New Zealanders are smoking 1.3 billion fewer cigarettes a year than ten years ago, according to data produced by Statistics New Zealand for the Smokefree Coalition.
In the last quarter, since tobacco's tax rise, New Zealanders consumed 280 million manufactured tobacco products, and 243 tonnes of loose tobacco.
Smokefree Coalition Director Dr Prudence Stone said last year's fourth quarter result was 757 million or so cigarettes, while this fourth quarter it was 405.5 million.
"That's 351.5 million fewer cigarettes consumed than the same quarter last year."
Dr Stone believes the drop in consumption resulting from April's excise tax increase, has also led to significant drops in production and imports for domestic consumption.
"Consumption looked to be slowly climbing at the end of 2009's financial year with production and imports reaching NZ$3.4 billion (up from $2.8 billion in 2008). The tax increase has nipped that frightening trend in the bud.
"That the last significant drop in production levels occurred in 2000 when tobacco's excise tax was also increased significantly, by 20 percent, shows how effective price is as a tobacco control measure."
Dr Stone says she's confident the next tobacco tax increases scheduled for January 2011 and 2012 will force similar drops in tobacco production and imports over the next two years.
Nov 19, 2010
FDA Continues Fight to Regulate Electronic Cigarettes
The Food and Drug Administration has authority to regulate so-called "electronic cigarettes" that vaporize nicotine but do not contain tobacco, a Justice Department lawyer argued today in the U.S. Court of Appeals for the D.C. Circuit.
Last year, a federal judge in Washington ruled the government improperly blocked an inbound shipment of e-cigarettes into the United States, saying that the FDA doesn’t have authority to regulate the product because it is not marketed for therapeutic uses such as to treat smoking addiction.
DOJ’s Alisa Klein of the Civil Division today tried to convince a three-judge appeals court panel to reverse the trial judge’s issuance of an injunction against the FDA. The appeals court stayed enforcement of the injunction pending resolution of the dispute.
Garre_gregory_kagan_#3056D6Latham & Watkins partner Gregory Garre (at left), who chairs the firm’s Supreme Court and appellate practice group, represented Scottsdale, Az.-based Sottera, which sells e-cigarettes under the brand “NJOY.”
E-cigarettes are battery-powered devices that resemble real cigarettes. The FDA blocked the importation of e-cigarettes on the ground that they are unapproved drug devices under the federal Food, Drug and Cosmetic Act. Tobacco products are generally exempt from the drug and device provisions of the FDCA.
The Tobacco Control Act of 2009 gives the FDA authority to regulate “tobacco products,” a term that was closely scrutinized today by the appeals court panel consisting of Judges Merrick Garland and Brett Kavanaugh and Senior Judge Stephen Williams.
Klein of the Justice Department said the FDA has long regulated nicotine products that include smokeless cigarettes, nicotine lollipops and nicotine inhalers. In 2008, the FDA refused to allow the importation of “Nicogel,” a hand gel made of liquefied tobacco. The FDA said the gel was an unapproved drug.
“If electronic cigarettes are a safe method of nicotine maintenance, that could be approved if the science supports it,” Klein said in court.
Garland questioned what he called the “unique” procedural element of the case. The government’s position in the litigation is established in a blocking order—stopping the shipment of electronic cigarettes—and not in a detailed administrative record. Kavanaugh and Williams examined the extent to which Congress can step in to fill a regulatory void to clarify the scope of FDA regulatory authority.
Garre, arguing for NJOY, said the product is not marketed as a smoking cessation device. He said if the FDA could show that the e-cigarettes are marketed for therapeutic reasons, the injunction against the FDA would not apply.
Last year, a federal judge in Washington ruled the government improperly blocked an inbound shipment of e-cigarettes into the United States, saying that the FDA doesn’t have authority to regulate the product because it is not marketed for therapeutic uses such as to treat smoking addiction.
DOJ’s Alisa Klein of the Civil Division today tried to convince a three-judge appeals court panel to reverse the trial judge’s issuance of an injunction against the FDA. The appeals court stayed enforcement of the injunction pending resolution of the dispute.
Garre_gregory_kagan_#3056D6Latham & Watkins partner Gregory Garre (at left), who chairs the firm’s Supreme Court and appellate practice group, represented Scottsdale, Az.-based Sottera, which sells e-cigarettes under the brand “NJOY.”
