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NEW YORK TO RAISE MINIMUM AGE FOR BUYING CIGARETTES

New York City implemented a regulation, according to which nobody under the age of 21 can buy cigarettes in the city.

The new rule announced on May, 13 that represents the latest in ten years of steps to regulate tobacco products in the country’s biggest city.

New York Council Speaker Christine Quinn talked about features of a proposed law that would limit the buying age for tobacco products from 18 to 21.

New York Tobacco Buying Age

According to the law, only those aged 18 can buy cigarettes in the United States, however some states and counties have lifted it to 19. Texas authorities lately attempted to raise the legal tobacco buying age to 21, but the plan fell down.

Health officials point out a higher buying age prevents the younger generation from taking up cigarettes and starting smoking. But opponents of such actions have claimed those aged 18 should have the ability to make their own decisions.

Some counties, such as Needham, Massachusetts, have increased the cigarettes buying age to 21, but New York would be the largest city to do so.

Health advocates point out about 75% of New York smokers began smoking before age 21, and an approximated 20,000 New York City public high school scholars now are smokers. While it is already implemented a ban for buying tobacco products for many of them, this step would be the cause for them to buy cigarettes from slightly older friends. The greater part of people who do so are between 18 and 21, city authorities say.

Altria Group Inc., the owner of Philip Morris USA, which manufacturers the best-selling Marlboro cigarettes, indicated that the proposal would “limit adult consumers’ access to products”.

A spokesperson for R.J. Reynolds Tobacco Co., producer of cigarette brands such as Camel, did not provide a response to phone and email requests.

In April, the Bloomberg administration presented a proposal to take cigarettes away from the shelves in shops, as well as stopping stores from using cigarette coupons and discounts.

Public health officials encourage the measures as strong steps to improve people’s heath. Adult smoking rates in New York have dropped from 19% in 2002 to 13% in 2011.

 

www.buycigarettes.eu

TOBACCO COMPANIES PLACE STAKE ON SUPER SLIM CIGARETTES

Over the past two years, demand for super slim cigarettes has grown by 12%. Developing this trend, the leading tobacco companies are launching ultra slim tobacco products.

In pursuit of the consumer, tobacco companies are developing the production of super slim cigarettes.

Davidoff Boudoir Cigarettes

A market research shows a positive trend in super slim cigarettes sales. According to the company AC Nielsen, in January 2013, the proportion of super slim cigarettes on the Ukrainian market was 12.8%. Within two years, the volume of super slim cigarette sales increased by 11.5%.

The leading tobacco manufacturers have decided to further develop this trend and bring super slim cigarettes to the market. In particular, since the beginning of March this year Imperial Tobacco has introduced a new format for the premium brand Davidoff – Davidoff Boudoir cigarettes. The diameter of the new cigarettes is 4.7 mm, and length – 99 mm. New cigarettes will be produced in Russia, at the Imperial Tobacco’s cigarette factory in Volgograd.

“A consumer research confirms that in recent years more and more smokers prefer a more elegant and slim cigarettes (superslims and kingsize superslims). Diameter of the new cigarettes is by 0.7 mm smaller than super slim cigarettes, the length of which is 99 mm,” – says Natalia Mikolaenko, Imperial Tobacco’s public relations manager.

Winston XS Micro Cigarettes

However, not only Imperial Tobacco produces super slim cigarettes, but also JTI Ukraine. In April 2012, in Russia, JTI introduced a new format of ultra slim cigarettes with a diameter of 4.7 mm and a length of 83 mm under the trademark “Winston XS Micro“. “Japan Tobacco plans to launch this cigarette format in the Ukrainian market and to represent it first,” – said Alexander Kogut, JTI Ukraine’s corporate issues director.

According to JTI Ukraine, the company is a leader in the super slim cigarettes segment with a share of 42%.

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No ID, No Sale better option that plain packaging, says Japan Tobacco

Japan Tobacco International, a cigarette manufacturing company, has “noted” the lack of proposed legislation related to the introduction of standardized packaging in the Queen’s Speech during this Parliamentary session.

