Tobacco.org

• KRASOVSKY: Does tobacco industry need to be saved? 

Tobacco tax increases are the most effective way to encourage people to stop smoking.

Ukrainian President Victor Yushchenko, citing concern for the tobacco industry, on Nov. 11 vetoed legislation that would have hiked the excise tax on tobacco products once more.

It is worth remembering that - even though tobacco excise taxes were increased in September 2008, and again in February and May of this year - cigarette prices in Ukraine remain among the lowest in Europe. This leads directly to a public health catastrophe for the nation and creates conditions for rampant smuggling of made-in-Ukraine cigarettes to other nations. . . .

However, tobacco companies in Ukraine claimed that this tax increase would have been disastrous for their business. . . .

Transnational tobacco companies came to Ukraine in 1993. They promised employment, investment and revenue. Now they control 99 percent of the tobacco production in Ukraine. In 1992, Ukraine produced 9,000 tons of tobacco leaves. However, despite huge increases in cigarette production, tobacco growing has almost disappeared in the country. In 1996-2008, the foreign trade balance of tobacco leaves and products was negative for Ukraine and totaled more than $2 billion. It actually means that Ukrainian smokers invested $2 billion in the economies of other nations.

What tobacco companies actually produce is death. . . .

Many politicians in Ukraine already understand that high tobacco taxes are good both for public health and public revenues. I hope that the current and future president of Ukraine will understand this as well.

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Philip Morris sues N.Y., N.J. retailers 

The Henrico County-based cigarette-maker has monitored retail markets for years to keep fake versions of its brands off store shelves.

This year, Philip Morris has sued 27 stores in New York and New Jersey, which are hotspots for the fakes because of high state taxes, a huge port through which the contraband is easily shipped, and criminal organizations that wholesale the counterfeits.

For Philip Morris, the stakes are simple. In addition to the lost sales, the company doesn't want smokers buying a pack of Marlboros and thinking they don't taste the same, said company spokesman David Sutton. . . .

"The sale of untaxed cigarettes harms legitimate wholesale and retail businesses and costs New York and New Jersey needed tax revenues that could be used to support essential public services," he said.

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• CABE: Going up without the smoke 

Need a nicotine hit? Want to beat the smoking ban? A smokeless cigarette could be the answer, for the long - or short - haul. Just be prepared for some funny looks, writes ROSEMARY Mac CABE . . .

Ryanair now sells the other most popular type, in the form of Similar smokeless cigarettes.

Ryanair's head of communications, Stephen McNamara, says the product was introduced due to customer demand. "Some passengers can find it stressful to spend long journeys without a cigarette so we introduced the product based on customer feedback and to cater to passenger demand. It seemed a logical step to introduce a product that could provide smokers with relief from nicotine withdrawal. . . .

I spent a day with Ryanair's Similar branded smokeless cigarettes: a packet of 10, purchased for €6 on board a Ryanair flight, to see how it feels to smoke on the right side of the law.

The first thing I notice is that they smell, to all intents and purposes, like what one's mother might call "sucky sweets" - irrefutably better than mainstream cigarettes, albeit slightly strange. They feel like real cigarettes and, crucially, they look like them. . . .

Smoking a cigarette that looks like a cigarette, acts like a cigarette but neither tastes nor feels like a cigarette (while giving you more nicotine than a cigarette) seems an odd choice.

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Are Smokers Now at Higher Risk of Bladder Cancer? Are Changes in Cigarettes To Blame? ($$) 

sed on a comparison of two very large cohorts, suggested just the opposite: Far from making the cigarettes safer, the design changes might have made them even more dangerous.

A debate over the consequences of the cigarette changes has continued . . . [Full Text of this Article]

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EDITORIAL: Tobacco shakedown: It's not 'for the children'  

When the state attorney general fabricates an allegation to justify charging a person with criminal activity, everyone in the state ought to take note.

Attorney General Michael Delaney is pursuing a case against Tobacco Haven, a roll-your-own tobacco shop in Brookline. According to the Attorney General's Office, Tobacco Haven owes the state a whole bunch of back taxes on cigarette tobacco. Tobacco Haven says it doesn't because the tobacco in question is for pipes, not cigarettes. Cigarette tobacco is taxed; pipe tobacco is not. . . .

The "for the children" line is deployed every time government goes after tobacco users. From the industry settlements in the 1990s to the massive increases in cigarette taxes in the last few years, states (New Hampshire included) have tried to justify soaking tobacco dealers and users by claiming that their revenue grabs were "for the children."

But it's never for the children. It's always for the revenue. Delaney's attempt to demonize these tobacco shop owners is an abuse of authority. His boss, Gov. John Lynch, should make clear that he won't stand for such abuses in the future.

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• UPDATE 2-Lorillard starts CEO succession review  

Lorillard Inc (LO.N) had begun reviewing options for succession to CEO Martin Orlowsky, whose contract expires on Dec. 31, 2010, the third-largest U.S. cigarette maker said on Thursday .

