Entries Tagged 'Current Issues' ↓

Star Scientific, Inc. (Nasdaq: CIGX) announced that on Friday, February 19 the company filed an application with the Food & Drug Administration for approval to market Ariva-BDL™ as a “modified risk” tobacco product under the Family Smoking Prevention and Tobacco Control Act of 2009. This submission is the first such application to be filed with the Tobacco Products Center of the FDA, which has been established to oversee all aspects of tobacco regulation outlined in the 2009 Act.

What are your thoughts?

Have you tried the “NEW” Ariva product?

Any expectations of others to follow Star’s lead.

Will the process work? Is harm reduction going to work?

PR Newswire Feb 22 2010 BDL Filing

Who’s not helping the Tobacco Industry…?

Until recently we had one major exhibition in Europe every four years, TabExpo; then we had the announcement by WT that an additional event in Europe would be held.  The industry wants less events – or at least lower cost – so we now have the organizations in direct competition for the same business in the same month and year. Two European exhibitions (TR’s TabExpo in Prague & WT in Munich) are set for November 2011 – and just five days apart!

Both have scheduled events in India this year – one an exhibition the other a Networking Forum.

As market leader TR moves ahead with 50 or so confirmed exhibitors already for TabExpo Prague in 2011, it is largely ignoring WT who is left looking desperate in attempting to undermine the viability of Prague in favor of Munich.

Why is this?

The stark reality is the Tobacco Industry is shrinking. Besides China, much of the tobacco industry is mature and driven by consolidation, regulations and taxation – resulting in reduced profitability. A handful of major players (CNTC, PMI, BAT, PM USA, and JTI & Imperial) dominate. The supply side – lagging well behind – has a plethora of players who have not rescaled their business. The result: Piranhas in a goldfish bowl. This reality defines the recent competitiveness between WT and TR as they compete for exhibitors and attendees

But it didn’t have to be this way…….

Seizing what appeared to be an opportunity caused by the debacle which became TabInfo Asia Bangkok last November, WT announced World Tobacco Expo 2011 in Munich. But this announcement came after TR announced TabExpo would be held in Prague.

Why do this?

 It’s tempting to say – who knows – but the appearance of a direct confrontation by WT on TR is hard to ignore. Why else schedule another European exhibition immediately prior to TabExpo Prague, especially and knowingly that TabExpo was always held in November and every four years.

So who wins……………?

Until one organizer assembles an unassailable competitive position – not the tobacco Industry. Exhibitors now have to decide which show to attend and be able to justify it in this cost-conscious environment. It was an unnecessary move and a risky one by WT (that could easily have been avoided.) As it is, if both go ahead then each exhibition dilutes the other, diminishing profitability. If ever there was a time for Industry solidarity it is now.

How did this happen?

Like the Olympics, the Industry and TR agreed to hold TabExpo in Europe once every four years (excepting Barcelona, delayed until 2003.) This has been the case since 1994 and TR has kept to this agreement.

By contrast WT magazine, under the ownership of the Daily Mail Group (DMG) struggled to compete with the three other tobacco magazines; TR, TI and TJI. WT supplemented its profitability to DMG with trade shows which are now “two a year”.  Sadly it was after WT Asia last year that DMG ceased publication of WT Magazine and sold the WT trade show business to Quartz Business Media and announced a merger with TJI (where TJI’s role is to publicize WT’s events.)

So…… Is there space for two events?  Is there the need for annual events?

No.  And certainly not in the space of five days in November 2011.

What was WT thinking………………….?

The Show that means business for all those in the tobacco business. It’s @ the Las Vegas Convention Center, March 3rd & 4th 2010. Who’s going? Report back! Tell us what was good? What was new? What you learn? Have a great time! – See you at the show!

Hauni Maschinenbau AG acquired Sodim SAS from Imperial Tobacco Group Plc on February 2 2010.

The  sale by Imperial is no great surprise as Sodim clearly did not represent core business activities and was probably slated for sale soon after Imperial acquired Altadis.

In a press release Sodim reiterated its personnel, biz relationships, and location remain unaffected. 

Perhaps of greater interest are the potential repercussions of this acquisition.

Premises are  likely to be consolidated in the longer term – perhaps merging with Hauni’s affiliate Decoulfe.

Sodim has enjoyed a recent virtual monopoly within Imperial and this may change.

Huni on the other hand has previously worked with market leader Cerulean in developing on-line measurement systems to complement machinery.

What’s your view?

This new relationship provides Hauni with an important additional portfolio of products in the areas of metrology and measurement systems.

In an historic first for public health, the National Institute for Health and Clinical Excellence (NICE) of the UK’s National Health Service overwhelming approved tobacco harm reduction as a key component in England’s ten year plan to reduce cigarette smoking by half.  The US FDA should follow the UK’s lead.  The announcement and a news excerpt are below, the press release is attached, and the full report “A Smokefree Future” is at http://www.dh.gov.uk/dr_consum_dh/groups/dh_digitalassets/@dh/@en/@ps/documents/digitalasset/dh_111748.pdf

Interesting development in the UK.

What are your thoughts?

Do you see the FDA following suit?

Liggett group’s general counsel sent a letter to FDA protesting the nomination process representing small tobacco businesses.

FDA has previously made clear that only small manufacturers could vote / nominate a representative to their category. Liggett contends this was not intended in the legislation and they should have some say under a broader definition of a small manufacturer.

Any view and opinions?

In a recent interview with ECigaretteDirect.co.uk Carl Phillips, Associate Professor at the University of Alberta in Canada, told us that the electronic cigarette was an order of magnitude safer than regular cigarettes and that an FDA study into the electronic cigarette was “pure propoganda”.

The electronic cigarette carried, he estimated, around one percent of the risk of regular cigarettes.

While he acknowledged that the electronic cigarette carried traces of carcinogens, he pointed out that banning the electronic cigarette based on the very low levels of carcinogens contained within would also mean “banning half the foods available.”

Given that, he argued, the FDA’s stance on the electronic cigarette was motivated by propoganda and not by science.

You can read the full interview here: Electronic Cigarette Interview with Carl Phillips.

Well if your year was anything like mine – 2009 raced by and it’s now Christmas again and the East coast is blanketed in snow!

We hope you had a good 2009 but wish you a better 2010. Have a great Christmas too and thanks for all your contributions, comments and visits. These are all appreciated.

For the Tobacco Industry a lot happened in 2009. We are still living with the changed lanscape but be sure it’s different now.

In the US tax increases (Federal and many States) were instrumental in making our business smaller / faster. Ironically the State tax increases were mostly driven by a desperate need to plug budget short falls. High taxes in Canada continued to encourage the development of a thriving contraband business from native reservations adjacent to the Provinces of Ontario and Quebec.

Much the same applies to the cigarette business in Paraguay into Brazil.

After years of speculation this administration passed FDA regulation of Tobacco. This fundamentally changes the US tobacco landscape permanently and irrevocably.

Our industy is smaller but continues to adjust to meet business challenges.

Finally we should not forget our customers. Thank-you.

Consider this: As smokers – there are around 60 million of you in the US – enough to make a loud noise if you choose to about smoking restrictions and many other issues affecting the daily lives of smokers.

We offer this forum to voice your concerns.

Merry Christmas