Tag: United States

  • Change of tack

    A man described as ‘no friend of big tobacco’ has embarked on a mission to educate public health professionals and policy makers about the public health gains that might be realized through vapor products, according to a piece by Brian Fojtik, a senior fellow with Reason Foundation, published at huffingtonpost.com.

    The man in question, Iowa’s Attorney General Tom Miller, aims to encourage regulators toward an approach that would encourage those who can’t quit smoking or won’t quit smoking to switch to electronic cigarettes.

    Fojtik describes Miller as a nine-term Democrat who was one of the attorneys general that led the charge toward suing big tobacco companies that culminated in the Tobacco Master Settlement Agreement, under which cigarette manufacturers have been forced to pay the states billions of dollars.

    He said it came as a surprise to some that the immediate past chairman of the anti-smoking Truth Initiative and the former head of the National Association of attorneys general had embarked on this new mission.

    ‘Miller has taken his message across the globe,’ Fojtik said

    ‘In a speech in London last year, Miller thanked British leaders for understanding the health benefits of transitioning smokers away from combustible cigarettes to much safer vapor products that contain no tobacco and produce no smoke.’

    But Miller was said to have expressed concerns about misleading messages coming from tobacco control groups and government agencies with whom he had worked side by side for decades.

    Fojtik’s piece is at: http://www.huffingtonpost.com/entry/59694944e4b022bb9372b193.

  • Results webcasts scheduled

    Results webcasts scheduled

    Philip Morris International is scheduled to host a live audio webcast at www.pmi.com/2017Q2earnings from 09.00 Eastern Time on July 20 to discuss its 2017 second-quarter results, which will be issued about 07.00 the same day.

    During the webcast, which will be in listen-only mode, CFO Jacek Olczak will discuss PMI’s results and answer questions from the investment community and news media.

    The audio webcast can be accessed also on iOS or Android devices by downloading PMI’s free Investor Relations Mobile Application at www.pmi.com/irapp.

    An archived copy of the webcast will be available until 17.00 on August 18 at www.pmi.com/2017Q2earnings.

    Slides and script will be available at www.pmi.com/2017Q2earnings.

     

    Meanwhile, the Altria Group is due to host a live audio webcast from 09.00 Eastern Time on July 27 to discuss its 2017 second-quarter and first-half business results. A press release containing the company’s business results will be issued about 07.00 the same day.

    The webcast can be accessed at altria.com or through the Altria Investor App.

    During the webcast, which will be in listen-only mode, chairman, CEO and president, Marty Barrington, and CFO, Billy Gifford, will discuss the Company’s 2017 results and answer questions from the investment community and news media.

    Directions for the required pre-event registration are at www.altria.com/webcasts.

    An archived copy of the webcast will be 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.

  • Guns yes, smoking no

    Guns yes, smoking no

    From July 1, people will be allowed to carry concealed handguns at Wichita State University, Kansas, US, but they will be banned from smoking or vaping there, according to a story by Dion Lefler for the Wichita Eagle.

    The policy on handguns has been ordered by the Legislature and that on smoking and vaping by university leaders.

    Across the campus, it is possible to find students who support every possible permutation: Ban guns and cigarettes, don’t ban either one, or ban one but not the other.

    But, Lefler explains, the status quo is not an option on guns. Two years ago, the Legislature passed and Governor Sam Brownback signed into law a bill that opens almost all public spaces and public buildings to the carrying of concealed handguns, including college classrooms, offices and dormitories.

    Called “constitutional carry” by its supporters, the law requires neither a permit nor training to carry a concealed weapon for people over 21, an age group that includes many college juniors and seniors.

    The only places where guns can be excluded are buildings with metal detectors and guards to run them at every entrance, which university officials say is impractically expensive on campuses with dozens of buildings and hundreds of entrances.

    The new smoking rules deviate from a state law that allows outdoor smoking outside a 10-foot radius of public-building doors and air intakes.

    The new university policy prohibits smoking outdoors on almost all university property, including streets, sidewalks and parking lots, though there are some exceptions.

    Outdoor smoking in defiance of the policy won’t be a prosecutable offense with fines or citations. Nor will violations count as punishable misconduct for students and employees.

    Instead, users of tobacco products will get a polite scold from student and faculty members designated as ambassadors for the tobacco-free campus policy.

    Lefler’s piece is at: http://www.kansas.com/news/politics-government/article158200119.html.

