Tobacco.org

Philip Morris Increases Cigarette Prices By Nearly 7% 

Starting today, Philip Morris International Korea will increase its cigarette prices by nearly 7-percent on average. Its flagship brands such as Marlboro, Parliament and Lark will be sold at 2,700 won roughly 2-dollars-and-40-cents a pack, up 200 won. In April and May last year, British American Tobacco Korea, the No. 2 player in the local market, and Japan Tobacco International Korea relayed their price hikes on Dunhill, Kent, Mild Seven and other products by 200 won in general to cope with surging raw material and labor costs. Korea’s tobacco giant, KT&G Corporation however, is set to freeze its cigarette prices for the time being

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BAT to roll out strong cigarettes  

British American Tobacco Korea plans to introduce a stronger version of its Lucky Strike cigarettes to boost the nascent brand's presence in the market, the local unit of the multinational group said Monday.

The latest product, Lucky Strike Original Filters, will provide a richer and bolder taste than the previous version, and features cork-tipped filters with modern, black packaging, the company said.

A pack contains 8 milligrams of tar and will be sold for 2,500 won ($2.20) starting Wednesday.

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British American Tobacco International announces management changes  

Jose Benikes, currently Managing Director of British American Tobacco International and Head of Global Accounts & the Global Customer Engagement Unit based in Zug, Switzerland, is to move to another senior position in Trade Marketing & Distribution within the British American Tobacco Group.

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BAT to roll out strong cigarettes  

British American Tobacco Korea plans to introduce a stronger version of its Lucky Strike cigarettes to boost the nascent brand's presence in the market, the local unit of the multinational group said Monday.

The latest product, Lucky Strike Original Filters, will provide a richer and bolder taste than the previous version, and features cork-tipped filters with modern, black packaging, the company said.

A pack contains 8 milligrams of tar and will be sold for 2,500 won ($2.20) starting Wednesday.

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• Danish nicotine case to go to Supreme Court  

A former smoker is to appeal against a Danish Eastern High Court ruling dismissing allegations that two tobacco companies manipulated nicotine contents, according to an Esmerk Danish News story.

Allan Lykken Jensen alleged that the Scandinavian Tobacco Group and British American Tobacco had manipulated the nicotine content of Prince cigarettes.

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• Tobacco companies are biggest political spenders 

New figures have revealed the political spending of tobacco companies, the mining industry and clubs as they fought to reverse government policy in the past financial year.

The Australian Electoral Commission (AEC) has released financial disclosure returns that show the donations of more than $11,500 made to political parties and the political expenditure of donors.

Large tobacco companies spent about $14 million as they fought against the Federal Government's plain packaging laws.

British American Tobacco, Phillip Morris and Imperial Tobacco gave a total of $9 million to the Alliance of Australian Retailers, which led the campaign against the laws.

Imperial Tobacco also separately spent more than $4 million fighting the move with printed material and broadcast advertising and Philip Morris added to that with nearly $500,000.

The Coalition also received donations worth $184,000 from British American Tobacco and $79,000 from Philip Morris.

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Libs still taking Big Tobacco's blood money ... Heat on Wightman 

The Tasmania Greens today said it was disappointing but unsurprising that the Tasmanian Liberal Party had received another large cash handout from their friends at Big Tobacco.

Greens Leader Nick McKim MP said that today's release of the previous year's political donations report by the Australian Electoral Commission (AEC) showed that the Liberals received $22,000 from British American Tobacco and $15,900 from Phillip Morris.

Mr McKim said the figures could be the tip of the iceberg, because current disclosure laws do not require political parties to provide a complete or up-to-date picture of the donations they receive.

"As the only state party still accepting tobacco company political donations, any credibility the Liberals might have sought on public health policy has gone up in smoke," Mr McKim said.

"British American Tobacco, Phillip Morris and the Tasmanian Liberal Party continue to be friends-with-benefits, which explains the Liberals' reprehensible stance against a ban on tobacco company donations."

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Benson & Hedges introduces limited edition ‘tailoring range’ 

JTI is introducing three limited edition pack (LEP) designs for its iconic, premium cigarette brand, Benson & Hedges Gold.

The three packs, which feature both intricate exterior and interior patterns of herringbone, paisley and chequered is a first for Benson & Hedges. The specialised inner frames have been incorporated in full colour adding a modern twist to the packs – blue (chequered), green (paisley) and red (herringbone).

The Benson & Hedges ‘tailoring range’ will be rolled out across all channels from 1 February. All three packs will be available for four weeks only while stocks last.

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• Tobacco firms oppose proposal to raise tax rates 

The Institute of Legislative Affairs (ILA) is proposing that the Treasury increase taxes on cigarettes to an effective rate of 70 per cent, the internationally recommended level by the World Health Organisation (WHO).

“Taxes account for 55 per cent of the cigarette prices in Kenya, which is much lower than the WHO recommended threshold of 70 per cent,” said the ILA last week, citing countries like Thailand, at a pre-budget hearing organised by the Institute of Economic Affairs.

