Category: News This Week

  • Tobacco industry has little to fear from EU TPD proposals

    The European Commission believes that its proposed revisions to the Tobacco Products Directive would, if adopted, have limited adverse impact on the tobacco industry – and some positive impacts.

    “The adoption of the proposal for a revised Tobacco Products Directive was preceded by a thorough impact assessment, including an assessment of the economic impacts on the tobacco industry, their upstream suppliers (e.g. growers, ingredients suppliers, paper industry) and downstream distributors (wholesale, retail),” the commission stated in a written answer to questions posed by the Czech MEP, Ivo Strejček.

    “It is estimated that the proposal will result in a reduction in the consumption of tobacco products of no more than 2 percent within a five year period following the transposition of the Directive. The adverse impact on the industry would therefore remain limited. Jobs lost in the production of cigarettes would be offset by the creation of jobs in other sectors, reflecting ex-smokers’ expenditure on such sectors.

    “In addition, the proposal is expected to lead to some benefits for the industry through reduced production costs as a result of harmonization (one … production line instead of different production lines to comply with different national rules) and through the expected reduction in illicit trade (as a result of the proposed measures on tracking and tracing of products). Even the most specialized tobacco retailers do not generate more than 50 percent of their revenues from tobacco products, thus the impact is not expected to be disproportionate.”

    The commission said that to avoid imposing an unnecessary burden on small- to medium-sized enterprises, pipe tobacco, cigars and cigarillos were exempted from the stricter labelling and ingredients rules that the revisions proposed for other tobacco products. The proposal, it added, was neutral in respect of the different types of tobacco, Virginia, Burley and oriental. This meant that smaller farms involved in Burley and oriental tobacco production would not be affected.

  • Dutch smoking ban does another U-turn

    The Netherland’s ban on tobacco smoking in bars and cafés will be reinstated across almost the entire hospitality industry in July next year, according to a DutchNews story quoting junior health minister, Martin van Rijn.

    Changes to the tobacco law would be presented to parliament before October so that all legal obstacles could be dealt with and the total ban properly anchored in law, the minister said.

    Once the ban was reintroduced, smoking would not be allowed in small cafés and bars run only by their owners, as was presently the case. But it would be permitted in separate sealed-off smoking areas without service.

    “We are doing what we can with controls, warnings and fines but our financial resources are limited,” the minister said. “Ultimately… not smoking in any bar of café should become the norm.”

    The minister conceded that the Dutch smoking ban been introduced to protect workers rather than the public and therefore small bars and cafés run by their owners had been exempted on the grounds that they had no staff. However, he said that the ban, brought in nearly five years ago, was widely flouted in bigger bars, cafés and nightclubs.

    No justification was given in the story as to why small cafés and bars run only by their owners were being punished because larger establishments were breaking the law and law enforcement agencies were failing to crack down on these businesses. And there was no explanation as to why it was thought that law enforcement agencies would be more successful at cracking down on all cafés and bars rather than just some of them.

  • E-cigarettes under threat in EU

    The European Commission has said that the majority of e-cigarettes sold in the EU would most likely fall under pharmaceutical legislation if the commission’s proposed revisions to its Tobacco Products Directive were to be accepted. The commission has proposed that e-cigarettes would fall under the legal framework for medicinal products if they contained levels of nicotine above certain thresholds.

    It is generally thought that, for cost or technical reasons, most e-cigarette companies would struggle to have their above-the-threshold products authorized under pharmaceutical laws, and that below-the-threshold products would be unacceptable to many consumers.

    “The nicotine threshold has been identified by considering the nicotine content of nicotine replacement therapies that have already received a marketing authorization by Member States,” the commission said in a written answer to two questions raised by the Polish MEP, Filip Kaczmarek.

    “For electronic cigarettes below the thresholds, the commission proposal foresees that they carry health warnings. They would also have to comply with the General Product Safety Directive as … is the case at the moment.”

