Entries from October 2008 ↓
October 31st, 2008 — Current Issues, General, Regulations: FDA etc.
General Tobacco Sues 52 U.S. AGs
By CSD Staff
Arguing that the Master Settlement Agreement in 1998 hinders competition from new tobacco companies, General Tobacco also sues competitors for $1 billion.
North Carolina-based tobacco manufacturer and distributor General Tobacco said it is suing 52 U.S. attorneys general and 19 tobacco companies, as well as asking for damages in excess of $1 billion from competitors.
The company says its competitors allegedly conspired with the states to set up the Master Settlement Agreement (MSA) so later market entrants, such as GT, have to pay the states substantially more than certain competitors pay.
General Tobacco said it believes the effect of the MSA is to drastically limit future competitors from fair market competition. The company has paid approximately $470 million to the MSA and an additional $36 million in escrow.
The complaint was filed in U.S. District Court in Louisville, Ky., charging the 52 states and territories attorneys general with violating the Sherman Anti-Trust Act, its constitutional rights under the Equal Protection and Due Process Clauses of the Fourteenth Amendment, the Compact Clause and the Commerce Clause of the U.S. Constitution as well as violation of the Civil Rights Act, Title 42 USC Section1983.
The MSA was created in 1998 by the 46 states, the District of Columbia and five U.S. island territories, along with big tobacco companies, which then controlled more than 97% of the market.
General Tobacco said MSA was structured so that certain companies in the market in 1998 would receive future preferential payment terms while new members such as General Tobacco, would have to pay substantially more than the original preferred members.
J. Ronald Denman, executive vice president of General Tobacco, compared the MSA unequal treatment to a cartel.
“The structure for the MSA created an impossible business environment for future competitors especially small players such as GT. All we are asking for is a level playing field for everyone,” Denman said.
SO IS THE MASTER SETTLEMENT AGREEMENT LEGAL? WHAT ARE YOUR THOUGHTS ON THE MASTER SETTLEMENT AGREEMENT? DOES GENERAL TOBACCO HAVE A LEGITIMATE CASE? IS THERE ANOTHER REASON FOR THIS LAWSUIT? TELL US YOUR THOUGHTS ON WHY THIS HAPPENING? WHAT DO YOU THINK WILL BE THE OUTCOME? DO YOU THINK THE MSA HINDERS NEW CIGARETTE COMPANIES FROM ENTERING THE INDUSTRY? SPEAK YOUR MIND FOLKS!
October 30th, 2008 — Current Issues, General, Regulations: FDA etc., Tobacco Harm Reduction
Four Groups File Complaints Against Carmona’s 2006 Report. Citizens Freedom Alliance’s complaint is centered on “changing and omitting data”. The data for a meta-analysis is the studies collected from the body of research, but the SG’s meta-analysis omits relevant studies such as the Enstrom/Kabat study, belittles other large relevant studies, includes highly questionable studies, and relies heavily on the thoroughly discredited 1992 EPA report (which was not only discredited by a Federal Judge, but by three congressional committees). By omitting relevant long-term, large studies as well as relying heavily on discredited reports, the Surgeon General both changed and omitted data in his meta-analysis of research on secondhand smoke (SHS)/environmental tobacco smoke (ETS), which did indeed ensure that the research is not accurately represented in the research record. He, therefore, committed “research misconduct” as defined by the “falsification” according to the “Public Health Service Policies on Research Misconduct”. According to Gary Nolan, U.S. Regional Director for Citizens Freedom Alliance, “Americans should be angry about this waste of tax payer dollars. I truly believe this study was released for purely political reasons and is an insult to every honorable scientist in the world. The result of Carmona’s ETS study was to needlessly ruin business, cost jobs and harm the economies of local communities and states across the country. He should be ashamed of his actions.”
WELL, WHEN I READ THIS IT MAKES ME WONDER WHAT THE TRUTH IS?
