Tag: International

  • Advertising accusations

    Advertising accusations

    Tobacco companies are ‘secretly advertising’ cigarettes on social media platforms such as Instagram, Facebook and Twitter, according to allegations by the Campaign for Tobacco-Free Kids.
    The allegations are based on the findings of a two-year investigation by the Campaign and Netnografica, a US-based consumer research and consulting firm specializing in online research.
    According to a press note posted on the Campaign’s website, tobacco companies have been paying social media influencers – popular young people with large online followings – to post images of cigarettes and smoking as part of a marketing strategy documented in more than 40 countries.
    The findings have been included in a petition sent to the US Federal Trade Commission (FTC) by nine leading public health and medical groups.
    ‘The investigation documents more than 100 social media campaigns by multinational tobacco giants Philip Morris International, British American Tobacco, Japan Tobacco International and Imperial Brands,’ the Campaign’s note said.
    ‘Netnografica conducted interviews with young social media influencers who were paid to promote cigarettes online to millions of followers without disclosing that they were engaged in paid advertising (those interviewed were granted anonymity to participate in the research).’
    The Campaign note said that the key findings from the investigation included:

    • ‘Tobacco companies seek out young people who have significant numbers of followers online and pay them to post photos featuring Marlboro, Lucky Strike and other cigarette brands. Social media influencers are trained on what cigarette brands to promote, when to post pictures for maximum exposure and how to take “natural photos” that do not look like staged advertisements. In Italy, influencers paid to promote Lucky Strike cigarettes were instructed to make sure health warnings on cigarette packs were not visible in photos posted online.
    • ‘Tobacco companies organize parties and contests with cigarette brand sponsorships and encourage participants to post on their social media accounts.
    • ‘Influencers are instructed to include specific hashtags promoting cigarettes on social media posts. The fact that hashtags used by social media influencers are mostly in English indicates tobacco companies are targeting a global audience that includes American youth.
    • ‘Combined, these deceptive social media campaigns for tobacco products have been viewed more than 25 billion times worldwide – including 8.8 billion times in the United States, according to social media analytics commissioned as part of this investigation.’
  • All of a twitter

    All of a twitter

    The tobacco industry’s ‘global online activities’ need to be regulated, according to researchers in Australia.
    ‘Transnational tobacco companies are using Twitter to oppose tobacco control policy and shape their public identity by promoting corporate social responsibility initiatives in violation of [the] WHO [World Health Organization] Framework Convention on Tobacco Control,’ the researchers concluded in the abstract of a Tobacco Control paper published on the BMJ Journals website.
    ‘The tobacco industry has a long history of opposing tobacco control policy and promoting socially responsible business practices. With the rise of social media platforms, like Twitter, the tobacco industry is enabled to readily and easily communicate these messages.
    The researchers said that all tweets published by the primary corporate Twitter accounts of British American Tobacco, Imperial Brands, Philip Morris International and Japan Tobacco International had been downloaded in May 2017 and manually coded under 30 topic categories.
    Out of the 3,301 tweets analysed the most prominent categories of tweets were said to have been on topics that opposed or critiqued tobacco control policies (36.3 percent of BAT’s tweets, 35.1 percent of Imperial’s tweets, 34.0 percent of JTI’s tweets and 9.6 percent of PMI’s tweets).
    All companies were said to have tweeted consistently to promote an image of being socially and environmentally responsible.

  • Newsletter published

    Newsletter published

    The CORESTA (Co-operation Centre for Scientific Research Relative to Tobacco) Secretariat has advised that the organization’s latest newsletter has been published and is available for download at the CORESTA website.
    Issue 51 of the newsletter includes:

    • Information on the October 2018 CORESTA Congress in Kunming, China, including details about the venue, the program, the General Assembly and elections, and a special meeting on heated-tobacco products.
    • Descriptions of the five workshops to be held during the Congress.
    • Reports by the organization’s sub-Groups on Physical Test Methods and Cigar Smoking Methods.
    • Outlines of CORESTA presentations at external events.
    • A report on a visit to the Zimbabwe Tobacco Research Board’s Kutsaga Research Station.
    • Details on the launch of a new CORESTA project on sustainability
    • A report on the most recent CORESTA Scientific Commission and Board meetings held in June.
    • A list of recently-published CORESTA technical reports, guides and new projects launched.
    • Dates of upcoming CORESTA meetings.

  • Risk communication vital

    Comparative risk communication might encourage smokers to switch to lower-harm tobacco products, according to the results of a study by US researchers at the Tobacco Center of Regulatory Science, School of Public Health, Georgia State University, Atlanta.
    The researchers found also that comparative risk messages with more negative anti-smoking elements in the design might be particularly effective, because they led to ‘higher self-efficacy to quit smoking’.
    They concluded that regulatory agencies might want to consider using comparative risk messages with more negative anti-smoking elements ‘to educate the public about lower risk of e-cigarettes’.
    An abstract of the Tobacco Control study is available on the BMJ Journals website.

