Nassau and Suffolk County health commissioners joined Long Island’s hospitals and smoking cessation advocacy groups on Wednesday at Hofstra University to re-affirm their commitment to eliminate tobacco use across Long Island and to stand firm on their stance that the sale of cigarettes be banned in pharmacies. The press briefing and informational event jump started the groups’ support of the American Cancer Society’s Great American Smoke Out, which occurs today.
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In a trading update on Wednesday, British American Tobacco (UK:BATS 2,413, -25.50, -1.05%) said the company saw “good growth” in revenue for the nine months, helped by exchange rates, pricing and an Indonesian acquisition, PT Bentoel Internasional Investama Tbk.

BAT said positive foreign-exchange benefits are expected to diminish in the fourth quarter. It also reported a 3% fall in organic volumes against the prior year, due to market-size declines, a rise in illicit trade in some markets, and the loss of sales in Pakistan after the flood. Group volumes from subsidiaries fell 1%. BAT said it increased overall market share across its top 40 markets, with growth continuing for its four big brand names, though group volumes fell

The Government should present a bold plan to make New Zealand largely smokefree in 10 years, a health group says.
The Health Sponsorship Council, a crown entity, was one of many anti-smoking groups at the Maori affairs select committee inquiry into the tobacco industry today.

The inquiry was called to look at the consequences of tobacco use for Maori.

Chief executive Iain Potter told the committee a 10-year plan, counter-attacking cigarette companies’ marketing strategies, should be adopted to reduce demand and supply of tobacco.

Mr Potter said the plan must encompass all marketing fundamentals — product, place, price, and promotion — instead of slowly implementing changes.

“The historical approach to limit the massively well-documented harms associated with tobacco has been an item-by-item, incremental approach,” Mr Potter said.

“If we continue with this item-to-item approach, we will be consigning several more generations of Maori to the ranks and consequently to an early grave. We need a paradigm shift.”

Mr Potter suggested the “power of the brand” be diminished by placing cigarettes in plain packaging, and taking displays and other tobacco imagery out of sight.

British American Tobacco New Zealand (BAT) asked the committee last month for current sale displays to remain the same.

BAT manager director Graeme Amey said research showed removing cigarettes and other tobacco products from visibility in retail stores would have little impact on the prevalence of smoking.

Mr Potter, who disagrees, said industry should also be required to provide full disclosure of all ingredients so they can be regulated.

“Tobacco can be made with less addictive and additives, both harmful and those that alter the taste should not be allowed.”

The Health Sponsorship Council also recommended tobacco tax be increased and roll-your-own tobacco tax should be equal to tailor-made cigarettes.

The Public Health Association’s submission also called on government to introduce plain packaging, ban point-of-sale displays and make major increases to tobacco taxes.

Senior analyst Keriata Stuart told the committee tax increases need to be substantial, regular and highly publicised.

“They can encourage smokers to quit. They can also encourage smokers to cut down.

“But the tax increases need to be preceded by increased funding for services and campaigns.”

Mr Potter said New Zealand was ready for drastic change as statistics show 49.8 percent of adults think that cigarettes and tobacco should not be sold in New Zealand in 10 years.

And more than 60 percent of people and 56 percent of Maori agree that tax on cigarettes should be raised. Prime Minister John Key said earlier this year a tobacco tax increase may be considered in this year’s budget.

Guide

British American Tobacco (BAT) on Friday forecast that the world’s consumption of cigarettes was likely to remain fairly stable at 6 trillion cigarettes a year, one-third of which are sold in China.

The cigarette company, responsible for the Dunhill, Kent and Lucky Strike brands, plans to ensure it is well-placed to meet the needs of consumers, whether they are down-trading in times of recession or up-trading as the economic situation improves.

Six years ago, the UN conducted a study of the world’s tobacco consumption and found that the number of smokers in the world was expected to grow from 1.1 billion in 1998 to about 1.3 billion this year, an increase of about 1.5 percent annually.

