Entries Tagged 'Key International Business & Market Developments' ↓

Participate in the e-cigarette survey – have your say!

The e-cigarette was almost unknown a little over a year ago – not so today. It is the hottest and most controversial product to hit the tobacco industry in recent history – and it’s kicking up a storm!

It is a game changer on several front and sits squarely in the front line (read firing line) of tobacco harm reduction.

Congress wants to ban it. FDA may do so – on the basis it is a drug-delivery device (nicotine) not a tobacco product.

The traditional tobacco industry sees competition as does big pharma which sees it as a threat to its highly profitable  NRT (Nicotine Replacement Therapy) products – which are considerably more expensive.

Public Health officials cite untested and unproven technology and efficacy. True; in the strictest sense, while completely ignoring the greater issue of protecting public health in self-protecting its own fiefdom. Even the most preliminary research shows it is likely to be considerably safer than cigarette smoking.

Most importantly comsumers want it.

Now you can have your say. Use this forum to make your case.

Use the link to particapte in this survey. Help at least keep the arena competitive, lively and provide consumers with choice.

http://www.ecigarettedirect.co.uk/research/survey.html 

Good luck and have fun.

Big Pharma and the Nicotine War

I’d like to explore what some believe is the truth behind the “anti-smoking” movement. The following thoughts may be controversial to some. So let’s get right to the topic of discussion!

Some in the industry believe Big Pharma in it’s quest to gain control of the nicotine empire has been a great supporter of the anti-smoking movement. Many will tell you that the anti-smoking movement has just been a cover for the anti-tobacco movement. An anti-tobacco movement that bodes well for the pharmaceutical industry.

At stake is the control of the largest market known to humanity, with an estimated 1.2 billion customers on this planet. The projected financial returns to Big pharma from smoking “cessation” (which, in reality, is not cessation, but a different way to assume nicotine) are truly staggering, and beyond the imagination of many including those in the tobacco industry. The battle is well worth the multi-billion dollar investments by Big Pharma as it seeks to control international and national institutions, politicians, and the media.

I admit I have a bias. I have spent my entire life in the tobacco industry. Am I just blinded by my bias or am I on target? I have watched those on the anti side argue the “no smoke deal” only to win that battle but not be satisfied. They then take to what I believe was their true cause an “anti-tobacco” movement. The tobacco industry has been accused of misleading the public. But has Big Pharma taken over that role? Is the government their tool as it seems that harm reduction is a “no-no” unless governed by Big Pharma and in the very near future it’s partner, the FDA?

If you disagree with my thoughts, let me know why. If you agree I’d like to know why. What are your thoughts? What do you think about Big Pharma and Nicotine? Do you agree or disagree about their involvement in the anti-smoking movement? The anti-tobacco movement?

Is The EU Snus Ban A Political Issue?

Since Sweden’s Trade Minister Ewa Bjorling earlier this month called on the European Union to lift its ban on Swedish snus, politicians have become divided on whether the moist tobacco product should be made an issue in European Parliamentary elections, with Swedish candidate Ella Bohlin saying there is no demand to legalize snus from other EU member nations, and a rival candidate Anders Edberg saying there is no evidence that snus is harmful to people’s health. Sweden, which is preparing to take over the rotating EU presidency in July 2009, has been fighting the EU directive that bans the sales of snus in all EU nations except Sweden. The EU ban was introduced in 1992, but Sweden obtained an exemption when it joined the EU in 1995. Some researchers and anti-tobacco activists say snus and some other forms of snuff could help smokers kick the habit. Snus is at least 50% less likely to lead to heart disease compared to cigarettes and unlikely to cause lung cancer, according to an EU committee report. It is steam-cured, so it is said to contain lower concentrations of nitrosamines and other carcinogens compared to other tobacco products. Sweden’s smoking rate is 16%, the lowest in western Europe, according to the World Health Organization (Irish Times 4/21).

I have always been interested in the “Swedish Experience” as it relates to the high prevalence of individuals who use Swedish Snus.  It does makes me wonder why the EU would not remove the ban when the results seem so evident? Is this a political issue? Will it change? What are your thoughts? But let’s look at this from an other point, is this just a classic example that since it’s tobacco it’s evil maybe redundant but isn’t it about time that folks understand that “relative harm of tobacco products”does matter? Is’nt it about time that folks are told the truth rather than tobacco always being a political football? What are your thoughts? Oh, and what are your thoughts on the US future as it relates to Snus?

