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Marlboro Cigarettes Volume Decreased by 0.7%

Philip Morris USA’s local cigarette shipment volume in the course of the 3Q was about 0.1 % higher compared to the results presented for the same period of 2014.

Marlboro volume has declined by 0.7 % ; while the volume of the company’s other key cigarette brands dropped by 4.3 % however its low cost brands volume increased by 10.4 %.

In featuring its 3Q and nine-month results, Altria stated that PM USA’s claimed local cigarettes shipment volume had gained in the 3Q from industry volume development and retail share profits.

‘During the first nine months of 2015, PM USA’s claimed local cigarettes shipment volume has elevated by 1.5 % also because of these factors and trade inventory actions,’ it stated.

‘When altered for trade inventory actions and other elements, PM USA reports that it’s local cigarettes shipment volume remained the same in the 3Q and elevated around 0.5 % during the first nine months.

‘PM USA reports that overall industry cigarette volumes dropped about 1 % in the 3Q and around 0.5 % in the course of the first nine months.’

PM USA’s local-market retail share within the first quarter to the end of September, at about 51.3 %, was amplified by around 0.4 of a percentage point in comparison to the results of 2014.

Marlboro’s market share has boosted by 43.9 %, while the share of the company’s other high quality brands dropped by 2.8 %, and the share of its low cost brands has increased by 4.6 %.

USSTC and PM USA’s mixed local smokeless products shipment volume in the course of the 3Q, at 204.9 million cans and packages, increased by 0.9 % in comparison to the same period of 2014.

“Altria proceed to offer outstanding overall performance in the 3Q and for the first nine months,” stated Marty Barrington, Altria’s chairman, CEO and president.

“One more time, our businesses heightened their market leadership, with solid revenue development and strong retail share increases by the iconic Marlboro and Copenhagen cigarette brands.

“We consider our year-to-date adjusted earnings per share growth of 11.5 % positions us properly to provide on our full-year strategies.

UK company to challenge EU controls over e-cigarettes

e-cigarettesA British company has begun a legal challenge to planned EU controls over e-cigarette production, sales and marketing.

Totally Wicked, which employs 150 people in Blackburn, Lancashire, says rules due to come into force in May 2016 are disproportionate and deprive consumers of an alternative source of “recreational” nicotine. The company, which also operates in the US and Germany, argues that limits on the use of nicotine that can be used in e-cigarettes will also mean they can only offer a “muted choice” to users of more dangerous and toxic tobacco.

Although a hearing is unlikely to take place before autumn next year, Totally Wicked has said it will be the first company to fight the directive in the European court of justice in Luxembourg. The challenge will be closely monitored by other companies in the industry.

The firm claims the “burdens” of the rules could destroy or seriously damage legitimate manufacturers and retailers, and warns of a hidden or parallel trade in products made either illegally within the EU or outside.

A four-minute hearing at the Royal Courts of Justice in London on Monday cleared the way for the action. The health secretary, Jeremy Hunt, made no objection to the case going ahead, although his department has insisted the new rules are lawful.

The EU legislation, if enacted, would torpedo sports sponsorship by e-cigarette makers who have become a valuable source of finance for football, rugby and motor-sport, among other events.

An estimated 2.1 million Britons use e-cigarettes, whose benefits are disputed by health campaigners. While some want further controls, such as over their use in public places, others believe they may prove a healthier alternative than tobacco.

Action on Smoking and Health, for instance, says a third of vapers – so called because they exhale vapour, not smoke – are ex-smokers, while two-thirds use tobacco and e-cigarettes. The use of e-cigarettes among those who never smoked is said to be negligible.

Some manufacturers, including e-cigarette makers that are part of big tobacco conglomerates, have applied for their products to be given medicinal licences as nicotine replacement therapies similar to gums, sprays and patches.

Fraser Cropper, managing director of Totally Wicked, told the Guardian: “We just want a competitive, level playing field that allows us to sell our products.”

Rejecting any prospect of applying for a medicinal licence, an expensive process, he said: “We are not a nicotine replacement therapy. We do not have to provide a pharmaceutical response to those who want to give up smoking. We are trying to provide an alternative to those who want recreational nicotine.”

By , The Guardian

 

Case Study VOXX Cigarettes

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Case Study
Voxx Cigarettes
Brief_Conception and development of a new cigarette brand
Target consumer: a younger, brand conscious market

The subsequent case study offers a brief journey through our creative process from the development of the logo to the creative journey into packaging..

Tricks of the Trade: High-Tech Cigarettes

Are electronic cigarettes (e-cigarettes) subject to the same policies banning smoking in offices, as regular cigarettes? Federal agencies (including the U.S. Department of Transportation and the U.S. Air Force) have banned the use of these products on the basis of the report of the chief physician in 2010, which are classified e-cigarettes as “tobacco products”. Does this mean we need to revise the tobacco-free policy in the workplace, to include e-cigarettes as a form of tobacco?

E-cigarettesA new technology will always cause us to rethink how we do things, and it often involves testing our “beliefs and traditions.” New technology spurs us to remove the obstacles that prevented us from doing something better or less bad.

One new technology enterprise managers can be found on the impact of their objects procedure rather are electronic cigarettes. Is there a smoking when someone uses one? Or is it not to smoke? That is the question!

An Electronic cigarette is a device created to be used as a regular cigarette. Instead of using an open flame or burning glow, which produces smoke, this item uses batteries to heat liquid nicotine into vapor, it referred to vamping. Users simply inhale and exhale nicotine vapor (which can be purchased at different levels, if someone wants to rid themselves of smoking / vaping). I’m told that smokers feel much the same way as smoking, but without the horrible smell, mess, chemicals and tar.

Here’s the problem for FMS. Vaping looks as smoking as we allow this without smokers feeling slighted? This is a very visually confusing. So let’s look at both sides of the issue.

Regular cigarettes: The problem with smoking indoors has two aspects:

1) It provides non-smokers from passive smoking, without their consent.

2) This is a fire hazard.

These only heat up while inhaling, the exhaled vapor has a pleasant odor, and presumably no secondhand nicotine enters the air.

So, there are two other problems:

1) Many of us are odorless free policy, and if you do not, you will. This is where electronic wickless and candles are scented or unscented that are prohibited.

2) There are no official studies that prove building occupants are not exposed to passive nicotine. If a product is labeled as a fragrance, the manufacture is not required to disclose ingredients on the Material Safety Data Sheet. The ingredients are considered to be property, confidential, etc. This prevents the companies from determining of the FMS that passengers involuntarily exposed.

I have not had to deal with this on my campus yet, but if you have and have a tip to share, please send it in the comments section below.

FDA graphic health warnings

When the U.S. Food and Drug Administration (FDA) imposes new graphic health warnings for tobacco products, they can survive First Amendment challenge if they depict the health consequences and their effectiveness is confirmed by adequate scientific data, says Georgetown University Medical Center, an expert on public Health and counsel.

imagesGraphic tobacco warning labels that combine images with health warnings, a widely used tool for reducing tobacco use in other countries, but the tobacco industry claims that they are unconstitutional in the United States.

In the analysis of the legal and scientific issues for graphic health warnings published in the American Journal of Preventive Medicine, John Kremer, JD, MPH, defines how the courts are likely to analyze the graphic warnings and determine what health evidence must be presented in order to survive legal challenge. Kramer is an assistant professor of health systems administration at Georgetown University School of Nursing and Medical Research, and a member of the O’Neill Institute for National and Global Health Law.

Despite the fact that smoking kills 443,00 Americans each year, Kramer says, “The United States has some of the weakest tobacco warning labels in the world, and they have not been updated in nearly 30 years.”

In 2009, Congress passed the Family Smoking Prevention and Control Act requiring graphic warning labels on tobacco products, giving the FDA authority to specify the images and text that should be included. FDA released nine graphic warnings in June 2011, but withdrew them after two federal appeals courts have come to opposite conclusions about their constitutionality.

Although there is ambiguity over what constitutional rule will be applied in a lawsuit to labels, Kramer argues that it is possible for the FDA to address the two most likely standards of rational basis review and an interim review, with the right scientific data.

Kremer says the label is likely that, in accordance with a rational basis review, and will almost certainly prevail “if the court will issue a warning against deception past the industry.” He says that some courts have applied this review to be unquestionable, factual warnings such as information intended to help consumers make healthier decisions.

The second possibility is an interim review, which requires a strong public interest and greater confidence that the warning labels are effective.

“Under this review, the FDA, could probably win, but it will turn on how well the government will be able to convince the courts of some empirical evidence”, explains Kramer. “Providing clear evidence of graphic warning labels impact on smokers themselves or for a causal mechanism by which they reduce smoking will meet the test of the court.”

He adds that the FDA should also take care to avoid images that can be interpreted as an opinion and not the facts or do not show the negative health consequences of smoking, such as images previously received FDA, which depicted a man with no – smoking sign on his shirt.

Tough measures needed to regulate the cigarette industry

The government should make effective efforts to regulate the local tobacco industry in order to prevent the entry of contraband and counterfeit cigarettes in the domestic market as it is bad for the local sector.

bY2QG9ZoHX217Ls08Z1vkDl72eJkfbmt4t8yenImKBVaiQDB_Rd1H6kmuBWtceBJThe World No Tobacco Day is celebrated on May 31, and it is generally sees a lot of groups to join forces under the banner campaign every year to reduce the level of tobacco consumption.

“Some of the anti-smoking enthusiasts to take it a step up, and focus on the tobacco industry, under the assumption that effort is likely to lead to the elimination of smoking. Actually, though, most of these efforts are hitting just legal industry, while providing an undue advantage flourishing illegal tobacco industry, “the expert said the tobacco industry.

In Pakistan, the legitimate tobacco industry provides employment and livelihoods of more than one million people, including farmers, distributors and retailers, which are the direct affectees any impact on legitimate industry players.

