Category: News This Week

Iggesund Paperboard’s website has been found to be unique in both attracting its target group of designers and creating within that group a high level of appreciation.

This was the verdict of Ulf Smedberg, senior consultant with the Swedish website evaluation firm, E-space Communication. “When we compare Iggesund’s performance with the results from our database of industrial manufacturers, Iggesund is top of its class for this measurement period and is definitely one of the top sites we’ve encountered in the years we’ve been doing these studies,” Smedberg said.

E-space has 15 years’ experience of assessing websites, during which time it has collected data from more than seven million respondents commenting on more than 1,000 businesses spanning all business sectors.

“The measurements we do are fairly revealing,” Smedberg said. “Companies that believe they are targeting their customers are disappointed when they find that 70 per cent of the traffic to their site is actually generated by young job seekers.”

E-space was commissioned to assess the websites of the Holmen Group, to which Iggesund belongs. Iggesund Paperboard is a materials manufacturer that produces paperboard for advanced packaging and graphical applications.

There is a long chain of intermediaries between Iggesund and companies that want to package or print something. Communications are further complicated because Iggesund’s customers are printers or packaging manufacturers, but the decisions about what material will be used are made by the brand owners or designers employed by them; so Iggesund is keen to use its website, iggesund.com, to learn more about those wielding the influence, and to communicate with them.

“We began back in the 1990s to publish a magazine, Inspire, which is an important channel to these target groups – designers, brand owners and design students,” explains Marie Westh, who is in charge of Iggesund’s online presence. “We’ve gradually developed our website along the same lines.

“Because Holmen has a group website that takes care of investor relations, recruitment and much more, we have been able to have a tighter focus and keep our own website very target oriented rather than having to provide a hard-to-navigate smorgasbord,” she said.

Lorillard has become the first company in the US to receive authorization from the Food and Drug Administration for marketing products ‘substantially equivalent’ to products already on the market.

Under the Tobacco Control Act of 2009, new cigarettes cannot be introduced on the US market without an order from the FDA, and there are two routes to obtaining such an order. One route, for completely new tobacco products, requires a highly detailed review, while a second route provides for products that are ‘substantially equivalent’ to those already on the market.

In March, a story by Jacob Grier for the Atlantic Monthly quoting a report by Michael Felberbaum for Associated Press said the FDA had till then issued no rulings on the approximately 3,500 tobacco-product substantial equivalence reports it had received, despite having 115 employees reviewing them.

Lorillard said yesterday that it had received notification from the FDA that its Newport Non-Menthol Gold Box and Box 100 products had been found to be substantially equivalent to tobacco products previously commercially marketed in interstate commerce in the US.

The FDA’s finding permits Lorillard to begin marketing the new products, consistent with all existing requirements of regulated tobacco products.

“We are very pleased that the FDA has found that Lorillard’s Newport Non-Menthol Gold products are substantially equivalent to existing tobacco products currently marketed,” said chairman, president and CEO, Murray Kessler.

“As such, we are proud to be the first company in the industry to receive authorization to begin marketing these new products in the US through the FDA’s substantial equivalence pathway.

“We are encouraged by the Agency’s fulfillment of its obligation prescribed in the Family Smoking Prevention and Tobacco Control Act of 2009 and believe that the FDA has carried out is evaluation process in a deliberate manner reflecting sound science. We look forward to continuing productive engagement with the Agency moving forward.”

Meanwhile, Bonnie Herzog, managing director, Beverage, Tobacco and Consumer Research at Wells Fargo Securities described the FDA authorizations as a very positive development for Lorillard and the tobacco sector as a whole.

She said that the director of the FDA’s Center for Tobacco Products, Mitch Zeller, had indicated that the first decisions, which included four rejections, were just the first of many product review decisions to be issued.

The Thai Tobacco Trade Association (TTTA) said yesterday that it was asking the Administrative Court to invalidate the Ministry of Public Health’s decision to impose new warnings on cigarette packs.

The TTTA, which represents more than 1,400 retailers across Thailand, described the ministry’s decision as ‘unconstitutional’.

An individual retailer and a wholesaler are joining TTTA’s suit, and Philip Morris (Thailand) is bringing a similar case.

