Tobacco.org

Tobacco shop will dispute claim that it's manufacturing 

Tobacco Haven isn't a cigarette manufacturer despite claims by the state, says the attorney for the small tobacco shop in Brookline facing an unusual legal action against its use of roll-your-own cigarette machines.

Acting Attorney General Orville "Bud" Fitch filed a lawsuit Tuesday against the tobacco shop in Merrimack County Superior Court, alleging that the operation sidesteps the federal settlement between tobacco manufacturers and the state.

The company has a pair of 4-foot tall "roll your own" machines in its store. Customers buy one of three types of loose tobacco and paper tubes with filters, then use the machines to turn them into cigarettes at about half the cost of name-brand cigarettes.

Jeffrey Burd, of Cincinnati, one of several lawyers who will represent Tobacco Haven in court, said this business doesn't make Tobacco Haven a manufacturer."Tobacco Haven rents its machine to customers. They can buy or rent," said Burd. He contrasted the shop's operation with a hypothetical cigarette manufacturer in North Carolina that can produce several hundred cigarettes in seconds, while it takes minutes to roll the same number at a tobacco shop.

Burd will make his case in Merrimack County Superior Court at 11 a.m. Oct. 13, when the state brings its case against the tobacco shop.

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• DIY cigarettes? Some smokers start growing tobacco  

In urban lots and on rural acres, smokers and smokeless tobacco users are planting Virginia Gold, Goose Creek Red, Yellow Twist Bud and dozens of other tobacco varieties.

Although most people still buy from big tobacco, the movement took off in April when the tax on cigarettes went up 62 cents to $1.01 a pack. Large tax increases were also imposed on other tobacco products, and tobacco companies upped prices even more to compensate for lost sales.

Some seed suppliers have reported a tenfold increase in sales as some of the country's 43.3 million smokers look for a cheaper way to get their nicotine fix in a down economy. Cigarettes cost an average of $4.35 a pack, home growers can make that amount for about 30 cents.

It's the latest do-it-yourself movement as others repair their own cars, swap used clothes and cancel yard work services to save money.

"Cigarette smokers say, 'Yeah, we're going to die of cancer, but do we have to die of poverty as well?'" said Jack Basharan, who operates The Tobacco Seed Co. Ltd. in Essex, England. Virtually all of his increased tobacco seed sales have been in the U.S., he said.

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• Tobacco sales fall by -19.3% 

In the first quarter of 2009, global duty free and travel retail tobacco sales slumped by -19.3% compared with the same quarter in 2008 - according to the TREND Tobacco Index which is based on actual audits of retail sales among a panel of locations worldwide.

"This is probably the worst quarter ever recorded for the tobacco business which has been battered in travel retail and elsewhere", says Yngve Bia, President Generation Research. "Sales were especially poor onboard airlines with a sales decline of -26.5%. Also airport sales were down steeply by -24.0%".

Sales in Asia Pacific and the Middle East held up relatively well in 1Q 2009 whilst significant drops were recorded in Europe (-21.2%) and the Americas (-12.3%). In Europe it is especially intra-EU duty-paid sales that have suffered, down by -21.6% in Euros and equal to a drop of -31.5% in US dollars. . . .

Amidst concerns of dramatically falling sales numbers, the tobacco industry is also faced with the challenging fact that many governments around the world - and particularly some in Asia - are considering supporting a ban on duty free cigarettes as part of the Framework Convention on Tobacco Control (FCTC).

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FLORY: Loopholes affect all people, not just the wealthy  

Back in April, the federal government slapped a huge tax increase on bulk tobacco, raising the tax from $1.10 to $24.78 a pound.

Few people would tolerate a 2,200-percent increase on any tax. Cigarette rollers must have weak lobbyists.

Thanks to this tax, the out-the-door price of tobacco jumped from about $20 to $45 a pound. But then a loophole was born.

Visit a tobacco store today and you will discover the roll-your-own crowd still buys for $20 a pound, with one slight difference.

Tobacco sold today is a little chunkier and it is labeled as pipe tobacco. Producers figured out the tax increase does not apply to pipe tobacco, so that's what they call it now.

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• Blazing a New Tobacco Road 

In this special report featuring exclusive interviews with retailers and executives from Altria Group -- the industry's largest tobacco supplier -- Convenience Store News analyzes how recent tobacco supplier consolidation will affect retailers' sets; the current challenges facing the tobacco category in convenience stores; what these hurdles mean to the future of the tobacco category; and whether or not the demise of tobacco has been pronounced prematurely.

Putting aside the issues of onerous taxation and FDA regulation for the moment (see CSNews' Tobacco Roundtable coverage for more on those topics, page 31), consolidation of suppliers could be one of the biggest retailer concerns. . . .

Moving forward, the main goal for Altria Sales & Distribution is to roll out the new trade program and freshness system. "The retailers benefit when we implement such programs," Paoli said. "I'm providing direction to the sales force that selling the program should be among their top priorities for August. With that will come improved business performance for the retailer."

