Tag: tobacco

  • UK campaigners condemn ‘sexist’ study on plain packaging

    Campaigners in the U.K. opposed to plain packaging of tobacco have described as “sexist” a study that says young female smokers get less satisfaction and less enjoyment from smoking cigarettes that come in plain, standardized packs.

    Hands Off Our Packs campaigner Angela Harbutt, a smoker, said, “The idea that plain packaging will have a greater impact on young women suggests that women are more easily influenced than men. This is not only an outdated view of women, it’s also incredibly sexist.

    “Women can think for themselves and if they enjoy smoking, as many do, the packaging will make no difference. It may influence which brand they buy, but not their habit.”

    According to researchers at Stirling University, women in the study said they were more embarrassed about smoking from plain packs and felt more negative about smoking from the plain packs, even though they were smoking their regular cigarettes.

    The same women allegedly reported smoking fewer cigarettes, stubbing out cigarettes early, smoking less around others and thinking more about quitting when using the plain packs.

    Harbutt added, “This is perfectly normal behavior but it doesn’t last.”

  • E-cigarettes could turn kids into smokers, health department says

    The Philippine health department warned the public on April 12 against e-cigarettes, saying the tobacco substitute could turn children into smokers.

    E-cigarettes have been gaining favor among Filipinos as higher tobacco taxes make smoking more expensive, according to a story in the Manila Times.

    Food and Drug Administration director-general Kenneth Hartigan-Go disputed what he said were claims by vendors that e-cigarettes helped smokers kick the habit.

    “Wittingly or unwittingly, the electronic cigarette promotes smoking among children and the youth. It makes them less fearful of hazards and risks of smoking,” he said in a health advisory posted on its website. “The public is advised not to smoke at all and not to use cigarettes, cigars, or e-cigarettes,” added Hartigan-Go.

    Nearly one in five Filipinos smokes, according to the health department.

    A law that came in effect this year will gradually raise the tax on cigarettes over five years, which would roughly double the price per pack to about PHP52 ($1.27) by 2017.

    A basic e-cigarette kit in the Philippines costs as little as $24, featuring a battery-powered vaporiser that delivers a nicotine-laced mist.

  • Indonesia: Cigarette makers blame costs for lower profits

    Cigarette manufacturers in Indonesia blamed higher production costs and currency fluctuations for the slow-down in their business throughout 2012.

    Revenues at PT Gudang Garam increased by 17.1 percent to reach IDR49.03 trillion ($5 billion). However, their spending also increased, jumping 25.6 percent to IDR39.84 trillion. The higher spending and losses from currency fluctuations ultimately saw the company book IDR4.01 trillion in net profits in 2012, an 18 percent decline from the previous year, according to a story in the The
    Jakarta Post.

    Another cigarette maker, PT Bentoel Internasional Investama announced that its revenues fell slightly by 2.2 percent to IDR9.85 trillion. Along with Gudang Garam, it also posted higher costs of goods sold (COGS) last year, which were up 5.5 percent to IDR8.18 trillion.

    Bentoel said that it suffered IDR323.35 billion in net losses, compared to IDR306 billion in net profits in 2011. In a statement submitted to the Indonesia Stock Exchange, it attributed the net losses to the significant increase in the clove price. At the same time, it added, sales dropped as a result of higher excise duties.

    Meanwhile, PT HM Sampoerna reported a 26 percent rise in revenues to IDR66.63 trillion in 2012, as a result of higher sales. Last year, it managed to sell up to 107.7 billion cigarettes, a rise of 17.4 percent from 2011.

    Sampoerna’s COGS were up by almost 28 percent to IDR48.12 trillion and its net profits surged 23.3 percent to IDR9.94 trillion in 2012. The increased COGS pushed the company’s net profits-to-revenue margin down to 14.9 percent from the previous 15.3 percent in 2011.

    Separately, PT Wismilak Inti Makmur reported that its revenues climbed 20.9 percent to IDR1.12 trillion from 2011, thanks to higher sales, which grew 11 percent to 2 billion cigarettes. With higher sales, the company also reported a surge in its COGS, which increased 22.6 percent to IDR814.42 billion.

    However, despite recording positive growth in revenue, Wismilak suffered from lower net profits in 2012, which slumped 40.3 percent to IDR77.2 billion.

