Tobacco.org

• Court rules Ontario must wait for payment in tobacco case 

The Ontario government will have to wait for its share of a $350-million settlement reached in 2008 with Imperial Tobacco Canada Ltd. after the cigarette maker admitted it had participated in smuggling tobacco into Canada across the U.S. border.

The Ontario Court of Appeal ruled this week that Imperial Tobacco can defer payments it owes to Ontario and instead put the money into an escrow account while an arbitrator decides on a dispute over the payments.

The case stems from a deal approved in July, 2008, when two of Canada's biggest tobacco companies agreed to pay $1.15-billion in criminal and civil penalties for co-ordinating the shipment of cigarettes to the United States in the 1980s and 1990s that were then smuggled back into Canada and resold at discount prices to avoid Canadian taxes on tobacco.

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LETTER: SHATENSTEIN: Regulating tobacco 

"" Re: "Tobacco-control focus should shift to the black market" (Opinion, June 3).

When John Clayton, corporate and regulatory affairs VP for Imperial Tobacco Canada, a firm responsible for so many of those deaths, starts scolding the Quebec Coalition for Tobacco Control on "the unintended consequences of failed 'good' (tobaccocontrol) policies," a little perspective is required.

Yes, contraband cigarettes constitute a lawenforcement problem, and yes, government action has been inadequate. But every cigarette smoked, whether obtained from legal or illicit sources, does harm to smokers and to those who care about them or are merely in their presence. Active tobacco use kills. Passive smoking kills.

Clayton represents the interests of a company and an industry whose products lead directly to the deaths of 37,000 Canadians every year, almost one-third of that number here in Quebec.

No one needs policy advice from a company that chooses to market products that kill off fully one-half of all long-term consumers.

What we need is more and better regulation of the only legal product that kills when used precisely as intended by the manufacturer.

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CLAYTON: Tobacco-control focus should shift to the black market 

In her Opinion piece in The Gazette May 31 ("Smoking: no to complacency"), Flory Doucas ignores the unintended consequences of failed "good" policies given the emergence of a thriving black market. A closer look at the situation reveals a reality much different than the one described by Doucas. . . .

I know that many readers will not agree with our views on this situation. Some will probably accuse us of trying to deflect attention from our own troubles. Others may even suggest that government needs to address both the legal and illegal markets. Fair enough. But does anyone truly believe that the nation's policy-makers have meaningful solutions to the new tobacco reality of today? Does anyone believe that governments have the political will to address publicly the source of the problem: the more than 50 illegal factories and more than 300 smoke shacks on First Nations land? Unfortunately, we remain doubtful, and without action these numbers will only increase in future years.

Politicians see tobacco as an easy win. They should open their eyes and see that the real tobacco problem in Canada is not the regulated and enforced legal industry, where already more than 200 laws and regulations exist, but rather the unregulated and growing illegal black market. Times have changed, and tobacco control must change, too. If not, government may succeed in handing over the tobacco trade to the underground and criminal market - a free-for-all market that is unregulated, unenforced and untaxed.

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• Tobacco lawsuit could impact enforcement  

A newly launched $1.5-billion lawsuit against contraband tobacco manufacturers across Canada could change the way the RCMP attempts to snuff out the trade of illegal cigarettes.

Cpl. Robert Fullerton of New Brunswick's RCMP customs and excise unit says a lawsuit by Canada's largest tobacco company Imperial Tobacco Canada Ltd. may shift greater police focus to eliminating illegal smokes at the source.

"It might change the way we do enforcement," Fullerton said. "Right now we seem to be more concentrated on the end users than the manufactures.

"Maybe this is going to see the government force us to target the manufacturing more."

Imperial Tobacco launched the lawsuit this month against what it labeled as contraband tobacco manufacturers and retailers on First Nations reserves.

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Brant calls big tobacco lawsuit 'frivolous'  

Shawn Brant is fuming about being the target of a multi-billion dollar big tobacco lawsuit.