The board will weigh "all relevant options," the company said in a filing with the U.S. Securities and Exchange Commission.

A spokeswoman for Lorillard declined to comment further on the succession options.

Orlowsky, 67, has been president and chief executive since 1999 and became chairman in 2001. Lorillard was spun off from Loews Corp (L.N) in June 2008.

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• Gristedes chief still on warpath on cheap Indian cigarettes 

The freshly remodeled Gristedes supermarket on 25 University Place has expanded its space, adding new sections for beer, hot food, a salad bar, bakery and organic products, all looking like crowd-pleasers beneath Thanksgiving decorations strung above the aisles.

But cigarettes are no longer on sale here -- seemingly a sign of the times in this upscale Greenwich Village neighborhood near New York University.

"We haven't had them for some time now," said an assistant manager who identified himself only as Thomas. He noted that cigarettes are available at other Gristedes stores in New York (about 20 still carry them), even though he believes the demand is down. The main reason for the decline in tobacco sales, another Gristedes manager said, is that "people know where they can get them elsewhere" for half the price that conventional retailers in New York charge -- upward of $95 per carton, with $4.25 in state and city taxes tacked on.

He was alluding to untaxed tobacco sold on Indian reservations, a subject that has bedeviled convenience-store operators and New York governors from Cuomo to Paterson.

Led by its Greek-born owner and C.E.O., John Catsimatidis, a longtime New York City mayoral wannabe who smokes an occasional cigar, Gristedes Foods Inc. has claimed in protracted litigation that Indian merchants on two Eastern Long Island reservations are luring away New York customers, and even helping to fund organized crime gangs and terrorist groups like Hezbollah with bulk sales, a charge some politicians dismiss as absurd but others solemnly repeat. . . .

Since he cares so much about health, why does he sell any cigarettes at his grocery stores?

"There is such a thing as freedom of choice," the mogul replied. "I lecture my wife, who smokes, and tell her, Why don't you just have one or two instead of more? It's like what the Greek philosophers say: Everything in moderation."

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Newark grocers, others named in Philip Morris USA litigation 

Reyes Grocery Store and Sunny’s Supermarket , in Newark, were among the defendants named in litigation brought by tobacco company Philip Morris USA.

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• Philip Morris USA Sues Retailers to Stop Counterfeit Cigarette Sales  

Philip Morris USA (PM USA) filed lawsuits against ten retailers selling counterfeit versions of the company's Marlboro� brand cigarettes in New York and New Jersey.

"The New York metropolitan area continues to be a lucrative market for counterfeit and contraband cigarette smugglers," said Joe Murillo, vice president and associate general counsel, Altria Client Services, speaking on behalf of PM USA. "High excise taxes, coupled with New York state's lack of effective tax enforcement, only makes the problem worse," added Murillo.

"These lawsuits are the latest in a series of filings by Philip Morris USA aimed at combating the sale of counterfeit cigarettes in New York and New Jersey," said Murillo. Since May 2009, Philip Morris has filed lawsuits against 27 retail locations in New York and New Jersey for selling counterfeit Marlboro� brand cigarettes

In addition to violating many trademark laws, counterfeit cigarettes are almost always sold without the appropriate federal and state excise tax. The counterfeit cigarettes purchased from the retailers named in today's suits bore no tax stamp or a counterfeit tax stamp. As a result, the applicable excise taxes were not paid. . . .

Eastern District of New York

Maria’s Deli Grocery 143-20 101 Avenue, Richmond Hills, NY 11419

Loveras Grocery 996 Nostrand Avenue, Brooklyn, NY 11225

Southern District of New York

Aloshe Mini Market 1889 Guerlain Street, Bronx, NY 10461

El Barrio Grocery Deli 39 West 183rd Street, Bronx, NY 10453

Fernandez Grocery Corp. 1665 Madison Avenue, New York, NY 10029

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Raid-control expands to protect cigarette gantries 

Raid-control – the national crime prevention initiative - has expanded its robbery deterrent package to include the protection of tobacco products within cigarette gantries in response to a new crime trend that retailers are experiencing.

Criminals are targeting the cigarette gantries within several convenience store chains and demand that the person behind the counter hands over the cigarettes. In some cases the raiders jump the counters and sweep the cigarettes into bin bags before escaping with their haul.

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Smokin' hot - Imperial Tobacco's new chief  

As the tobacco industry begins to boom once again, CEO Gareth Davis is stepping down at Imperial Tobacco and leaving the role to his former chief operations officer Alison Cooper. With her strong finance background, ICAEW-qualified Cooper has taken a more unusual path to the top, defying the typical FD-to-CEO strategy. But how has she done it?

What’s happened?

Cooper has been with the group since 1999 and has held a range of senior roles including director of finance and planning before moving out of finance, becoming regional director western Europe and corporate development director.