E-cigarettes are battery-powered devices that resemble real cigarettes. The FDA blocked the importation of e-cigarettes on the ground that they are unapproved drug devices under the federal Food, Drug and Cosmetic Act. Tobacco products are generally exempt from the drug and device provisions of the FDCA.
The Tobacco Control Act of 2009 gives the FDA authority to regulate “tobacco products,” a term that was closely scrutinized today by the appeals court panel consisting of Judges Merrick Garland and Brett Kavanaugh and Senior Judge Stephen Williams.
Klein of the Justice Department said the FDA has long regulated nicotine products that include smokeless cigarettes, nicotine lollipops and nicotine inhalers. In 2008, the FDA refused to allow the importation of “Nicogel,” a hand gel made of liquefied tobacco. The FDA said the gel was an unapproved drug.
“If electronic cigarettes are a safe method of nicotine maintenance, that could be approved if the science supports it,” Klein said in court.
Garland questioned what he called the “unique” procedural element of the case. The government’s position in the litigation is established in a blocking order—stopping the shipment of electronic cigarettes—and not in a detailed administrative record. Kavanaugh and Williams examined the extent to which Congress can step in to fill a regulatory void to clarify the scope of FDA regulatory authority.
Garre, arguing for NJOY, said the product is not marketed as a smoking cessation device. He said if the FDA could show that the e-cigarettes are marketed for therapeutic reasons, the injunction against the FDA would not apply.
Nov 10, 2010
Montana’s teen-led movement against Big Tobacco
All of you are being targeted by the tobacco industry to replace former smokers.
According to the Campaign for Tobacco-Free Kids, the tobacco industry is spending over $15 billion annually, and over $41 million every day, to promote its products to young customers.
And every day, 4,000 young people try their first cigarette.
The tobacco industry knows that the more you are exposed to tobacco advertising, the more likely you are to start tobacco using tobacco products and become addicted.
So what can you do?
- Recognize the power you have to effectively take on one of the leading preventable causes of death-commercial tobacco use. If current trends continue, over 6,000,000 children alive today will die as a result of cigarette smoking.
- Join Montana’s teen-led movement reACT against corporate tobacco.
- Educate the community about tobacco industry and how they are spending billions of dollars on magazine advertisements, point of purchase advertising, and promotions that make tobacco use appear desirable.
- Fight to reduce store product placement and marketing efforts through “Store Alert” type projects that help rid retail stores of tobacco clutter.
- Ask store owners and managers to keep all cigarettes behind the counter, reduce the amount of advertising of interior ads to the areas behind the counter and support stores that are doing a good job of limiting tobacco marketing.
Know this! Your involvement will enhance community-wide efforts to combat pro-tobacco influences, change social norms around tobacco use, and reduce public exposure to secondhand smoke.
Nov 2, 2010
The Associated Press CARLISLE, Pa. -- Two men are under arrest after police say they were stopped in Pennsylvania driving a tractor trailer carryin
CARLISLE, Pa. -- Two men are under arrest after police say they were stopped in Pennsylvania driving a tractor trailer carrying stolen cigarettes worth $3 million.
Authorities say 37-year-old Juan Almaguer and 52-year-old Alcide Fraguela-Casanova were transporting more than 25,000 cartons of stolen cigarettes when they were pulled over Monday on the Pennsylvania Turnpike, near Carlisle. State police say the cigarettes were stolen from a Tennessee warehouse.
Almaguer, of Cedar Park, Texas and Fraguela-Casanova, of Miami, face charges including possession of stolen property and tax evasion. They are being held without bail pending preliminary hearings scheduled for Wednesday.
It was unclear if either man had an attorney.
Authorities say 37-year-old Juan Almaguer and 52-year-old Alcide Fraguela-Casanova were transporting more than 25,000 cartons of stolen cigarettes when they were pulled over Monday on the Pennsylvania Turnpike, near Carlisle. State police say the cigarettes were stolen from a Tennessee warehouse.
Almaguer, of Cedar Park, Texas and Fraguela-Casanova, of Miami, face charges including possession of stolen property and tax evasion. They are being held without bail pending preliminary hearings scheduled for Wednesday.
It was unclear if either man had an attorney.