    This year the government plans to increase excise duty by 8.5 percent.

    According to Trust Securities analyst Reza Priyambada, overall, the cigarette makers faced similar problems throughout 2012 with increasing raw material prices and higher excise. “It was like they were ‘attacked’ from the top and from the bottom,” he said.

  • TTM wary of decreasing market share

    The Thailand Tobacco Monopoly (TTM) has gradually lost market share to imported cigarettes since the country lifted the tax barrier two decades ago, says director-general Torsak Chotimongkol.

    Local cigarettes still claim 76 percent of the market, but foreign cigarettes are likely to gain one percentage point to 25 percent by the end of this year, according to a story in the Bangkok Post.

    Torsak said TTM is trying to regain market share in the middle- to upper-income markets dominated by imported cigarettes, while also keeping its low-income base. “We need to protect our share from imports, as our margin is quite thin,” he said.

    TTM cigarettes make up 33 percent of the market, legally imported cigarettes make up 12 percent, smuggled smokes contribute 10 percent and roll-your-own tobacco comprises 45 percent, said Torsak.

    Roll-your-own tobacco has gained rapidly as a result of the tax waiver for local breeds of tobacco, while the tobacco produced by TTM is taxed at THB1,000 a kilogram.

    Last year TTM had total sales of 36 billion units for THB70 billion, and this year will likely be similar.

    “If TTM can expand overseas, our sales may reach THB100 billion, as we are now attempting to enter into Japan, the U.S. and Europe to build up our brand,” said Tanusak Lekuthai, deputy finance minister.

  • Vietnam’s anti-smoking law to take effect May 1

    Vietnam’s law on the prevention and control of smoking takes effect on May 1, 2013, according to the Health Ministry, according to a story in VietnamPlus.

    The law, with five chapters and 35 clauses, regulates measures aimed to reduce the demand for tobacco, control supply and prevent tobacco harm, said the ministry at a conference in Hanoi on April 23.

    According to Deputy Minister of Health Nguyen Thi Xuyen, in the coming time, the implementation of the law will focus on enforcing the smoking ban in agencies, government offices, schools, hospitals and a number of public places.

    Regulating cigarette advertisement, promotion and funding will be another focus, she added.

    According to the World Health Organisation (WHO), Vietnam is one of 15 countries with the most smokers in the world. About half of all male adults (15 years old and above) in the country are smokers.

    Earlier, on January 25, 2013, the Prime Minister approved the national strategy to combat tobacco’s negative impacts by 2020.

  • TIMB report: nearly $300 million in sales of golden leaf

    The Tobacco Industry and Marketing Board (TIMB) has recorded close to $300 million from the sales of the golden leaf as more farmers deliver their crop to the country’s three auction floors, according to a story by Zimbabwe’s NewsDay.

    TIMB shows that as of Wednesday (Day 44), revenue had reached $289 million from 77,787 million kg of tobacco sold. The sales comprised 46,619 million kg contract and 31,168 million kg auction sales.

    On Friday, April 19, Tobacco Sales Floor handled 11.8m kg, followed by Boka Tobacco Auction Floors at 11.3m kg and Premier Tobacco Floor with 7.9 million kg.

    On the day’s trade TSF bought tobacco at an average price of $3. 70 per kg, BTF at $3. 61 per kg and PTF at $3. 56 per kg.

    At least 1,099,020 bales were accepted, while 48,954 bales had been rejected for various reasons. According to the TIMB weekly tobacco report, the current 2013 seasonal sales were 16 percent firmer than the prior year at the same time.

    TIMB said to date, about 51,083 growers have delivered tobacco against 86,941 growers who have registered for 2013 season. During the same period last year about 64,293 had registered.

    TIMB projects 170 million kg of the golden leaf to be brought to the auction floors this season.

  • Lorillard’s 1Q profit up 47 pct on higher pricing, e-cig sales, lower costs

    Lorillard’s first-quarter profit jumped 47 percent as higher prices, e-cigarette sales and lower legal expenses from a longstanding legal settlement offset a decline in traditional cigarette sales.

    The nation’s third-biggest tobacco company on Wednesday reported earnings of $328 million, or 86 cents per share, for the period ended March 31, up from $223 million, or 57 cents per share, a year ago, according to the Associated Press.