JTI Group

Japan Tobacco International

Jorge da Motta, managing director of Japan Tobacco International UK, said: “The determination of the UK authorities not to involve standardized packaging in the Queen’s Speech displays the regulatory principles of evidence-based policy not policy-based evidence are being consideredю

“The tobacco control lobbyists have tried to motivate MPs that standardized packaging will help the younger generation stop smoking; they have attempted to use emotion to prevent the authorities’ own consultation process and to finish any debate.

“Regardless of the UK authorities having made the decision not to include standardized packaging currently, this hasn’t prevented a UK-based MEP from trying to change the Tobacco Products Directive to involve plain packaging and implement the measure via the back door. Regardless of Europe-wide economic problems it appears some are still in preference of ever-increasing ‘nannyism’, red tape and expensive but unsuccessful regulation.

“Greater investment in resources to stop the illicit trade in tobacco in our communities would be a main action forwards in blocking the access of tobacco to teenagers. Reinforcement of retail access prevention actions, such as the ‘No ID, No Sale’ programmes and the Scottish example, which penalises proxy purchasing by adults and the buying or attempted purchase of tobacco products by those under 18, are effective solutions.

“We would welcome discussion with authorities and enforcement agencies to talk about our proposals in more detail.”

 

cigarettesreporter.com

Tobacco companies and higher education

Even though smoking tobacco products is banned in public places such as restaurants, bars and public airwaves, it is still accepted by the majority of the country’s colleges.

Tobacco companies obviously have focused on higher education connections as one method of getting two key markets: teenagers and blacks.

Marlboro Cigarettes Logo

Marlboro Red cigarettes

Altria, which is the manufacturer of Marlboro cigarettes, the top-selling cigarette brand in the United States, is a good example.

Execs and directors of the famous tobacco company collaborated with the United Negro College Fund, Howard University, the University of Richmond and other institutions.

Altria also gives huge amounts of money to colleges around the nation. Its list of 2012 grantees contains over 50 colleges, college-related foundations and scholarship funds.

Altria director John T. Casteen III is Virginia’s former education secretary, a director of the Virginia Foundation for Community College Education and former president of the University of Virginia, which obtained a $26 million gift from the cigarette maker.

 

College officials who hold board posts with cigarette producers reap some benefits personally, as well. Casteen’s pay package from Altria exceeded $275,000 in 2012. Other million-dollar-plus recipients of Altria’s largesse recently include Virginia Commonwealth University and the Thurgood Marshall College Fund. Philanthropy, whether it’s through grants or underwriting of the Altria College Opportunity Fund scholarship program, can be considered as an alternate advertising base for Altria, making it possible for the company to publish press releases with headlines such as: “Altria to Help Make Future Brighter for Richmond Public Schools Seniors.” The Virginia-based tobacco company, the maker of L&M and Red&White cigarettes, isn’t the only company creating educational ties. The map below provides connections of Reynolds American and Lorillard:

 

Regardless of the tobacco companies’ initiatives, more colleges are banning smoking. Americans for Nonsmokers’ Rights indicates that no less than 1,159 colleges now have non-smoking policies, in contrast to 530 campuses two years back.

 

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BAT is focused on provision of innovation in tobacco product communication

British American Tobacco has confirmed its decision to learn the development in cigarette consumer behaviour and to present innovation in tobacco product communication to meet the needs of smokers.

Vogue Cigarettes Ad

Vogue cigarettes packs

In accordance with the cigarette manufacturer, ongoing change of the travel industry means shoppers’ unmet requirements and behaviours keep modifying. British American Tobacco mentioned that it “continues to be committed to providing innovative experiences to adult smokers in duty-free cigarette stores”.

Data suggest that about one-third of smoking people shopping at the airport are searching for luxury, presents and souvenirs, which are badly available in this segment of exclusive products.

BAT general manager Stefano Mariotti said: “Study demonstrates that on average people travel one-and-a-half times a year. That’s why the time spent searching through the shelves in travel-retail is by far more valuable than the weekly routine in the local store. BAT is assuming measures to meet adult cigarette consumers’ requirements for exclusive and innovative offers in various exciting ways.”