Oct 26, 2010
SNUS NEWS & OTHER TOBACCO PRODUCTS
July 23, 2010 - Reynolds American Inc. (RAI) said Thursday, July 22nd that its second quarter profit fell 9.5% from last year, hurt mainly by costs related to plant closings and change of sales force.
Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Co.; American Snuff Company, LLC; Santa Fe Natural Tobacco Co., Inc.; and Niconovum AB.
The company noted that higher cigarette and moist-snuff pricing, productivity gains and higher moist snuff volume more than offset lower cigarette volume.
Cigarettes..
R.J. Reynolds , producer of Camel cigarettes shipped 20.3 billion cigarettes in the second quarter, down 9.5% from a year earlier. Industry-wide cigarette volumes fell 7.1% in the second quarter, the company noted. In the 2009 second quarter, shipments were skewed higher by the timing of the U.S. tax increase. The company shipped 20.3 billion cigarettes in the quarter, down 9.5 percent from a year earlier, but key brands Camel and Pall Mall both increased market share. Reynolds also shipped 97.1 million cans of smokeless tobacco under brands like Grizzly and Kodiak.
R.J. Reynolds' two growth brands, Camel and Pall Mall, both posted second quarter cigarette share and volume gains. Camel's second quarter volumes increased 2.7% year-over-year, while its retail market share grew 0.3 percentage points to 7.8%. Pall Mall's second quarter volumes increased 9.7%, while its retail market share grew 1.8 percentage points to 7.0%.
R.J. Reynolds' total second quarter cigarette market share of 27.9% was down 0.8 percentage points from the prior year quarter. This was largely driven by the losses on its de-emphasized private label brands which now represent a total of only six tenths of a share point.
Excluding private label brands, the company’s volume performance was better than that of the industry with the decline of 6.9% in the quarter and 3.9% for the half. R.J. Reynolds' first-half cigarette shipment volume was down 6.3% compared with an industry decline of 4.9%. Camel and Pall Mall each reported second quarter cigarette volume and share gains. Those two growth brands now account for more than half of the company’s total share and volume. Their combined second quarter market share was 14.8% up 2.1 percentage points. Camel's second quarter cigarette market share of 7.8% was up three tenths of a point from the prior year quarter. Camel’s menthol styles including Camel Crush increased half a share point to 1.8 share of market in the quarter. Camel also continues to make progress as a total tobacco brand. Camel Snus remained stable at three tenths of a share on a cigarette equivalent basis and on a moist snuff equivalent basis; Camel Snus had a second quarter share of 3.5%.
Now turning to Pall Mall, which continues to deliver excellent performance. Pall Mall increased its second quarter market share to 7% that was up 1.8 percentage points from the year ago period and up 0.5 share from the prior quarter.
Smokeless products - American Snuff:
American Snuff Co. is the second largest U.S. manufacturer of smokeless tobacco products. Its key brands are Kodiak, Grizzly and Levi Garrett. The company's second quarter sales increased to $182 million from $169 million a year earlier.
American Snuff. American Snuff's second quarter adjusted operating income was $85 million down 7.1% from the prior year quarter. That decline was due to lower volume on roll-your-own and other non-core tobacco products which more than offset higher moist snuff pricing and volume. American Snuff also had higher second quarter costs relating to the timing of promotional spending and FDA compliance.
Grizzly's appeal among a broad base of moist snuff consumers is the recently introduced Grizzly 1900 Long Cut. A natural product with a traditional long cut, Grizzly 1900 Long Cut has performed well since its introduction earlier this year. American Snuff continues to focus on enhancing Grizzly's brand equity and value to consumers. The recent addition of embossed metal lids is improving the brand's quality perceptions among moist snuff consumers.
American Snuff's premium Kodiak brand, even though Kodiak share of shipments has experienced a modest decline in the first half of this year, the brand's volume has increased despite being significantly out promoted by other premium moist snuff competitors. Camel Dip the company's latest premium introduction is bringing innovation to the moist snuff category and is performing well. Camel Dip which leverages Camel's authentic heritage was expanded to selected outlets in 10 additional
American Snuff total moist snuff shipment volume grew 3% for the quarter, for the first half which eliminates the impact of trade inventory fluctuations; the company's moist snuff shipments increased 7.1%. As Susan mentioned, industry shipment were up about 9% for the quarter and the half while consumer off-take was up about 6%.