Retailers can also expect more new products from the three Altria tobacco companies. PM USA is testing L&M roll-your-own tobacco in Michigan and Maine, while it also unveiled Marlboro No. 54 -- a menthol cigarette line extension in King and 100s sizes. John Middleton will also release line extensions for its Black & Mild brand of machine-made large cigars. In addition, USTTC's Red Seal, a value-positioned moist snuff, will see its distribution expanded to new markets.

Future new products will address "pure consumer expectations and needs," which is a benefit to retailers, since they won't carry an item that won't sell. Meanwhile, Altria can put more effort into its new products, knowing they will sell, according to Paoli.

And Altria's research and technology facility, which opened in 2007 and operates under Altria Client Services, will facilitate research for all three tobacco companies.

The multitude of changes to Altria's businesses as a result of these acquisitions will have an impact on the tobacco category in convenience stores. Paoli said it will improve attention paid to the category, especially to cigars and moist snuff, which will ultimately drive additional sales and profits as the space at retail becomes more organized.

Convenience store retailers, however, don't all agree.

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Lobbyists want pricier tobacco  

Tobacco companies have been warned they are treading a fine line after reports of price wars.

The Health Ministry began investigating cigarette pricing structures after The Timaru Herald reported last month that tobacco giant British American Tobacco New Zealand had issued a new price list to retailers, recommending a drop in price for some of their brands.

Associate health minister Tariana Turia said she was expecting feedback by the end of this month after launching an inquiry into why British American Tobacco and Imperial had cut prices.

"It is outrageous that on one hand, the government is spending millions of taxpayers' money to stop smoking addiction and on the other hand, these companies are enticing smokers to consume more.

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Factory ciggies better than rollies - study 

A new study has shown that factory-rolled cigarettes maybe the lesser of two evils.

The Christchurch-based study compared people smoking factory-rolled cigarettes to those smoking roll-your-owns and found that smokers tended to suck rollies more intensively, more often and more efficiently, making them at least as deadly as factory-rolled cigarettes.

The study, led by public health specialist Dr Murray Laugesen , is the first to use people rather than smoking machines to compare the two types of cigarettes.

It compared 26 men who smoked rollies with 22 who smoked factory-rolled. Each smoked a filtered cigarette every half hour over two hours, according to usual habit.

Cravings and exhaled carbon monoxide were measured before and after each cigarette smoked.

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Report: Roll-your-own cigarettes more dangerous than factory smokes  

Roll-your-own cigarettes, favoured by some smokers who think they are safer than the factory-made products, could be more dangerous, even when filters are used, according to research released in New Zealand on Sunday. Dr Murray Laugesen, a public health specialist based in Christchurch, said a study found that smokers of roll-your-owns inhaled 28 per cent more smoke, even though they contained less tobacco than factory-made cigarettes, because they tended to suck more intensively.

"Roll-your-own smokers inhale more to get the most value from their cigarettes and don't let so much be wasted, while smokers of factory-made cigarettes let a lot of their smoke drift into the air," Laugesen said.

He said the study of 26 men who usually roll their own and 22 who smoke factory-made cigarettes was the first of its kind to use people rather than smoking machines. All used cigarette holders containing flow meters.

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• Rolled cigarettes could be worse: study 

A New Zealand study has shown that factory-rolled cigarettes may be the lesser of two evils.

The Christchurch-based study compared people smoking factory-rolled cigarettes to those smoking roll-your-owns and found that smokers tended to suck rollies more intensively, more often and more efficiently, making them at least as deadly as factory-rolled cigarettes.

The study, led by public health specialist Dr Murray Laugesen, is the first to use people rather than smoking machines to compare the two types of cigarettes.

It compared 26 men who smoked rollies with 22 who smoked factory-rolled. Each smoked a filtered cigarette every half hour over two hours, according to usual habit.

Cravings and exhaled carbon monoxide were measured before and after each cigarette smoked.

It found that participants smoking rollies took 25 per cent more puffs per cigarette and generally puffed for six seconds longer per cigarette.

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Implementation of Statutory Amendments Requiring the Qualification of Manufacturers and Importers of Processed Tobacco and Other Amendments Related to Permit Requirements, and the Expanded Definit 

This notice of proposed rulemaking solicits comments on the temporary regulations outlined in T.D. TTB-78 regarding permit and other requirements for manufacturers and importers of process tobacco and the expanded definition of "roll-your-own" tobacco. These regulations implement statutory changes to the Internal Revenue Code contained in the Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA; Pub. L. 111-3). Comment are due on or before August 21, 2009.

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Hand-rolled cigarette smoking patterns compared with factory-made cigarette smoking in New Zealand men 

Background

Roll-your-own (RYO) cigarettes have increased in popularity, yet their comparative potential toxicity is uncertain. This study compares smoking of RYO and factory-made (FM) cigarettes on smoking pattern and immediate potential toxicity. . . .