    Excluding one-time items, earnings were 66 cents per share, beating Wall Street expectations by 2 cents. That excludes a benefit of 23 cents per share in credits for disputed payments under the 1998 Master Settlement Agreement, in which some cigarette makers are paying states for smoking-related health care costs.

    Revenue excluding excises taxes rose 6 percent to $1.12 billion, matching analyst expectations, according to FactSet.

    Its shares rose $1.29, or about 3 percent, to $43.07 in morning trading.

  • Reynolds American profits jump 88 pct in Q1, volume down

    Consumers squeezed by higher gas prices and an increase to the payroll tax led Reynolds American Inc. to report a sharp drop in cigarette volumes in the first quarter.

    “Overall, the external environment remained challenging,” President and CEO Daniel Delen said. “Industry cigarette volumes were negatively impacted by higher energy prices, the expiration of the payroll-tax holiday and fewer shipping days,” according to a story posted on 4-traders.com.

    Profit, meanwhile, jumped 88 percent in the quarter due to lower costs and a $202 million credit tied to a landmark tobacco settlement. Adjusted profit was higher than Wall Street expected, aided by higher cigarette prices and strong demand for smokeless products, though the decline to net sales was worse than anticipated.

    Reynolds American and rival tobacco companies face a difficult operating environment as cigarette volumes have been declining for years. A weak economy and high unemployment have continued to pressure consumers’ disposable income. But an estimated 6.2 percent drop to cigarette volumes in the first quarter was more bruising than historical trends, with declines generally averaging 3 percent to 4 percent in recent years. Domestic cigarette shipment volume at the R.J. Reynolds unit fell 8.7 percent in the first quarter, though when adjusting for the two fewer shipping days, the company estimates its cigarette volume dropped about 5.6 percent.

    The company’s total cigarette retail market share dropped to 26.1 percent from 26.7 percent, the eighth consecutive year-over-year decline.

    Camel and Pall Mall, the company’s core brands, performed better than the overall cigarette unit. Volumes slid 5.5 percent for Camel and 2 percent for Pall Mall, and both posted higher market share. Together, they represent more than two-thirds of the company’s total market share.

  • Australian fund gets tough on TOMRA’s tobacco ties

    An Australian superannuation and investment fund is leading an international effort to pressure a Norwegian machinery maker to leave the tobacco  industry.

    In what amounts to a new front in the war against tobacco, Australian Ethical will put forward a resolution on Monday at the annual general meeting of Norwegian company TOMRA, demanding it stop selling tobacco sorting machines.

    Australian Ethical, which manages more than $600 million on behalf of about 18,000 investors, has long invested in TOMRA, which makes machinery used in recycling.

    Last year, when TOMRA bought Best Sorting, a Belgian company that makes tobacco sorting machines, Australian Ethical wrote to TOMRA, asking it to get out of the area. When it refused, Australian Ethical approached other investors in the company for support.

    The resolution calls on the company to stop selling tobacco sorting machines to the tobacco industry within six months. If the resolution received majority support, it would be binding on the company. If it fails, Australian Ethical will sell its stake in TOMRA.

    In February the Future Fund announced it would sell its tobacco investments – valued then at about $222 million – citing the damaging health effects and addictive properties of tobacco.

  • NC tobacco tax totals turn down

    North Carolina, USA, is catching up with a lot of other American states in collecting less tax revenue on cigarettes and other forms of tobacco.

    In the first nine months of fiscal 2013, which began in July, state revenue collections were $190 million, down 6 percent from the $202 million that came in during a comparable period in 2011.

    The state puts a 45-cent tax on a pack of cigarettes and a 12.8 percent tax on other tobacco products, according to a story in The Business Journal of the Greater Triad Area.

    The revenue collection figures are considered a good measure of consumption trends. North Carolina saw its tobacco revenue jump by 2.2 percent in fiscal 2012, which ended last June, Meanwhile, across the country during those same 12 months, the 50-state tobacco collection figure was dropping by nearly 1 percent, according to the U.S. Census Bureau.

    The federal government, which also collected fewer tobacco taxes in its fiscal 2012, credited anti-smoking programs for the decline.

    If Congress ultimately agrees with the Obama administration’s plan to slap an extra 94 cents in taxes on a pack, expect revenue collections to continue downward.