New Book Blasts FDA Tobacco Legislation

Michael Siegel on his “Rest of the Story” Tobacco News Analysis and Commentary on Friday wrote about a new book that blasts FDA Tobacco Legislation and argues that the Anti-Tobacco movement was burned by Philip Morris. Pretty interesting reading and a book I’m sure many will want to read. Here is the article from Michael Siegel. What are your thoughts about what he proposes? Do you think this book will have any affect on the future of this bill as it approachs the senate and the president? Do you agree with the books author? What are your thoughts?  

A new book soon to be released by the Democracy Institute provides the most comprehensive analysis and critique of the issue of FDA regulation of tobacco products ever produced. Patrick Basham, director of the Democracy Institute, analyzes the history of the FDA tobacco legislation, the nature of the negotiations that led to the crafting of the bill currently before Congress, the interest of Philip Morris in pursuing regulation, the likely effects of the bill, the basic policy issues involved in regulation of tobacco products, and the merits of the overall regulatory scheme created by the proposed legislation.

Citation: Patrick Basham. Butt Out! How Philip Morris Burned Ted Kennedy, the FDA & the Anti-Tobacco Movement. Washington, DC: Democracy Institute, 2009. Copyright 2009 by Patrick Basham.

Order from the Democracy Institute, or email: info@democracyinstitute.org.

Basham has taught tobacco regulation and policy courses at the Johns Hopkins University and his thinking was influenced by vigorous debates in his classes, in which various sides of the issue were considered. Thus, his opinions are informed by knowledge of the interests of both the public health advocates and the tobacco executives who negotiated the bill. The book is a must-read for anyone who is interested in the tobacco issue, and I believe it should be required reading for every organization that is supporting the legislation.

From his extensive and detailed analysis of the scientific, regulatory, and policy issues, Basham concludes that “giving the FDA the authority and the responsibility for a good chunk of the U.S. tobacco file is a mistake of epic proportions.”

He writes: “Handing tobacco regulation over to the FDA is tantamount to giving the keys of the regulatory store to the nation’s largest cigarette manufacturer, Philip Morris. that is because the legislation on FDA tobacco regulation has been cooked up out of public sight over the last few years by a partnership of Philip Morris, certain groups from the public health establishment, and Senator Edward Kennedy and Congressman Henry Waxman.”

“Kennedy, Waxman, and the public health establishment, led by the Coalition for Tobacco-Free Kids, are presenting their proposed legislation as a masterful regulatory stroke that will end tobacco marketing, prevent kids from starting to smoke, make cigarettes less enjoyable to smoke, and reduce adult smoking. But FDA regulation of tobacco will do none of these things. That is because Philip Morris skillfully hoodwinked a coalition of ‘useful idiots,’ including the Campaign for Tobacco-Free Kids, Senator Kennedy, and Congressman Waxman, at every turn. … FDA regulation of tobacco will serve the interests of Philip Morris, not the interests of the anti-tobacco movement nor their sage congressional partners, and most assuredly, not the interests of the American public.”

Basham defines “useful idiots” as “those members of the anti-tobacco movement whose naivete was exploited by, and to the benefit of, Philip Morris.”

How we got to such a situation, how the Campaign for Tobacco-Free Kids and other anti-smoking groups were hoodwinked into negotiating with Philip Morris and supporting the resulting legislation, is the fascinating subject of the first two chapters of “Butt Out!” Basham describes how FDA regulation of tobacco products was actually part of a plan by Philip Morris to capture regulation: giving it the public appearance of being a reformed company that is willing to subject itself to strict safety standards but through carefully crafted compromises, ensuring that the true effect of the legislation would be to further the company’s financial interests.

Basham reveals that the legislation was the result of a secret, carefully hidden negotiation between Philip Morris and the Campaign for Tobacco-Free Kids. These tough negotiations resulted in number of important compromises by the public health groups that severely limited FDA’s regulatory authority. Worse, the Campaign for Tobacco-Free Kids never told the truth about the fact that it was negotiating with Philip Morris, a fact that it has still not disclosed.