American Snuff's share of shipments for the second quarter was in line with the prior year quarter at 29.4%. Grizzly's second quarter shipment volume increased by 4.2%. For the first half, the brand continued to outpace industry consumption with a 7.6% increase. And Grizzly's share of shipments increased slightly to 25.5% in the quarter. The brand also improved its position in the fast growing pouch segment, accounting for nearly 25% of all pouch sales in the second quarter. Share of shipments for American Snuff's premium Kodiak brand declined 0.2 percentage point from the prior year quarter, and Kodiak's volume was down 5.5% in the second quarter but up 2.6% for the half. So that's an overview of American Snuff. Now we'll take a look at productivity.
Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Co.; American Snuff Company, LLC; Santa Fe Natural Tobacco Co., Inc.; and Niconovum AB.
The company noted that higher cigarette and moist-snuff pricing, productivity gains and higher moist snuff volume more than offset lower cigarette volume.
Cigarettes..
R.J. Reynolds , producer of Camel cigarettes shipped 20.3 billion cigarettes in the second quarter, down 9.5% from a year earlier. Industry-wide cigarette volumes fell 7.1% in the second quarter, the company noted. In the 2009 second quarter, shipments were skewed higher by the timing of the U.S. tax increase. The company shipped 20.3 billion cigarettes in the quarter, down 9.5 percent from a year earlier, but key brands Camel and Pall Mall both increased market share. Reynolds also shipped 97.1 million cans of smokeless tobacco under brands like Grizzly and Kodiak.
R.J. Reynolds' two growth brands, Camel and Pall Mall, both posted second quarter cigarette share and volume gains. Camel's second quarter volumes increased 2.7% year-over-year, while its retail market share grew 0.3 percentage points to 7.8%. Pall Mall's second quarter volumes increased 9.7%, while its retail market share grew 1.8 percentage points to 7.0%.
R.J. Reynolds' total second quarter cigarette market share of 27.9% was down 0.8 percentage points from the prior year quarter. This was largely driven by the losses on its de-emphasized private label brands which now represent a total of only six tenths of a share point.
Excluding private label brands, the company’s volume performance was better than that of the industry with the decline of 6.9% in the quarter and 3.9% for the half. R.J. Reynolds' first-half cigarette shipment volume was down 6.3% compared with an industry decline of 4.9%. Camel and Pall Mall each reported second quarter cigarette volume and share gains. Those two growth brands now account for more than half of the company’s total share and volume. Their combined second quarter market share was 14.8% up 2.1 percentage points. Camel's second quarter cigarette market share of 7.8% was up three tenths of a point from the prior year quarter. Camel’s menthol styles including Camel Crush increased half a share point to 1.8 share of market in the quarter. Camel also continues to make progress as a total tobacco brand. Camel Snus remained stable at three tenths of a share on a cigarette equivalent basis and on a moist snuff equivalent basis; Camel Snus had a second quarter share of 3.5%.
Now turning to Pall Mall, which continues to deliver excellent performance. Pall Mall increased its second quarter market share to 7% that was up 1.8 percentage points from the year ago period and up 0.5 share from the prior quarter.
Smokeless products - American Snuff:
American Snuff Co. is the second largest U.S. manufacturer of smokeless tobacco products. Its key brands are Kodiak, Grizzly and Levi Garrett. The company's second quarter sales increased to $182 million from $169 million a year earlier.
American Snuff. American Snuff's second quarter adjusted operating income was $85 million down 7.1% from the prior year quarter. That decline was due to lower volume on roll-your-own and other non-core tobacco products which more than offset higher moist snuff pricing and volume. American Snuff also had higher second quarter costs relating to the timing of promotional spending and FDA compliance.
Grizzly's appeal among a broad base of moist snuff consumers is the recently introduced Grizzly 1900 Long Cut. A natural product with a traditional long cut, Grizzly 1900 Long Cut has performed well since its introduction earlier this year. American Snuff continues to focus on enhancing Grizzly's brand equity and value to consumers. The recent addition of embossed metal lids is improving the brand's quality perceptions among moist snuff consumers.
