Category: News This Week

About 80 countries from the developing world could find themselves unable to afford to send representatives to future meetings of the World Health Organization’s Framework Convention on Tobacco Control (FCTC), according to a story in MNT (Medical News Today).

The FCTC is reportedly considering cutting its funding for delegates from poorer countries to attend meetings.
MNT said that a study led by the University of Edinburgh had indicated that the cuts, apparently supported by the EU, Canada, and Australia, would undermine the representation of those countries most heavily burdened by the problems caused by tobacco use.

High income countries such as those in Europe were currently experiencing a nine per cent decline in smoking-related deaths each year, whereas in low and middle income countries smoking-related deaths were expected to double from 3.4 million in 2002 to 6.8 million by 2030.

The study, published in the journal Tobacco Control, found that despite bearing the greatest burden of smoking-related deaths, developing countries were already under-represented in global governance of tobacco control.

Moon Chang-jin, president of the Korea Health Promotion Foundation, has been elected president of the World Health Organization’s Framework Convention on Tobacco Control’s Conference of the Parties (CoP), according to a Korea Herald story relayed by the TMA.

Moon, who was elected during the CoP5 meeting inSeoul,South Korea, last week to succeedUruguay’s Ricardo Varela, will head CoP6, which is to be held inMoscow,Russia, in 2014.

“The Korean government promises its full support as a chair country for the next two years,” said Lim Jong-kyu, director general of healthcare policy at the South Korean Ministry of Health and Welfare. “We will take full responsibility to push ahead with tobacco-related policies.”

On the first day of the meeting inSeoul, delegates adopted a protocol aimed at reducing the illicit trade in tobacco products.

They agreed to require tobacco companies to disclose their products’ toxic substances so as to help accelerate scientific research on tobacco toxins.

And they made policy recommendations, including proposals to raise taxes on tobacco products.

Delegates discussed alternatives to tobacco growing, smokeless tobacco products and e-cigarettes, but decided to finalize their discussions at the next session.

The US Department of Health and Human Services has launched a website aimed at offering the ‘best and most up-to-date tobacco-related information from across its agencies’.

BeTobaccoFree.gov is said to provide information on tobacco, federal and state laws and policies, health statistics, and evidence-based methods on how to quit.

‘The site’s social media dashboard, “Say it – Share it”, provides real-time updates from HHS’ tobacco-related social media accounts, including Facebook, Twitter, YouTube, Infographics, podcasts, and Tumblr,’ the website’s announcement said.

One section of the website (http://betobaccofree.hhs.gov/about-tobacco/Electronic-Cigarettes/index.html) seems aimed at discouraging people from using e-cigarettes and promoting the use of nicotine gum, nicotine skin patches, nicotine lozenges, nicotine oral inhaled products, nicotine nasal spray, Zyban and Chantix.

The European Commission has been asked to provide the European Parliament with all drafts of the proposed new tobacco products directive.

In written questions, the Dutch MEP, Kartika Tamara Liotard, asked, ‘Can the Commission – upholding the principle of Commission transparency – forward to Parliament the new Tobacco Directive or a draft thereof, in the form in which it existed when [health and consumer affairs] Commissioner [John] Dalli resigned?’

She asked also, ‘How many previous provisional versions of the Tobacco Directive were there, and can the Commission also, as a matter of urgency, forward these previous versions to Parliament?’

The Japanese government has decided to delay selling part of its 50 per cent stake in Japan Tobacco Inc, according to Japan Daily Press and Agence France Presse stories.

The decision was taken in the light of turbulent market conditions and next month’s Lower House elections.

The government is said to be looking to reduce its ownership to around 33 per cent and, in doing so, raise more than ¥500 billion to boost the country’s reconstruction budget in the wake of last year’s earthquake and tsunami.

On news of the delay, JT’s shares increased in value on theTokyostock exchange on Monday, closing the day at ¥2,411, or 6.53 per cent higher.

The European Commission seems to have missed an opportunity to reassure EU oriental tobacco growers about whether or not they will be allowed to continue to grow oriental tobacco.

In September, the Bulgarian Ministry of Agriculture warned that the Commission, with its proposed revision of the tobacco products directive, intended to ban the use and production of oriental tobacco within the EU.

The ministry’s warning was widely reported but it was generally thought that there was no direct threat of a ban on oriental production.

The misunderstanding arose apparently because oriental tobacco is an aromatic tobacco and the Commission was known to be considering proposing revisions to the EU’s tobacco products directive that would see a ban on the addition of certain ingredients, including aromatic ingredients – basically flavors.

So there was a theoretical threat that in the case that all cigarette ingredients were banned in the EU, it might become impossible to manufacture acceptable American-blend cigarettes in the EU and, therefore, that demand for licit versions of these products, which include oriental, would disappear within the EU.

Unfortunately, according to a Bulgarian National Radio report, also in September, Frederic Vincent, spokesperson for the then Commissioner for health and consumer policy, failed to close the door on the issue when he said that ‘currently’ the Commission was not planning to examine the ‘issue’ of oriental tobacco.