The tobacco company presents its Vogue cigarettes as an example of exclusivity and novelty. Founded in 1932 Vogue is available in over 55 nations including travel-retail. Its latest Vogue Travel-Retail Exclusive versions were introduced in over markets at the end of 2012.

BAT head of operational marketing Martin Hughes added: “Vogue Travel Retail Exclusive versions’ idea came from a famous experience: summer holiday on the French Riviera. The execution included upgrading the classic Vogue packaging and providing two of the best selling cigarette brand for women, Vogue, in attractive and gift-enhancing outers. Communication materials recreated the feeling of the summer holiday breeze inside the store, appealing shoppers to discover this offer.

“The after-launch results are obvious. The study revealed that more than half of those who searched through the cigarette area observed the launch. One-third of the cigarette shoppers were motivated by the exclusivity aspect, the chance of offering the innovative product as a gift or by the attractive design,” Hughes determined.

 

cigarettesreporter.com

Imperial Tobacco presents two-storey stand in Singapore

Imperial Tobacco, the fourth-largest cigarette company around the world, demonstrates interest to developing Asia/Pacific travel-retail business at TFWA presentation.

Davidoff iD Ad

Davidoff iD advertisement

Imperial Tobacco, which is the manufacturer of Richmond and West cigarettes, has made an announcement that the company will present a double-storey stand at this year’s Tax Free World Association Asia Pacific Conference & Exhibition in Singapore in May this year.

The stand will contain three meeting rooms, branded Davidoff iD, Montecristo and Gauloises, a bar area and a Davidoff-branded smoking area on the second level.

Imperial Tobacco general manager global duty-free Andreas Lemke said: “The Asia/Pacific area and its developing duty-free market represent great importance for Imperial. To prove the interest of the cigarette company to develop in this territory, Imperial has considerably improved its presence at this year’s TFWA Asia Pacific presentation. The tobacco company is hoping to meet its customers and business collaborators at its newly-designed stand.”

cigarettesreporter.com

Virginia Super Slims “You’ve Come a Long Way, Baby”

Virginia Super Slims AdvertisementOne of the most well-known advertising campaigns in US history was launched in 1968 for the Virginia Slims cigarette brand.

“You’ve come a long way, baby” was the appealing slogan for a new, slimmer cigarette brand manufactured by the leading Phillip Morris Company and advertised especially to women smokers. The campaign, created by the famous Leo Burnett Agency, was extremely successful, both in commercial and cultural terms, turning into a national catch-phrase.

The campaign attracted the growing feminist awareness and the increase of “the New Woman,” a woman who was independent and enthusiastic to show her self-confidence.  On top of that, images in the advertisements associated this lively confidence with U.S. women’s history in contrasting the liberty and glamour of modern-day woman with the repression that women in the past had suffered.

Virginia Slims Advertisement

Philip Morris sold a great number of their Virginia Super Slims cigarette packages so already by 1974 they could easily afford to hire super models for their triumphant “You’ve come a long way, baby” advertising campaign. Cheryl Tiegs, Christine Farrare, and Erin Gray had their first Virginia Slims advertisements published June 1974, July 1975, and March 1979 respectively. Sassy Dani Minnick was depicted in a purple dress for her first Virginia Slims advertisement November 1981. Kelly Emberg, Carol Alt, and Rosie Vela also modeled for Virginia Slims. None of these gorgeous ladies were recognized on any of the Virginia Slims ad, but each was recognized by her fans.

Models Advertising Viginia Slims

Phillip Morris acknowledged that Virginia Slims brand is the main key to company’s success.  Contrasting the brand with other women’s cigarette brands made by Philip Morris competitors, as for instance “Eve” and “Satin” Phillip Morris stated the Virginia Slims brand was “feminine but non-threatening. The women were women who could make their own choices and who had not lost their femininity.

The beautiful women who modeled for Virginia Slims weren’t always profitable in launching new line extensions. Virginia Slims Ovals were unsuccessfully test promoted in Rochester, Las Vegas, and Birmingham in June 1984. One more short lived idea was to arrange Virginia Slims 10 Pack.