  • Tobacco fee proves taxing

    Tobacco fee proves taxing

    Whereas good tax policy includes a broad base of taxpayers to pay for public goods, Oklahoma’s new cigarette fee raises money for state-wide health-care services, but only charges those most in need, according to a piece by Courtney Shupert published on the Tax Foundation website.

    Shupert was addressing Oklahoma’s Smoking Cessation and Prevention Act of 2017, which, she said, might be going up in smoke.

    Although Oklahoma Governor Mary Fallin had signed the act (SB 845) into law on May 31, the constitutionality of the law was being questioned in a pending lawsuit because of its terminology.

    ‘In recent years, Oklahoma has faced severe budget shortfalls, leading to issues in education, infrastructure, and health-care funding,’ Shupert said. ‘Proposed cigarette tax hikes were introduced last year and again during the most recent legislative session to address these budget concerns, but failed to gain enough bipartisan support. Then, during the last week of the session, SB 845 was enacted to bridge a budget gap.

    ‘The new law is straightforward; it raises additional revenue from cigarette sales and funds health care. However, the state’s legislative gridlock and budget issues forced the passage of the cigarette charge as a fee, potentially violating Oklahoma’s Constitution.’

    The upshot is that local businesses and large tobacco companies have jointly filed a lawsuit against the cigarette fee, claiming it is unconstitutional.

    And even some legislators who voted for the bill are said to have found the lawsuit unsurprising, given the hasty passage of the legislation.

    This leaves the state in a tight spot with the pending lawsuit, uncertain tax revenues, and additional budget concerns for the future.

    Shupert’s piece is at: https://taxfoundation.org/oklahoma-cigarette-fee-fire/.

  • Where’s the harm?

    Where’s the harm?

    A health-care policy advisor at the Heartland Institute has questioned whether the US Environmental Protection Agency (EPA) can build an argument demonstrating that vaping creates a public harm.

    And in replying to his own question, Dr. John Dale Dunn, MD, JD, said: “The answer is no, they can’t”.

    Dunn and two other vaping- and tobacco-policy experts, were responding to news that on Monday the New York State Senate had passed a measure that would treat vaping exactly like cigarette smoking is treated: banning it everywhere smoking is banned indoors, including in restaurants, bars, and offices.

    The Heartland Institute in February published a booklet titled Vaping, E-Cigarettes, and Public Policy Toward Alternatives to Smoking, which encouraged policymakers to be mindful of the extensive research that supported tobacco harm reduction and to understand that ‘bans, excessive regulations, or high taxes on e-cigarettes could encourage smokers to stay with more-harmful traditional cigarettes’.

    “Any effort to control or ban vaping is built on the claims that second-hand smoke causes harm,” said Dunn. “Bypassing the ridiculous premise, built on junk science research by the EPA, that second-hand smoke is harmful, the question is: Can the EPA or its allies build an argument that vaping, which produces water vapor after inhaling nicotine, be shown to create a public harm? The answer is no, they can’t.

    “There is no research or science that shows vaping causes second-hand harm, so the campaign is the usual effort to impose a preference by a leftist hegemon. I would suggest, instead, that vapers be left alone while we consider the benefits to them by foregoing the smoking of cigarettes.”

    Meanwhile, Matthew Glans, senior policy analyst at The Heartland Institute, said the New York Senate’s decision to treat vaping in the same way as conventional smoking was treated was both short-sighted and potentially harmful.

    “Vaping is not the same as smoking tobacco products, and many smokers use e-cigarettes to stop smoking, thereby reducing the likelihood of suffering in the future from serious tobacco-related illnesses such as lung cancer,” he said. “E-cigarettes and other vaping devices have far fewer negative consequences for both vapers and bystanders, so they should not be treated in the same way. While many supporters of this ban would argue total ‘cold turkey’ cessation is the only safe route towards quitting smoking, for many this method will simply never work and vaping may be their best option.

    “Protecting the vaping market from over-regulation is important. According to many in the public health community, e-cigarettes are far safer than combustible cigarettes, and several studies show they remain one of the most successful methods used by smokers to stop their consumption of tobacco. The American Association of Public Health Physicians concluded e-cigarettes ‘could save the lives of four million of the eight million current adult American smokers who will otherwise die of a tobacco-related illness over the next 20 years’.”