  • PMI to webcast symposium presentation

    Philip Morris International is due to host a live audio webcast at www.pmi.com/webcasts of its remarks and question-and-answer session by CFO Jacek Olczak at the Goldman Sachs Consumer Products Symposium on May 14, starting about 9:05 a.m. Eastern Time.

    The webcast, which will be in listen-only mode, will provide live audio of the entire PMI session.

    An archived copy of the webcast will be available at www.pmi.com/webcasts until 5 p.m. on June 12.

    Remarks and slides will be available at www.pmi.com/presentations.

  • PMI celebrates performance at annual meeting

    Philip Morris International held its annual meeting of shareholders today. Louis C. Camilleri, chairman of the board and CEO, addressed shareholders and answered questions. Chief Operating Officer André Calantzopoulos gave the business presentation, focusing on PMI’s performance since its spin-off in March 2008, which has seen total shareholder return reach 135 percent through April 30, 2013.

    “I firmly believe that we still have great opportunities to continue to grow our existing tobacco business through the further expansion of our terrific brand portfolio, additional investments in consumer-relevant innovation and communication, the continued roll-out of our commercial approach, judicious pricing, and a continued focus on efficiency and productivity savings,” noted Calantzopoulos.

    He went on to describe the company’s mid- to longer-term additional growth opportunities of further geographic expansion, reducing the prevalence of illicit trade and the commercialization of “next-generation” products.

    Calantzopoulos also paid tribute to Camilleri, whom, as announced on March 13, 2013, he succeeded as CEO effective immediately following the meeting. He cited Camilleri’s “passion for the company, his vision and critical and insightful analysis, his regard for the wellbeing and development of our employees, and his devotion to the integrity and transparency of communications to investors and to enhancing shareholder value.”

    Camilleri will continue to serve as chairman of the board.

    An audio webcast of PMI’s shareholder meeting will be available until June 6 at www.pmi.com/webcasts.

     

  • Obama $0.94 smoke tax a ghost

    It’s never going to happen, apparently it wasn’t ever going to.

    The cigarette sin tax to generate $78 billion to fund a preschool education program vanished almost as soon as Obama announced it four weeks ago, according to the Washington, D.C.-centered  blog Politica.com

    The president hasn’t mentioned it. The White House didn’t coordinate with outside anti-smoking groups, and none of them spent any time pushing for it. Tobacco companies never worried about putting together a lobbying strategy to  kill it. Obama’s political arm hasn’t sent an email calling on Congress to  consider it. Not even Obama’s surgeon general, who calls curbing smoking “the  single most important issue for all the surgeons general of the past five decades,” put out a press release applauding the idea. The whole idea disapeared like a ghost in the night.

    That’s the attitude within the West Wing, too — rather than a marquee idea, aides say the $0.94-per-pack cigarette tax was in fact not a priority, and  there are no plans to build a public case for it. The tax was just the most politically palatable idea they could come up with to pay for their big new entitlement program — and in the context of a budget debate they never expected to get serious, that was enough.

    “If other people have other ideas, we’re happy to look at them,” a White House official said. “If there were another way to pay for this, we’d be open to  it.”

    White House officials described the cigarette tax as incidental to a larger  goal of funding the universal preschool program. And they wouldn’t discuss the proposal Obama called “the right thing to do” on the record at all.

  • Asia Marketing Services to represent Agio

    Royal Agio Cigars has appointed Asia Marketing Services as its agent for the Asia Pacific region. Asia Marketing Services will be responsible for coordinating the sales and marketing efforts of the Agio Cigars brands in the Asia Pacific domestic and travel retail markets.

    “This strategic partnership with Asia Marketing Services will enable us to continue growing the business together with our dedicated domestic and travel retail partners and pursue the opportunities that lie ahead of us in the region,” said Marcel Michels, chief sales officer of Agio Cigars

    “We are proud to represent Agio Cigars well known brands of cigars to the domestic and duty free/travel retail markets,” said Hans Rijfkogel, director of Asia Marketing Services. “This is a terrific opportunity for us and we are honored that Agio Cigars have chosen Asia Marketing Services as their agent.”

