Author: Staff Writer

Alliance One’s Turkish subsidiary and Öz-Ege have formed a joint-venture processing and storage facility in Turkey.

Under the agreement, Alliance One Tütün and Öz-Ege Tütün will each contract with Oryantal Tütün Paketleme Sanayi for oriental tobacco processing and storage, while continuing to maintain separate farmer contracting, agronomy, buying and selling operations.

Oryantal Tütün’s facility is at Torbali, Izmir.

“To drive improved value for our customers, we have developed this processing and storage joint venture in our modern efficient facility,” said Mahmut Özgener, chairman of Öz-Ege’s board of directors. “We look forward to the mutual benefits with AOT that this joint venture solidifies.”

Meanwhile, Christian Cypher, Alliance One’s regional director for Europe, described Öz-Ege as a strong partner and said that together the two companies were focused on a strategic alliance that would further strengthen and provide viability for the “Turkish oriental market and the dedicated Turkish oriental farmer.”

The Eurasian Economic Commission (EEC) has supported a proposal by Kazakhstan’s health ministry to ban the use of smokeless tobacco products (nasvai, snuff and chewing tobacco) in the Customs Union countries of Belarus, Kazakhstan and Russia, according to a story in The Times of Central Asia.

The Times quoted a Novosti-Kazakhstan report that, oddly, cited the National Coalition “For Kazakhstan Free of Tobacco Smoke.”

The coalition said the EEC had supported the arguments of Kazakhstan’s health ministry concerning the huge social and medical damage caused by the use of such products, and of the necessity of banning them. It added that the use of such tobacco products was causing an increasing incidence of throat, tongue and nasal cancers.

The stance of the Kazakh health ministry is said to have been supported by the health ministries of Russia and Belarus.

The most popular smokeless tobacco product in Kazakhstan and other Central Asia countries is nasvai.

The typical ingredients for nasvai is tobacco dust, gum, slaked lime, water and oil. It also can contain chemical flavorings and colorings.

A pellet is usually placed in the mouth for 10 to 15 minutes.

Japan Tobacco Inc. is due to launch three new versions of its Seven Stars brand, one of the most popular in Japan.

The company says that from mid-April Seven Stars Menthol 12 Box, Seven Stars Menthol 8 Box and Seven Stars Menthol 5 Box (the numbers indicate tar deliveries), will offer consumers the choice of cigarettes with a “deep aroma and rich taste,” achieved by using a blend that includes “ripened tobacco leaves.”

The ripened leaves are said to be characterized by their “deep roasted aroma, sharp flavor and rich smoke sensation,” adding depth to the product’s flavor and aroma as well as enhancing its menthol taste.

Japan Tobacco International was recognized as the third Top Employer in Europe during an awards ceremony held in London on Tuesday.

According to a note posted on the company’s website, 25 JTI offices “across Europe and beyond” were certified by the Top Employers Institute for their excellence in people management. The survey results were confirmed by an independent audit conducted by Grant Thornton.

“The number of JTI offices certified as Top Employers has more than doubled since last year,” said Jörg Schappei, human resources senior vice president at JTI. “We are proud to have received this recognition in an unrivalled number of countries. It is a testimony to the continuous efforts undertaken by our HR leads throughout the world to successfully attract, retain and engage our employees.”

The board of directors of Philip Morris International yesterday declared a regular quarterly dividend of $0.94 per common share, payable on April 11 to shareholders of record as of March 27.

The ex-dividend date is March 25.

At the same time, PMI said that Mathis Cabiallavetta and J. Dudley Fishburn would retire from the board at the annual meeting of shareholders in May.

“Mathis and Dudley have served on the board since our spin-off, and for many years prior to that ably served on the board of our former parent company,” said Chairman Louis C. Camilleri. “We have benefited tremendously from their dedicated service and invaluable advice. They leave with our most heartfelt gratitude.”

KT&G’s manufacturing plant at Sintanjin, north of Daejeon, is now the world’s biggest manufacturer of slim cigarettes, according to the Korea Joongang Daily quoting company sources.

An expansion of the production facility, which, with the installation of automatic machinery, took three years and five months, was completed yesterday.

The Daily’s story said the plant’s “production” of slim cigarettes would now rise from 35 billion to 85 billion a year.

The plant is said to be equipped so as to be able to produce 25 different types of cigarettes simultaneously.

A police crackdown on public-places tobacco smoking in a major Chinese city on Saturday resulted in just 37 people being fined, according to an Ecns.cn report quoting the Guangzhou Daily.

The raids came exactly a week after authorities in Shenzhen, Guangdong Province, introduced new anti-smoking regulations.

Most of the offenders were discovered in restaurants and hospitals.

They were each fined CNY50 (US$8.16), the minimum fine.

The maximum fine for an individual is CNY500, while venue owners face fines of up to CNY30,000.

Under the new regulations, also, people who publish advertisements for tobacco products or entice others to smoke can be fined up to CNY100,000.

The new regulations are said to ban smoking in 16 types of places, including kindergartens, health facilities and parks.

But entertainment venues are exempt until the end of 2016.

In an effort to help curb the sale of illicit cigarettes, Taiwan’s government is planning to introduce a registration system for cigarette vendors around the country, according to a story in the Taipei Times.

At the moment, cigarettes can be purchased at convenience stores and roadside stalls nationwide. Anybody can set up a table anywhere and sell them.

“There is hardly any other country in which it is easier to get cigarettes than in Taiwan,” said National Treasury Administration Director-General Joanne Ling.

However, all that is expected to change now that the Ministry of Finance—following an agreement with local governments—is drafting regulations that will make registration a requirement for cigarette vendors.

The proposed regulations would prohibit unregistered stalls—set up primarily to sell betel nuts to passing motorists—from also selling cigarettes.

Once the measures take effect, only shops with a business registration certificate and approval to sell cigarettes will be allowed to engage in the business.

Imperial Tobacco has been recognized by the Top Employers Institute as one of the best companies to work for in Italy.

“Their comprehensive analysis highlighted our ‘exceptional employee conditions,’ especially the way our HR leadership strategies nurture and develop talent throughout all levels of the organisation,” Imperial said in a note posted on its website.

Margherita Ciaschini, HR manager, Italy, said that Top Employer certification was obtained only after a rigorous evaluation of employees’ working conditions and benefits.

“This process also looks at the opportunities we provide for training and career progression.

“Certification is an important achievement that recognizes the great progress we’ve made in terms of investing resource behind developing our people.”

Meanwhile, Claude Mullender, general manager, Italy, said he was proud of this success and delighted to see the continuing commitment and determination of employees, who had ensured that Imperial was the only tobacco company in Italy to grow market share last year.

British American Tobacco Philippines (BATP) is expecting to enjoy a strong double-digit growth in its operations this year, largely due to robust sales of its low-cost brand, Pall Mall, and the more expensive, menthol-capsule-filtered Lucky Strike Click & Roll, according to a story in The Philippine Star.

BAT Philippines general manager James Lafferty said Pall Mall, which sells for PHP32 a pack, had become the second best-selling brand in 7-Eleven stores.

“We remain a small player in the Philippines but we’re very happy with our market share, which has been improving,” Lafferty was quoted as saying. “We beat all our targets last year.

“We’re very pleased with the government’s efforts to maintain a level playing field. The sin tax rule is a complete victory for the government.”

Lafferty added that higher taxes on cigarettes would not have a significant impact on tobacco consumption or use. Consumption would remain at current levels until 2017, he said.