  • STOP gets started

    STOP gets started

    The global health organization Vital Strategies (VS) has welcomed Bloomberg Philanthropies’ launch of its new $20 million global, tobacco-industry watchdog, STOP (Stopping Tobacco Organizations and Products).
    In a press note issued yesterday, VS said that STOP would be powered by a consortium of three leading anti-tobacco groups, ‘with Vital Strategies joining with its sister organization, the International Union Against Tuberculosis and Lung Disease (The Union) as a sub-grantee’.
    ‘STOP will use innovative research methods to expose industry attempts to derail tobacco control policies,’ it said. ‘It will also counter the industry’s efforts to hook a new generation of smokers, with a special focus on 16 emerging markets where the consortium has strong relationships with governments and civil society.’
    José Luis Castro, CEO and president of VS and executive director of the Union described the Bloomberg Philanthropies’ investment as a “game-changer”. “The tobacco industry spends billions of dollars every year to drive its – often hidden – agenda to mislead consumers, journalists and policymakers. This investment will allow health advocates to bring innovation and proven strategies to expose industry wrongdoings on a global scale. Vital Strategies and The Union are honored to be a part of an effort that will bring rapid progress against the world’s leading preventable killer – tobacco use – and expose the unethical business practices that drive seven million tobacco-related deaths every year.”
    VS’ note said the other organizations that had won the global competition to form the watchdog group were the Tobacco Control Research Group (TCRG) at the University of Bath and the Centre for Good Governance in Tobacco Control (GGTC). ‘Each organization has deep global and in-country experience in research, analysis, monitoring and advocacy, as well as media strategies that increase support for tobacco control policies,’ the note said.
    ‘STOP partners will draw from cutting-edge research, technology and media experience to cut off the tobacco industry’s influence around the world. Over the three-year term of STOP’s engagement, the group will encourage whistle blowers to report on misdeeds, publish exposé reports, employ “big data,” crowdsourcing methods, and mobile apps, to amplify and maximize STOP’s impact. Existing tools such as the University of Bath’s tobacco tactics website, and the Tobacco Atlas published by Vital Strategies and the American Cancer Society will jump-start these efforts.
    ‘STOP will support World Health Organization’s work to reduce tobacco use, including the implementation of the Framework Convention on Tobacco Control (WHO FCTC). It will specifically challenge the industry’s efforts to influence government policy in contravention of Article 5.3 of the WHO FCTC.’

  • BAT’s profit soars

    BAT’s profit soars

    British American Tobacco’s cigarette volume during the six months to the end of June, at 345 billion, was down by 3.1 percent on that of the six months to the end of June 2017 [when the 2017 six-month results were presented, volume was give as 314 billion, which would indicate that volume had increased by about 10 percent, but volume figures for the first half of 2018 have been given on a ‘representative basis’ – as if BAT had owned RAI and other acquisitions, completed in 2017, from 1 January 2017.]
    BAT’s tobacco-heating-product (THP) volume, during the six months to the end of June, at 3.3 billion sticks was increased by 855 percent on that of the six months to the end of June 2017; so the company’s combined cigarette and THP volume fell by 2.2 percent to 348.3 billion.
    BAT’s oral-tobacco-product volume was up by 1,093 percent to the equivalent of 4.4 billion sticks; its vapor volume, measured in 10 ml units, was up by 160 percent to 77.6 million; and its other-tobacco-product volume, which includes roll-your-own and make-your-own products, was down by 6.9 percent to 10.3 billion stick-equivalents.
    BAT’s revenue during the six months to the end of June, at £11,636 million, was said to be up by 56.9 percent on that of the six months to the end of June 2017.
    Profit from operations was up by 72.4 percent to £4,438 million, while basic earnings per share were down by 3.4 percent to 117.7p.
    In announcing the half-year results, CEO, Nicandro Durante, said the company’s strategy was to continue to grow its combustible business while investing in the ‘exciting’ potentially reduced risk categories of THP, vapor and oral. As the Group expanded its portfolio in these categories, it would continue to drive sustainable growth.
    ‘In the first six months of 2018, the Group continued to perform well,’ he said. ‘The cigarettes and THP portfolio has outperformed the industry as market share grew 40 basis points (bps) with a tobacco price mix of approximately four percent which is expected to strengthen in the second half of the year.
    ‘The performance of Reynolds American Inc. (RAI) since acquisition is encouraging and the Group’s diverse NGP portfolio has grown strongly. The foreign exchange impact on the Group’s results was a headwind of eight percent for the first six months of the year and is estimated to be 5-6 percent for the full year, based upon the current foreign exchange rates.
    ‘Despite the recent slowdown in the THP category in some markets, including Japan and South Korea, we remain confident of exceeding £1 billion of reported revenue in NGP in 2018 as we expect a range of new launches to re-energise growth in THP in the second half of the year.
    ‘We anticipate another good year of adjusted earnings growth at constant rates of exchange.’

