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.

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.

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."

Jun 23, 2010

Carreras relaunches Youth Smoking Prevention campaign

CIGARETTE distributor Carreras last week relaunched its Youth Smoking Prevention (YSP) campaign with the support of the Ministry of Education (MOE) and the Child Development Agency (CDA).
The programme, which will run through August 2010, will cost the tobacco company $1.5 million to implement, according to Carreras' Corporate and Regulatory Affairs Manager Christopher Brown.
"We believe Carreras must ensure that it remains actively cognisant of the views and expectations of the broader group of stakeholders, not just those who consume the products, but also those who have become the eternal critics of the tobacco industry," Brown said at the launch.
Under the Child Care and Protection Act it is illegal to sell cigarettes to persons under age 18 and Carreras, with 99 per cent market share, is the largest distributor of cigarettes locally.
Brown explained that the company's trademark representatives had initiated ongoing dialogue with its 2,500 retailers to exercise greater vigilance in prohibiting the purchase of cigarettes by persons under 18.
He said retailers must verify the age of those who purchase cigarettes where possible through identification, and in cases when they are in doubt, they must not sell. Addressing the media at the launch, Brown said that those retailers found to be delinquent in abiding by this request would be penalised by having their distribution right revoked.
"Our objective is to effectively tackle underage access to cigarettes at the point of sale in 100 per cent of the 2,500 retail outlets islandwide which carry Carreras' tobacco products," said Brown. Carreras' outlets represent 40 per cent of the total number of outlets carrying tobacco products.
The rebranded effort, first launched in 2008, will now feature the logos of the MOE and CDA on all YSP point of sale communication materials, which Brown said would add credibility to the programme. A new logo that is easier to read sends out a direct message that: "I/We don't sell cigarettes to persons under 18. It's the Law."

Jun 21, 2010

DNA and key enzymes being damaged by smokeless tobacco

According to a new research, adverse effects of smokeless tabacco are not limited just to the mouth it can also damage the normal functioning of the enzymes contained in the human body.

The enzymes are said to play an important role in the hormone production, namely, sex hormones, oestrogen and testosterone, production of vitamin D and cholesterol is also said to be affected.

Smokeless tobacco is also said to damage the genetic material contained in the kidneys, liver and lungs.

However scientists have little information on the adverse effects of smokeless tobacco on other parts of the human body.

But it is mentioned by colleagues and Krishna Khanduja that they have noted widespread recognition on the harmful effects of smokeless tobacco on the mouth which also include the risk of getting oral cancer and gum disease.

The chemicals and potential carcinogens contained in the extracts of smokeless products are absorbed into the blood stream and are circulated through the body. Laboratory rats were used for the evaluation of the changes in genetic material and enzymes by using the extracts if smokeless tobacco.

The study states that, "not only did smokeless tobacco damage the genetic material in DNA but also alters the function of the, family of enzymes called CYP-450."

The study also states, "worldwide use of products is noted but are most commonly used in places like, Southeast Asia, Northern Africa and the Mediterranean region,"

The study also adds, "the users of the smokeless tobacco products are highly unaware of the adverse effects, therefore, smokeless products are used to treat, headaches, toothaches and stomachaches.

This false impression increases the use of smokeless tobacco products among youngsters the use of these harmful smokeless tobacco products is increasing among children, teenagers and women apart from men. Immigrants from the South Asian region and other dental and medical students also have increased usage of these products."

The adverse effects of these products has been on the rise although the harmful effects are known to researchers.

The study has also been published in the ACS' monthly journal of chemical research in toxicology.

Jun 18, 2010

Shaker Heights: One of the 'tobacco-free' school districts

haker Heights City School District has joined "The Movement," a 100 percent tobacco-free initiative for Cuyahoga County school districts.

The Movement is sponsored by the Cuyahoga County Comprehensive Partnership for Tobacco Reduction (The Partnership), and is under the direction of the Cuyahoga County Board of Health (CCBH).

Funded by the Ohio Department of Health, the goal of The Movement is to encourage all 31 school districts within Cuyahoga County to enact a 100 percent tobacco-free policy.

To be considered 100 percent tobacco-free, a school district must prohibit the use of all tobacco products, such as cigarettes, chew, snuff, etc., by everyone (school visitors, faculty, students) on all school grounds, including school events, regardless if they are on school property or away.

With the addition of Shaker Heights, 19 school districts, approximately 61 percent of all the school districts, have such a policy in place and they include:

Bay Village, Beachwood, Bedford, Berea, Brecksville/Broadview Heights, Garfield Heights, Independence, Lakewood, North Royalton, North Olmsted, Olmsted Falls, Orange, Richmond Heights, Rocky River, Solon, South Euclid/Lyndhurst and Westlake.

The remaining 12 school districts that don't have a 100 percent tobacco-free policy are:

Brooklyn, Chagrin Falls, Cleveland Metropolitan, Cleveland Heights/University Heights, Cuyahoga Heights, East Cleveland, Euclid, Fairview Park, Maple Heights, Mayfield, Parma and Strongsville.