Virginia Slims Cigarettes 10 Pack

In October 1975 Philip Morris was the first producer to extend the 120mm length to a major brand. Virginia Slims 120′s were advertised in Fresno, California, and consequently removed when sales were unable to meet objectives. It wasn’t until 1985 that super long Virginia Slims Lights 120′s became acceptable. One Virginia Slims line extension introduced in the late 1980s was approved by women, but disapproved by a competing producer.

Virginia Slims 120's Advertisement

Philip Morris introduced Super Slims from Virginia Slims beginning October 1989.

Virginia Super Slims from Virginia Slims

 

cigarettesguide.wordpress.com

Tobacco’s economic contribution

Tobacco grows well in poorer soil and volatile weather conditions

Tobacco grows well in poorer soil and volatile weather conditions

The tobacco industry contributes substantially to the economies of over 100 countries, and millions of people worldwide depend on it for employment.

Tobacco taxes are a major source of revenue for almost every government in the world.

Few industries are as wide-ranging as the tobacco industry. Most countries have a tobacco manufacturing industry, and the industry usually forms an important part of the economic and social fabric.  Even in countries that do not have tobacco manufacturing, tobacco distribution is an important source of economic activity.

Most widely cultivated non-food crop

Tobacco is the world’s most widely cultivated non-food crop. The farmers who choose to grow it – many of them in developing countries – do so because it is hardy, grows well in poorer soils and volatile weather, and is known for fetching stable prices. Farmers can earn good yields from very small plots of tobacco, enabling them to put tobacco earnings into growing other crops, such as food. The techniques used for growing quality tobacco also help to improve other crops.

Less than one per cent of the world’s agricultural land is given over to tobacco farming – less than half the land given to coffee, for example – and only for part of the year, but it is an important contributor to the agricultural economy in many countries.

Marlboro maker Altria to jump into e-cigarettes

The Marlboro Man may soon be hitching his wagon to a new kind of cigarette.

Altria Group Inc., owner of the nation’s biggest cigarette maker, Philip Morris USA, announced Thursday that its NuMark subsidiary plans to introduce an electronic cigarette during the second half of the year, making it the last of the major domestic tobacco companies to enter the growing category.

While it’s a small market compared with traditional tobacco products, “there’s no denying that adult tobacco consumers have shown some interest in it,” Altria CEO Marty Barrington said in a conference call with investors. Details on the product, the market it will enter and whether it will be under the top-selling Marlboro brand name were not revealed.

The move is the latest in an industrywide push to diversify beyond the traditional cigarette business, which has become tougher in the face of tax hikes, smoking bans, health concerns and social stigma.

Reynolds American Inc., owner of the second-biggest U.S. cigarette maker, has begun limited distribution of its first electronic cigarette under the Vuse brand and Lorillard Inc., the nation’s third-biggest tobacco company, acquired e-cigarette maker Blu Ecigs in April 2012.

Electronic cigarettes are battery-powered devices that heat a liquid nicotine solution in a disposable cartridge, creating vapor that users inhale. Some e-cigarettes are made to look like a real cigarette with a tiny light on the tip that glows like the real thing.

Devotees tout them as a way to break addiction to real cigarettes. They insist the devices address both the nicotine addiction and the behavioral aspects of smoking without the more than 4,000 chemicals found in cigarettes.

The Food and Drug Administration plans to assert regulatory authority over e-cigarettes in the near future. Public health officials say the safety of e-cigarettes and their effectiveness in helping people quit regular smokes haven’t been fully studied.

The market for e-cigarettes has grown from the thousands of users in 2006 to several million worldwide. Analysts estimate sales could double this year to $1 billion. Some go as far as saying consumption of e-cigs could surpass consumption of traditional cigarettes in the next decade.

Lorillard CEO Murray Kessler on Wednesday estimated that e-cigarettes drove total industry cigarette volumes down about 600 million cigarettes, or about 1 percent, during the first quarter, excluding Internet sales a major avenue for e-cig purchases.

