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Imperial could play role in any merger between Reynolds and Lorillard

| July 2, 2014

Imperial Tobacco could help smooth the path toward the acquisition by Reynolds American of Lorillard, according to a story by Richard Craver for The Winston-Salem Journal.

Such an acquisition has been the subject of speculation since early March.

Imperial, which operates as Commonwealth Brands in the U.S., is said to have U.S. growth ambitions, and the current speculation is that it might buy Reynolds’ non-growth cigarette brands that include Kool, Winston, Salem, Doral, Misty and Capri.

Those brands combined hold a 7.3 percent U.S. market share, and their sale might be enough to persuade the Federal Trade Commission to approve the purchase of Lorillard.

Craver’s story is at

Graphic pack warnings of marginal worth

| July 2, 2014

The Indonesian Consumer Foundation (YLKI) has admitted that graphic pack warnings showing the dangers of tobacco use will not lead to a significant decrease in the numbers of smokers in Indonesia, according to a story in The Jakarta Post quoting the Antara news agency.

Graphic warnings became mandatory in Indonesia on June 24.

“Therefore, apart from the pictorial warnings, the government needs to increase tobacco taxes to 57 percent of retail prices, up from the current 30 percent,” Tulus Abadi of the YLKI said in Jakarta on Monday.

Tulus said tobacco tax increases were much more effective than graphic warnings at reducing smoking rates. But at present, Indonesia had a low tobacco tax, he said, and an increase was needed to make people think twice before buying tobacco products.

Tulus said the number of smokers in Indonesia had reached 75 million out of a population of 253 million. “We should keep the number from growing further and reduce it if it is possible,” he said.

And he called on the government to tighten regulations on cigarette marketing and advertising.

Tax inspection proposal a non-starter

| July 2, 2014

A group that supported the passage of the Philippines’ so-called sin tax law has said it is willing to assist the government in conducting inspections of tobacco companies’ facilities to determine their level of compliance with regulations, according to a story in The Philippine Star.

Maricar Limpin, president of the Framework Convention on Tobacco Control Alliance of the Philippines, said the alliance was supportive of a proposal that aimed to tighten the government’s watch on cigarette companies amid reports of sales of illicit tobacco products.

The idea apparently came from the tobacco industry, however, when PMFTC asked the Bureau of Internal Revenue to install third-party inspectors in all cigarette manufacturing facilities 24 hours a day, seven days a week, to ensure that manufacturers were paying all of the taxes due.

But the idea seems unlikely to get off the ground because the proposal as it currently stands would violate the tax code, according to BIR commissioner Kim Henares.

“The National Revenue Code said that it’s only the commissioner and the officers who can be involved in excise tax functions and doing functions of surveillance, so we cannot have third-party [inspectors],” she said.

Graphic warnings await court ruling

| July 2, 2014

Ceylon Tobacco Co. (CTC) has said it will not include graphic health warnings on its cigarette packs until the Supreme Court has ruled on its appeal against the warnings, according to a story on Colombo Page.

The Supreme Court has rescheduled its hearings on the appeal filed by CTC for July 11.

CTC, in a stock market disclosure, said that it would continue to produce and supply cigarettes to the market in their current packaging until a further decision was made by the Supreme Court on July 11.

The company filed an appeal with the Supreme Court last month against a lower court ruling that required it to display graphic warnings on its cigarette packets.

The lower court had dismissed a writ application filed by CTC against the government’s legislation requiring the inclusion of graphic warnings covering 80 percent of the main surfaces of cigarette packs, but the court directed the Ministry of Health to amend the regulation by reducing the warnings to between 50 percent and 60 percent.

The amended regulations, which include pictorial health warnings covering 60 percent of the front and back panels of cigarette packs, were due to be implemented July 1.

“As a responsible corporate citizen, CTC always supports balanced regulations and conducts all its business activities in compliance with all existing laws and regulations in the country,” CTC said in a disclosure.

Hauni buys Garbuio Dickinson

| July 1, 2014

Hauni Maschinenbau has acquired the Garbuio Dickinson Group, a primary equipment specialist. The transaction was closed on June 30, 2014. Both companies will continue to act independently, using their existing brands. Mansueto Favaro, Garbuio Dickinson’s managing director, will continue to be responsible for the company’s operating business as member of the management board.

According to Hauni, the acquisition will benefit the R&D and service capabilities of both companies. The deal complements the current product portfolios of both firms and will therefore create more options for integrated solutions for increased customer satisfaction.

“Garbuio Dickinson and Hauni will jointly develop innovative products and solutions for the future,” says Hauni CEO Christopher Somm. “This will serve all our customers in a market that is heavily driven by new trends and challenged by increasing international regulation. We are pleased to welcome Mansueto Favaro and his team in our organization. Jointly we will strive to meet our customers’ high expectations by creating substantially more added value for our customers.”

“In a market driven by consolidation, Garbuio Dickinson starts the new partnership from a solid position,” says Favaro. “In Hauni we see the ideal partner to open up new and long-term perspectives for our organization and to inspire our customers with outstanding innovations.”

The Garbuio Dickinson Group employs more than 300 people in Italy, the United Kingdom, Indonesia and the United States. The group also maintains a joint venture in India to serve the local and neighboring markets.


NDC merges with Beta LaserMike

| July 1, 2014

NDC Technologies New LogoNDC Infrared Engineering and Beta LaserMike have merged to create NDC Technologies. Both companies are recognized global leaders in near-infrared (NIR), nucleonic, optical, X-Ray, laser, microwave, ultrasonic and process-control technology for non-contacting measurement and control solutions. The combination strengthens the new company’s position in the marketplace by offering a more comprehensive portfolio of gauging solutions across a multitude of industries. 

In the tobacco industry, NDC Technologies will continue with its comprehensive range of NIR moisture and multicomponent tobacco gauges for quality assurance and process control in tobacco leaf processing, primary tobacco processing and reconstituted sheet tobacco.

Applications include the measurement of moisture, nicotine, sugars and temperature in a host of tobacco processing applications such as whole leaf in the GLT or primary, strips, blended strips (lamina), redried cut lamina, final blend, water-treated stem, cut rolled stem, redried stem, expanded tobacco, roll-your-own tobacco, shorts, pipe tobacco, cigar filler and reconstituted sheet tobacco.

Headquartered in Irwindale, California, USA, NDC Technologies is part of Spectris, a leading supplier of productivity-enhancing instrumentation and controls based in England.

NDC Technologies expects the pooling of research and technology resources to help it streamline product development and rapidly address the evolving needs of industry and customers. The combined company brings together teams of experienced employees with strong customer relationships and a commitment to customer excellence. According to NDC Technologies, the merger will increase the distribution channels and customer care network, expanding the company’s reach to better serve customers around the globe.


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