Conclusions

In these smokers, RYO smoking was associated with increased smoke exposure per cigarette, and similar CO breath levels, and even with filters is apparently no less and possibly more dangerous than FM smoking. Specific package warnings should warn of RYO smoking's true risk. RYOs are currently taxed much less than FM cigarettes in most countries; similar harm merits similar excise per cigarette.

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• Roll-your-own cigarettes dangerous money-savers: research 

Roll-your-own smokes could be even more harmful than factory-made cigarettes because people suck them harder and more efficiently, Christchurch research indicates.

The researchers are calling for the Government to act on their findings by applying a higher tax and specific warnings on roll-your-own tobacco.

In the first comparison between the two types of smoking using people rather than smoking machines, the study suggests rollies are "apparently no less and possibly more dangerous" than factory-made cigarettes.

Public health specialist Dr Murray Laugesen and his co-researchers found roll-your-own smokers inhaled 28 per cent more smoke per filtered cigarette, even though the rollies contained less tobacco than the factory-mades.

And both types boosted the level of carbon monoxide, measured in exhaled breath, by the same amount.

"Whereas a smoker of factory-mades lets a lot of the smoke go up in the air, these roll-your-own smokers suck like crazy and don't let so much be wasted," Dr Laugesen said yesterday. "They're getting more value out of the tobacco - and more harm."

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Rolling your own  

On Wednesday, June 24, New Hampshire legislators said they closed a $650 million revenue gap by passing an $11.5 billion budget that includes raising the cigarette tax by 45 cents, to a total of $1.78 per pack.

Even with the hike, New Hampshire has the lowest cigarette tax in the region, according to Michael Dumond, bureau chief of Bureau of Prevention Services, state Division of Public Health Services.

Maine's tax is $2 per pack; Vermont's $1.99; Rhode Island's tax is $2.46; and Massachusetts has a $2.51 tax per pack, Dumond said.

Smoke shops in Seabrook at the Massachusetts border particularly benefit from smokers traveling into the state to buy cigarettes at cheaper prices.

Increasingly, smoke shop owners said, customers are opting to save even more money by buying roll-your-own products.

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Hand-rolled cigarette smoking patterns compared with factory-made cigarette smoking in New Zealand men  

Roll-your-own (RYO) cigarettes have increased in popularity, yet their comparative potential toxicity is uncertain. This study compares smoking of RYO and factory-made (FM) cigarettes on smoking pattern and immediate potential toxicity. . . .

Conclusions: In these smokers, RYO smoking was associated with increased smoke exposure per cigarette, and similar CO breath levels, and even with filters is apparently no less and possibly more dangerous than FM smoking. Specific package warnings should warn of RYO smoking's true risk.

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Texas Legislature Passes Massive Smokeless and Other Tobacco Tax That Allows 'Marlboro Man' and 'Copenhagen Man' to Benefit 

The Texas Senate voted 29-2 to pass a $100 million tax increase on smokeless tobacco and other tobacco products. HB 2154, while being a laudable program to fund rural doctor programs and changes in the business franchise tax, relies on an enormous tax on smokeless and other tobacco products, such as pipe tobacco and roll-your-own tobacco to help fund the legislation. The Texas House voted on a similar measure by a vote of 79-61 after much contentious debate. This issue has been debated over the past three legislative sessions and is largely viewed as an internal tobacco industry fight between industry giant, Philip Morris (now Altria), and the smallest companies says National Tobacco, headquartered in Louisville, KY.

"It is unfortunate that the Texas Senate, with little debate and what appears to be little understanding of the real market, passed a large tax increase on the small companies that compete with the 'Marlboro(R) Man' and 'Copenhagen(R) Man,' not realizing such a tax hike will do little to sustain these programs going forward," says Ron Tully, Vice President of National Tobacco. "This new tax is a huge gift to the same tobacco company that was sued in the late 1990's by the State of Texas, and the same company that recently lost an Appeal in the US Department of Justice case, for deceptive trade practices."

This bill changes the methodology of how smokeless tobacco is taxed, from being a tax on the manufacturer's list price to being a tax based on the weight of tobacco in the final retail package. . . .

Interestingly Philip Morris has managed to maintain an exemption from this new weight-based tax for its popular Black and Mild(R) cigar products. Texas will now have the unpopular distinction of being among only a few of the 50 states that have elected to switch to a punitive weight-based tax on many tobacco products."

"When doctors who have historically opposed smoking, stand with Philip Morris, you know it has got to be a bad deal for someone. If Philip Morris is supporting a tax on the tobacco industry, you also know it must be a good deal for them and the brands they sell. And it is," Tully says.

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When doctors who have historically opposed smoking, stand with Philip Morris, you know it has got to be a bad deal for someone. If Philip Morris is supporting a tax on the tobacco industry, you also know it must be a good deal for them and the brands they sell. And it is.
Ron Tully, Vice President of National Tobacco, on Texas' new tax on raw tobacco products.