Nov 13, 2009

Tobacco Warehouse Has Second Fire In 2 Days

- Fire officials along with the Kentucky State Police are investigating two fires that happened over the weekend in Maysville.
The fires took place on Friday evening and Sunday afternoon at a former tobacco warehouse on Elizabeth Street. 
The Maysville Fire Department, Lewisburg Volunteer Fire Department and Maysville-Washington volunteer fire department were dispatched to both fires. 
When firecrews arrived at the scene they discovered heavy smoke coming from the building.
A Maysville firefighter says Sunday's fire started in the basement of the building.
Fire chief, Eric Bach says he would consider the fires suspicious, but they are still determining if it was arson. An arson investigator and state police officials are trying to determine the cause of the blazes.
There were no reports of injuries.

Nov 10, 2009

Light cigarettes will not help you quit, study says

Don't light up that Marlboro Light assuming it's a good way to start weaning yourself off cigarettes.
People who switch to "light" cigarettes are 50 percent less likely to stop smoking than people who puff away on standard brands, according to a new report in the journal Tobacco Control.
Many people believe light cigarettes are healthier than regular smokes, even though they're not, said Dr. Hilary Tindle, lead author and an assistant professor at the University of Pittsburgh School of Medicine. So when people shift to light brands they may lose motivation. 
Also, it's possible that people who switch are "hardened" smokers who haven't been successful at giving up their habits in other ways, she said.
The study analyzed data from a government-sponsored survey of more than 31,000 smokers. Thirty-eight percent had switched to light cigarettes, and of that group, 43 percent said they'd changed because they wanted to stop smoking, among other reasons.
People who switched were more likely to try to quit than those who didn't (51 percent versus 41 percent), but less likely to actually stop smoking (9 percent versus 17 percent).
Cigarette-makers don't disagree. "Light cigarettes will not help you quit smoking," said Bill Phelps, a spokesman for Altria Group Inc., which owns Philip Morris USA, maker of Marlboro Light. "People concerned about the health effects of smoking should quit altogether. There is no safe cigarette."

Reynolds raising cigarette prices

A decline in demand is not keeping R.J. Reynolds Tobacco Co. from raising the list price on its cigarette brands by 6 cents or 8 cents a pack for wholesale customers.
The price increase, announced yesterday, will take effect Monday.
David Howard, a spokesman for Reynolds, said that the company doesn’t comment on its pricing strategy, but the decision comes five days after Philip Morris USA announced a price increase of 6 cents a pack, which went into effect yesterday. 
Reynolds is raising list prices less than a week after reporting that its cigarette-shipment volume fell 11 percent in the third quarter to 20.6 billion cigarettes. Reynolds said that the industry decline was 12.6 percent.
Howard said that the list price is increasing 6 cents a pack for its growth brands - Camel and Pall Mall - and also for Doral, GPC, Kool, Misty, Salem and Winston. All but GPC are considered as support brands.
The list price is being raised 8 cents a pack for its other brands, which include Capri, Eclipse, Lucky Strike, More and Vantage.
Charles Norton, the portfolio manager of the USA Mutuals Vice Fund, said that Reynolds is likely to be able to sustain the third price increase related to its cigarettes since September 2007.
In March, Reynolds raised the list price in the range of 41 cents to 78 cents a pack for wholesale customers, including 41 cents to 44 cents for most of its growth and support brands. 
The increase was in response to Congress passing the 62-cent increase in the federal excise tax to pay for expansion of the State Children’s Health Insurance Program. That tax increase went into effect April 1. 
In September 2007, Reynolds raised its cigarette prices by a range of 5 cents to 15 cents a pack, including 15 cents for Camel. 
“Strong pricing power is one of the underpinnings of our positive view of tobacco, which is a much more important driver of earnings than volume,“ Norton said. 
Reynolds said in its third-quarter report that it had a slight market-share drop in cigarettes to 28.2 percent. The market share for Camel, the lead Reynolds cigarette brand, dipped slightly to 7.7 percent. Pall Mall’s market share was at 5 percent, up 2.3 percentage points from a year ago. 
A temporary price discount in the spring on Pall Mall attracted smokers wanting to spend less on cigarettes in the recession. Even after the discount ended in May and prices were raised to counter the excise-tax increases, Pall Mall maintained a higher market share. 
The company began another discount promotion for Pall Mall on Oct. 5.
Reynolds also raised its full-year earnings projections last week to a range of $4.60 to $4.70 a share - from $4.40 to $4.60 - as a sign of confidence in its strategies.

