Tag: United States

  • PM USA’s volume down

    PM USA’s volume down

    Philip Morris USA’s domestic cigarette shipment volume during the third quarter to the end of September, at 30,828 million, was 6.2 percent down on that of the third quarter of 2016, 32,864 million.

    Marlboro volume was down by 6.0 percent to 26,445 million, while the volume of the company’s other premium brands was down by 6.9 percent to 1,567 million. Its discount-brand volume was down by 7.3 percent to 2,806 million.

    In presenting its third-quarter and nine-month figures, Altria said that total cigarette industry volumes had declined by an estimated 3.5 percent during the third quarter. ‘The smokeable products segment’s reported domestic cigarettes shipment volume declined by 6.2 percent in the third quarter, primarily driven by the industry’s rate of decline, trade inventory movements, retail share declines and one fewer shipping day,’ it said. ‘After adjusting for trade inventory movements and calendar differences, PM USA’s domestic cigarettes shipment volume decreased by an estimated 4.5 percent.’

    Meanwhile, Altria reported that for the first nine months of 2017, total cigarette industry volumes had declined by an estimated 3.5 percent. ‘The smokeable products segment’s reported domestic cigarettes shipment volume decreased by 4.0 percent, primarily driven by the industry’s rate of decline, retail share declines and one fewer shipping day, partially offset by trade inventory movements,’ it said. ‘When adjusted for trade inventory movements and calendar differences, PM USA’s domestic cigarettes shipment volume decreased by an estimated 4.0 percent.

    PM USA’s domestic-market retail share during the three months to the end of September, at 50.5 percent, was down by 0.6 of a percentage point on that of the third quarter of 2016.

    Marlboro’s market share was down by 0.5 of a percentage point to 43.2 percent, while the share of the company’s other premium brands was down by 0.1 of a percentage point to 2.7 percent, and the share of its discount brands was unchanged at 4.6 percent.

    Middleton’s cigar shipment volume during the first three months, at 385 million, was increased by 6.6 percent on that of the three months to the end of September 2016, 361 million, as Black & Mild volume rose by 6.7 percent to 381 million and other-cigar volume was unchanged at four million.

    USSTC’s domestic smokeless products shipment volume during the third quarter, at 212.6 million cans and packs, was down by 1.8 percent on that of the three months to the end of September 2016, 216.4 million.

    Shipments of Copenhagen and Skoal, taken together, were down by 2.0 percent to 195.7 million packs and cans, while shipments of other brands were increased by 1.2 percent to 16.9 million packs and cans.

    USSTC reported that its domestic shipment volume had declined by 1.8 percent and 1.7 percent in the third quarter and first nine months of 2017 respectively, driven primarily by declines in sales of Skoal. ‘After adjusting for trade inventory movements and other factors, USSTC estimates that its domestic smokeless products shipment volume declined approximately three percent in the third quarter and 1.5 percent for the first nine months,’ Altria said. ‘USSTC estimates that the smokeless products category volume grew approximately 0.5 percent over the past six months.’

    USSTC’s retail share of the domestic smokeless products market during the three months to the end of September, at 53.8 percent, was down by 1.1 percentage points.

    The share of Copenhagen and Skoal, taken together, fell by 1.2 percentage points to 50.4 percent, while the share of the company’s other brands increased by 0.1 of a percentage point to 3.4 percent.

    Altria’s 2017 third-quarter reported diluted earnings per share (EPS) were increased by 73.2 percent to $0.97 on those of the third quarter of 2016, with comparisons affected by special items. Third quarter adjusted diluted EPS, which excludes the impact of special items, increased by 9.8 percent to $0.90.

    “Altria delivered outstanding performance in the third quarter and for the first nine months of 2017 as our core tobacco operating companies generated strong income growth,” said Marty Barrington, Altria’s chairman, CEO and president. “Our financial performance continues to strengthen in the second half, as we expected.”

    “And we continued to focus on rewarding shareholders through the first nine months, paying out more than $3.5 billion in dividends and repurchasing nearly $2.4 billion in shares. In August, Altria’s board of directors voted to increase our quarterly dividend per share by 8.2 percent.”

    “The business is performing well in a competitive environment, and we continue to expect full-year adjusted diluted EPS growth of 7.5 percent to 9.5 percent.”

  • Universal to webcast results

    Universal to webcast results

    Universal Corporation is due to webcast a conference call on November 7 following the release of its results for the second quarter of fiscal year 2018 after market close on that date.

    The conference call will begin at 17.00 Eastern Time and will be hosted by Candace C. Formacek, vice president and treasurer.

    The webcast will be available online on a listen-only basis at www.universalcorp.com, and a replay will be available at that site through February 5.

    A taped replay of the call will be available from 20.30 on November 7 through November 20 at (855) 859-2056, using the telephone replay identification number 5697004.

  • Low-nicotine policy debated

    Low-nicotine policy debated

    The US Food and Drug Administration’s proposed reduced-nicotine policy is only one of several options that should compete for regulatory and scientific resources, and political capital, according to a press note issued by the R Street Institute.