Market sources said that in the absence of legal tobacco industry in Pakistan, cigarette smugglers and tax evaders will rule the market. Contraband cigarettes, which will then be available in the market will be able to avoid severe legal restrictions and will come without the mandatory health warnings. Prices, of course, will be much lower, as the responsibilities avoided as a result of what these products are low quality within the reach of millions of new consumers, mostly young people.

They said that in a world where the legitimate tobacco industry does not exist, well-distributed network of criminals would be ready and waiting to step in and take over.

The reality is that even in the absence of the legitimate tobacco industry, adults who have made a conscious decision to smoke will continue to do so. But instead of buying their legal taxed cigarettes made by the legitimate tobacco companies and sold reputable retailers, consumers will turn to black market sources in order to get what they want, “the sources said.

This is probably the time to encourage them not to choose the path of least resistance, which is about bashing the legal industry players and suppliers, and to focus on solving tough problems on the ground such as the lack of enforcement leads to an increase in the black market, sources added .

 I was just puffing on a piece of plastic, until one day I did not. He acted as a pacifier, and it did its job getting my body through the withdrawal.

Also, the reason people gain weight when they quit smoking because they take craving hunger pang, and they eat. Whenever that happened, I would just drink a large glass of water and a sense of leaves.

The most important thing is to mentally prepare and have a support system. Set your quit date a month or so in advance, tell everyone you know that you are leaving, and then show them you can do it. They will be there for you, and they will be proud of you.

I know it sounds simple, but if your mind is to quit smoking, it’s that simple. You may not have time or two, but on the way you will find what works for you and what does not.

If you succeed, you’ll be flipping your nose not only to the taxman, who is just going to keep steadily coming to you, but in an industry that makes products designed to hook you, turn you into Pigpen and eventually kill you

Cigarette makers offer now part of Presidential Ordinance

The cigarette manufacturers have managed to introduce the proposal of their choice in the Decree on the revision of the Federal Excise Duty (FED) panels on cigarettes. Sources told Business Recorder on Tuesday that cigarette production units managed to get his proposal approved in the Finance Ordinance.

Cigarettes_by_milktoday-300x200This will allow them to raise prices and increase their own profits without adding any significant revenue to the government. The original proposal of the Federal Board of revenue (FBR) dully approved by the Ministry of Finance were not part of the Ordinance. It is not yet clear how their brand new offer the cigarette industry was made a part of changes to tax legislation through the Finance Ordinance.

As a result, of the FBR’s proposal, the rate of excise duty will be correspondingly increased with the increase in the cigarettes price. This would increase the FED collection of explanation. Fed rate gradually move up to the correspondent increase in the retail price of cigarettes. On the other hand, as new bid cigarette makers, cigarette FED speed has been fixed. If the price of cigarettes will increase or decrease the speed of the Fed does not reverse due to fixation of excise duty. Fixed rates the Fed suggested manufacturers were included in the Presidential Decree.

The draft of the Presidential Ordinance on taxation measures which will be released showed amend in the First Schedule of the Federal Excise Act, 2005 to revise FED panels on cigarettes. Under the revised structure presented FED produces cigarettes in FBR, FED rate is Rs 2,325 per thousand cigarettes locally produced cigarettes where, if printed on the packaging of the retail price exceeds Rs 2,286 per thousand cigarettes. The rate of FED will be Rs 880 per thousand cigarettes local production, where cigarettes if they are printed on the packaging of the retail price does not exceed Rs 2,286 per thousand cigarettes, the draft of the Presidential Ordinance said.

The said revised FED slabs on cigarettes were stupidly included in the decree of Finance, which will be released for the implementation of the new taxation measures. In contrast, FBR has received approval from the Ministry of Finance of the Federal Reserve completely different structure on cigarettes. The approved proposal has estimated 12 billion rupees from cigarette production. In accordance with the proposal FBR, first proposed under the plate, if the retail price exceeds Rs 50 per 20 cigarettes, the Fed’s rate will be 65 percent off the retail price. The second proposed plate shows that if the retail price is 50 rupees per 20 cigarettes, the Fed’s rate will be 25 per cent stick plus 50 percent of the retail price. There are three plates have been proposed to be replaced by two plates FED cigarette. The existing upper tier plate, intermediate plate and the bottom tier boards were merged into two simple slabs Fed.

Sources said that the FBR had proposed a very simple federal excise tax (FED) structure of levying duty on cigarettes. This proposal was approved by the Ministry of Financefor the revision of FED lsabs on cigarettes. However, the new proposal was recently floated by the cigarette production, which was included in the Presidential Ordinance. The new sentence was added to the Financial Regulation, for unknown reasons, as in the original proposal FBR estimated to collect Rs 12 billion from the cigarette industry. The new proposal also industry about 12 billion rupees from the revised slabs but experts were of the view that the income can be much less, according to the cigarette manufacturers. The two proposals are quite different. FBR’s proposal merged the upper tier of the plate; intermediate plate and the lower level of the plate have been combined into two simple slabs Fed. While the new proposal cigarette manufacturers to replace existing serial number nine and ten of the First Schedule of the Federal Excise Act, 2005. Last plate number 11, the Fed was proposed to be canceled cigarette manufactures. The method of revision FED on cigarettes is also very different when comparing the two proposals, they added.

Italian tobacco industry wrestling with electronic cigarettes

The Italian union of tobacco operators last week appealed to the regional court of Lazio, in an attempt to block the sale of electronic cigarettes.

imagesThe case is the latest in a series of measures taken by the tobacco industry, which believes that the spread of electronic cigarettes trade is being replaced with a hammer forged trade and smuggling.

The Italian government has not yet fully regulated electronic cigarette phenomenon, and there are doubts about its potential impact on human health and the economy.

“Its unfair competition,” says Enzo Perrotta, president of the Union of the operators of tobacco in a press release. Perrotta said that e-cigarettes should be taxed in the same way as traditional, and that their distribution should be done selectively. “Electronic cigarettes way to consume nicotine, they just sell cigarettes in liquid form.”

There are currently more than 1,000 stores and nearly 400,000 customers, according to Anafe, an association representing the interests of the industry, “electronic smoking” in Italy. A recent survey showed that of Doxa 10800000 tobacco users, 20 percent use or intends to use electronic cigarettes.

The turnover of electronic cigarettes was 90 million euros ($ 11.5 million) in 2012, a 25 percent increase over the previous year, according to the Italian consumer association.

The “traditional” tobacco industry has been hit hard.

“There is a very large drop in consumption due to smuggling, counterfeiting and distribution of electronic cigarettes,” said John Risso, national president of the Federation of the Italian tobacco (FIT) in a statement. “If the trend of reducing the consumption of manufactured tobacco continues, the impact on employment would be devastating: about 20,000 jobs would be in grave danger.”

The frame work of the law surrounding e-cigarettes began to grow.

Since May 1, electronic cigarettes have become subject to the same prohibition on sales to minors, as regular cigarettes, after a study conducted by the Italian Institute of Health. E-cigarettes have been banned in trains and domestic flights. Coldogno city in the province of Vicenza was the first to ban them in public buildings.

The European Respiratory Society believes that they are a serious threat to health, due to the possibility that the fluids used can contain toxic substances.

The Italian Institute of Health report said: “The e-cigarettes are of concern to public health due to the fact that they can be dangerous initiation to regular cigarettes.”

But supporters argue that instead of the gateway to nicotine addiction, electronic cigarettes offer a way to break apart the harmful “traditional” tobacco cigarettes. The study found that 70% of consumers Doxa use electronic cigarettes as a way to quit smoking.

“I used to smoke more than a pack a day,” says the executive of pharmaceutical company, who asked to remain anonymous, “then I tried [electronic cigarettes] through a friend. I stopped using traditional cigarettes. I feel better physically, and I’m saving money. I am amazed at the controversy regarding the alleged harm of electronic cigarettes. I think it’s a matter of losing money to a government that can not be applied to tax them yet.

New York City offers raising the age for buying cigarettes

No one under 21 would be able to buy cigarettes in the city under a proposal unveiled Monday to make it the most densely populated place in America to set a minimum age, which is high.

imagesExtending the decade of moves to combat smoking in the largest city of the country, the measure is aimed at stopping young people from developing the habit, which remains the leading preventable cause of death, City Council Speaker Christine Quinn said as she announced the plan. Eighty percent of smokers in the work of lighting before they were 21, officials said.

“The fact is, in this decision, where smoking begins,” she said, surrounded by colleagues and the health commissioner of the city. With support in the Council and the support of Mayor Michael Bloomberg, the proposal has the political ingredients to pass through.

But it may face questions about its effectiveness and fairness. Retailers representative proposed measure is simply to go young smokers to neighboring communities or the corner store instead of cigarette sellers shops in the city, and the smokers’ rights activist called it a “government paternalism at its worst.”

Under federal law, no one under 18 cannot buy tobacco anywhere in the country. Four states and some communities have grown to the age of 19 years, and at least two communities agreed to raise it to 21.

A similar proposal has been floated in the Legislature of Texas, but it is on hold after the board about the budget it will cost the state more than $ 42 million in cigarette tax revenue within two years.

Public health and anti-smoking advocates, the costs paid by the state is ahead of smoking on human life.

They say a higher minimum age for buying tobacco prevents, or at least delay, the young people from starting to smoke and thus limiting their risks to health.

“Infringement of smoking among these age groups is critical to winning the fight against tobacco and to reduce mortality, morbidity and health care costs it causes,” said Susan M. Liss, executive director of the Campaign for Tobacco-Free.

Smoking has become less common in the general New York City over the last decade, but has a plateau at 8.5 per cent of urban public high school students since 2007. An estimated 20,000 of them smoke today.

It is illegal for many of them to buy cigarettes, but the increase of the minimum age to prohibit smoking little older friends to buy from them.

City officials cited statistical modeling, published in the Journal of Health Policy, it is assumed that increasing the age to purchase tobacco 21 nationally can reduce smoking rates by two-thirds of the 14-to-17-year-olds and half of 18-to -20 – summer more than 50 years. Texas budget officials predicted a third of the reduction of tobacco product by 18-to-20-year olds.