Japan Tobacco has already filed a challenge.

A TTTA press note announcing the suit was included on the Philip Morris International website.

‘At issue is a ministry notification that mandates graphic health warnings on 85 per cent of the front and back of cigarette packs [up from 55 per cent currently],’ the press note said. ‘This rule was developed behind closed doors to avoid differences of opinion, without the input of the thousands of retailers whom the rule will burden most, and without the legal authority to impose this controversial requirement.’

Varaporn Namatra, executive director of the TTTA, said the ministry had refused to talk with the association even though the new rule would make it harder for retailers to do their jobs. “Everyone already knows that smoking is dangerous,” she said. “Thailand already has some of the biggest health warnings in the world. I can’t see why the new requirement is necessary, especially when it will just complicate the work of so many hard working retailers.

“We’re just trying to make a living and we play by the rules, and so should the Ministry. No one should be able decide these kinds of things behind closed doors. We have rights – starting with a right to be heard – which is why we are now asking the court to step in.”

The TTTA expects that the new regulation will lead to problems for retailers, including:

* Higher operational costs;

* A likely consumer shift toward cheaper, lower-margin roll-your-own tobacco, which is not subject to the new warnings yet makes up about 50 per cent of all tobacco sold in Thailand; and

* An increase in supply and demand on the black market, where products are less expensive to buy, highly profitable to sell, and often have smaller warnings or no warnings at all.

Retailers were not the only group who didn’t have a voice in the notification. The process excluded key government ministries that should have been able to participate, and closed the doors to adult smokers, wholesalers, distributors, manufacturers, importers and other parties that the requirement will burden.

Commenting on his decision to file a case, Danai Surawattanawan, a Chiang Mai-based wholesaler and the owner of the Saha Karnka store said: “Government should listen to all sides of an issue before making decisions that hurt people like me. That’s commonsense, but the Ministry didn’t listen.

“It’s trying to use powers that no one ever gave it. And it’s making major decisions without working with other government ministries or talking to the small business owners that its policies burden.

“I am not happy that I have been treated this way. Having been denied a voice in the debate, the only choice I now have is to ask the court to help me.”

‘The TTTA’s case centers on the fact that the ministry overstepped its authority under Thailand’s Tobacco Product Control Act by issuing a notification that conflicts with higher law,’ the press note said. ‘It also violated Thailand’s due process requirements because it excluded the public and those whom this requirement will impact from voicing their views and failed to adequately assess the potential negative consequences of the requirement.

‘The cases will show that the notification is unconstitutional and disproportionate; prevents businesses from engaging in free and fair competition; and disregards trademark protections under Thai and international law.

Commenting on Philip Morris (Thailand)’s filing, Onanong Pratakphiriya, the company’s manager communications and external affairs, said: “Given the negative impact that this policy will have on our trademarks and packaging, and the fact that the Ministry ignored our voice and the voices of thousands of retailers in enacting this rule, we have no choice but to ask the Court to intervene.

”Ultimately, this requirement is not about increasing the public’s awareness of the risks of smoking — which is universal. The ministry exempts half of the tobacco products sold in Thailand from the new warning. How does that make sense?

“In our view, this is a punitive measure.

“The ministry should have listened to all sides — and respected the rule of law — before imposing an illogical requirement that will change the marketplace so significantly.”

The parties are due to file their lawsuits before July 4 with the Bangkok Administrative Court.

A final decision is likely within 10 to 14 months.

Meanwhile, Japan Tobacco Inc is already suing the government over the plans to increase the size of health warnings on cigarette packs, claiming the move is unconstitutional, according to a story in the Bangkok Post.

JT filed its lawsuit with the Administrative Court on June 19, according to spokesman, Hisashi Sekiguchi.

People in areas of Malaysia affected by the smoke from forest fires in Indonesia are being advised not to smoke tobacco during the crisis.

The deputy director of the Health Ministry’s Disease Control Department, Dr. Zainal Ariffin Omar, said smokers would stand a higher chance of contracting smoke-related illnesses.

Smokers would inhale not only cigarette smoke but also the dust particles from the air, he said.

This would eventually lead to a higher risk of their contracting respiratory illnesses.

