Breaking News

Warnings have graphic effect on market

| August 15, 2014

Graphic health warnings that were applied to cigarette packs from June are already starting to take their toll on sales in Indonesia, according to a story in The Jakarta Post.

Muhammad Guntur, the owner of the Janur Kuning cigarette factory in Kudus, Central Java, was quoted as saying that his cigarette sales had fallen by 10 percent since the government regulation requiring the inclusion of pictorial health warnings had come into force.

He put the decline down to consumers’ discomfort at seeing the images of cigarette-caused health problems.

Consumers, he added, had tended to shift to lower-quality cigarettes, which were exempt from pictorial-warning requirements.

But Guntur doesn’t think that smokers will be put off for long. “We are sure that such a decline is temporary in nature because smokers will eventually get used to seeing such horrible images,” he said.

Cigarette manufacturers have been given until August 24 fully to implement the pictorial-warning requirement.

Ireland under pressure on plain packs

| August 15, 2014

Associations representing German advertisers and brand owners have written to the Irish ambassador in Berlin saying plans for standardized tobacco packaging would, if implemented, have ‘devastating’ economic implications for Irish companies, according to a story by Juno McEnroe for the Irish Examiner.

The associations have warned also that the tobacco market would be ‘swamped’ with counterfeit products and that this would ‘endanger’ people’s health.

And the German Brands Association has apparently told the ambassador that ‘banning brands’ on tobacco goods would upset consumers and might well lessen their acceptance of the health warnings.

Meanwhile, the Irish Prime Minister, Enda Kenny, is facing pressure from German MEPs and other EU politicians to scrap Ireland’s plans for standardized packaging for tobacco products.

The full story is at:

JT presents domestic July sales figures, restates some May and June figures

| August 15, 2014

Japan Tobacco Inc’s domestic cigarette sales volume during July, at 10.0 billion, was down by 4.4 percent on that of July 2013, 10.5 billion, according to preliminary figures issued by the company today. The July 2013 figure was increased by 3.3 percent on that of July 2012.

Volume during January-July 2014, at 65.1 billion, was down by 2.2 percent on that of January-July 2013, 66.6 billion, which was down by 0.7 percent on that of January-July 2012.

JT’s market share stood at 60.4 percent during July, at 60.6 percent during January-July and at 60.5 per cent during January-December 2013.

JT’s domestic cigarette revenue during July, at ¥56.9 billion, was down by 1.2 percent from its July 2013 revenue, ¥57.6 billion.

Revenue during January-July 2014, at ¥363.3 billion, was down by 0.7 per cent on that of January-July 2013, ¥366.0 billion.

Meanwhile, JT has issued updates to some of the figures issued in respect of its May and June 2014 preliminary reports.

The company’s domestic cigarette revenue for May, which was previously given as ¥51.4 billion (down 7.8 percent from May 2013′s figure), has been restated as ¥51.7 billion (-7.4 percent), while the revenue for January-May, which was previously stated as ¥255.7 billion (-0.2 percent), has been restated as ¥256.2 billion (-0.1 percent).

JT’s domestic cigarette revenue for January-June, which was previously given as ¥306.1 billion (-0.7 percent), has been restated as ¥306.4 billion (-0.7 percent).

E-cigarettes just got even healthier!

| August 15, 2014

Having seen in Brooklyn, New York, a retail truck offering ‘VitaCigs’, the managing editor at Motherboard, Meghan Neal, is wondering whether in the future people will be smoking – or vaping – their medicine.

It’s a fair question because VitaCigs are apparently disposable, flavored electronic cigarettes with vitamins but with no nicotine.

‘The novel e-cig company offers five flavors: relax, refresh, energize, calm, and grace, writes Neal. ‘Each has basically the same vitamin content: A, B1, C, E, Coenzyme Q10, with small variations. In other words, the flavor names are pure marketing. “Relax” is a berry-flavored stick colored purple; “refresh” is green peppermint. You get the idea.’

The full story is at:

EU shifted TPD policy significantly after tobacco industry lobbying

| August 14, 2014

Tobacco industry lobbyists were successful in influencing some aspects of the EU’s new Tobacco Products Directive (TPD), according to research carried out by the University of Oxford, the London School of Hygiene & Tropical Medicine, and the University of Bath.

The TPD, which governs the laws, regulations and administrative provisions of the member states concerning the manufacture, presentation and sale of tobacco and related products entered into force on May 20 and member states are required to bring into force by May 20, 2016, the laws, regulations and administrative provisions necessary to comply with the directive.

The researchers concluded in their paper published in Tobacco Control that tobacco industry lobbying was associated with ‘significant policy shifts’ in the TPD legislation towards the industry’s submissions.

‘In the light of the [World Health Organization's] Framework Convention on Tobacco Control, additional governance strategies are needed to prevent undue influence of the tobacco industry on EU policy making,’ they said.

The researchers used what they described as novel quantitative text-mining techniques to evaluate the impact of industry pressure.

The positions of 18 stakeholders including the tobacco industry, health NGOs and tobacco retailers were evaluated using their text submissions to EU consultations and impact assessments.

The researchers found that the Commission’s position shifted towards the tobacco industry’s position and that that transition reflected an increasing use of words pertaining to business and the economy in the Commission’s document.

If the industry was successful in changing policy, at least parts of it don’t believe that it was successful enough.

At the beginning of July, it was announced that subsidiaries of Philip Morris International was seeking review of the TPD by the Court of Justice of the European Union (CJEU).

“We believe that the EU’s Tobacco Products Directive disrupts the balance that the EU treaties establish between the union and the member states,” said Marc Firestone, PMI’s senior vice president and general counsel in announcing the court challenge.

“The directive claims to improve the internal market in tobacco products, but its provisions go in the opposite direction. The directive includes a mix of product bans, mandates, and delegations of authority that raise serious questions under the EU treaties about consumer choice, the free movement of goods, and competition…”

Andhra Pradesh’s crop target unchanged

| August 14, 2014

The Tobacco Board of India has fixed Andhra Pradesh’s 2014-15 flue-cured tobacco crop target at 172 million kg, which is unchanged from that of the previous season, according to a story published in the latest issue of the BBM Bommidala Group newsletter.

The new crop size was set despite calls by merchants for the target to be increased to 177 million kg.

The board’s chairman, Dr. K. Gopal, said the board had decided not to increase the crop size because of its obligations concerning the welfare of flue-cured tobacco growers and because of global market trends.

The chairman urged growers to concentrate on the quality of the tobacco they grew rather than on expanding the land they used for tobacco cultivation.

He suggested that growers be restrained while planting because over-production would lead to a fall in prices.

Growers in Karnataka, India’s other flue-cured tobacco growing state have been authorized to produce 104 million kg, up from 102 million kg last season.

white cloud cigarettes

pattyn banner

itm banner