A higher minimum age of purchase of tobacco could cut into sales, which account for 40 percent of gross income for the average convenience store, said Jeff Lenard, a spokesman for the National Association of Convenience Stores. But he suggested that young smokers would simply go out of the city – the minimum age is 19 in nearby Long Island and New Jersey, for example – or the black market traders.

Audrey Silk smoker people thought old enough to vote and serve in the military should be allowed to decide whether to use cigarettes.

“Intolerance for those who smoke to justify anti-smokers to reduce the adult status of children,” said Silk, who founded the group that sued the city over the previous restrictions of tobacco.

Advocates say the measure is parallel does not vote, but drinking. They refer to the laws prohibiting the sale of alcohol to persons under 21.

The nation’s largest cigarette maker, Altria Group, had no immediate comment, spokesman David Sutton said. Earlier, he said that in Richmond, Va.-based Company that produces the best-selling brand Marlboro, supported by federal legislation in 2009 that gave the Food and Drug Administration authority to regulate tobacco products, which includes a variety of retail restrictions.

Representatives for R.J. Reynolds Tobacco Co. did not immediately respond to phone and email inquiries. Based in Winston-Salem, North Carolina, this makes Camel and other brands.

The age limit is 21 in Needham, Mass., and went to 21 in another suburb of Boston, Canton. Canton Board of Health approved the changes this month, but it is not yet implemented, said the Director of Public Health John L. Ciccotelli.

Plans call for an annual study on reducing smoking among high school students Canton – and the elimination of the extent to five years if it is not, he said.

In Needham, high school smoking rate has dropped from about 13 per cent to 5.5 per cent from the 21-year threshold came into effect in 2006, Director of Public Health Janice Burns said. It’s not clear how much reduction is due to the age limit.

Since Bloomberg took office in 2002, New York, helped to impose the highest cigarette taxes in the country, it is forbidden to smoke in parks and on beaches and are held occasionally graphic advertising campaign about the dangers of smoking.

Last month, Bloomberg proposed to keep cigarettes out of sight in shops and stores to stop from taking cigarette coupons.

Hearing by the Board on the proposal and the age limit is set for May 2.

Several New York City smoking rules have survived lawsuits. But a federal appeals court last year said the city cannot force tobacco retailers to display gruesome images of diseased lungs and rotting teeth.

Quinn, a leading Democratic candidate for success next year Bloomberg, is often seen as an ally of his.

Bloomberg also has prompted a number of other innovative public health measures, such as forcing chain restaurants to post calorie counts on their menus, banning artificial Tran’s fats in restaurants and attempting to limit the amount of sugary drinks. The court overturned a large drink rules in the last month, but the city is appealing.

While Bloomberg has led many anti-smoking initiatives, this one came from the council – in particular, a board member James Gennaro, who lost his mother to lung cancer after she smoked for decades.

Gov legislate for plain cigarette packs this year

Minister wanted to introduce plain packaging for cigs through Australia with legislation, after becoming convinced that the branding is the main factor.

220px-Plain_cigarette_packagingThe legislation was announced by the Queen’s speech in May, the smoking is expected to be banned in cars. The ban is very hard for police and in general for law and they believe in group pressure that will have the main impact to the drivers ban using phones.

David Cameron referred to the possibility of plain pack introducing, without any timetable Ministers and of smoking ban reduces in the UK.

We have to follow what they have done in Australia. The evidence suggests it is going to detect youth. There is going for legislation.

The move comes after Lancet study of 19 countries in the UK down the health wellbeing. It found Britan’s space of decline of premature mortality of the Australian members and European Union members. The main reason consists in the durability of the public health, including drinks, drugs and diets.

Smoking causes more the 100,000 deaths every year in the UK. Despite a enormous reduction in the number of smoking since the 1950s, it still estimate a five part of British population of smokers. There is already a full ban on cigarette ads, and in one of the Labor government’s most of smoking places was banned. The 2009 Health Act opened display of tobacco products from April a year ago and will come into force only in April 2015.

Ministers are looking to see the troubled families, and can start to design for improving the diets of more than 120,000 families.

Researchers show that poorer families are far more inclining to obesity, immune to public health messages. In schools research is showing that wealthier families are taking up healthy food options.

The Department of Health started a consultation in March 2011 on plain packs which ended last August for department by the University of Sterling found that “plain packs colors have negative message, projected a less desirable smoker identity, and expose the reality of smoking.”

The study also found that non-smokers tended to find plain packaging less appealing than did smokers, and younger respondents tended to find it less appealing than did older respondents. Around two thirds of smokers say they started smoking before they were 18.

The study also found

Since December in Australia cigarettes must be sold in uniform drab olive-green packets with graphic health warnings. The only marker of difference between products is the brand name written on the packet in a uniform style. New Zealand has promised to follow the Australian lead.

The Australian attorney-general, Mark Dreyfus, has defended the packaging saying “it is anti-cancer, not anti-trade”. There has been some evidence that smokers are now trying to cover up the packaging with plasters.

Cigarettes

Not all cigarettes make part from the same category. Smokers that are around the world prefer many various tastes and our companies aim for excellence in every manufacturing step.

cigarettesCigarette design is more hardly to understand. Our companies work to understand the adult preferences and to design cigarettes. It is the preference of adult consumers to guide with tobacco blends. We work to ensure that the grades are available long term to keep the products consistence.

Foods ingredients and flavors are added to the same types of cigarettes. American blends balanced the natural tobacco taste, and give to individual brands their aroma and flavor. Other ingredients of the cigarettes control moisture.

Nicotine is not added in making cigarettes.  It occurs naturally in all varieties of tobacco plants.

The filter, paper and level of filter ventilation are all chosen to affect the sensory strength and smoke yield of the cigarette. At each stage, there is constant quality control and testing.

Cigarettes have four basic components:

  • The tobacco rod
  • The cigarette paper around the tobacco rod
  • The filtration zone
  • The filter and tipping around the filtration zone.

The tobacco in the rod includes tobacco lamina (the flat part of the tobacco leaf), tobacco stem (midribs of the leaf), and expanded lamina.

The cigarette paper includes paper and adhesive.

The filter is made mainly from cellulose acetate fibers, known as tow.  Cellulose acetate is derived from wood pulp.  The fibers are bonded together with a hardening agent, triacetin plasticizer, which helps the filter to keep its shape.  The filter is wrapped in paper and sealed with a line of adhesive.  Sometimes charcoal is added to filters.

The tipping paper includes paper and adhesive.

Design adjustments achieve different strengths and tastes, and can reduce smoke yields of various smoke components, as measured by a standardized machine method.  See Cigarette design and manufacture on the drop-down menu.

What happens when a cigarette burns?

For to understand cigarette design, you should know how a cigarette burns. If they were burned instead of tobacco, it would also produce a type of tar. When a cigarette burns, it produces special gases creating the smoke. A cigarette filter traps some of these particles.

When a smoker puffs on a cigarette, whole smoke, including both fine particles and gases, is sucked through the tobacco rod and the filter.  Gases pass through the filter, and some particles are trapped in it.  It is this particulate matter, minus nicotine and water that is called tar.

Smoke has over 4,000 constituents, many of them also found in the air we breathe and our food.  These constituents include the emissions listed on packs, such as tar, nicotine and carbon monoxide. Water vapor is also produced by the combustion, because the burning of any organic material breaks down the chemical components and produces water.

Filter biodegradability

Filter tips are biodegradable over a month and three years, depending from environmental conditions. Although we are researching more rapid breakdown and present that we know that filters cause littering problems.

We believe the best way to reduce potential litter problems is for consumers to dispose of filters and cigarette packs in a responsible way.

Health smoking risks

Smoking poses real risks of really serious diseases. We are working to develop products that may be recognized as less harmful. Health risks of smoking can be viewed at Health science.

British American Tobacco makes his move in the emerging electronic cigarette market

The introduction of plain packaging in Australia is a threat to the tobacco industry. Now it turns out that the European Union considers the watered-down version of the same with images and health warnings occupy 75 percent of the cigarette pack, while the individual states will be allowed to introduce a simple legislative package.

BAT_logoAnd it’s not over for Europe. Russia, the largest tobacco market after China, is considering legislation that could see tobacco advertising and smoking illegal in public places, such as restaurants, bars and hotels closed. It also banned the stalls and shops at the stations from the sale of cigarettes. If passed, the restrictions will be phased in, and is expected to be fully operational in 2016.

At this junction, it is good to remind ourselves that only four tobacco companies, including British American Tobacco (BTI), Imperial Tobacco (ITYBF.PK), Japan Tobacco (JAPAF.PK), and Philip Morris International (PMI), control more than 90 percent of Russian sales of tobacco products. Cigarette market is estimated at about $ 22 billion in 2011, the euro Monitor International. As I said in my previous article, the same four also have substantial sales in the rest of Europe.

Obviously, after the introduction of the European Union is almost plain packaging with the introduction of Russia on tighter regulation of tobacco would hurt revenues (and possibly dividends) of all actors on the international tobacco companies with significant activities in Europe.

Therefore it is not surprising that some of the biggest players in the tobacco industry seeking to develop reliable products, which are an alternative to smoking.

British American Tobacco makes his move

I have already alluded to the interests of British American Tobacco in the development of so-called electronic cigarettes, its chief financial officer Nicandro Durante claiming earlier in September that the size of the market of tobacco alternatives could be up to 40% of Bat in time by 20 years.

Last year Nicoventures, British American Tobacco subsidiary, was established to focus on the fact that this is “the development and commercialization of innovative regulatory approved nicotine products.”

With today’s announcement, British American Tobacco made its first serious step to the acquisition of CN Creative, Manchester-based Company that specializes in the design and manufacture of non-combustible cigarettes are for smokers offer a less risky alternative to cigarettes.