    The Institute’s harm reduction policy manager Carrie Wade and associate fellow Clive Bates say the proposed policy should be evaluated against alternative strategies that degrade the appeal of smoking and provide low-risk alternatives.

    FDA commissioner Dr. Scott Gottlieb recently committed his agency to focusing on reducing nicotine in tobacco cigarettes in an effort to address the underlying cause of smoking-related diseases and deaths.

    And in a new Institute report, Wade and Bates explore some of the issues facing the FDA and proponents of the nicotine-reduction strategy, and suggest a potential way forward.

    ‘The focus on nicotine as an effort to address the underlying cause of smoking-related diseases and deaths is rationalized on the basis that people smoke tobacco primarily to consume nicotine,’ the note said. ‘The thinking is, by lowering nicotine levels in cigarettes to non-addictive levels, we will decrease the likelihood that future generations become addicted to cigarettes and allow more currently addicted smokers to quit.

    ‘But as Wade and Bates point out, the reduced-nicotine policy option is only one of several that should compete for regulatory and scientific resources, and political capital. In fact, it should be evaluated against alternative strategies that degrade the appeal of smoking and provide low-risk alternatives.’

    “If the coercive reduced-nicotine strategy is to retain any credibility at all, it will be necessary to have alternative low-risk nicotine delivery systems readily available, so that these products can play a significant role in the behavioral response to the rule,” Wade was quoted as saying.

    “These low-risk alternatives should also be regulated proportionately and in ways that support diversity and innovation, rather than creating excessive regulatory barriers to entry that would establish a new tobacco industry oligopoly.”

    The authors maintain that the superior and more urgent strategy is to promote the migration of smokers from combustible to non-combustible ‘alternative nicotine delivery systems’ by choice.

    ‘As the policy paper demonstrates, this is both a prerequisite for the FDA’s reduced-nicotine strategy and, if successful, will render that strategy unnecessary,’ the note said.

    The reports is available here.

    R Street describes itself as a non-profit public policy research organization that supports free markets; limited, effective government; and responsible environmental stewardship.

  • Altria to hold Investor Day

    Altria to hold Investor Day

    The US-based Altria Group is due to host a webcast of its Investor Day in Richmond, Virginia, on November 2.

    The presentation will be live from about 10.20 through 12.20 Eastern Time, resuming about 14.30 following lunch and a manufacturing-center tour. The webcast is scheduled to end about 15.00.

    The webcast, which will be in listen-only mode, will feature presentations by the company’s chairman, CEO and president, Marty Barrington, and other members of its senior management team.

    Pre-event registration is necessary at www.altria.com/webcasts.

    An archived copy of the webcast will be made available on altria.com or through the Altria Investor App. The free app is available for download at www.altria.com/irapp or through the Apple App Store or Google Play.

  • FDA offers disaster relief

    FDA offers disaster relief

    The US Food and Drug Administration is making concessions, including extending compliance deadlines, for tobacco manufacturers, importers and retailers affected by recent natural disasters.

    In a note issued through its Center for Tobacco Products, the FDA said it recognized that recent natural disasters had affected several areas. ‘Multiple hurricanes have devastated parts of the Caribbean, including Puerto Rico and the US Virgin Islands, and hurricanes and wildfires have affected parts of the continental United States,’ it said. ‘FDA is announcing several actions regarding industry in the affected areas.’

    The note said the FDA was aware that tobacco manufacturers and importers in the affected areas were dealing with extraordinary circumstances and might need additional time to meet certain requirements. ‘As a result, FDA is extending the compliance deadlines for the ingredient listing and health document submission requirements by an additional six months for manufacturers and importers of deemed products in the areas affected by these recent natural disasters,’ the note said.

    The FDA advised those with questions about the new compliance deadlines to visit: SmallBiz.Tobacco@fda.hhs.gov or 1.877.287.1373.

    And it said those seeking further details and a complete list of the affected areas should visit: https://www.fda.gov/TobaccoProducts/NewsEvents/ucm579265.htm

    Meanwhile, the note said that the FDA understood that many retailers that sell tobacco products in the affected areas were not operational. ‘The agency is working to determine appropriate actions to take, including temporarily suspending enforcement activities in areas where there has been a disaster declaration,’ it said.

    ‘FDA will continue to monitor and assess the impact of the natural disasters and recovery efforts in these states and territories.’

    The FDA advised those with questions about enforcement policies for areas affected by recent natural disasters to visit: SmallBiz.Tobacco@fda.hhs.gov or 1.877.287.1373.

  • FDA discussion announced

    FDA discussion announced

    The Johns Hopkins Bloomberg School of Public Health is due on Thursday to host what it is promoting as the public health community’s first opportunity to discuss the comprehensive approach to nicotine and tobacco proposed in July by the US Food and Drug Administration.

    The FDA proposal includes plans to reduce nicotine in cigarettes to non-addictive levels and to encourage the development of innovative products that might be less risky than are cigarettes.