American Snuff's premium Kodiak brand, even though Kodiak share of shipments has experienced a modest decline in the first half of this year, the brand's volume has increased despite being significantly out promoted by other premium moist snuff competitors. Camel Dip the company's latest premium introduction is bringing innovation to the moist snuff category and is performing well. Camel Dip which leverages Camel's authentic heritage was expanded to selected outlets in 10 additional
American Snuff total moist snuff shipment volume grew 3% for the quarter, for the first half which eliminates the impact of trade inventory fluctuations; the company's moist snuff shipments increased 7.1%. As Susan mentioned, industry shipment were up about 9% for the quarter and the half while consumer off-take was up about 6%.
American Snuff's share of shipments for the second quarter was in line with the prior year quarter at 29.4%. Grizzly's second quarter shipment volume increased by 4.2%. For the first half, the brand continued to outpace industry consumption with a 7.6% increase. And Grizzly's share of shipments increased slightly to 25.5% in the quarter. The brand also improved its position in the fast growing pouch segment, accounting for nearly 25% of all pouch sales in the second quarter. Share of shipments for American Snuff's premium Kodiak brand declined 0.2 percentage point from the prior year quarter, and Kodiak's volume was down 5.5% in the second quarter but up 2.6% for the half. So that's an overview of American Snuff. Now we'll take a look at productivity.
Jun 28, 2010
Cigarette packs get colorful for 'light' label ban
Goodbye, Marlboro Lights. Hello, Marlboro Gold Pack.
"Light" cigarettes are going up in smoke by the end of June, but their names and packaging are getting a colorful makeover.
The U.S. Food and Drug Administration says cigarette packs no longer can feature names such as "light," "mild," "medium" or "low," which many smokers wrongly think are less harmful than "full-flavor" cigarettes.
Cigarette makers are replacing those words with colors such as gold, silver, blue and orange on brands that make up more than half of the smokes sold across the country.
Anti-tobacco advocates say the colors are just as bad as the words, but tobacco companies argue they have a right to let smokers know which products are which.
Companies insist the words tell smokers about the taste, feel and blend of a cigarette, not health risks. The cigarettes usually feature different filters and milder-flavored blends.
Long years of advertising, however, emphasized measurements of lower tar and nicotine in "light" cigarettes, even though those were measured with smoking machines that don't mirror how real smokers puff. For example, smokers will inhale more deeply or smoke more cigarettes if they're not getting the amount of nicotine they want.
Studies show that about 90 percent of smokers and nonsmokers believe that cigarettes described as "light" or have certain colors on the packages are less harmful even though "all commercial cigarettes are equally lethal," said David Hammond, a health behavior researcher at the University of Waterloo in Canada.
Colors shape perceptions of risks on all products, Hammond said. For example, mayonnaise and soda usually use lighter colors on their packaging to distinguish between diet, light and regular products.
He called the removal of those few words on cigarette packs "necessary but not sufficient measures" to improve public health or reduce false perceptions.
"This is essentially mopping up the worst excesses of what the courts in the U.S. have judged to be deceptive advertising," he said. "Tobacco companies are going to need words to distinguish their brands; it's just a question of identifying what descriptors or words lead to false beliefs."
He suggested the FDA take the ban even further and restrict both color and words such as "smooth" and "slim."
Other countries are considering going even further. The Australian government proposed legislation last month that would make manufacturers sell cigarettes in plain, standard packaging, without colors and logos. More than 40 countries already have laws prohibiting terms similar to what the FDA is banning.
The idea of further packaging restrictions has the industry gasping for breath.
"Absent this information, massive confusion in the marketplace would result," James E. Swauger, vice president of regulatory oversight for R.J. Reynolds Tobacco Co., the nation's second-biggest cigarette company, wrote in a letter to the FDA.
Swauger warned that, if the FDA were to go as far as banning colors, consumers wouldn't be able to distinguish between brands, and manufacturers could be limited to one type of cigarette per brand because they'd have no other way to distinguish their products.
The company, owned by Winston-Salem, N.C.-based Reynolds American Inc., made slight changes to some of its brands' packs, but for some, it was simply removing the words like "light" on already colorful packages.
The nation's largest cigarette company, Philip Morris USA, made more than 150 packaging changes to comply. It also has included inserts in packs and displays at retail locations telling customers to "In the Future, Ask For..." the new name or color of their brand.