According to Sky News acquisition is considered a cost of tens of millions of pounds; the purchase is clearly far-reaching strategic significance for the group.

CN Creative regarded as one of the pioneers of some of the world’s most popular electric cigarette brands. Aannouncement made by British American Tobacco, the company has its own research and development facilities, and currently has a number of electronic cigarette products on the market, as well as new, innovative electronic cigarette technology in development.

Among the products of Manchester-based company is weaving, which she claims is the best in the world of electronic cigarettes, selling in 26 countries around the world, including in the UK. CN Creative also produces ECOpure, nicotine products, and is developing a new generation of products called Nicadex, the company says that “there will be drugs under the regulatory framework as a smoking cessation device / drug use.”

Kingsley Wheaton, Director of Corporate and Regulatory Affairs at British American Tobacco, said:

“Our core business is, and will remain, tobacco, but we have always been clear that our goal is to provide those adult smokers who are looking for a safer alternative to cigarettes with a range of lower-risk products that will meet their diverse needs.

“We believe that the innovative electronic cigarette technology that CN Creative developed over the past few years will help us get closer to achievin

Tobacco Company appeals in cigarette samples case

Willie Evans remembers all that his mother tried to quit smoking: patches, gum, and even hypnotism.

Her attempts failed. Marie Evans died of lung cancer in 2002 at age 54.

Willie Evans sued Lorillard Tobacco Co, claiming that the company got his mother hooked on smoking by giving away free samples of cigarettes to children in her Boston housing construction in the 1950s and ’60s.

The jury awarded $ 152 million in damages, a sum which was later reduced to $ 116 million.

Lorillard appeal matters before the highest court in the state next month. The company claims the judge made several rulings that allowed Lorillard from receiving a fair trial.

For Willie Evans, the appeal is yet another step in the process of finding justice for his mother.

“We believe that today, our response will be, if the tobacco companies had to go to the playground and give cigarettes to children, and we would be outraged,” he said.

“My reaction is one of outrage that they are focused on children at such a young age.”

In 2010, the court, the lawyers said Evans Marie Evans first received free samples of cigarettes Newport Lorillard, when she was 9 or 10 years. She said that initially gave them her older sister, or sells them for candy, but then started smoking Newport’s you regularly when she was about 13.

One of the sisters Mary Evans revealed that the cigarettes were delivered to the white truck, which attracts adults and children in the Orchard Park housing project in the Roxbury section of Boston.

In the video shows that the deposition of the jury, said Marie Evans gifts was a “big impact” on her.

“Because they were available … I do not worry about finding the money to buy them,” she said.

Evans said that it was about 50 attempts to quit, but always went back to smoking.

“I was addicted …. I just could not stop,” she said.

Lorillard’s lawyers argued in court that Evans made the decision to start smoking and continue to smoke even after it had suffered a heart attack in 1985, and her doctors advised her to leave.

The company denied giving away samples of cigarettes to children. In its appeal, Lorillard said that it was deprived of a fair trial, in part because the judge allowed the jury to hear about Evans claims that the company marketed its cigarettes African Americans and children.

“This story was obviously racially charged and inflammatory,” the company’s lawyers argued in court documents filed in the appeal.

“Racial aspects of the story were completely inappropriate. There is no evidence that Lorillard conceived Newport, as” African-American “brand. Evidence that Lorillard market Newport to all races using the same advertising campaign in magazines aimed at African-Americans as it was in general circulation magazines. “

Evans declined to comment on the lawyers appeal to Lorillard. In court documents, they said that the judge “acted within its discretion in recognizing the evidence of false and misleading marketing Lorillard to youth and African-Americans.”

Lorillard believes that it has a strong case and are optimistic the Supreme Court will overturn the court verdict, “based on errors made during the trial,” the spokesman said.

“We believe that the plaintiff prevailed at trial in connection with significant deviations from the law of Massachusetts, a number of important aspects of the proceedings, which Lorillard violated basic procedural rights,” spokesman Gregg Perry said.

Perry said that if the decision is upheld, “it will have the potential to cause the flow of lawsuits against manufacturers selling all sorts of products in Massachusetts, and thus undermine the business climate of the state.”

Several business groups filed friend-of-the-court briefs supporting the appeal Lorillard, including the Product Liability Advisory Council, Inc. and the U.S. Chamber of Commerce.

Illegal cigarette industry

Things, of course, left the ambitious marketing campaign some tobacco companies including Hiltop Tobacco AJK and National Tobacco Company has gotten into frenzied marketing spree fort its tobacco brands but the effort is likely to end up in whimper should the government authorities take appropriate action to crub these illegal promotions.

As for promotion details Hiltop Tobacco AJK has given 5 +1 redemption on its Fedora brand in the interior of Sindh and Punjab. The move is aimed at increasing off take of Fedora and improving the image of the brand. Advertising content is clearly seen in stores in prominent places.

As if one did not have the example of the National Tobacco Company manufacturers of Classic Royal and Hero also come up with similar offers also including heavy bumper prizes in almost all of the Khyber Pakhtunkhwa.

Reportedly, the promotion of smokers took by storm, as the region is replete with people who have less power and such promotions are naturally taken like hot cake by people of Khyber Pakhtunkhwa.

The question is not only in the interior of Sindh and Punjab only, but the trend is gradually spread to the major cities of Punjab and Sindh. This blatant disregard for the government notification was not a common problem in itself, as it relates to value added offers the client will receive a free gift, etc. to purchase tobacco products.

According to SRO 53 (KE), 2009, weft July 1, 2009 free products, cash, free samples, discounts or products below market value given or offered for the purpose of advertising of tobacco products for tobacco users to create a sale or promotion of tobacco smoking.

Facing the burden of huge volumes of contraband cigarettes, the tax-compliant cigarette industry is on the brink of devastation.

The compliant cigarette industry makes up for 36.8% of total revenues FED and 3.4% of total revenue income of the Federal Council. While the contraband and counterfeit cigarettes was 6.8% of the illegal trade, domestic duty-free cigarettes are 13.8% of the total number of illegal cigarettes.

Such shares are also against SRO 863 (1) / 2010, as these youth targeted promotions. Such promotional activities naturally seduce teens as they try to take advantage of these stylish promotions.

According to the market sources tax has reached such a balant level like cigarette packs is now openly advertised for sale as a low price of Rs 15, while in accordance with Rule 24-B of the Federal Excise Rules issued pursuant to the Federal Excise Act, 2005, the minimum selling price for a pack of cigarettes is much more than that. Fedora now openly sold at Rs 10.

There are more than 0.6 million outlets in the country, where illegal brands are sold with impunity without any fear of the law and marketing scam. The whole enforcement has lacked teeth and the non-compliant industry has flourished. The illegal and non tax units are located in far flung areas of the country were the implementation of law is less stringent.

The sources said that the total tax loss to the government with illegitimate cigarette industry had been estimated at Rs 10 billion, including tax evasion of Rs 7 billion UAH 1 billion counterfeit and Rs 2 billion in smuggling in the financial year 2010-2011.

The number involved indicates this is an extraordinary situation given the resource constraints faced by the government of the day which needs urgent reinforcement.

Cigarette Makers Wage Final Battle to Tame Russian Bill

Cigarette manufacturers, including Philip Morris International, Inc. (PM) and British American Tobacco Plc (BATS) are fighting a last-ditch fight against smoking repression in Russia, three weeks to change the opinion of the government.

Russia has to turn a proposal that will ban smoking in public places, sponsorship and the sale of cigarettes in kiosks, Alexander Shokhin, head of the Union of Industrialists, a lobby group for big business, said yesterday. Government legal advisers in August reversed their initial approval anti-tobacco bill, recommending changes to the planned measures.

While cigarette manufacturers and business sector support steps to reduce tobacco-related harm, “is another question, how to act and what measures are effective and which are not,” said Shokhin in Moscow. “In some countries, a total ban had the opposite effect.”

Russian President Vladimir Putin wants to limit smoking and alcohol consumption to stop the decline in the population of the country. Thirty-nine percent of the 143 million people in Russia, the largest tobacco market in the world after China, are habitual smokers, according to the World Health Organization. That compares with 28 percent in China and 27 percent in the U.S.

The government should introduce a bill for legislators on November 1, which prohibits all tobacco advertising and sponsorship immediately, with restrictions on kiosk sales and smoking in public places comes into force on 1 January 2015. The government will resist pressure to weaken the proposal, said Alexey Levchenko, assistant vice-premier of Russia Olga Golodets, which is responsible for health and social affairs.

“No Relaxation”

“There will be no fundamental relaxation of these measures, although some of the language can be corrected,” Levchenko said yesterday on the phone after business Shokhin met ministers responsible for the law before.

Smoking-related diseases kill 23 percent of Russian men and cause economic losses of 6.3 per cent of gross domestic product, according to the Ministry of Health, which says the law could save 200,000 lives a year and reduce smoking in half.

Manufacturer in Europe, producing about one-third of global sales in Eastern Europe, Africa and the Middle East. Japan Tobacco Inc. (2914) is based on the region encompassing Russia, other former Soviet republics except the Baltic States, the former Yugoslavia, Bulgaria, Romania, Croatia and Mongolia for 46 percent of global sales, according to its website.

Tokyo-based Japan Tobacco, whose brands include cigarette-store.biz/online/cameland Winston, is the largest in Asia listed cigarette maker by market value, is about 37 percent of the cigarette market in Russia. BAT and Imperial Tobacco Group Plc, a manufacturer of cigarettes Davidoff, 8 October fell the most in a month in London trading after Russian regulators health proposed tax increase on cigarettes is almost eight times.

Ministry of Health has proposed raising taxes to 4,000 rubles ($ 128) per 1000 cigarettes by the end of 2015 from 510 rubles this year, Finmarket, a division of the Moscow Interfax news service, reported on 8 October, citing the Ministry document.

Proposal exacerbated Russia’s anti-smoking efforts, under the current policy of the government plans to increase the excise tax by about 40 percent per year through the end of 2014. Matlboro online now sells for about $ 2 in Russia.