This is in direct contrast to BAT’s estimations in its latest annual report, which states that the global legal market had shown a decline in consumption by 1.5 percent annually over the long term.

BAT chief executive Paul Adams said trends indicated that individual smokers would consume fewer cigarettes each and smaller percentages of populations would smoke.

“However, offsetting these trends, the number of adults in the world over the age of 20 continues to grow,” he said.

He said volume declines had been evident in a number of markets last year and BAT expected global volumes to remain under pressure this year.
“We estimate that the global legal market, excluding China, fell by 3 percent last year compared with its long-term trend of declining 1.5 percent,” he said.

But pricing had remained positive, and the global profit pool was expected to continue to grow.

“In many key markets, legal volumes have been affected as consumers move to illicit products,” Adams said.

He said illicit trade in tobacco products – smuggled, counterfeit or tax evaded – was in effect one of the company’s major global competitors and represented nearly 12 percent of world consumption.

BAT reported a gross turnover of £40.7 billion (R447bn) for last year. Adams reported that acquisitions continued to play a part in its growth strategy and explained that its latest acquisition – Bentoel in Indonesia – gave the group a strong position in the fourth-largest cigarette market.

The UN in its report predicted that more tobacco would be smoked in developing countries, where tobacco consumption was expected to grow to 5.09 million tons this year from 4.2 million in 1998.

By Florence de Vries, Busrep

British American Tobacco boosted profits last year despite cigarette smoking declining and the recession forcing people to trade down to cheaper brands or rely on smuggled or counterfeit products.

The multinational, which is the world’s second-largest tobacco firm after Philip Morris, is rewarding shareholders with a bumper dividend, up nearly 20%, after last year’s numbers were lifted by acquisitions and a weaker pound – allowing it to make more money overseas.

Richard Burrows, who took over as chairman from Jan du Plessis at the end of 2009, said there were signs that the global economy was beginning to improve but warned that unemployment may continue to rise in developed markets.

Underlying volumes fell 3% as the recession forced consumers to cut spending, particularly in eastern Europe and Japan. But BAT increased revenue by 17% following acquisitions in Indonesia, Turkey and Scandinavia and by increasing prices.

BAT’s main premium brands – Dunhill, Pall Mall and Lucky Strike – increased their market share but Kent fell 4% because of weak trading in Russia.

The tobacco industry has proved relatively resilient to the recession, with strong pricing power and a wide range of brands that appeal to smokers in developing countries, where western cigarettes are viewed as trophy products. But the global picture is one of overall decline, with volumes falling annually by about 2% as people give up for health reasons or because cigarettes have become too expensive as governments in western countries increase excise duties.

In the City, there has been speculation that BAT could bid for its US rival Reynolds but these stories were dismissed as “rumour” by the company yesterday.

BAT did well in the Americas, where profit rose by £134m, mainly due to a strong performance in Brazil, an improved product mix and exchange rate benefits. But volumes were down 6%, illustrating how the company is having to work harder to deliver improved earnings. In 2008, it closed a factory in Denmark in an efficiency drive that is saving £250m a year.

Last year there was controversy over Burrows’ appointment after he resigned under a cloud at Bank of Ireland, where he was governor. He presided over mounting losses and a government bailout and was forced to apologise to shareholders.

Guy Jubb, head of corporate governance at Standard Life Investments, said then: “When stewardship is in sharp focus, it is questionable whether this appointment will enjoy unanimous support.”

But others were prepared to give him the benefit of the doubt after successful stints at Pernod Ricard and Irish Distillers, where he is credited with turning Jameson whiskey into an international brand.

Philip Morris International unveiled a joint venture today in the Philippines that will see it team up with Fortune Tobacco, a domestic cigarette maker owned by the business tycoon Lucio Tan, to create a company that would control 90% of the local cigarette market.

Richard Wachman, Guardian