  • PMI's volume increased

    PMI's volume increased

    Philip Morris International’s cigarette shipment volume during the second quarter to the end of June, at 190,721 million, was down by 1.5 per cent on that of the second quarter of 2017, 193,540 million.
    Volume increased by 6.6 percent to 44,788 million in its South and Southeast Asia region and by 5.7 percent to 34,177 million in its Middle East and Africa region. But volume was down in each of its other regions: by 3.6 percent to 47,894 million in the EU; by 4.3 percent to 15,114 million in East Asia and Australia; by 6.3 percent to 20,204 million in Latin America and Canada; and by 11.3 percent to 28,454 million in Eastern Europe.
    Cigarette shipments of Marlboro were up by 0.1 percent to 68,893 million, while those of L&M where down by 0.7 percent to 23,196 million. Cigarette shipments of Chesterfield rose by 9.3 percent to 14,926 million; those of Philip Morris fell by 1.3 percent to 12,523 million; those of Sampoerna A fell by 4.2 percent to 10,174 million; those of Parliament fell by 1.6 percent to 10,993 million, those of Bond Street fell by 18.4 percent to 8,390 million; those of Dji Sam Soe rose by 43.0 percent to 6,877 million; those of Lark rose by 3.8 percent to 5,904 million; and those of Fortune rose by 21.2 percent to 4,155 million. Shipments of other cigarette brands fell by 14.9 percent to 24,690 million.
    The 2018 second-quarter overall decline in cigarette shipments was more than offset by an increase in sales of heated-tobacco units (HTUs); so total sales of cigarettes and HTUs increased by 0.9 percent to 201,708 million from those of the second-quarter of 2017.
    Shipments of HTUs during the three months to the end of June, at 10,987 million, were up by 73.0 percent on those of the three months to the end of June 2017, 6,350 million.
    Shipments of HTUs were increased in all the regions where they are sold: in the EU from 392 million to 1,195 million; in Eastern Europe from 117 million to 951 million; in the Middle East and Africa from 112 million to 971 million; in East Asia and Australia from 5,726 million to 7,838 million; and in Latin America and Canada from three million to 32 million.
    PMI reported also that its shipment volume of cigarettes during the six months to the end of June, at 355,001 million, was down by 3.3 percent on that of the six months to the end of June 2017, 367,092.
    At the same time, shipments of HTUs were up by 90.6 percent to 20,553 million, while its total cigarettes and HTUs volume was down by 0.6 percent to 375,554 million.
    Reported and adjusted diluted earnings per share during the second quarter, at $1.41, were increased by 23.7 percent on those of the second quarter of 2017, $1.14.
    Net revenues were up by 11.7 percent to $7.7 billion.
    “Our second-quarter earnings highlight the fundamental strength of our business, with positive total volume growth, currency-neutral net revenue growth of more than eight percent, driven by higher pricing from our combustible product portfolio, and close to double-digit growth in ex-currency operating income,” said CEO André Calantzopoulos (pictured).
    “We are seeing encouraging improvement in the markets we previously cited as challenging, with a sequential recovery of volume in the GCC and an improving pricing environment in Russia.
    “Reflecting better execution, our heated tobacco portfolio across IQOS launch geographies is performing well, notably in key markets such as the EU. We are implementing the right marketing and product measures to reinvigorate growth in Japan, which is undoubtedly well below our initial expectation this year. These initiatives, which require the rightsizing this year of existing IQOS device and consumable inventories, will position PMI well for a strong overall performance in 2019.
    “Our revised 2018 EPS guidance reflects this decision, as well as the shift in previously positive currency to a headwind for the full year. Partially offsetting these impacts is the benefit of a further reduction of our effective tax rate.
    “As demonstrated by our dividend increase of 6.5 percent last month, we remain confident in our long-term growth prospects, underpinned by the strength of our combustible portfolio and the proven potential of our smoke-free alternatives.”

  • Duty-free under scrutiny

    Duty-free under scrutiny

    Duty-free sales of tobacco products will be coming under the spotlight as an international protocol on the illegal trade in such products comes into force.
    The Protocol to Eliminate the Illicit Trade in Tobacco Products is the only protocol to have come out of the World Health Organization’s Framework Convention on Tobacco Control.
    In a note on its website, the Duty Free World Council said the protocol mandated research into ‘the extent to which’ duty-free contributes to the illegal trade of tobacco products. This, the Council said, indicated the WHO’s starting assumption was that duty-free was a source of illegal trade.
    The Council said it had been leading a global campaign together with other regional associations to communicate to governments of parties to the Protocol that the industry vigorously rejected any claims that duty-free tobacco sales contributed to illegal trade.
    “There is no justification in penalising legitimate law-abiding retailers, brands, airports and the maritime trade under the pretext of illicit trade,” Council president Frank O’Connell was quoted as saying.
    The Council said that the research should not be carried out until all the signatory countries were aligned on the methodology of the study and that it must be carried out in a fair and objective manner with full industry participation.
    Following the ratification of the Protocol, it added, the first meeting of the parties to the Protocol would take place in Geneva in September, when the parties were due to discuss the next steps for implementing the Protocol.