Reduce consumption

The tax increase, if it becomes law, could push the Russian cigarette consumption decreased by as much as 20 percent in 2015, according to Erik Bloomquist, an analyst at Berenberg Bank, compared to its current estimates, the annual decline of 1 percent to 2 percent.

Nomura analyst David Hayes on October 8 downgraded its outlook for the tobacco industry to bearish from neutral, citing the risk of unsatisfactory after three years ahead of schedule. He cut his recommendation for Imperial Tobacco to reduce from neutral, while maintaining our Buy recommendation on BAT shares.

Australia this year was the first country to require cigarettes for sale in plain packaging with no company logos. New Zealand and the United Kingdom are among the countries whose governments have expressed interest in such activities, which come into force in Australia on 1 December. Governments from Europe to Asia have tightened restrictions on smoking.

Russia should continue to allow smoking in bars and restaurants in sealed areas, and sponsorship of tobacco products and the sale of cigarettes in kiosks, according to Shokhin, a senior member of the ruling United Russia party.

The institute of Legislation and Comparative Law, a government agency charged with checking the legislation which the Board of Trustees headed by the speaker of the lower house of parliament, Sergei Naryshkin, in August criticized anti-smoking law.

The same body government has treaty Philip Morris report on legal aspects of the planned warning labels on cigarette packs.

The efforts of tobacco companies to cancel the anti-smoking legislation are “worried because they have hired some very expensive lobbyists,” said Dmitry Yanin, head of the Moscow based International Conference of Consumer Societies.

Manufacturers of cigarettes

The Federal Inland Revenue (FBR), presented a very complex “plates of the federal excise tax (FED) for the cigarette manufacturers who only benefit multinational companies with the stagnation in the incidence of taxes, i.e. Sales Tax / feed, most popular brands of this product. Tax experts told Business Recorder here on Thursday that the multinational company and FBR deliberately implemented a very complicated system of excise duty to charge a smaller amount of FED on popular brands of cigarettes.

The current tax system is so complex that the Fed only gives the maximum benefit of cigarette production. Prior to the budget (2012-2013), World Health Organization (WHO) recommended that the FBR should abolish the current FED paid on the basis of the threshold and the Fed’s board for various brands of cigarettes. All brands are considered at par, and the two-tier system should be one system to provide revenue for the government to assist the FBI in the following compliance and easy to understand all interested parties. For unknown reasons, FBR is fully supported by a complex regime of excise duty, which makes the leading international companies. Tax officials and cigarette manufacturers have excise duty structure in such a way that an ordinary consumer would be totally confused, while understating the methods used for the introduction of the excise tax on cigarettes. One of the reasons for the implementation of complicated tax system on cigarettes, some retired officers were hired by multinational companies with ties to the government circles and politicians.

Recently it was reported that foreign companies have transferred more than $ 1 billion to the board at the expense of profits and dividends for the last fiscal (2011-12). Repatriation of profits and dividends to foreign companies on the rise again, and they often transfer their profits and dividends. Foreign investors have repatriated about $ 1061000000 to the account of profits and dividends in fiscal 2012 versus $ 758.3 million in fiscal year 2011, representing an increase of $ 303 million.
On the other hand, multinational companies in the tobacco industry use various methods to ensure a minimum increase in the incidence of taxes on cigarettes. When contacted, a tax official, who did research on the cigarette industry, explained that, firstly, the existing tax structure should be simple. The current tax structure is complex and serves in multinational companies. The incidence of lower taxes on brands should be higher than the existing structure.

The incidence of the sales tax and federal excise tax on cigarettes was increased by a couple with a globally applicable tax rates on popular brands. Globally, there is a standard that the level of taxes on cigarettes should be at least 70 percent as the cost of producing this product is very low.
The incidence of the sales tax and the Fed’s strong brands of cigarettes can be called stagnant in Pakistan, compared with other countries where the incidence of taxes up to 70 percent. In Pakistan, if the rate of sales tax / Federal Reserve was 42 percent of this brand, it was increased to 45 percent and 52 percent on an annualized basis. Nevertheless, even distribution of sales tax / Fed was taken at 60 per cent is still very low, compared to 70 percent. The technology used in multinational companies to reconfigure the middle plate with an upward adjustment in prices. Thus, the level of the sales tax and the Fed has not been increased, but the price was increased by popular brands in order to decrease taxes should remain at the bottom. “Resultant, the Fed has been increased in terms of rupees, but in term of percent, the Fed will not increase the incidence. Apparently, the excise tax was increased by increasing the price of cigarettes, while the fall in real terms not proportional to the percentage increase, he added.

If taxes fall 70 percent from a specific brand, technology for the tax rate 50 percent or 60 percent of the most popular brands. If the market captured two popular brands, their actual incidence of tax will be increased by one level to the global current tax rates. This was done by raising the price relationship with the Fed, but the drop in direct taxes is not increased.

The official said that multinational companies have also adopted a different technique to prevent the introduction of new brands to local units of Mardan, etc. This was done by setting a minimum price to launch a new brand. A new brand can not be started if, while a specific price has been fixed to prevent local authorities to introduce new brands.

Asked about the complexity of the tax on cigarettes, sources say that the Council has made various experiments in the past since 1988. Sometimes it was tried to fix the tax on the basis of Valorum ad, and sometimes was fixed on the basis of a certain amount. How the progress in different countries, the incidence of tax is should be increased at par with international practices. However, the existing structure is very complicated to be simplified. It is in favor of the tobacco industry to continue with the existing structure of tax slabs. With this purpose in the budget (2012-13), FBR has extended the tax burden on cigarettes by revising upward the price levels, the official added.

The experts noted that the FBI has received proposals from various parties, including the WHO to introduce the concept of tax stamping on each pack of cigarettes, to find out the exact number of sticks and bags manufactured units. This is a very simple way of documenting each packet cigarettes are manufactured in Pakistan. Thus, the FBI and the Department of Finance will implement a tracking system track and industrial products derived from plants. Two international companies strongly oppose the proposal of implementation of stamping tax or rolling on cigarette packs. In addition, tax stamping, multinational companies are also against the restoration of controlled treatment systems in enterprises. And the restoration of a controlled system of registration and tax stamping are the most important measures to combat tax evasion in the cigarette industry, the experts added.

In the past, the World Health Organization (WHO) has expressed serious concern over the federal excise tax increase in the nominal (FED) on cigarettes and the withdrawal of excise duty on cigarettes in bars Budget 2012-13.The government abolished the Fed on the filter rods used in the manufacture of cigarettes in the budget (2012 -13). It is not clear that, as such a large measure to stimulate the cigarette manufacturer was given without any serious increase in the incidence of taxes on cigarettes. Instead of simplifying the tax on the industry, the manufacturer of cigarettes in particular multinational companies have been helped.

Roll your own cigarettes store to close

For Marcelo Cadillo, the American dream was filled with bins of tobacco leaves.

Customers from as far as San Francisco met in a tiny roll of his own shop he opened in Niles district of Fremont last year. There, they can grind tobacco and roll their own cigarettes with the help of small cars – about half the cost of buying brands sold in stores.

But it is doubtful whether the enemy had sent a dream to smoke.

Federal Law highway that U.S. President Barack Obama signed this month included a provision that imposed limits on tobacco as the stern stores like Cadillo that he immediately closed his shop.

“It was heartbreaking,” said Cadillo, which revealed a copy of the bill in its showcase windows. “I felt like I got hit in the stomach.”

The new legislation expands the definition of tobacco manufacturers include companies that use a roll your own cigarette machines, many of whom still managed to avoid the high costs and more stringent regulations, particularly with the lower taxed pipe tobacco, supporters of the law say.

The bill increases taxes and imposes restrictions on the deployment of its own business to the level of branded manufacturers. One distributor estimated that about 10 roll your own business operated in Northern California.

Owners of one in Vallejo began offering a roll of his own car four months ago in a former video store. They are closed on July 6, the day the bill was passed by the highway, (Vallejo) Times-Herald reports.

Big Tobacco has supported the law, but the National Association of Convenience Stores blew the charge.

The Association argues that the disparity between the roll your own cigarette businesses and traditional brands, “threatens the existence of traditional retailers,” in addition to “drain the federal and state tax revenues and erosion of a number of laws aimed at regulating cigarettes.”

As Corey Fitze, director of government relations for the group of convenience store put it last week: “What shall we say to our members, who say:” I’m losing 30 percent of their business to a tobacco shop across the street? “

The National Association of Convenience Stores more than 148,000 stores in the U.S., including about 13,000 in California.

Convenience stores have begun to cut back in 2009, new laws sharply raised the price of a roll your own tobacco, but only slightly increased the cost of pipe tobacco.

This led to growing sales of pipe tobacco and rolls your own tobacco dip as even on alcohol and tobacco tax and trade bureau was trying to find the regulatory standards to distinguish between two tobaccos.

Government Accountability Office ultimately concluded that the roll of its own stores have started using lower taxed products.

“Roll your own cigarette machines to take advantage of a loophole unintended tax, but it’s wrong,” Sen. Max Baucus, D-Mont., Who sponsored the amendment, told The Wall Street Journal in March.

Cadillo, 31, described his product as “all natural” without additives. His clients will shred what is called the “band” tobacco – leaf, which has its middle of the stem removed – and then roll it in cigarettes with the help of machines.

“I was a smoker forever, and I’m trying to figure out a healthy alternative,” he said.

Shop Cadillo, in the natural tobacco leaf, there were 10 small roll of its own machines are typically used in homes. These machines cost a fraction of $ 30,000 to $ 35,000, which more than a roll of its own operations will pay for the machines that look like wooden cabinets.

The new law affects all sizes of machines, however, and the big tobacco could not be happier.

“The position of Philip Morris USA on businesses that operate RYO cigarette mills, they are the manufacturers of cigarettes and to make tax payments, are regulated (Food and Drug Administration), and the settlement of the state to make payments, like other cigarette manufacturers’ representative of Philip Morris USA David Sutton wrote in an e-mail.

