobacco products.

Totally Wicked believes that the TPD is likely to adversely impact the availability of good quality, e-cigarettes and e-liquids, and jeopardize their potential as a less harmful alternative to combustible tobacco.

Totally Wicked’s challenge is based on its view that Article 20 of the TPD represents a disproportionate impediment to the free movement of goods and the free provision of services, places e-cigarettes at an unjustified competitive disadvantage to tobacco products, fails to comply with the general EU principle of equality, and breaches the fundamental rights of e-cigarette manufacturers.

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