17 juillet 2009
Marketing of tobacco products
The Legislation would require tobacco manufacturers to register annually with the FDA and pay
fees assessed by the agency. The bill would require both tobacco manufacturers and
distributors of tobacco products to comply with federal regulations relating to the content,
labeling, and marketing of tobacco products.
CBO has identified two tribal governments
that manufacture and distribute tobacco products. Because those governments would be
required to comply with federal regulations authorized by the bill, they would face
intergovernmental mandates as defined in UMRA. Based on information from tribal and
federal officials, CBO estimates that the costs to tribal governments to comply with the
bill would be small and would not exceed the UMRA threshold for intergovernmental
mandates.
07 juillet 2009
Smoking restrictions in public places and private work sites
As information on the health consequences of exposure to environmental tobacco smoking (ETS) has become more widespread, governments at all levels in many countries have adopted policies to limit smoking in public places and private work sites.
A World Health Organization (1997) survey of
tobacco control policies in 134 countries indicated that the vast majority of countries had some form of
restrictions on smoking in public places. Although the restrictions are primarily intended to reduce
non-smokers’ exposure to ETS, they can also affect the smokers since the restrictions reduce the
smokers’ opportunities to smoke or otherwise raise the “cost” of smoking.
Smoking restrictions may
also alter the perceived norms related to smoking by changing attitudes concerning the social
acceptability of smoking.
The impact which smoking restrictions have on cigarette demand has been evaluated in a number of
studies. In general, smoking
restrictions have been found to reduce both smoking prevalence and average daily cigarette
consumption among smokers. For example, Yurekli and Zhang (2000) estimated that restrictions on
smoking reduced cigarette consumption per capita by 4.5 percent in the United States in 1995.
30 avril 2009
The Biggest Cigarette Companies
he restful effect of moderate smoking explains why people working under
great stress use more tobacco
The Biggest Cigarette Companies
Today's cigarette market is is dominated by four companies: Philip
Morris USA, RJ Reynolds Tobacco Co, Brown & Williamson, and
Lorillard. All companies were involved in the fledgling tobacco
industry of the late 1800's, and are proud of their industry influence.
Philip Morris USA
Philip Morris USA controls over 50% of the US cigarette market. Their
brand portfolio contains Marlboro, the top selling national and
international cigarette brand.
Other Philip Morris brands include: Accord, Alpine, Basic, Benson &
Hedges, Bristol, Bucks, Cambridge, Chesterfield, Collector's Choice,
Commander, Daves, English Ovals, L&Ms, Lark, Merit, Parliament,
Players, Saratoga, and Virginia Slims.
Philip Morris was originally a tobacconist in London, England.
His
store opened in the 1850s, first specializing in hand rolled Turkish
cigarettes. In 1900, the Philip Morris company incorporated in New
York, where it's headquarters are still located today.
Today, Philip Morris owns several facilities to keep up with consumer
demand. Virginia and North Carolina are home to two Manufacturing
Centers. Each center produces over 600 million cigarettes, and ships
over 3 million cartons a day.
RJ Reynolds Tobacco Company
Controlling over 20% of the US market, RJ Reynolds is the second
largest cigarette manufacturer today. RJ Reynolds is the company that
owns Camel, the oldest and most controversial modern cigarette brand.
RJ Reynolds is responsible for four of today's Top 10 cigarette brands
- Camel, Winston, Salem and Doral. Other brands in the portfolio
include Century, Magna, Monarch, More, Now, and Sterling.
Founded in 1875, the company first manufactured chewing tobacco, and
later pipe tobacco and cigarettes. Camel cigarettes were the first
modern cigarettes on the market in 1913. Between 1958 and 1983, RJ
Reynolds was the leading cigarette manufacturer.
The largest of the company's manufacturing plants is located in
Tobaccoville, North Carolina.
Brown & Williamson
The third largest force in the cigarette market is Brown &
Williamson, with over 10% of the market share. The company is
responsible for many firsts in the cigarette industry.
Domestic US brands produced by Brown & Williamson include Barclay,
Belair, Capri, Carlton, GPC, Kool, Lucky Strike, Misty, Pall Mall
Filtered, Raleigh, Tareyton, and Viceroy.
George Brown and Robert Williamson were brothers-in-law, both sons of
successful men in the early tobacco industry. In 1893, they began a
formal partnership, first buying the senior Williamson's factory. After
finding success with their hand rolled cigarettes, they began steady
acquisition of smaller companies. In 1927, they became an arm of
British American Tobacco, then moved their facilities to Kentucky two
years later.
The first national brand of menthol cigarettes was B&W's Kool.
Cellulose acetate filters are also credited to B&W, first appearing
in Viceroys. In 1987, Capri's were the first superslim brand of
cigarettes on the market.