Jude Silva, one of the clients Cadillo, which is called the law draft, stating that the cigarettes, he turned to natural tobacco leaf was better for him.

“If you want to quit smoking, those cigarettes to smoke,” Silva said. “For me it was so cool. When topcigarettes.biz/camel-cigarettes/camel-lights now, I feel like vomiting.”

Cadillo, who lives alone, since 15 years, said he invested more than $ 20,000 in his business, which opened late last year. Now he hopes to save enough money to start a vintage candy store in the same place.

“I put myself through college, graduated and just worked very hard,” said Cadillo, who said he graduated from the Art Institute in San Francisco in 2008. “I’ve always had two, three, four jobs, even at that time. I saved every penny I can open his shop, and at night he was taken away from me.

“It hurts me.”

Philip Morris International

Cigarette manufacturer Philip Morris International Inc., which sells Marlboro and other brands overseas, fear of recession in Asia, one of the biggest areas of growth. The company released second-quarter results on Thursday before the market opens.

What to watch for: Whether fewer cigarettes were sold because of higher taxes and increased efforts to combat tobacco use. Smokers face new tax increases, bans, health and social stigma around the world, but the consequences are grim in the U.S. than in many other countries.

Philip Morris International compensated for consumers to buy smaller and cheaper cigarettes – and the weak economy – by cutting costs and raising prices.

However, cigarettes are still popular. Shipments rose 5.4 percent to more than 219 billion cigarettes in the January-March quarter, while the market share of Philip Morris International, increased or remained stable in important markets, despite the high prices.

Philip Morris International bought the Philippines, the company Fortune Tobacco Co. in February 2010, the strengthening of the Asian business. She also received a share of the market in Japan because of the earthquake and tsunami last year broke in Japan Tobacco Inc.’s supply chain.

But the company warned that the level of comparison in Asia will be tough in the second quarter, as the community benefits from a large profit in the last year in Japan.

And fluctuations in currency markets also have influence. The company reduced its earnings guidance for the year due to the strengthening of the dollar.

When the U.S. dollar is rising against other world currencies, companies that sell goods at the international level to take a stab at converting revenue in foreign currency back into dollars. This effect is particularly strong for Philip Morris International, because he does all his business abroad.

WHY IT MATTERS: Philip Morris International, with offices in New York and Lausanne, Switzerland, is the second largest cigarette company in the world after the state-controlled China National Tobacco Corporation.

Richmond, Va.,-based Altria Group Inc., the owner of Philip Morris USA, spun off Philip Morris International in 2008. Altria is the largest U.S. cigarette seller.

WHAT’S EXPECTED: Analysts on average expect Philip Morris International to report adjusted earnings of $1.35 per share on revenue of $8 billion, according to FactSet. Analysts typically exclude one-time items.

LAST YEAR’S QUARTER: Philip Morris International reported adjusted net income of $ 1.34 per share on revenue of $ 8.3 billion, excluding excise taxes

Vehicles carrying a huge amount of duty not paid cigarettes seized

General Directorate of Intelligence and Research Internal Revenue (IR) of the Federal Tax Administration (FBR) seized a large number of vehicles carrying huge amount of tax-free tobacco / cigarettes in the Khyber Pakhtunkhwa (CPC) is currently the national authorities in respect of drive manufacturers and vendors of counterfeit / tax-free contraband cigarettes and tobacco.

Sources told Business Recorder here on Thursday that the agency is also intercepting vehicles tobacco dealers and manufacturers involved in the design of cigarettes and tobacco products without charging / payment of federal excise tax.

The ongoing campaign against the manufacturers and suppliers of tax-free tobacco / cigarettes in the CCP has been completely stopped the supply of such facilities in shops and stores.
This is the biggest success of specialized intelligence Directorate General Intelligence IR capture such a large number of vehicles carrying duty free tobacco / cigarettes in the CCP.

A dedicated team of honest officers of the tax agency in the CCP has completely stopped supply chain without fee tobacco / cigarettes in the province.
A special team headed by an additional collector, known for his honesty, has created serious problems for the tax-free cigarette smugglers in the PDA, giving clear and loud message to the perpetrators, or ready to give up music.
This is a classic example of a performance drive in Pakistan, realizing that the faithful and honest tax officials can check the smuggling of goods in the CCP, if required.

Such an exercise will soon be launched in other areas after a successful drive of the CP.
Several morbidity / violation reports to the General Directorate of Intelligence IR clearly reflect that the level of compliance with the PDA the next disc of the agency fees are not against non-commercial tobacco / cigarettes in the CCP.
One of the reports of violation says that according to reliable information that some tobacco dealers and manufacturers involved in the design of cigarettes and tobacco products without charging / payment of federal excise duty livable thereon, a team consisting of the aforementioned officials and staff traveled to Supervision of the debt and took the vehicle registration bearing no GLT-5817 carrying 9474 kg.

They were asked to submit a FED account in accordance with the requirements in accordance with Article 82 of the Federal Excise Rules, 2005.
However, they could not imagine the same thing.
This shows prima view that the tobacco industry is not carried in violation of federal law excise in 2005 and the same is punishable under section 19 (3) (a), (b), (c) and 19 (11) Federal Excise Act in 2005.

In exercise of the powers under the Federal Excise Act 2005 the above products have been withdrawn with immediate effect.
Details of the other case it turned out that according to reliable information that some tobacco retailers and manufacturers involved in the design of cigarettes and tobacco products without charging / payment of Federal Excise Duty levlabie him, a team consisting of the aforementioned officers and employees went on supervision of debt and intercepted a car carrying 7646 kg net of non-tobacco industry.

Drivers were asked to provide FED account in accordance with the requirements in accordance with Article 82 of the Federal Excise Rules, 2005.
However, he could not imagine the same thing.
This shows prima view that the tobacco industry is not carried in violation of federal law excise in 2005 and the same is punishable under section 19 (3) (a), (b), (c) and 19 (11) Federal Excise Act 2005, and reimbursed in accordance with section 14 (1) of the Federal Excise Act 2005, along with default surcharge under section 8 of the Act in the same place (calculated at the time of payment).

In exercise of powers under the Federal Excise Act 2005, the above mentioned products have been withdrawn with immediate effect.
Anther case showed that, in accordance with reliable information that some tobacco dealers and manufacturers involved in the design of cigarettes and tobacco products without charging / payment of federal excise duty livable thereon, a team consisting of the aforementioned officers and employees went on supervision of debt and intercepted two cars carrying the registration number K-6514 carrying 300 boxes containing 150,000 packs of cigarettes and record the K-7298 carrying 300 boxes containing 1,50,000 packs of cigarettes.

They were asked to submit a FED accounts in accordance with the requirements of Article 18 of the Federal Excise Act 2005, two bills bearing Wed
No. 41 dated 07.03.2012 and the account no.
42 of 07.03.2012 were made that were considered.

Cross examination of the accounts of the account book is maintained at the plant through the manager, RTO, Peshawar located in the premises of the registered premises in accordance with section 45 of the Federal Excise Act, 2005, showed that the latter is due to the amount of the plant was Sr № 13/2012 dated 29/02/2012 So, both of these accounts shall be truck drivers, is completely different from the declared accounts of the book remains.

Excise InCharge registered person while explaining his position saying that the trucks were cleared from the premises of their “exclusive distributor” and that there is an invoice book from which invoices are issued.
He also confirmed that their “sole” is not registered, so it is billing bearing the name, registration number.
In connection with the foregoing, it was found that the device involved in the issuance of fraudulent bills for the supply of tax-free cigarettes through the maintenance of several books of accounts simultaneously.

The mere mention of the word “only” on the 2nd book of the account can not justify his position, but instead of feeding and the sales tax charged and collected by the second / fake account books can be recovered from the device in accordance with relevant provisions of the Federal Excise Act 2005 and the Sales Tax Act 1990.
In exercise of powers under the Federal Excise Act 2005, the above mentioned items, as well as transportation were removed with immediate effect.

This capture / violation report sent to Commissioner (IC), zone-II for the transfer order under section 14 read with section 46 (2A) of the Federal Excise Act 2005.
Directorate General of Intelligence and Research IR FBR also found this kind in many other cases reflects the remarkable performance of a special unit of exploration CPC, the sources added.

Karnataka prices touching last year’s levels

About 1.2 million kg of flue-cured tobacco is being marketed daily at the continuing auctions in the Indian state of Karnataka, according to a story in the latest issue of the BBM Bommidala Group newsletter.

Growers are said to have been delivering good quantities of bright grades, and prices are reported to have stabilized, touching last year’s level.

The Tobacco Board of India says that so far about 29.82 million kg of tobacco has been sold for an average of Rs103.39 per kg.

http://tobaccoreporter.com/

Chewing Tobacco

DIP TIME

Nothing like a big Chaw to get the juices flowing

Chewing tobacco is tobacco that you actually can chew. This satisfys many’s taste for tobacco. It is very sweet and tastes very good. The best brands are Red Man, Beech-Nut,Southern Pride, and Levi Garret. It is a good alternative to dipping when your lips are sore.

Chewing Tobacco Review

Redman- Redman is a smooth mellow flavored chew. It is very sweet and almost stemless. It is one of the most recognized names in chewing tobacco. I rate it a 9/10

Southern Pride- Southern Pride is made by Pinkerton, the same people who make Redman. It is a value priced Redman. Tastes very similar to Redman but, it has more stems than Redman. For a budget chew it is great. I rate it a 7/10

Beechnut- Beechnut is also a familiar name in chewing tobacco. It is a sweet blend of premium tobacco that satisfies my taste. It is also available in a Wintergreen flavor that is even sweeter. I rate Beechnut a 9/10

Levi Garret- Levi Garret comes from the great people who bring us Kodiak and Grizzly. Levi Garret is a great premium blend of tobacco for a decent price. I find it has a lot more stems than any of the previous chews. I rate it a 7/10.