For example, the company is replacing its Marlboro Light cigarettes with Marlboro Gold Pack; its Marlboro Menthol Milds will be known as Marlboro Menthol Blue Pack. Philip Morris USA is owned by Altria Group Inc., based in Richmond, Va.
While customers may already see some of the new packaging in stores, calling their smokes by their old names may be a harder habit to break than smoking itself.
"I'll ask for Newport Light 100s, and I'll let them decipher it," said 52-year-old Joe McKenna, a teacher and longtime smoker from Pearl River, N.Y., whose brand made by Lorillard Inc. is now known as Newport Menthol Gold. "It's just kind of ridiculous in the sense that you know they're harmful for you."
"Light" cigarettes are going up in smoke by the end of June, but their names and packaging are getting a colorful makeover.
The U.S. Food and Drug Administration says cigarette packs no longer can feature names such as "light," "mild," "medium" or "low," which many smokers wrongly think are less harmful than "full-flavor" cigarettes.
Cigarette makers are replacing those words with colors such as gold, silver, blue and orange on brands that make up more than half of the smokes sold across the country.
Anti-tobacco advocates say the colors are just as bad as the words, but tobacco companies argue they have a right to let smokers know which products are which.
Companies insist the words tell smokers about the taste, feel and blend of a cigarette, not health risks. The cigarettes usually feature different filters and milder-flavored blends.
Long years of advertising, however, emphasized measurements of lower tar and nicotine in "light" cigarettes, even though those were measured with smoking machines that don't mirror how real smokers puff. For example, smokers will inhale more deeply or smoke more cigarettes if they're not getting the amount of nicotine they want.
Studies show that about 90 percent of smokers and nonsmokers believe that cigarettes described as "light" or have certain colors on the packages are less harmful even though "all commercial cigarettes are equally lethal," said David Hammond, a health behavior researcher at the University of Waterloo in Canada.
Colors shape perceptions of risks on all products, Hammond said. For example, mayonnaise and soda usually use lighter colors on their packaging to distinguish between diet, light and regular products.
He called the removal of those few words on cigarette packs "necessary but not sufficient measures" to improve public health or reduce false perceptions.
"This is essentially mopping up the worst excesses of what the courts in the U.S. have judged to be deceptive advertising," he said. "Tobacco companies are going to need words to distinguish their brands; it's just a question of identifying what descriptors or words lead to false beliefs."
He suggested the FDA take the ban even further and restrict both color and words such as "smooth" and "slim."
Other countries are considering going even further. The Australian government proposed legislation last month that would make manufacturers sell cigarettes in plain, standard packaging, without colors and logos. More than 40 countries already have laws prohibiting terms similar to what the FDA is banning.
The idea of further packaging restrictions has the industry gasping for breath.
"Absent this information, massive confusion in the marketplace would result," James E. Swauger, vice president of regulatory oversight for R.J. Reynolds Tobacco Co., the nation's second-biggest cigarette company, wrote in a letter to the FDA.
Swauger warned that, if the FDA were to go as far as banning colors, consumers wouldn't be able to distinguish between brands, and manufacturers could be limited to one type of cigarette per brand because they'd have no other way to distinguish their products.
The company, owned by Winston-Salem, N.C.-based Reynolds American Inc., made slight changes to some of its brands' packs, but for some, it was simply removing the words like "light" on already colorful packages.
The nation's largest cigarette company, Philip Morris USA, made more than 150 packaging changes to comply. It also has included inserts in packs and displays at retail locations telling customers to "In the Future, Ask For..." the new name or color of their brand.
For example, the company is replacing its Marlboro Light cigarettes with Marlboro Gold Pack; its Marlboro Menthol Milds will be known as Marlboro Menthol Blue Pack. Philip Morris USA is owned by Altria Group Inc., based in Richmond, Va.
While customers may already see some of the new packaging in stores, calling their smokes by their old names may be a harder habit to break than smoking itself.
"I'll ask for Newport Light 100s, and I'll let them decipher it," said 52-year-old Joe McKenna, a teacher and longtime smoker from Pearl River, N.Y., whose brand made by Lorillard Inc. is now known as Newport Menthol Gold. "It's just kind of ridiculous in the sense that you know they're harmful for you."
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