  • Smoke-free simulcasting

    Smoke-free simulcasting

    Philip Morris International yesterday issued a call to action for the creative, media and communications communities to embrace its ongoing commitment to creating a smoke-free world.
    ‘As part of this initiative, PMI will offer smoke-free alternatives wherever we can, including heated tobacco products and e-cigarettes, to current smokers in the industry who would otherwise continue to smoke,’ the company said in a press note.
    The initiative was announced during a keynote speech at the PMI Science Lounge at The Cannes Festival of Creativity, where senior vice president of communications Marian Salzman said: “We are asking the creative community to join us in raising awareness of the potential of science, technology and innovation for those who smoke and the people around them”.
    PMI described the move as being part of its vision ‘to lead the charge towards greater innovation and technology in the tobacco industry, all of which is backed by science’.
    Agencies interested in joining the movement can contact Marian Salzman at marian.salzman@pmi.com.
    “People who smoke deserve information about better alternatives,” said COO Jacek Olczak (pictured). “The media industry can play an important role in making this happen, including by championing this initiative.
    “Quitting tobacco and nicotine remains the best option for smokers, but for those who don’t, science-based non-combustible alternatives are a better choice than continuing to use cigarettes.”
    Olczak said PMI wanted a world where all people who would otherwise continue to smoke instead switched to less harmful alternatives. “We started with a bold statement in Cannes: we are looking to create a world where all these smokers switch to better alternatives,” he said. “Now it’s time to make sure people know we are serious. And now, we are following up with concrete actions.”
    The press note said that the Emakina Group, an independent group of communication agencies in Europe, had been the first agency network to declare its commitment to a smoke-free future by pledging support to the initiative across its 13 offices. “A smoke-free future for the whole company? Challenge accepted,” said Brice Le Blévennec, CEO, Emakina Group. “And you know what? Let’s start now!”
    PMI says it is developing and assessing a range of smoke-free alternatives to cigarettes including heated tobacco products, e-cigarettes, and other innovative technologies. ‘The company is conducting extensive research to examine the risk reduction potential of the products compared to continued smoking,’ it said. ‘All evidence to date indicates that PMI’s smoke-free alternatives are a better choice for smokers than cigarettes.’

  • Spreading the word

    Spreading the word

    Although during its 15-year existence the electronic cigarette has been successful in encouraging millions of smokers to switch to this much less harmful alternative, there is still a pressing need to disseminate further the message about the advantages of these products.
    This is according to Dustin Dahlmann (pictured), founding member of the Independent European Vape Alliance (IEVA) and the author of a sponsored-content piece published yesterday by politico.eu.
    Dahlmann said that, according to a study published in 2016 by the Onassis Cardiac Surgery Center in Athens, Greece, more than six million tobacco smokers in the EU had succeeded in quitting their habit with the help of e-cigarettes, while another nine million smokers had been able to reduce their dependence on combustible cigarettes by using the electronic alternative.
    A German study from 2017, meanwhile, had found that 99 percent of all e-cigarette users were current or former tobacco smokers.
    The Graz-based toxicologist Professor Bernd Mayer was quoted as saying that on switching to e-cigarettes, the typical smoker’s cough disappeared within a few weeks, the susceptibility to infection decreased massively and the physical condition improved.
    For him, the transition to e-cigarettes in terms of health improvements was comparable to stopping smoking. In an opinion written in 2016, as an appointed expert of the Federal Government, Mayer said the most significant difference between e-cigarettes and conventional cigarettes was that the former did not burn during use; so no combustion products were formed, and it was these products that were responsible for potentially fatal diseases such as cancer, heart attacks, strokes and COPD.
    But Dahlmann pointed out that the proven lower degree of harmfulness of e-cigarettes had not penetrated sufficiently into the consciousness of European society. ‘A survey in Germany in 2017 revealed that more than half of the population believe e-cigarettes are at least as harmful as tobacco cigarettes,’ he said. ‘Comparable studies in Great Britain have come to similar conclusions. This also applies to the only relevant target group for e-cigarettes: adult smokers and their relatives, for whom a switch could provide significant relief.
    ‘In this regard, public health bodies are encouraged to spread the generally accepted facts about the e-cigarette to the wider public, so that smokers can correctly assess the alternatives.’