Levi Extra- Levi Extra is a much sweeter blend than regular Levi. It also has a problem about having stems. I rate Levi Extra a 7.5/10

Cigarette Companies File 2nd Suit Over Warnings

Five tobacco companies filed a lawsuit in federal court in Washington late Tuesday challenging the constitutionality of regulations and graphic warning labels under the 2009 law that imposed federal regulation on tobacco.

The companies lost a similar complaint last year in the United States District Court in Kentucky when District Judge Joseph H. McKinley Jr., ruled they could be forced to put graphic images and warnings covering the top half of cigarette packages by the fall of 2012. That ruling is now pending before the Sixth Circuit Court of Appeals.

The new suit challenges specific regulations that led to the F.D.A. selection of nine graphic warning labels, said Floyd Abrams, a lawyer for Lorillard. He said it was not uncommon for such a 1-2 punch when controversial regulations follow a controversial law.

Mr. Abrams argues the labels and pictures violate the First Amendment protections for commercial speech. The graphic images include a corpse and a man blowing smoke out of a tracheotomy hole in his neck.

“The government can require warnings which are straightforward and essentially uncontroversial, but they can’t require a cigarette pack to serve as a mini-billboard for the government’s antismoking campaign,” Mr. Abrams said in an interview.

Matthew L. Myers, president of the Campaign for Tobacco-Free Kids, a Washington group that supported the law, was unimpressed by the new complaint. He said the only new facts were the nine label pictures.

“Having raised the same issues before the court in Kentucky and lost, Lorillard is obviously forum shopping to try to find a judge somewhere who will rule in their favor,” Mr. Myers said in an interview.

The 41-page lawsuit was filed by Lorillard, the third-largest cigarette maker in the United States; R.J. Reynolds, the second-largest; and three smaller companies. Altria, parent company of Philip Morris, maker of the dominant Marlboro cigarettes brand, supported the new law and has not joined these lawsuits.

Jeff Ventura, a spokesman for the F.D.A., said the agency did not comment on pending litigation.

India may export tobacco to China

India is getting ready to export tobacco to China from this year, if everything goes well. Trade relations between India and China would be renewed after a gap of around 12 years.

The Tobacco Board has received communication from the Chinese government seeking tobacco samples. This happened after the successful visit of Indian Tobacco Association (ITA) delegation to China. The ITA delegation headed by Tobacco Board chairman, G Kamalavardhana Rao, had visited China from September 25 to 30.

Speaking to Business Standard, Rao said the delegation had held discussions with the State Trade Monopoly Administration (STMA) of China where the issue of tobacco imports from India were discussed. The STMA delegates have agreed to renew the trade.

The board would now hold consultations with the ITA and decide on the time to send the samples to China. “We are confident of completing the exercise in the next couple of weeks and send samples as requested by China,” he said.

The board had also committed to export tobacco at lower price than the price of Zimbabwe, the biggest tobacco exporter to China. Indian tobacco is now being exported to over 60 countries across the world and China being the biggest importer, India wants to renew the ties and restore its market.

“We are confident of getting orders from China for the next season. We are targeting at least 10 million kg tobacco to begin with,” Rao said.

Meanwhile, the Tobacco Board has fixed the crop size to 162 million kg for the 2012-13 crop season in Andhra Pradesh. This is against 170 million kg fixed for the 2011-12 season.

Cigarette consumption and production continue to fall in Turkey

smoking ban
Both the production and sale of cigarettes started to drop remarkably in Turkey last year and that fall extended through this year, the country’s Tobacco and Alcohol Market Regulatory Agency (TAPDK) data show.

According to information the Anatolia news agency received from the regulatory body, the number of cigarettes produced went down by 23 percent, from 63.4 billion units to 48.8 billion units, in the first seven months of this year over the same period a year ago. Production had already decreased from 132.9 billion units in 2009 to 115.2 billion last year, a reduction of over 13 percent.

The drop in production parallels the reduction in the sale of cigarettes in Turkey. TAPDK data show that the number of cigarettes sold in the country dropped from 107.5 billion units two years ago to 93.3 billion in 2010, a reduction of more than 13 percent in one year. The downward trend continued, albeit at a slower pace, this year. Turks purchased 700 million fewer boxes in the first seven months of this year than the January-July period in 2010.

The reduction in both production and sale of cigarettes is not without reason. A ban on smoking tobacco products in all indoor public areas, including cafes and bars, has been in effect for three years. Turkey had long been a nation of smokers and passive smokers, with no regulations to prohibit smoking in public places, but this changed on May 19, 2008, as a law banning smoking in public venues went into effect.

The ban on smoking includes all educational, health, commercial, social, cultural, sports and entertainment facilities, including the corridors of these buildings. It does, however, allow for specially designed smoking sections in nursing homes, asylums and prisons. The new law is very strict in regards to educational facilities, where smoking is banned even in yards and other open areas.

The law also banned tobacco sales to people under the age of 18. Furthermore, people below this age cannot be employed in tobacco production or sales. Selling individual cigarettes, which is especially common near schools, was also prohibited in a clause that aims to prevent young people from taking up smoking. Only certified places are now allowed to sell tobacco products, and other means of tobacco sales, such as the Internet, are illegal.

Indonesian government is against a US ban on importation of clove cigarettes

The Indonesian government has welcomed the World Trade Organization’s ruling against a US ban on the importation of clove cigarettes, calling for shipments to resume.

The global trade body ruled on Friday that the United States was imposing discriminatory trade rules in banning the sale of kretek — Indonesian clove cigarettes.

Gusmardi Bustami, the director general of international trade at Indonesia’s Trade Ministry, said on Sunday that the ruling made it clear that the US had engaged in trade discrimination.

“With this ruling, the US must admit that they were wrong for their discriminatory trade rules. I don’t see any reasons why we can’t resume selling kretek cigarettes to the US,” Gusmardi said.

The US Food and Drug Administration in September 2009 banned cigarettes with fruit, confectionery or clove flavors, arguing they encouraged young people to smoke.

That resulted in a ban of imports of kretek the following year. But menthol cigarettes were not banned, and the Indonesian government said the US was protecting domestic sales of menthol cigarettes and that it intended to keep kretek out of the market.

“Our study concludes that clove and menthol are equally harmful to health, therefore, the ban was discriminatory,” Gusmardi said.

In its ruling, the WTO panel found that clove and menthol-flavored cigarettes are “like products.”

Gusmardi said that kretek is used by fewer than 1 percent of young smokers and accounts for less than 1 percent of total cigarette sales in the US. Meanwhile, menthol was consumed by 43 percent of young smokers and made up almost 25 percent of total cigarettes sold in the country.

The ruling was not entirely favorable for Indonesia. The WTO rejected its second claim, that the ban was unnecessary. The WTO found that the ban was a legitimate approach on the basis that it was aimed at reducing smoking among young people.

But Gusmardi questioned the ruling, saying that having cigarettes available does not mean kretek manufacturers were targeting young people.

“The problem with smoking is that it’s more of a habit-forming problem rather than one of the product being widely available,” he said.

The WTO concluded by asking the US to bring its restrictions into conformity with international trade rules. Both parties have 60 days to appeal the ruling.

Gusmardi said Indonesia would not appeal, saying the ruling made it clear the US had discriminated against Indonesia’s clove cigarettes.

Before the ban, Indonesia was the biggest exporter of kretek to the US, accounting for 99 percent of the clove cigarette market there, with annual sales totaling $100 million.

Menthol cigarettes are almost produced entirely in the US. Gudang Garam and Djarum are Indonesia’s two biggest exporters of clove cigarettes to the nation.

By Faisal Maliki Baskoro
Thejakartaglobe

Retailers may face further difficulties with cigarette stocks

As retailers struggle with stocks of ‘illegal’ cigarette packets without pictorial warnings, they may face further difficulties come November, when a new EU regulation on “fire-safer” cigarettes comes into force.

According to a letter sent to retailers by British American Tobacco Malta Ltd, all cigarettes sold to consumers as from 17 November “must comply with Lower Ignition Propensity (LIP) government legislation”.

The most common “fire-safer” technology used by cigarette manufacturers is to wrap cigarettes with two or three thin bands of thickened paper that act as ‘speed bumps’ to slow down a burning cigarette. If a cigarette is left unattended, the burning tobacco will soon hit one of these speed bumps and self-extinguish. “Fire-safer” cigarettes meet an established cigarette fire safety performance standard.

US research shows that cigarettes are the leading cause of home fire fatalities. Cigarette fires have been the top cause of US fire fatalities for decades, killing tens of thousands of people in the past 30 years, according to the National Fire Protection Association (NFPA), a research group that provides data for state and federal fire codes.

Deaths have declined with falling smoking rates, but cigarette fires still kill 700 to 900 people a year (NFPA). The figures for the European Union tell a similar story. Data from 14 member states (with Iceland and Norway), from 2005 to 2007, shows that cigarette-related fires caused some 11,000 fires every year, with 520 deaths and 1,600 injuries.

On Thursday, the Chamber of SMEs (GRTU) and three importers and distributors of tobacco products filed judicial protests against the authorities, saying that there is a lot of ‘old’ stock of cigarette packets without pictorial warnings on the market and legal action is being taken against retailers who are found to be selling such packets of cigarettes.

The three importers, Interbrands Ltd, N.M. Arrigo Ltd and Charles Grech & Co. Ltd, are insisting that every packet of cigarettes they have imported or placed on the market from 27 April onwards has been compliant with the legal notice that was published in October 2009. Indeed, there was no legal requirement for cigarette packets to carry pictorial warnings prior to 27 April this year.

But there is still a lot of ‘old’ stock of cigarette packets without the pictorial warnings in retail outlets such as grocers, bars and stationers.