Importantly, Basham does not dismiss the legislation simply because it was negotiated with Philip Morris. That fact leads to his giving critical scrutiny to the details of the legislation. But his condemnation of the legislation is based on a detailed analysis of the actual provisions of the bill, which is provided in Chapter 3. Basham goes through a checklist of the potential public health benefits of the legislation, and based on a review of the scientific evidence, concludes that very few of the bill’s provisions will actually serve public health interests. He argues that the public health groups have indeed been outsmarted and that the bill serves the interests of Philip Morris, not those of the anti-tobacco movement.

Chapter 4 provides a detailed analysis of several of the central provisions of the legislation. The one measure which might legitimately be thought to have positive health benefits – the mandated warning labels – will likely not be effective, Basham argues, based on research into psychological reactance theory. The regulation of nicotine levels may actually be counterproductive, because lowering nicotine levels will result in greater tar exposure. Basham also offers some thoughts as to how and why the anti-tobacco groups got it so wrong.

In Chapter 5, Basham provides a more basic argument against FDA regulation of tobacco products: that the bill would burden an already troubled agency and undermine its basic mission.

Finally, in chapter 6, Basham shares his own thoughts about what a sensible, science-based, and effective national strategy for tobacco control might look like. I’ll leave readers to order the book to see the approaches that Basham suggests, but one point he emphasizes is that whatever the approach, unlike the current FDA legislation, it must be transparent, guided by accurate science rather than by ideology, blind faith, or politics, and it must communicate accurate scientific information to the public.

This book is a must-read for Rest of the Story readers and anyone interested at all in tobacco control policy.

The Rest of the Story

In light of the revelations brought forward in “Butt Out,” I challenge the Campaign for Tobacco-Free Kids and other anti-smoking and health groups which are supporting the FDA tobacco legislation to:

1. Publicly acknowledge that the legislation was the result of a Congressionally-mediated negotiation between the Campaign for Tobacco-Free Kids and Philip Morris.

2. Publicly acknowledge that the Campaign for Tobacco-Free Kids and other groups have been deceiving the public and their own constituents by hiding the fact that the legislation was crafted, in part, by Philip Morris, which played a major role at the negotiating table.

3. Publicly acknowledge that the many loopholes in the bill that severely limit the FDA’s authority represent compromises that were made to appease the financial interests of Philip Morris, and that they do compromise public health protection in order to retain Philip Morris’ support for the bill.

4. In light of the revelations and detailed analysis in “Butt Out,” to renounce their support of this legislation and instead, join me in helping to craft a truly effective science-based piece of federal legislation in an open, transparent, and inclusive process — guided by science and evidence, rather than ideology, blind faith, and politics — that will actually result in a significant reduction in adult and youth smoking, and therefore, in substantial public health protection.

TMA’s 94th ANNUAL MEETING & CONFERENCE

I highly recommend this conference. Last year it was one of the most informative and interesting conferences that I attended. 

 

 

Kingsmill Resort & Spa

Williamsburg, Virginia

May 17 – 19, 2009

 

Preliminary Agenda

 

CONFERENCE GOAL

 

With the likely advent of FDA/FCTC tobacco legislation and continually increasing economic and social pressure on the industry and its customers, not the least of which is the recent SCHIP tax increases in the US market, it is more important than ever to discuss issues impacting the state of the industry and what options the industry has to ensure compliance at least cost.  Given this situation, the conference will provide attendees with a global overview of the current state of the industry, with an added focus on the US market, what the likely future has to bring and how alternative actionable methods may be used by companies to address these challenges. 

 

The 2009 conference program agenda was designed based on survey responses from past attendees and focuses on issues identified as most important by this group.  As such, the program primarily concentrates on providing a marketplace overview with additional emphasis on the pending FDA legislation and likely ratification by the US of the Framework Convention on Tobacco Control (FCTC) and its implementing legislation.