    Looking at the likely effects of the New York measure on the ground, Jeff Stier (pictured), senior fellow, National Center for Public Policy, and research policy advisor, The Heartland Institute, said that New York’s smoking ban was passed to achieve two primary goals, the first of which was to limit exposure to second-hand smoke. The second primary goal was to limit the places smokers could smoke cigarettes, with an eye towards getting them to quit.

    “Treating e-cigarettes like cigarettes can’t possibly lower exposure to second-hand smoke, because there is no second-hand smoke from e-cigarettes,” Stier said. “The law could only increase exposure, by removing an incentive to switch from smoking. And by falsely suggesting that the products are the same, by treating them equally under the law, this ban will undermine the prospects that smokers will switch, by making it more difficult to replace the harmful behavior with a far less risky one. Especially in a bar, where the temptation to smoke is higher, removing the option to vape is especially wrong-headed.

    “When you walk past a bar and see a group smoking outside, it’s likely that some of those smokers would prefer to be vaping inside with their co-quitters. Once they are forced outside, the temptation to revert back to smoking will be too hard for many to overcome, especially after a couple of drinks. This is what we mean when we talk about ‘unintended consequences.’ In this case, the consequences are deadly.

    “The bottom line is that smokers in New York are quitting smoking and using e-cigarettes instead. This law would undermine that.”

  • If you’re going to …

    If you’re going to …

    San Francisco is to ban the sale of flavored cigarettes, including menthol products, from April next year, according to a story by Joshua Sabatini on sfexaminter.com.

    On Tuesday, the Board of Supervisors approved unanimously legislation introduced by supervisor Malia Cohen that prohibits retailers from selling flavored tobacco products, including menthol cigarettes, flavored chewing tobacco and flavored liquids containing nicotine used in electronic cigarettes.

    Such products were said to impact disproportionately the LGBT and black communities.

    “We want to enhance our prevention strategies,” Cohen was reported to have said. “The goal of this ordinance is to keep people from smoking in the first place.”

    The ban drew opposition from small businesses, and from the Small Business Commission which represents them, for the impact it would have on their bottom-lines and the concern that patrons would only shop online or in other counties for the same products.

    To address the business concerns, Cohen amended the legislation to have it go into effect in April 2018, rather than January, when it was originally aimed to come into force. She said also she would support increased city funding to help small stores transition their business models under the Healthy Food Retail program.

    The legislation was said to build on a September 2009 US Food and Drug Administration ban on ‘characterizing flavors’ in cigarettes.

    Sabatini’s piece is at: http://www.sfexaminer.com/sf-bans-sale-menthol-cigarettes-will-eliminate-least-50-5m-tobacco-sales/

  • Jobs targeted at Reynolds

    Jobs targeted at Reynolds

    R.J. Reynolds Tobacco confirmed on Tuesday it was offering voluntary retirement to production workers ahead of the pending sale of its parent company, Reynolds American Inc. to British American Tobacco, according to a story by Richard Craver for the Winston-Salem Journal.

    “We manage our businesses for maximum flexibility, and several factors led us to believe this was a good time to offer some production associates an opportunity to retire with severance benefits,” Reynolds spokesman David Howard was quoted as saying.

    “This is on a voluntary basis – we do not plan any involuntary job eliminations regardless of how many employees sign up.”

    Reynolds is estimated to have between 2,000 and 2,200 local employees, the majority of whom work at its Tobaccoville plant, but the company has refused to provide a local workforce count in recent years.

    Reynolds had 5,500 full-time and 50 part-time employees as of December 31, according to its 2016 annual regulatory report. The total includes 3,700 Reynolds Tobacco, 500 Santa Fe Natural Tobacco and 600 American Snuff employees.

    The bulk of the remaining Reynolds Tobacco employees are sales and marketing representatives out in the field serving retail, wholesale and distribution customers, as well as about half of Santa Fe’s workforce.

    BAT said in a January 18 regulatory filing that it “has no plans to close or move the head office in Winston-Salem, nor make any significant changes to the current high-quality manufacturing facilities in North Carolina and Tennessee, nor to the trade marketing team”.

    But Nicandro Durante, BAT’s chief executive, said in a letter to BAT shareholders that the company projected $400 million in cost savings by July 2020. Such a saving would mean eliminating duplicate corporate functions, greater supply chain economies of scale and enhanced manufacturing efficiency from Reynolds’ two-million-square-foot Tobaccoville plant.