Philip Fenech of the GRTU said: “We don’t know the exact number of these cigarette packets, but the retailers that still have old stock have more than €200 to €250 worth of cigarettes. The fact of the matter is that nobody determines market forces; certain brands are slow moving, while different retail outlets sell more cigarettes at different times of the year.

“Through no fault of their own, retailers still have a significant number of cigarette packets without pictorial warnings, on which duty has been paid.”

The law came into force on 27 April, but there was a ‘grace period’ up to 22 June, and enforcement started after that date. The GRTU complained that inspectors have been doing spot checks in retail outlets, sealing cigarette packets that are not compliant and taking legal action against retailers, and this is naturally having a negative impact on the working capital of every establishment.

But the Environmental Health Directorate said it is evident that it had given traders ample time to regulate themselves, it had issued several press releases in this respect and had consulted with the industry.

The letter from British American Tobacco (BAT) Malta Ltd, which is dated 1 September, came as a surprise to retailers, who are bracing themselves for another problem with cigarette stocks as new regulations come into force.

According to BAT Malta Ltd, “there will be identification marking on the outers and cases and a tear-off strip on the packs and outers to help you identify compliant BAT products during the transition period of Lower Ignition Propensity (LIP)”.

BAT Malta said it was to start supplying LIP-compliant cigarettes on 1 September.

But retailers said these new cigarette stocks are not yet on the market. If importers take another month or so to provide new stocks, retailers will have just one month to sell existing stocks.

The same thing seems to have happened with pictorial warnings. The three importers that filed a judicial protest said that every packet of cigarettes they imported or placed on the market from 27 April onwards had been compliant with the legal notice that was published in October 2009, but retailers who spoke to this newspaper said certain brands of cigarettes available had no pictorial warnings.

Retailers said that because the importers still had a lot of ‘old’ stock to sell, about 12 to 15 out of 30 brands of cigarettes carried no pictorial warnings on 22 June, when it became illegal to sell cigarette packets without pictorial warnings.

Because certain brands of cigarettes (including those imported by the companies who filed a judicial protest) were not compliant with the legal notice, retailers had no choice but to buy ‘old’ stock, which they are still trying to sell.

By Francesca Vella

Bulgarian King’s Tobacco to invest in new cigarette plant

Bulgarian cigarette maker King’s Tobacco will pump 45 million leva into a new production capacity, due for completion in 2012, the Plovdiv-based company said on August 26.

The new plant will cover 74 000 sq m and will create 400 jobs. The facility will comprise a cigarette making and packaging unit, a warehouse for raw materials and a storage unit for ready products.

King’s Tobacco, a former cigarette unit of Bulgarian majority state-owned tobacco group Bulgartabac, has already provided the plot for the new factory.

The management claims the construction of the new capacity along with 1440 sq m of offices, will employ new-technology, energy-efficient materials. The blueprint also envisages 15 000 sq m of green area.

At first, the new factory will operate concurrently with existing capacities, the company said explaining the investment with the growing demand for its products.

King’s Tobacco recorded a more than 200 per cent jump in sales abroad for the past nine months alone. The company closed 2010 with a profit of 1.06 million leva against 304 000 leva in the prior year, data from the Bulgarian Company Registry showed. Last year’s revenue amounted to 23.05 million leva, of which domestic sales totalled 16.8 million leva. Revenue from leased investment properties, including storage and recreation facilities and apartments in Plovdiv, stood at 17 000 leva in 2010.

Sugar trading firm Sigma Consulting, related to local wine and spirits maker Vinprom Peshtera, bought the cigarette factory in Plovdiv for just more than 30 million leva in the summer of 2008. The factory, including the land on which the new capacity will be built and a warehouse for ready produce, was sold via the Bulgarian stock exchange. The cigarette maker has about 15 per cent of the domestic market where it sells three brands – King, Merilyn and Corset.

Should films with smoking have adult ratings?

Two articles in this week’s PLoS Medicine address the question of whether films with smoking scenes should have “adult” ratings applied to them.

Christopher Millett from Imperial College, London, UK and colleagues report that, despite the WHO Framework Convention on Tobacco Control recommendation that films with smoking scenes have adult content rating, very few governments have complied with this advice. Arguing that exposure to tobacco imagery in movies is a “potent cause of youth experimentation and progression to established smoking,” the authors say their primary reason for supporting the film rating recommendation is to create an economic incentive for producers to leave smoking out of movies that are marketed to youths.

Even more problematic, the authors say, is the fact that “many governments provide generous subsidies to the US film industry to produce youth-rated films that contain smoking and as such indirectly promote youth smoking.”

“Governments should ensure that film subsidy programmes are harmonized with public health goals by making films with tobacco imagery ineligible for public subsidies,” the authors conclude.

In an Essay also published this week in PLoS Medicine and addressing the same issue, Simon Chapman from the University of Sydney, Sydney, Australia and Matthew Farrelly from RTI International, USA strongly argue against adult ratings for film with smoking scenes, laying out four reasons why they believe this to be ill-advised. They argue that 1) the link between exposure to smoking in movies and smoking uptake is vexed by substantial confounding; 2) exposure to smoking scenes is much wider than just films, including internet; 3) adult classification of films is a highly inefficient way of preventing youth exposure to adult-rated content; and 4) censorship is not the best approach for this public health issue.

The authors say: “We believe that many citizens and politicians who would otherwise give unequivocal support to important tobacco control policies would not wish to be associated with efforts to effectively censor movies other than to prevent commercial product placement by the tobacco industry.”

By Clare Weaver
press@plos.org
44-122-344-2834
Public Library of Science

Lorillard Tobacco Planning Benchmark US Debt Offering

NEW YORK -Lorillard Tobacco Co. of Greensboro, N.C., is planning to sell a two-part bond offering in the U.S. debt market Monday, according to a person familiar with the deal.

The deal includes a five- and 30-year tranche and is expected to be benchmark in size, or at least $500 million. The company added the 30-year tranche midday Monday after originally disclosing only the five-year tranche Monday morning.

Preliminary price guidance suggests a risk premium of 225 basis points to 237.5 basis points over Treasurys for the five-year piece and 300 basis points to 312.5 basis points over Treasurys for the 30-year piece.

The offering includes a change-of-control provision, which is designed to safeguard investors against event risk if the issuer is taken over in a leveraged buyout or undergoes some other fundamental corporate change. The covenant is triggered at a premium price of $101.

Pricing is expected later Monday via lead bookrunners Barclays Capital (BCS, BARC.LN), Goldman Sachs Group Inc. (GS) and Wells Fargo Securities (WFC), supported by J.P. Morgan Chase & Co. (JPM) and Royal Bank of Scotland Group PLC (RBS, RBS.LN).

Proceeds will be used for general corporate purposes, which include repurchasing outstanding debt.

The deal has been rated Baa2 by Moody’s Investor Service and BBB- by Standard & Poor’s.

The last time Lorillard Tobacco issued U.S. debt was in April 2010 for $1.0 billion, according to data provider Dealogic. The current offering is only the third time Lorillard Tobacco has tapped the U.S. debt market since Dealogic began keeping records in 1995.

Lorillard Tobacco is a subsidiary of Lorillard Inc. (LO), the third-largest cigarette maker in the U.S. The company manufactures five cigarette brands, including the menthol-flavored brand Newport, which accounted for 90% of the company’s sales revenue in the 2010 fiscal year.

Last Monday, Lorillard Inc. reported second-quarter profits jumped more than 10% year-to-date due to higher cigarette-sales volumes and prices, according to the earnings release.

Lorillard Tobacco hasn’t yet responded to a request for comment.

By Nicole Hong, Dow Jones Newswires
212-416-3760
nicole.hong@dowjones.com

Can Cigarette Brands Use Green Marketing?

natural tobacco

Forget the FDA’s graphic cigarette packaging planned to scare American smokers. R.J. Reynolds wants smokers to think more positively… about the environment.

Santa Fe Natural Tobacco Co., a subsidiary of the U.S. tobacco giant, has been buying magazine ad space in magazines such as Esquire, Elle, Wired, and Marie Claire to advertise its “earth-friendly,” “additive-free,” organically-grown Natural American Spirit cigarettes.

Eco-friendly cigarettes? The process to make them is plenty green – wind-powered, few chemicals used, recycled packaging materials, a salesforce equipped with hybrid cars — but the smokes themselves are just as likely to cause lung cancer as the nonorganic ones, USA Today reports.

“It’s an egregious ad. It’s trying to greenwash a deadly and addictive product,” says Vince Willmore of the Campaign for Tobacco-Free Kids, to USA Today.

“When you hear a product is eco-friendly, you think it’s better for you,” he adds, pointing out that cigarettes are a major source of litter.

The company, however, says the goal isn’t to mislead, saying it’s aware that the cigarette itself isn’t “green.”

“We try to be good stewards of the environment,” responds spokesman Seth Moskowitz to USA Today.

“This is a perfect example of why green marketing is broken,” says Joel Makower, executive editor of GreenBiz.com, according to USA Today. “Products that harm people should not be marketed as green. … The average person is going to look at that ad and ask, ‘What are they smoking?’”

The tobacco company has faced similar complaints before. In 2000, after advertising its cigarettes as free of additives, the Federal Trade Commission negotiated a settlement that required it to include this statement: “No additives in our tobacco does NOT mean a safer cigarette.” In 2010, after marketing its “organic” tobacco, 33 state attorneys general demanded the company include a statement saying the cigarette was not safer as a result.”

Meanwhile, R.J. Reynolds, the second-largest tobacco manufacturer in the country, is facing a battle in another forum: the Mississippi courts. Forbes reports that judge there will figure out if the company “shortchanged the state of Mississippi when it failed to report profits from the sale of 7.8 billion cigarettes made for Star Tobacco.”

The state is arguing that Reynolds did not report 7.8 billion cigarettes manufactured between 2000 and 2005 that should have been made known due to the 1997 tobacco-industry settlement, Forbes reports.

Check out the full ad (via) below, and tell us what you think: is touting environmentally-friendly manufacturing acceptable for some brands and not others?