The Consumers Association of Penang (CAP) has sounded an alarm over the increasing use of electronic cigarettes in Malaysia, notably among young people, according to a story in the New Straits Times quoting ‘media reports from George Town’.

CAP president S.M. Mohamed Idris, said there was a need to impose a ban on the sale of electronic cigarettes “without further delay” because young people might try them and become “hooked”.

Azerbaijan is planning to ban advertising of tobacco and tobacco products, according to an Azeri Press Agency story.

If a new draft law is accepted by parliament, a ban would be imposed on advertising tobacco, tobacco products and their accessories, including tobacco sticks, pipes, electronic cigarettes, cigarette papers and lighters.

The draft law will be put forward for discussion at the next meeting of the Azerbaijani parliament’s extraordinary session.

The Thailand Tobacco Monopoly (TTM) would consider developing and importing electronic cigarettes if the government were to legalize them, according to a story in the Bangkok Post.

Managing director, Torsak Chotimongkol, was quoted as saying that, as a government agency, the TTM could not proceed with such a project until electronic cigarettes were legalised.

“However, if the situation becomes clearer and the product is legally approved, we may consider importing e-cigarettes and developing our own product as an option for smokers,” Torsak said.

Electronic cigarettes cannot be sold legally in Thailand because they have not been approved by the Thailand Food & Drug Administration.

However, they are widely distributed online and sold discreetly in some stores.

If medical science were the determining factor in deciding at what age people should be allowed to smoke and drink; that age would be set at 28, according to psychologist, Ronald J. Coughlin.

In a letter published at MyCentralJersey.com, Coughlin said the prefrontal cortex, the part of the brain that told you to follow rules, not speed and basically use common sense, took 28 years to develop.

‘One can learn algebra and other facts before 28; it is just that the ability to think clearly and logically about one’s best interest and plan accordingly is not fully developed until 28, Coughlin wrote.

‘So if one wanted to use science as a basis for determining the onset of privileged behaviors such as smoking and drinking then the brain development age of 28 would be the most logical since this is based on science …’

Coughlin went on to say that the only argument that would probably be made against the scientific 28-year standard would be in respect of the financial losses that liquor and cigarette manufacturers would suffer.

But the change would go a long way to increasing traffic safety, decreasing crime and improving the health of those under 28, he added.

The letter is at: http://www.mycentraljersey.com/article/20130623/NJOPINION0201/306230007/Raise-drinking-smoking-ages-Science-suggests-28?nclick_check=1

The sale of pan masala and tobacco has gone up ‘several fold’ in the Indian state of Uttar Pradesh since the manufacturing and sale of gutkha was banned in the state from April 1, according to a story by Brajendra K. Parashar for the Hindustan Times.

The reason for this isn’t hard to fathom. Gutkha is basically a mixture of pan masala and tobacco; so consumers are simply buying these two ingredients and mixing them themselves.

And the evidence is plain to see. Government tax revenue from sales of pan masala rose from Rs45 million during the first two months of the 2012-13 financial year (April and May 2012) to Rs140 million during April and May 2013. At the same time, the revenue from sales of tobacco rose from Rs15 million to Rs40 million.

Meanwhile, gutkha manufacturers whose plants have been closed since April are expected to seek fresh registrations with the Central Excise Department for the manufacture of tobacco and pan masala – separately, of course.

Zambia and Malawi are continuing to suffer the effects of illegal cross-border trading in tobacco, despite counter measures that have been taken, according to a story in the Zambia Daily Mail.

The Tobacco Board of Zambia and the Tobacco Control Commission of Malawi recently held a meeting aimed at addressing the illegal trade between the two countries, which is said to have become ‘rampant’.

Malawi’s Agriculture Minister, Peter Mwanza, who officiated at the meeting, said the illegal trade was perpetrated by vendors who acted as middlemen for buyers by establishing buying points along the borders.

In some cases, vendors provided inputs to tobacco farmers.

The illegal cross border trade in tobacco continued along every border, and efforts put in place to combat it had not been effective, he said.

The minister called for concerted efforts that included border patrols and reviews of the regulatory frameworks of the two countries.

Mwanza underscored the importance of involving tobacco associations, growers, and security personnel in the fight against the illegal trade in tobacco if meaningful results were to be realised.