    Craver’s piece is at: http://www.journalnow.com/business/business_news/local/reynolds-offers-voluntary-retirement-packages-to-select-production-workers/article_558dab5c-6df6-5429-afe7-607be539fbb2.html

  • Shareholders go to court

    Shareholders go to court

    In a petition filed in a North Carolina US Federal court, Reynolds American Inc. shareholders have alleged the company and its directors are withholding important information regarding the company’s proposed acquisition by British American Tobacco, according to a Law360 story relayed by the TMA.

    The shareholders said a proxy statement related to the proposed deal did not contain material information related to RAI’s financial projections and analyses of the proposed merger by its financial advisers Goldman Sachs.

    In a note posted on its website on June 14, RAI announced a special meeting of shareholders to approve the terms of its takeover by BAT and related payments to RAI’s executives.

    The meeting is due to be held on July 19 in Winston-Salem, North Carolina.

    ‘Subject to the satisfaction or waiver of the conditions as set out in the merger agreement, including approval by shareholders of both BAT and RAI, it is currently expected that the proposed transaction will close on or about July 25, 2017,’ the note said.

  • MSA scam alert

    MSA scam alert

    At least two US state attorneys general have issued warnings about an online promotion that wrongly suggests people are entitled to receive tobacco settlement money.

    The Master Settlement Agreement (MSA) is a settlement reached between the nation’s four largest tobacco companies and attorneys general from 46 states and territories under which the tobacco companies agreed to pay the states $206 billion during the first 25 years of the agreement. There is no provision for payments to individuals.

    In alerting people to the deception, West Virginia’s Attorney General Patrick Morrisey said the online promotion misled consumers into believing they could receive tobacco settlement money.

    The online promotion claimed individuals could sign up for the MSA agreement, he said. But despite the promotion’s assertion, there was no mechanism for payments to consumers. Payments were made each year to the states and territories.

    “Everyone likes the idea of obtaining extra money,” said Morrisey. “It’s very important to ensure that promotions seeking or promising money are legitimate.”

    According to a statement issued by Morrisey, the promotion misled the consumer by talking about bond purchases backed by settlement money, rather than guidance on how to receive settlement dollars.

    ‘The end goal involves a pitch for consumers to buy a subscription to a monthly report in order to learn more,’ the statement said. ‘Subscribers are charged approximately $5 for the first month and $100 for a one-year subscription. It is difficult to cancel once an individual provides their credit card information.’

    Meanwhile, the day after Morrisey made his statement, Nevada’s Attorney General Adam Paul Laxalt issued a similar warning, telling Nevadans of a ‘recent set of deceptive advertisements related to the Tobacco Master Settlement Agreement’. ‘These advertisements mislead consumers into believing they are eligible to receive tobacco settlement money,’ he said.

    ‘The online advertisements lead consumers to believe that they can claim thousands of dollars per month from the tobacco settlement through a special program. The advertisement, which promises a tax-free portion of the Tobacco Master Settlement Agreement, misleads consumers into believing they are eligible for guaranteed money backed by the government.’

  • Questions over marijuana

    Questions over marijuana

    Imperial Brands has made a move that could signal the beginning of a budding relationship between the tobacco and marijuana industries, according to a story by Dan Caplinger for Motley Fool.

    As was reported here on June 13, Imperial last week named Simon Langelier as a non-executive member of its board of directors.

    Langelier, who previously worked for Philip Morris, is also the chairman of a company called PharmaCielo, a Canada-based supplier of medicinal-grade cannabis oil extracts and related products.

    Caplinger noted that, in welcoming Langelier to the board, Imperial’s chairman Mark Williamson had said Langelier’s “extensive international experience in tobacco and in wider consumer adjacencies will be a great asset to the board”.

    Marijuana, said Caplinger, had become increasingly popular as many states across the US had legalized the drug for medical and/or recreational purposes, and more were considering doing so.

    Some investors had sought to cash in on the trend but, until now, they had had only a limited number of investment choices available to them.

    Many had wondered whether Big Tobacco might eventually choose to get in on the legal marijuana business, ‘offering their shareholders an easier way to profit from the drug’.

    Caplinger speculated that Imperial’s action would ‘likely draw a response from fellow global players Philip Morris International … and British American Tobacco …, as well as US giants Altria … and Reynolds American’.

    However, he went on to say that the ‘contradiction between marijuana being illegal at the federal level but legal in certain states is a huge impediment to big players like Altria and Reynolds American getting into the business.’

    Caplinger’s piece is at: https://www.fool.com/investing/2017/06/16/cigarette-giant-imperial-brands-marijuana.aspx.