    The agency’s commissioner, Scott Gottlieb, MD, will speak at the event, which will include too a panel discussion with Mitch Zeller, JD, director of the FDA’s Center for Tobacco Products, Bloomberg professor of disease prevention, Joanna Cohen, PhD, MHSc, Professor Dorothy Hatsukami, PhD, of the University of Minnesota, and Professor Ken Warner, PhD, of the University of Michigan. Johns Hopkins Bloomberg School of Public Health associate dean Joshua Sharfstein, MD, will moderate the panel.

    The event is due to be webcast at: https://www.jhsph.edu/offices-and-services/practice-and-training/news-and-events/the-regulation-of-nicotine.html.

  • Altria to webcast results

    Altria to webcast results

    The Altria Group is due to host a live audio webcast from 09.00 Eastern Time on October 26 to discuss its 2017 third-quarter business results.

    The company will issue a press release containing its business results about 07.00 the same day.

    During the webcast, which will be in listen-only mode, chairman, CEO and president Marty Barrington, and CFO Billy Gifford, will discuss the results and answer questions from the investment community and news media.

    The webcast can be accessed at altria.com or through the Altria Investor App. The free app is available for download at www.altria.com/irapp or through the Apple App Store or Google Play.

    Pre-event registration is necessary through www.altria.com/webcasts.

    An archived copy of the webcast will be available on altria.com or through the Altria Investor App.

  • Public statements sought

    Public statements sought

    Australian anti-smoking advocates say that a US court order forcing tobacco companies to air statements about the dangers of smoking should be mirrored in Australia, according to a story in The Guardian.

    Public health experts have written to the Australian heads of tobacco companies calling on them to run statements about the lethal nature of smoking and the addictiveness of smoking and nicotine.

    The advocates want the companies also to reveal their deliberate attempts to make tobacco products more addictive.

    In 2012, the Guardian said, the US federal court ordered major tobacco companies to run statements in the media admitting they had deceived US consumers for decades about the dangers of smoking. That decision had been upheld by the court in April, and the first of the statements was due to air next month in leading newspapers and on the ABC, CBS and NBC television networks.

    The statements are due to run weekly for one year and are said to be costing the companies millions of dollars.

    The court case has prompted a coalition of public health experts to write to the heads of British American Tobacco and Philip Morris in Australia calling on them to tell the truth about their tobacco products in a similar campaign.

    ‘We hope that you will share our view that Australians are entitled to the same level of information as the American public about these companies’ deceitful practices and the ways in which these companies and the tobacco industry more broadly have lied to the public and your consumers over decades,’ the letter states.

  • FDA issues final guidance

    FDA issues final guidance

    The US Food and Drug Administration has issued its final guidance on The Prohibition of Distributing Free Samples of Tobacco Products.

    In a press note issued through its Center for Tobacco Products yesterday, the FDA said that though not legally binding, the guidance explained, among other things, what and who were subject to the prohibition, as well as how the prohibition applied to the distribution of tobacco products through:

    • Non-monetary exchanges;
    • Membership and rewards programs;
    • Contests and games of chance;
    • Business-to-business exchanges.

    ‘The prohibition on free samples of tobacco products is among the FDA’s most important provisions to help reduce youth access to tobacco products,’ the note said.

    More information on the final guidance is at: https://www.fda.gov/downloads/TobaccoProducts/Labeling/RulesRegulationsGuidance/UCM579648.pdf.

  • Vaping a life saver

    Up to 6.6 million US cigarette smokers will live substantially longer than they otherwise would if cigarette smoking is replaced by vaping over a 10-year period, according to a Medical Xpress story citing research published in the journal Tobacco Control.

    The study, by a research team led by investigators from the Georgetown Lombardi Cancer Center, Washington, DC, looked at a strategy of switching cigarette smokers to e-cigarette use in the US to accelerate tobacco control progress.

    The team considered an optimistic and a pessimistic scenario, ‘differing in terms of the relative harms of e-cigarettes compared with cigarettes and the impact on overall initiation, cessation and switching’.

    It found that, compared with the Status Quo, replacement of cigarette by e-cigarette use over a 10-year period yielded 6.6 million fewer premature deaths with 86.7 million fewer life years lost under the optimistic scenario. ‘Under the pessimistic scenario, 1.6 million premature deaths are averted with 20.8 million fewer life years lost,’ the team found. ‘The largest gains are among younger cohorts, with a 0.5 gain in average life expectancy projected for the age 15 years cohort in 2016.’

    The team said that the tobacco control community had been divided regarding the role of e-cigarettes in tobacco control.

    ‘Our projections show that a strategy of replacing cigarette smoking with vaping would yield substantial life year gains, even under pessimistic assumptions regarding cessation, initiation and relative harm.’

    The Medical Xpress story is at: https://medicalxpress.com/news/2017-10-years-life-smokers-e-cigarettes.html.

    The Tobacco Control report is at: http://tobaccocontrol.bmj.com/content/early/2017/08/30/tobaccocontrol-2017-053759?papetoc=