Category: News This Week

Heavy rain has destroyed tobacco seedlings in Indonesia and caused farmers at Jember, East Java, to incur heavy losses, according to a story in The Jakarta Post.

The head of the Kasturi Tobacco Farmers’ Association, Abdurahman, was quoted as saying that as many as 600 farmers cultivating 800 ha had had to replant two or three times at a cost of Rp5 million (US$505) per ha each time.

“The conflicting weather forecast from the central Meteorology, Climatology and Geophysics Agency, and from a similar organization in Australia confused us,” he said.

Meanwhile, a farming co-ordinator at the regional Forestry and Plantation Agency, Dian Retnowahyuni, acknowledged that the agency had announced that the best time to plant would be in April and May. But she admitted, too, that the weather patterns had fluctuated so much that their predictions were badly off the mark.

“We always co-ordinate with the Meteorology, Climatology and Geophysics Agency and we also have our own formula to gauge the planting time,” she said. “However, the weather has been beyond prediction. We don’t have the power to beat mother nature.”

Russia’s chief health inspector has told the World Health Organization it has no right to dictate how Russia should develop its tobacco pricing policies, according to a TV Novosti report.

The head of WHO’s office in Russia, Luigi Migliorini, had earlier expressed disappointment in plans for ‘lower than expected’ tobacco excise increases after 2016.

Migliorini wrote a letter to Health Minister, Veronika Skvortsova, suggesting that tobacco excise tax in Russia should grow sevenfold by 2020 to €90 per 1,000 cigarettes, bringing the average retail price of a cigarette pack to RB238 from the current RB46.

“I strongly disagree with this suggestion,” said Gennady Onishchenko in an interview with Echo Moskvy radio. The sevenfold increase is unacceptable and when the WHO tells us to do so it is a wrong approach.

“We are not the country to be told what to do…”

Russia’s Health Ministry said it would consider the WHO recommendations as well as suggestions by other experts in this area, while working out its own approaches toward tobacco excise policies.

More than 143 million kg of tobacco had been sold for US$527 million after 76 days of Zimbabwe’s auction and contract selling season, according to a story in The Zimbabwe Herald.

The Tobacco Industry and Marketing Board chief executive, Dr. Andrew Matibiri, said deliveries to the auction floors had declined, though contract deliveries were still high.

“We are still confident we will get to the 170 million kg mark that we set as the target,” he said.

Japan Tobacco Inc’s domestic cigarette sales volume during May, at 10.2 billion, was increased by 0.4 per cent on its May 2012 volume, also rounded to 10.2 billion, according to preliminary figures issued by the company today.

Volume during April-May, at 19.8 billion, was increased by 1.8 per cent on that of April-May 2012, 19.5 billion.

JT’s market share stood at 60.6 per cent in May, at 60.4 per cent during April-May, and at 59.6 per cent for the full year to the end of March.

JT’s domestic cigarette revenue during May, at ¥55.8 billion, was down by 0.6 per cent on its May 2012 revenue, ¥56.1 billion.

Revenue during April-May, at ¥108.8 billion, was increased by 1.4 per cent on that of April-May 2012, ¥107.3 billion.

Alliance One International said yesterday that Jeffrey A. Eckmann, Carl L. Hausmann and John D. Rice were being appointed to the board of directors effective June 14.

At the same time, the company announced the retirement of board members Joseph L. Lanier, Jr, B. Clyde Preslar and William S. Sheridan as of the 2013 annual shareholders meeting due to he held on August 8.

“We are extremely pleased to welcome Jeff, Carl and John to Alliance One’s board of directors,” said Mark W. Kehaya, chairman of the board. “The experience of these proven leaders – Jeff in the tobacco industry, and Carl and John in the global agribusiness arena – will be a tremendous asset to the company and its shareholders. Their valuable perspectives and strategic advice will be a great contribution as we shape the future of Alliance One.”

Lorillard is due to host a webcast of its Investor Day presentation to the investment community in New York City on June 27.

The webcast, which will begin at 09.00 hours Eastern Time, will include presentations by Murray S. Kessler, chairman, president and CEO, David H. Taylor, CFO and executive vice president, finance and planning, and other members of Lorillard’s senior management team. The presentations are scheduled to end at 12.30 hours.