British American Tobacco (BAT) Kenya and Mastermind Tobacco opposed the proposal claiming it would increase cigarette smuggling by tax evaders. “This issue should be looked at in the context of the implications on the entire tobacco industry. Experience in other countries, Canada being one such example, has shown that such initiatives lead to significant increases in consumer pricing leading to the growth of illicit trade,”

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Tobacco stocks prove hard habit to kick 

British American Tobacco and Imperial Tobacco have failed to beat the FTSE 100’s annual performance only four times since 1999. The total returns over the past decade are second only to mining, and with much lower volatility, meaning the tobacco makers’ reputation as defensive has been well earned.

Spending £1,000 on BAT or Imperial in that year would by now have returned £9,370 and £6,340 respectively, including gross dividends, compared with a £1,510 total return for the FTSE 100 as a whole.

But, recently, their defensive strength has shown signs of weakening. BAT and Imperial shares were sidelined during the FTSE 100’s rally from an 18-month low since October, and are both in negative territory for the year so far. “It appears that, like a smoker trying to kick the habit, investors attempt giving up on the sector each new year, perhaps trying to convince themselves that they are better off without it,” says JPMorgan Cazenove analyst Rae Maile. “Last year it was not long before the cold sweats set in, and the comforting presence of cigarettes in portfolios was sought again. This year may well prove little different.”

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Philip Morris Vs. Other Tobacco Companies: Growth Potential Plus Current Yield Solidifies Long Case 

Since my first article "Southern Copper vs. Freeport-McMoRan: Higher Yield Tips The Scales" was well received by a lot of people for its short and precise format, I would like to proceed with these "Stock A vs. Stock B" articles as a series, if I continue to receive good feedback about the format and the series in general. For those of you who did not read the first article of this series, I do not intend to slam any stock. I just present my analysis and would appreciate any constructive feedback and discussion in the comments section.

Part 2 of this series involves Philip Morris International (PM) vs. Altria (MO) vs. Lorillard (LO) vs. British American Tobacco (BTI). I've purposefully left out Reynolds American (RAI) from the article to keep the balance: two US only companies (MO and LO) and two International companies (PM and BTI). Also, I've ignored small(er) cap companies like Vector Group (VGR) and Universal Corporation (UVV). I mentioned in my first article that I would not cover the same points in the pros and cons of the companies I am dealing with, but its particularly difficult in this case as it involves 4 stocks. So, one or two points might get repeated but I believe those are really needed to drive the point home. So here we go.

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Research and Markets: Company Profile of British American Tobacco - The Second Largest International Tobacco Company in the World 

Research and Markets (http://www.researchandmarkets.com/research/a0117b/british_american_t) has announced the addition of the "British American Tobacco Plc In Tobacco (World )" company profile to their offering.

"British American Tobacco Plc In Tobacco (World )"

Company Profile of British American Tobacco - The Second Largest International Tobacco Company in the World

Euromonitor International's British American Tobacco Plc in Tobacco (World ) Company Profile offers detailed strategic analysis of the company's business, examining its performance in the Tobacco industry. The report examines company shares by region and sector, product developments, market and distribution strategies, challenges from the competition and future prospects. Use it to understand opportunities and threats facing the business and the factors driving success.

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Big tobacco hits back at Labor over 'cancer kangaroo' ads ($$) 

TOBACCO giant BAT has questioned the timing of a Labor attack on the use of a kangaroo logo on its cigarette packets in Europe, saying the image had been used for about a decade.

Amid a bitter row between the industry and the Gillard government over its plain packaging laws, British American Tobacco said the kangaroo had long been associated with its Winfield brand sold in France.

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Tobacco brand attacked for using kangaroo image to sell cigarettes  

The Gillard Government has attacked British American Tobacco as "sneaky" for using a kangaroo and a map of Australia to brand cigarettes in Europe.

The Winfield packets feature a picture of a kangaroo on the front, with a map of Australia and the words "An Australian Favourite".

The use of the images on Winfield packets has been criticised as misleading and a possible payback for Australia's fierce anti-tobacco campaign.

Australia is set to introduce new plain-packaging measues - believed to be the world's toughest anti-tobacco laws - which will ban logos and branding on cigarette packets from later this year. BAT and several other tobacco firms have launched legal action against the laws.

The Winfield packets feature a picture of a kangaroo on the front, with a map of Australia and the words "An Australian Favourite".

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• Australia's national symbol used to sell cigarettes in Europe 

BIG tobacco is exploiting one of Australia's national symbols so it can sell more cigarettes in Europe.

British American Tobacco is using an image of a kangaroo on some European Winfield packets with the phrase "An Australian Favourite".

The product has even been sold in the European Parliament shop in France, as BAT cashes in on our international reputation.

One anti-smoking advocate dubbed the kangaroo symbol, almost identical to that on road signs, the "cancer kangaroo".

The new branding comes as the global tobacco giant prepares a legal battle against the Gillard Government's plain-packaging laws in Australia.

The Government said BAT's "sneaky" branding showed why plain packaging of cigarettes was needed.

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