And earlier this month, the Commission had an opportunity to clear up this matter without divulging its directive revisions by answering the first of three written questions posed by Antonyia Parvanova and Stanimir Ilchev, both Bulgarian representatives in the European Parliament:

1          ‘Has the Commission officially communicated to the Member States an intention to ban the use and production of oriental tobacco in the EU?

2.         ‘Could the Commission clarify whether an EU ban on the use and production of oriental tobacco is currently considered as one of the provisions in its future proposal to revise the Tobacco Products Directive?

3.         ‘In the view of the Commission, would a ban on plant production and cultivation fall within the scope of its future proposal to revise the Tobacco Products Directive?’

But the Commission’s reply seems bound to leave doubt in the minds of some:

‘The Commission is aware of the media reports inBulgariarelating to the upcoming revision of the Tobacco Products Directive,’ it replied.

‘The Commission is preparing the impact assessment preceding any legislative proposal. The purpose of this impact assessment is to identify the economic, social (including employment) and environmental impacts of any new measure on all potential stakeholders concerned. The concerns put forward by tobacco growers that certain measures could discriminate against certain types of tobacco as some additives are essential for restoring the palatability of American blended tobacco, were carefully considered in this respect.

‘At this stage, no final decision has been made on the content of the proposal.’

India is said to be closing in on a crop insurance plan for flue-cured tobacco growers, according to a Business Standard story relayed by the TMA.

The Minister of State for Commerce and Industry, D. Purandeswari, said recently that the central government was close to finalizing a plan under which 50 per cent of the premium would be paid for by the central government, 25 per cent by the state government and 12.5 per cent each by the Tobacco Board of India and the farmers.

The board has been lobbying the government to provide crop insurance to growers. Meanwhile, on November 16, the minister officially inaugurated the first electronic flue-cured sales at the Periyapatna tobacco auction platform in the district of Mysore, Karnataka.

Responding to a question about raising Karnataka’s flue-cured crop size, she said a meeting would be convened inNew Delhito discuss issues such as crop size, the reduction of over-production penalties, and the expansion of electronic sales.

Philip Morris has committed to buy tobacco from the Spanish region of Extremadura, according to a Cinco Días story quoting the president of the local government, Jose Antonio Monago.

Philip Morris would sign with the Spanish government a memorandum of understanding that would benefit Extremadura’s tobacco producers.

More than 80 per cent of Spanish tobacco production is concentrated in Extremadura.

The number of illicit cigarettes bought in the UK is set to soar, according to a story by Nick Goodway for The Independent.

Goodway reported that, during a shopping trip around north-west London, representatives of Japan Tobacco International had discovered a ‘huge range’ of counterfeit cigarettes and hand-rolling tobacco being sold for about half the normal retail price of licit products.

JTI is said to believe that after big duty hikes in the past two budgets – a total of 70p on a pack of 20 – the rates of smuggling and of the production of counterfeit cigarettes are set to soar.

Martin Southgate, JTI’sUKmanaging director was quoted as saying that he believed this situation would be made worse with the introduction of plain packaging for tobacco products.

“These measures will not help achieve a reduction in young people taking up smoking; this will only increase the illegal trade in tobacco.”

Japan Tobacco Inc. said today that it had entered into an agreement to acquire all of the outstanding shares of Al Nakhla Tobacco Company S.A.E. and Al Nakhla Tobacco Company – Free Zone S.A.E. (collectively, Nakhla).

‘The agreement has been signed1 between the JT Group and BATATAS.A., which controls Nakhla,’ JT said in a note posted on its website.

‘JT expects to complete the acquisition in the fiscal year ending March 31, 2013.

‘Nakhla, with headquarters and two factories inCairoandShebin   El Kom,Egypt, is one of the world’s leading waterpipe tobacco (also known as molasses and shisha) manufacturers with an important presence in its home market.

‘It exports to 85 countries, primarily in the Middle East andNorth Africawhere such products have a deep rooted heritage.

‘With a heritage of almost 100 years of industry experience, Nakhla pioneered the concept of aromatic molasses and holds a 70 per cent market share in this segment inEgypt.

‘Nakhla’s total sales volume was approximately 24,000 tons in 2011 (roughly comparable to 24 billion cigarettes by volume), across a diverse brand portfolio comprising El Nakhla, Classic, Mizo and other popular trademarks.’

“Our acquisition of Nakhla offers an excellent opportunity for growth in the waterpipe segment and widens our brand portfolio, in line with our strategy to address the needs of adult consumers across a range of tobacco product categories” commented Fadoul Pekhazis, Japan Tobacco International’s regional president of its Middle East, Near East, Africa and Turkey regions, and its World-wide Duty Free operations.

“Furthermore, the acquisition enhances JTI’s geographical footprint in the Middle East and Africa, and over the long-term provides a platform for JTI to participate in the sizeable cigarette market inEgypt.”

JT said it was envisaged that the acquisition would be funded by JT Group’s existing funds and, if necessary, by loan facilities.

‘The transaction is valued at a high single digit multiple of Nakhla’s underlying earnings before interest, tax, depreciation and amortization in 2011,’ JT said.

‘The acquisition is expected to have a minor effect on the Group’s consolidated performance, cash flow and balance sheet.’