Nov 9, 2009

Man charged with stealing computer, cigarettes

An Iowa City man has been arrested on charges for participating in several thefts and burglaries, including stealing 350 packs of cigarettes from a Tiffin store.
Eli James Vargason, 18, 1112 Hotz Ave., was charged with third-degree theft, possession of marijuana and drunken driving after he was pulled over for an expired registration about 8:30 p.m. Tuesday. According to the arrest reports, police found a computer case with a mini laptop computer inside that had been reported stolen from a Tiffin man and marijuana.He was then considered a suspect in other ongoing burglary investigations, including an Oct. 31 break-in at the Casey's General Store in Tiffin in which Vargason allegedly smashed the front glass door and took about 350 packs of cigarettes, police said. He was charged with third-degree burglary for that break-in, police said.Vargason remained Friday in the Johnson County Jail on a $16,000 cash bond.

Nov 5, 2009

Compliance rates on tobacco sting too low: P.E.I.

P.E.I. is planning to toughen the rules for retailers who repeatedly get caught selling cigarettes to minors.The change was prompted by a near record number of stores nabbed during recent compliance checks. Forty-two retailers received a warning, and four more were fined.
The Health Department has been criticized in the past by the Canadian Cancer Society for being too lenient. Retailers only get a warning the first time if they're caught, and a $250 fine if they're caught again. The slate is wiped clean for everyone every three months.
Joe Bradley, manager of environmental health for the province, told CBC News Wednesday the latest results show there's a need to get tougher with repeat offenders.
"We're disappointed. There's no question the compliance on this particular round is probably 80 per cent or a little below 80 per cent, and that's the lowest that we've seen in some time," said Bradley.
"A retailer that has been issued a fine probably would be considered high risk in the future. We're still working on this and we hope to have it finalized within the next couple of weeks or so."
Bradley said retailers will be notified about the changes. He expects new legislation to be in place by Jan. 1.

Nov 2, 2009

Tobacco prices distort competition

Ireland’s policy of setting a minimum price on tobacco products distorts competition, a legal advisor to Europe’s highest court has said.
In the case of Commission of the European Communities versus Ireland, the Advocate General said binding prices restricted manufacturers’ freedom to set prices, thereby posing a risk to free competition.
The opinion of the Advocate General is not a final judgement, although the court generally follows it 80 per cent of the time.
The European Commission took Ireland to Europe’s highest court in 2008 over its policy of setting a minimum price on tobacco products to protect public health.
Under an agreement with the Irish Tobacco Manufacturers' Advisory Committee, the Department of Health has a minimum price for 20 cigarettes of about €1.30. This was set using information on volume sales supplied by the tobacco companies for filtered and unfiltered cigarettes.
The Government says the agreement with the tobacco manufacturers was made for the primary purpose of preventing low-cost selling of tobacco products in Ireland.
By setting a minimum retail price for a packet of 20 cigarettes it undermines the ability of retailers to provide special cut- price offers on certain brands. Price control is also seen as a viable way to protect children from becoming addicted to cigarettes and to encourage existing smokers to quit, according to the Department of Health.
In his legal assessment of the arguments the Advocate General said “increases in excise duties are therefore a less intrusive measure than minimum prices, which are thus not necessary”.
A statement issued by cigarette company John Player & Sons today aid “while we don’t oppose the Commission’s view that tobacco manufacturers should have the freedom to determine retail prices for their products, the fact remains that the real minimum price for 20 cigarettes in Ireland is the street price of €4 - €5 euro due to widespread illegal cigarette selling.
This greatly incentivises criminals by giving them huge margins while denying Government badly needed revenues. 1 in 4 cigarettes smoked in Ireland today is not even bought in an Irish shop”.