WHO CAN COMMENT ON THE REPORT? HAS THE PUBLIC BEEN MISLEAD? WHICH SIDE DO YOU THINK IS RIGHT? WHAT ARE YOUR THOUGHTS ON SECOND HAND SMOKE (ETS)? WHAT OTHER REPORTS ARE THERE THAT CAN HELP US UNDERSTAND THE COMPLEX ISSUE OF SECOND HAND SMOKE (ETS)? WHAT DO YOU THINK IS THE TRUTH? WAS THE SURGEON GENERAL RIGHT OR WRONG?
October 26th, 2008 — Conferences, Current Issues, General, Uncategorized
The Forum held in Rio de Janeiro October 15-17 was a big success and TR should be commended for holding it.
The Forum Topics were interesting, relevent and educational.
It was particularly bold of TR to hold this Industry Forum in Brazil - in the heart of Latin America’s tobacco market. The region has been substantially under-represented previoulsly - even neglected.
Delegates from around the world got to taste the exotic flavor of Brazil, the warmth of the people and gain an appreciation for this important Tobacco market. The farm tour held just prior to the main event set the scene.
Next time let’s encourage more industry participation – so everyone gets a greater benefit and capitalizes on this opportunity.
October 26th, 2008 — Conferences, Current Issues, General
Tobacco Today won the BMJ Golden Leaf Award for the “Most Exciting Newcomer to the Industry” beating German Tobacco Group and Davidoff in this category. The award was presented to Chris Crawley – on behalf of the partners - at the BMJ dinner held during the Tobacco Reporter – Global Tobacco Networking Forum in Rio de Janeiro – October 16!
Chris, in accepting the award, said it was a good reason for attending industry shows. It was only a year ago at last year’s TSRC in Charlotte NC that the idea was proposed – and five weeks later www.tobaccotoday.info was up and running.
Congratulations to the partners; all partipants and visitors for making www.tobaccotoday.info a site that has caught the industry’s attention in a big way. Visitor traffic has increased every month in the short time the site has been running.
Conceived as a tobacco friendly forum to read news, voice views and express opinions which are not frequently in the mainstream press, the site has evolved to include public health advocates too. As long as you are respectful of others you can say what’s on your mind.
Particular thanks should go to Dr. Adrian Payne – from Tobacco Horizons (see www.tobaccohorizons.com) for his first rate contributions in promoting an intelligent diagolgue in the area of public health and harm reduction.
October 5th, 2008 — Conferences, Current Issues, Key International Business & Market Developments
Just a week until TR kicks off its big networking forum (www.gtnf2008.com) in sunny Samba-soaked Rio de Janeiro. Originally scheduled as a regular exhibition to be held in Sao Paulo it has morphed into a regional networking forum. Big risk or gutsy move?
What’s your opinion?
October 5th, 2008 — Current Issues, General, Key International Business & Market Developments
Big tobacco took a hit last month when RJR laid-off 570 white collar employees, many of them experienced industry veterans. They’ve not all gone yet, but the indications are clear – cigarette volumes are shrinking and right now there is a significant amount of cigarette down-trading.
The industry supply side, which typically lags the industry, is playing catch-up and following right along.
Molins Richmond laid off 8 last week.
Filtrona USA announced a resructuring – effectively removing the Americas executive / global quality management team; leaving plant managers to run the business.
Maglio ceased trading somewhere around April / May and has not re-opened. nobody knows when or if it will.
There have of course been others and there will be more.
Do you have a comment on the state of the economy?
Is the tobacco industry down-turn independent of the economy or directly related?
Previously the industry has weathered economic down-turns well – but this appears not to be the case.
Let us know what you think?
October 4th, 2008 — Acquisitions, Current Issues, General, Key International Business & Market Developments
First a price increase in June. Then another in September? Volume declines while others are growing? And what’s this I hear about a mandatory 3% shipping charge? Is this a first? Is money that tight? I hear folks are not happy with all this? What’s next? Is there something we need to know? Any one know what’s going on at Altadis? Or is it an effect caused by consolidation of the industry? Give me the scoop! I wanna know what’s up!