Her background as COO will have broadened her knowledge of the tobacco industry and given her great strategic insight into the workings of the market. And even in her previous role at PwC she was heavily involved with mergers and acquisitions for the tobacco giant a key strategy for Imperial Tobacco going forward.

With her widely reported love of cigars, Cooper seems like a logical choice.

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Legislator wants to ban nicotine candy  

A northern Utah lawmaker wants the state to do away with nicotine candy that he says poses a danger to children.

Rep. Paul Ray, R-Clearfield, plans to introduce a bill in the upcoming legislative session that would "outright ban" the nicotine candy.

"It's on the shelf now," Ray said. "We're going to take it off the shelf. We're basically making the comment that it's just not welcome in Utah. Go somewhere else and kill their residents but we're going to draw the line here."

Ray said the candies -- which differ from approved smoking-cessation products -- are designed to look like candy or gum and are attractive to children. Ray's own 7-year-old daughter saw some advertised and asked for some, which frightened him because just a few of the candy tablets can kill a young child.

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S. 1147: Text of Legislation, Introduced in Senate 

• This version: Introduced in Senate. This is the original text of the bill as it was written by its sponsor and submitted to the Senate for consideration. This is the latest version of the bill available on this website. . . .

• (a) Short Title- This Act may be cited as the ‘Prevent All Cigarette Trafficking Act of 2009’ or ‘PACT Act’.

• (b) Findings- Congress finds that--

• (1) the sale of illegal cigarettes and smokeless tobacco products significantly reduces Federal, State, and local government revenues, with Internet sales alone accounting for billions of dollars of lost Federal, State, and local tobacco tax revenue each year;

• (2) Hezbollah, Hamas, al Qaeda, and other terrorist organizations have profited from trafficking in illegal cigarettes or counterfeit cigarette tax stamps;

• (3) terrorist involvement in illicit cigarette trafficking will continue to grow because of the large profits such organizations can earn;

• (4) the sale of illegal cigarettes and smokeless tobacco over the Internet, and through mail, fax, or phone orders, makes it cheaper and easier for children to obtain tobacco products;

• (5) the majority of Internet and other remote sales of cigarettes and smokeless tobacco are being made without adequate precautions to protect against sales to children, without the payment of applicable taxes, and without complying with the nominal registration and reporting requirements in existing Federal law;

• (6) unfair competition from illegal sales of cigarettes and smokeless tobacco is taking billions of dollars of sales away from law-abiding retailers throughout the United States;

• (7) with rising State and local tobacco tax rates, the incentives for the illegal sale of cigarettes and smokeless tobacco have increased;

• (8) the number of active tobacco investigations being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives rose to 452 in 2005;

• (9) the number of Internet vendors in the United States and in foreign countries that sell cigarettes and smokeless tobacco to buyers in the United States increased from only about 40 in 2000 to more than 500 in 2005; and

• (10) the intrastate sale of illegal cigarettes and smokeless tobacco over the Internet has a substantial effect on interstate commerce.

• (c) Purposes- It is the purpose of this Act to--

• (1) require Internet and other remote sellers of cigarettes and smokeless tobacco to comply with the same laws that apply to law-abiding tobacco retailers;

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S. 1147 - Summary: PACT Act 

5/21/2009--Introduced.

Prevent All Cigarette Trafficking Act of 2009 or PACT Act - Amends the Jenkins Act to: (1) include smokeless tobacco as a regulated substance; (2) impose shipping and recordkeeping requirements on delivery sellers (sellers using the telephone, mails, or the Internet) of cigarettes and smokeless tobacco; (3) require common carriers of cigarette products to obtain age and identity verification upon delivery of such products; (4) require the Attorney General to compile and publish a list of delivery sellers of cigarettes or smokeless tobacco who have not complied with the registration or other requirements of such Act; (5) increase criminal penalties and impose new civil penalties for violations of this Act; and (6) grant jurisdiction to U.S. district courts to prevent and restrain violations of this Act and direct the Attorney General to administer and enforce this Act. Amends the federal criminal code to: (1) treat cigarettes and smokeless tobacco as nonmailable and prohibit such items from being deposited in or carried through the U.S. mails (with specified exceptions, including for mailings for consumer testing); and (2) authorize officers of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to enter the premises of certain cigarette shippers to inspect records and inventories. Prohibits a tobacco product manufacturer or importer from selling or delivering in states cigarettes not in compliance with model or qualifying state statutes. Limits the applicability of this Act with respect to Indian tribes and certain tribal matters. Directs the ATF Director to create regional contraband tobacco trafficking teams and a Tobacco Intelligence Center to monitor and coordinate tobacco diversion investigations. Expresses the sense of Congress with respect to the precedential effect of this Act.

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OFFICIAL BUSINESS MEETING NOTICE & SUMMARY:  

II. Bills . . .

S.1147, Prevent All Cigarette Trafficking Act of 2009 (Kohl, Leahy, Schumer, Specter, Feinstein, Klobuchar)

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