 

SUNDAY, MAY 17th

 

Golf Outing: 10:00 AM – 3:00 PM

TMA Board Meeting: 4:00 PM – 6:00 PM

Welcome Reception: 6:30 PM – 9:00 PM

 

MONDAY, MAY 18th

 

What Is

 

8:00 AM  Continental Breakfast

 

8:30 AM – 9:20 AM

 

1.     Welcome – Farrell Delman, TMA President

2.   Global Tobacco Leaf Trends – James H. Starkey, TMA Chairman

3.   Product/Market/Regulatory Trends and likely SCHIP Impacts – Farrell Delman

 

9:20 AM – 10:40 AM

 

4.     Security Analyst Panel -  Nik Modi (UBS), Adam Spielman (Citigroup), Erik Bloomquist (JP Morgan) and possibly David Hayes (Nomura), Anne Gurkin (Davenport) and Judy Hong (Goldman Sachs) – Moderator: Darryl Jayson, TMA Vice President

 

Review the historical, current and future projections for tobacco Industry manufacturers, wholesalers, retailer and suppliers.  How will the financial community incorporate the short and longer term implications of the US tax increases, the FDA legislation, the FCTC and the overall worsening global economy, in their forecasting and reporting for the US and other markets?

 

10:40 AM – 11:00 AM  Coffee Break

 

11:00 AM – 11:30 AM

 

            Introduction of Nick Simeonidis, Patton Boggs – Moderator for Remaining Program

 

5.     US/World Regulatory Overview: FCTC- FDA

Moderator: Adrian Payne, President Tobacco Horizons Inc.

o   A broad comparison of the FCTC with the proposed FDA legislation

o   Key issues (concerns) present in the FDA legislation

o   Global implications of US FDA legislation in terms of FCTC working groups & protocols

o   Additional concerns posed by the FCTC

o   What’s on the horizon?

 

11:30 AM – 12:15 PM

 

6.     Nicotine & Non-Nicotine Alternatives:  What’s Hot, What’s Not?

Moderator:  Pharma Representative and David O’Reilly, BAT, invited

o   Overview of this category of products

o   Legislation in progress related to these products

o   Evolution of this product category

o   Current Global Status of THR

o   New knowledge on the scientific front

o   Advances/declines from last year

 

12:30 PM – 2:00 PM  LUNCH

 

Keynote: “Tobacco Harm Reduction – Congressman Buyer vs. Congressman Waxman”  Speaker:  Congressman Stephen Buyer, invited

 

2:00 PM – 4:00 PM

 

7.   The Devil’s in the FDA Regulations – Nick Simeonidis, Moderator

o   Overview – Legal – John Manthei, Latham & Watkins

o   Dealing with FDA: the Pharma Experience – Uwe Trinks, Foresight Group

o   Impact on Manufacturing Practices – John Lauterbach, Lauterbach & Associates

o   Impact on Suppliers – Roger Penn, Mane France

o   Impact on Product Testing: The Canadian Experience – Bill Rickert, Labstat, invited

o   Impact on Product Development & Reporting – Jim Swauger – RAI, invited

o   Impact on Marketing and Sales – Bhavani Parameswar, President, KingMaker

o   Impact on Retail & Distribution – Terry Gallagher, CEO, Smoker Friendly, invited

 

4:00 PM – 6:30 PM  Free time

 

6:30 PM – 10:00 PM  TMA Annual Meeting and Dinner

 

6:30 PM – 7:30 PM  Cocktail Party

7:30 PM – 8:30 PM  Dinner

8:30 PM – 9:00 PM  Annual Meeting (dessert)

9:00 PM – 9:40 PM  Keynote Address:

     Kurush Grant, ITC Limited, Chief Executive Tobacco Division

       “India’s Experience Under the FCTC and an active Health Minister “

 

TUESDAY, MAY 19th

 

What Will and Could Be

 

 

8:00 AM  Continental Breakfast

 

8:30 AM – 8:50 AM 

 

8.   TMA’s Tobacco Product Compliance Center (TPCC): Update

                                    Darryl Jayson, TMA Vice President

 

8:50 AM – 9:10 AM

 

9.     What FDA/SCHIP Means for Adult Consumers

 

Adult tobacco product consumers are exposed to increasing prices, social pressures and the communication of tobacco related information by health care personnel and federal health agencies.  What can consumers expect in the future and what steps will the tobacco industry take to communicate with, and meet the wants of their consumers in a way that reasonable elements in tobacco control and the regulatory authorities condone.