Altria said Thursday its cigarette volumes fell about 5 percent, to 29.7 billion, cigarettes compared with a year ago. Volumes for discount cigarette brands like L&M increased nearly 6 percent, Marlboro volumes fell more than 5 percent, and volume for its other premium brands fell by more than 12 percent.

The Richmond, Va., company’s share of the U.S. retail market rose 0.5 percentage points to 50.5 percent. The premium Marlboro brand gained 0.2 percentage points to end up with 43.6 percent of the U.S. market.

Marlboro has been under pressure from competitors and lower-priced cigarette brands as consumers face economic pressure and high unemployment. The company has introduced several new products with the Marlboro brand, often with lower promotional pricing.

Altria’s first-quarter profit rose about 16 percent as it commanded higher prices for its cigarettes and smokeless tobacco and it benefited from adjustments to a longstanding legal settlement.

It earned $1.38 billion, or 69 cents per share, for the period ended March 31, up from $1.19 billion, or 59 cents a share, a year ago. Its adjusted earnings of 54 cents per share beat Wall Street expectations by a penny as it excluded a benefit from credits for disputed payments under the 1998 multistate tobacco settlement.

Revenue, excluding excise taxes, decreased slightly to $3.97 billion. Analysts polled by FactSet expected $4.03 billion.

Altria and others are focusing on cigarette alternatives such as cigars, snuff and chewing tobacco for future sales growth because the decline in cigarette smoking is expected to continue.

Volumes of its smokeless tobacco brands, such as Copenhagen and Skoal, rose about 3 percent during the quarter, and the brands had 55 percent of the market, which is tiny compared with cigarettes.

Altria said inventory changes and retail share losses drove volumes for its Black & Mild cigars down nearly 17 percent during the quarter.

The company also owns a wine business, holds a voting stake in brewer SABMiller, and has a financial services division.

During the latest quarter, Altria said it repurchased 1.7 million shares for a total cost of about $57 million, completing its $1.5 billion share buyback program. It said Thursday its board has authorized a new $300 million share repurchase program, which it expects to complete by the end of 2013.

© 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

Gallaher Tobacco anti-plain packaging and banned

Gallaher Tobacco, the maker of such cigarette brands as Benson & Hedges and Silk Cut, has conducted a press campaign, which aimed to make the case against plain cigarette packaging, banned by the Advertising Standards Authority.

Gallaher Tobacco Group

Gallaher Group PLC

A national press advertisement, produced by Big Al’s Creative Emporium, highlighted an unmarked cigarette packet.

The text said: “Why make it easier for criminals to make a packet? In the current economic climate, the black market in tobacco is booming. Standardizing packs will make them easier to fake and cost taxpayers millions more than the £3 billion lost in unpaid duty last year.”

Another ad with identical images mentioned: “The black market in tobacco is booming. Last year it cost the Treasury £3bn in unpaid duty.”

The ASA obtained one issue from Cancer Research reasoning that the claim that “the black market in tobacco is booming” was confusing. The charity indicated to an HMRC survey from 2011 which explained that “the illicit tobacco market had been reduced significantly over the last decade”. Cancer Research also suggested that the “£3bn lost in unpaid duty” was exaggerated.

The ASA decided that saying the tobacco market as “booming” would result consumers in believe that the black market was on the raise but as there was no proof to confirm this, the body came to the conclusion that the statement were likely to confused.

It also observed that Gallaher had taken upper reports to show the £3bn figure and that this also involved income losses for HRT products. In terms of this, the ASA upheld the complaints and said that both advertisements could not be demonstrated once more.

Paul Williams, the corporate affairs director of Gallaher Tobacco-owner Japan Tobacco, said: “The figure of £3bn has been broadly used by numerous parties, including HMRC officials, to explain the loss in income to Authorities. Whatever word or figure is used to explain the scale of the issue, it is a big challenge which should be a problem to all.

“While we will not post this advertisement once more, we don’t agree with those who want finish this question by challenging the semantics of our statements, rather than the substance,” Williams completed.

Gallaher is the third largest of the three major British tobacco groups; the other two are British American Tobacco, the maker of  Lucky Strike and Kent cigarettes, and Imperial Tobacco, the producer of Davidoff and Gauloises brands.