    Agio Cigars is a leading cigar manufacturers in Europe, offering brands such as Agio Tip, Mehari’s, Panter and Balmoral.

     

  • Cuba joins fight over Aussie plain packaging rules

    Cuba has become the latest country to launch a legal attack on Australia’s landmark plain packaging rules for tobacco at the World Trade Organization (WTO).

    The laws came into effect last December and mean cigarettes can only be sold in brown packages with graphic health warnings. The WTO says Cuba has requested consultations with Australia on the legislation, which covers all tobacco products, not just cigarettes. Under the 159-nation WTO’s rules, requesting consultations is the first step in an often complex trade dispute settlement process which can last for several years.

    The laws have already been challenged at the WTO by Cuba’s fellow cigar-producing nations Honduras and the Dominican Republic. In addition, the Ukraine has filed a suit at the Geneva-based body, which oversees its member nations’ respect for the rules of global commerce, according to the Australian news company ABC.

    All the plaintiff countries maintain that Australia’s packaging law breaches international trade rules and intellectual property rights.

    In the event that the WTO’s disputes settlement body finds in their favor, it would have the power to authorize retaliatory trade measures against Australia if the country failed to fall into line. The dispute with Australia marks the first-ever challenge by Cuba against a fellow member since it joined the global body in April 1995, four months after the WTO was founded in its current form.

    The plain packaging laws have won wide praise from health organizations which are trying to curb smoking. But the government has faced a string of court challenges from tobacco firms.

    Besides trade and intellectual property concerns, tobacco companies say there is no proof that plain packaging reduces smoking and have warned that the law sets a precedent that could spread to products such as alcohol.

  • A nickel a butt adds up

    Redemption programs have dramatically reduced the amount of bottles and cans that go into the waste stream. Now a restaurant owner in Portland, Maine, U.S.A. wants to do the same with cigarette butts, according to a story reported on WLBZ.

    Mike Roylos says he’s tired of dealing with butts outside the Spartan Grill. “They’re everywhere. I sweep. They come back. Customers track them in on their shoes,” laments Roylos.

    When the city’s new smoking ordinance failed to stop the butt barrage, Roylos decided to take matters into his own hands. He came up with the “No Butts Now” campaign.

    He supplies a basket of baggies for the public to collect cigarette butts in Monument Square. Using donations from grateful customers, Roylos will buy the butts back for five cents a piece.

    Sure, it’s a little gross..but a nickel’s a nickel. Billy O’Rourke lives a few blocks away at the Oxford Street Shelter and he went right to work as soon as he heard about the campaign. .

    “It’s an opportunity for us homeless guys to be a productive part of society and make a few extra dollars,” said O’Rourke.

    They may be tiny, but those butts add up.

  • Villiger eyes the premium side

    The U.S. unit of one of the major players in the world of European-style, machine-made cigars is expanding its presence on the premium side of the business.

    Villiger Cigars North America, the U.S. arm of Villiger Söhne AG of Pfeffikon, Switzerland, has expanded its small but growing stable of handmade cigar brands, according to a story in Cigar Aficionado.

    Villiger Colorado has a pair of new sizes, a 6-inch-long, 60 ring gauge Gordo (suggested retail price $10.50) and a corona measuring 5 1/2 inches by 44 ring ($6.99), pushing the brand to six sizes. Villiger Talanga has been expanded by one size, adding a corona (5 1/2 by 44, $6.99), giving the line five sizes in all.

    Both cigar brands are made in Nicaragua by the Plasencia family for Villiger Cigars North America, a Charlotte, North Carolina, company that is headed by president Roy MacLaren.

    MacLaren wanted to add a Gordo to Villiger Talanga, too, but found the blend wasn’t as appealing in that size.

    Villiger is a company that turns 125 this year, and while it’s a force in small machine-made cigars, particularly in Europe, the company has a very small presence in the premium business in the United States. MacLaren aims to change that.