Brown and & Williamson is also responsible for one of the world's
best know brands - Lucky Strikes. Lucky Strikes were first marketed in
1853 as a smoking mixture, but was reintroduced as a manufactured
cigarette in 1916.
Lorillard
Lorillard was founded in 1760, and is the oldest tobacco company in the
US. Today, the company controls just under 10% of the US market. Their
brands include Kent, Maverick, Max, Newport, Satin, Triumph and True.
11 août 2008
Debate on menthol cigarettes
NEW YORK - Executives from cigarette maker Lorillard will keep a close eye on Capitol Hill next week as lawmakers consider measures that could threaten sales of its lucrative menthol-flavored brand, Newport.
The House of Representatives could vote before month's end on a bill giving the Food and Drug Administration power to regulate tobacco. If signed into law, the government would gain new power to restrict ingredients used in cigarettes and crack down on advertising directed at children. Currently, additives found in cigarettes, chew and other tobacco products are not regulated by the government.
Despite wide support for the effort in Congress, debate over whether and how to restrict use of menthol flavoring is threatening to derail the bill. No company has more at stake in the outcome than Greensboro, N.C.-based Lorillard, which relies on menthol cigarettes for 90 percent of its sales.
The current bill exempts menthol from an immediate ban applied to other tobacco-masking flavors used in cigarettes, such as orange, strawberry and cherry. Instead the bill gives regulators power to ban or limit menthol at a later date, if they can show scientific evidence it threatens public health.
The wording of the menthol provision is a point of contention among bill supporters in the House. While some members of the Congressional Black Caucus have pushed for an outright ban on menthol, others say such strong language would threaten the bill's chances of becoming law.
"This has been something long sought after and now that we finally have it within our grasp we shouldn't undermine it," said Virgin Islands Delegate Donna Christensen. Pursuing an outright ban would "threaten a very fragile agreement," she added.
Some Republicans, including Sen. Richard Burr of North Carolina, have already vowed to block the bill if it reaches the Senate.
Menthol cigarettes make up more than a quarter of the total U.S. market. About 70 percent of black smokers buy menthol cigarettes, compared with about 30 percent of white smokers.
Supporters of a menthol ban say the flavoring makes smoking more tolerable to youngsters and functions as a starter product. However, industry advocates dispute the claim.
Lorillard said its products should not be compared to fruit-flavored cigarettes, a recent development which lawmakers accuse of blatantly encouraging children to smoke.
"Menthol has been used in cigarettes for 82 years," said company spokesman Michael Robinson. "It has never been used to attract younger smokers."
The company's best-selling Newport brand accounts for one-third of the U.S. market for menthol cigarettes. The other leading menthol brands are Kool and Salem cigarettes, both made by Winston-Salem-based Reynolds American Inc. The two brands combined still account for less of the market than Newport.
A report from Harvard University researchers last week pointed to industry records that showed companies adjusted menthol levels to target different age groups. For instance, Philip Morris used low-menthol cigarettes to introduce their brand to younger smokers, but raised menthol levels in brands aimed at older smokers.
Lorillard said it does not alter menthol levels to hook smokers, and has not adjusted Newport's formulation since 2000.
The company spent more than $750,000 in the first quarter lobbying the federal government on cigarette regulation, including the menthol debate, according to government filings.
Competitor Philip Morris, which markets Marlboro cigarettes, actually favors the bill and is credited with helping build support for tobacco regulation in Congress. The company sells menthol cigarettes under the brand Marlboro Milds, but they are a small segment of its revenue.
Analysts speculate the Richmond, Va.-based company supports the effort because it is better positioned than rivals to operate in a more-regulated environment. Because of its size, the company could dedicate more resources to dealing with regulators than its smaller competitors.
Altria Group Inc., Philip Morris' parent company, already controls more than 40 percent of the U.S. cigarette market.
But despite support for the bill in both chambers of Congress, complicating issues appear to be stalling its momentum.
The Bush administration said Tuesday it opposes giving FDA oversight of tobacco because it would suggest cigarettes are somehow safe. Opposition from the White House could doom the bill's chances of passing this year, since its supporters do not appear to have the Senate votes needed to overturn a presidential veto.
Additionally, Congress is approaching its summer recess and still has more pressing legislation to pass, including a housing bill aimed at propping up the economy.
But the threat of tobacco regulation is not necessarily going away, according to Deutsche Bank analyst Marc Greenberg.
With the potential for Democrats to win the White House and increase their majority in Congress this November, Greenberg writes that party leaders seem "inclined to wait on major issues until it has a stronger hand to play."
He said the prospect of tobacco regulation being delayed until 2009 would benefit Lorillard shares in the near term.