 

 

9:00 AM – 9:30 AM

 

10. What FDA/SCHIP Means for Youth Smoking

 

Eliminating youth tobacco consumption in any form is a benchmark for the success of regulation.  FDA and SCHIP are both designed in part to discourage, even prevent, the initiation of youth tobacco use. How is youth involvement with tobacco currently being measured?  What do we know about how youth smoking has evolved over the past few decades? How will FDA regulation and higher prices due to SCHIP along with escalating State excise taxation further impact initiation? What is the likelihood that youth will migrate to alternative forms of tobacco?  In the best of all possible worlds, what sorts of messaging would government encourage to reduce health risks associated with youth tobacco consumption.  Lyle Smith, DLC Services, Inc., formerly RJRT

 

 

9:30 AM – 11:00 AM

 

  1.  Towards An FDA Industry Advisory Group – Moderator: John Lauterbach

 

Faced with the operational (manufacturing, marketing and reporting) restrictions, product limitations and reporting requirements resulting from FDA legislation, what should companies be doing now to prepare their organizations and their consumers to meet these hurdles?

 

11:00 AM

 

Q & A with Various Conference Speakers:  Uwe Trinks (Foresight Group), Roger Penn (Mane France), Nick Simeonidis (Patton Boggs) John Manthei (Latham Watkins), Lyle Smith (DLC Services) and additional panelists including Bryan Haynes (Troutman Sanders) and Bill Greiwe (Cheyenne Tobacco).

 

 

German Tobacoo Group seeks investors in European value brands

German Tobacco welcomes investors
Feb 12, 2009
German Tobacco Group (GTC) of Frankfurt, Germany, is seeking strategic investors and partners for completion of its first two acquisitions of German cigarette manufactures and the international launch of its S.A.L.E. brand.

Introduced to Austrian and German markets in 2007, S.A.L.E. focuses on the dynamically growing international value brand’ segment in Europe.

With a market volume of 95 billion cigarettes, 20 million adult smokers, a shift from premium to value brands and a predictable tobacco taxation policy, Germany is still an attractive operating environment for tobacco companies, according to GTG.

What’s more, Germany still allows billboard advertising and recently loosened smoking restrictions in bars and restaurants.

For more information……… visit

http://tobaccoreporter.com/home.php?id=498&art=1926

or contact……….

Thomas Deng Mahmoud Schumann
German Tobacco Group AG
An der Welle 4
D-60322 Frankfurt
Ph +49-69-257389-83, Fax -84

Aufsichtsratsvorsitzender/Chairman:Thomas Deng Mahmoud Schumann
Vorstand: Herbert Neumeister (CEO), Gunnar Anger (CFO)
Registergericht/Commercial Register: Amtsgericht Frankfurt HRB76711

Urgent Message To Congress And President Elect Barack Obama

http://www.tobaccotoday.info/wp-content/uploads/2009/01/nato_rollcall_ad.pdf

FROM: Thomas Briant, Executive Director NATO

I have attached a copy of the SCHIP advertisement as it will appear in the Monday, January 12, 2009 issue of Roll Call, one of the leading Washington, DC newspapers that is circulated to all members of Congress, all Congressional staff persons, the White House and President-Elect Barack Obama’s staff. The American Wholesale Marketers Association (AWMA) and the Southern Association of Wholesale Distributors (SAWD) also signed onto this advertisement.

As a part of NATO’s on-going efforts to oppose the SCHIP tax increases, I will be sending a copy of the advertisement to all NATO members with a NATO E-News tomorrow. I also plan to have the advertisement faxed from the NATO office to all 535 members of Congress on Monday, January 12th to ensure that U.S. Senators and U.S. Representatives see the advertisement. In addition, we will include the advertisement with the NATO alert that is being sent to retail members over this coming weekend.

Here is a link to a file that will allow you access to the advertisement! Please get the information out to all!

http://www.tobaccotoday.info/wp-content/uploads/2009/01/nato_rollcall_ad.pdf

http://www.tobaccotoday.info/wp-content/uploads/2009/01/nato_white_house_fax_form.pdf

Paraguay

A recent conversation with executives from Souza Cruz mentioned contraband entering Brazil from Paraguay had decreased slightly and was now 14-17 billion – no more than this.

We thought this number a significant under-estimation.