The webcast will be available under the Investor Relations section of Lorillard’s website at www.lorillard.com, and a replay will be available in its entirety through July 27.

As the proposed revision of the EU’s Tobacco Products Directive is now being discussed in the European Parliament, the UK-based electronic cigarette manufacturer, Totally Wicked Ltd, is sending an electronic cigarette to all 754 MEPs.

‘Accompanying the e-cigarette will be a briefing document that simply and factually explains why e-cigarettes do not belong in the TPD,’ the company said in a press note issued through PRNewswire.

‘A covering letter asks MEPs to examine the e-cigarette in detail and poses the following question: “What do you do with a product that mimics smoking, but is not a cigarette, that stops people smoking, but is not a medicine?”.

‘Totally Wicked is concerned that at present, EU policy makers believe that e-cigarettes should only be placed on the market if they are authorised pursuant to Directive 2001/83/EC (the Medicinal Products Directive).

‘By wishing to regulate e-cigarettes as a medicinal product, and by banning flavours, Totally Wicked believe the Commission and their supporters in Parliament are effectively banning e-cigarettes, a view that is supported by the European Parliament’s own Legal Affairs Committee.’

“The e-cigarettes we have chosen to send to MEPs look nothing like a conventional tobacco cigarette,” said Fraser Cropper, business development director at Totally Wicked. “Contrary to what many MEPs think, the vast majority of e-cigarettes sold throughout the EU look nothing like cigarettes.

“We hope to make it clear to MEPs that e-cigarettes are not a medicinal product and that users do not see themselves as ill or in treatment.

“MEPs have an incredible opportunity to craft regulation that reflects the reality of e-cigarettes – they are nicotine-containing consumer products that compete with cigarettes but with many superior characteristics, mainly by virtue of not using combustible tobacco.

“Tobacco cigarettes have been unequivocally proven to contribute to the early mortality of the European population. During this time, our legislators have been unwilling or unable to ban cigarettes, a product that if it came onto the market today, would without question be prohibited.

“Surprisingly, rather than be applauded and encouraged by our elected representatives as the potential panacea to the smoking epidemic, we find Article 18 of the draft TPD, stifling the potential of these products and effectively handing over the product’s concept to the pharmaceutical sector, destroying a safer alternative.”

Japan Tobacco Inc is adding two snus products to its Zerostyle smokeless tobacco line.

‘Zerostyle Snus Regular’ and ”Zerostyle Snus Mint will go on sale at selected retails stores in the city of Osaka from early August.

In a launch press note posted on its website, JT said that while the majority of consumers in Japan enjoyed tobacco in the form of cigarettes, demand was increasing for tobacco products designed to be used in places where ‘consideration needs to be given for those nearby’.

The taste, aroma and portion size of Zerostyle Snus is said to have been developed specifically to meet the preferences of Japanese consumers.

Zerostyle Snus Regular, is said to offer ‘a mild sweetness and roasted flavor’, while Zerostyle Snus Mint is said to offer ‘a brisk flavor that spreads in the mouth’.

Filtrona Filters has launched the BiTech™ filter, a new addition to its AdvantageRange.

The new filter is said to maximize the benefits of both paper and cellulose acetate –  the high filtration efficiency and cost effectiveness of paper with the familiar taste of cellulose acetate – through its ‘unique construction’.

‘As a result, cigarette manufacturers can achieve substantial tow weight savings when compared to using a standard cellulose acetate filter,’ the company said in a press note. ‘In addition, by replacing approximately half the cellulose acetate with a more degradable paper alternative, the BiTech™ presents a potentially more environmentally friendly filter solution.

‘The BiTech™ filter consists of both high quality crimped cellulose acetate and paper combined in a single process. During this process, the cellulose acetate fibres are bonded together with a controlled amount of plasticiser to give the filter a firm structure. The filter is then enclosed in an outer plug wrap which can either be standard or porous depending on ventilation requirements.’

The BiTech™ filter is the latest addition to Filtrona’s AdvantageRange, which includes also Smoothcore, Smoothcore Recess, Infused and Randomly Orientated Acetate (ROA) filters.

The board of directors of Philip Morris International today declared a regular quarterly dividend of $0.85 per common share, payable on July 12 to shareholders of record as of June 27.

The ex-dividend date is June 25.