The Tyendinaga Mohawk Territory activist has been listed on a $1.5 billion lawsuit launched by tobacco giants Imperial Tobacco Canada, against what the company call contraband First Nations tobacco manufacturers and retailers.

Brant, who co-owns the Two Hawks tobacco store in Tyendinaga, said he was served with papers by Imperial about two weeks ago.

Imperial Tobacco is among a group of big tobacco companies who are currently facing legal heat from the Ontario government.

Imperial, Philip Morris, Altria Group, Rothmans and Benson & Hedges are all part of a $50 billion court case aimed at the tobacco industry.

The companies fired back by levelling third-party claims last month against First Nations tobacco manufacturers in Tyendinaga, Ont., Six Nations, Ont. Kahnawake, Que., Akwesasne, N.Y., New Credit, Ont., Mashteuiatsh, Que., and Odanak, Que.

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Letter to the Editor from Imperial Tobacco Canada - "World No Tobacco Day" 

FOR YOUR CONSIDERATION AS AN OP-ED

By John Clayton Vice-President, Corporate and Regulatory Affairs Imperial Tobacco Canada

"World No Tobacco Day" is celebrated every year on May 31.  No doubt, politicians across the country will once again this year join anti-tobacco activists under the campaign banner of a Tobacco Free World.  After all, isn't beating up on Big Tobacco and Canadian smokers always viewed as an easy political win?

But when the photo-ops finish this week, Imperial Tobacco Canada, the nation's largest legal tobacco company, has a more difficult question to ask our nation's policy makers:  do you have a clear and comprehensive tobacco control strategy that recognizes the dual realities of Canada's legal and illegal tobacco markets, and also considers the potential unintended consequences of failed "good" policies given the emergence of a thriving black market?

Those of us who work in the legal tobacco industry do not see such a strategy. In fact, here's what we do see:

+ We see provincial governments, with inexplicable disregard for basic market principles, pushing tobacco taxes well past the tipping point . . .

Politicians see tobacco as an easy win. We ask them to open their eyes and see that the real tobacco problem in Canada is not the regulated and enforced legal industry, where already over 200 laws and regulations exist, but rather the unregulated and growing illegal black market.  Times have changed and tobacco control must change too.   If not, government may succeed in handing over the tobacco trade to the underground and criminal market - a free-for-all market that is unregulated, unenforced and untaxed. . . .

We know that many readers will not agree with our views on this situation. Some will likely accuse us of trying to deflect attention from our own troubles. Others may even suggest that government needs to address BOTH the legal and illegal markets. Fair enough. But does anyone truly believe that the nation's policy makers have meaningful solutions to the new tobacco reality of today? Does anyone believe that governments have the political will to address publicly the source of the problem: the more than 50 illegal factories and over 300 smoke-shacks on First Nations land? Unfortunately, we remain doubtful and without action these numbers will only increase in future years.

Politicians see tobacco as an easy win. We ask them to open their eyes and see that the real tobacco problem in Canada is not the regulated and enforced legal industry, where already over 200 laws and regulations exist, but rather the unregulated and growing illegal black market. Times have changed and tobacco control must change too. If not, government may succeed in handing over the tobacco trade to the underground and criminal market - a free-for-all market that is unregulated, unenforced and untaxed.

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The use of a novel tobacco treatment process to reduce toxicant yields in cigarette smoke 

The US Institute of Medicine has encouraged the pursuit and development of potential reduced-exposure products (PREPs) – tobacco products that substantially reduce exposure to one or more tobacco toxicants and can reasonably be expected to reduce the risk of one or more specific diseases or other adverse health effects. One potential approach is to reduce levels of some smoke toxicant precursors, such as proteins and polyphenols, in tobacco. We describe a treatment process involving aqueous tobacco extraction and treatment with protease; filtration of the extract to remove peptides, amino acids and polyphenols, and recombination of extract and treated tobacco. The process reduced levels of protein nitrogen (59%), polyphenols (33–78%) and nicotine (12%) while sugars increased 16%. ISO mainstream smoke yields of 43 toxicants were measured from cigarettes containing treated tobaccos; lower yields of tar, nicotine, carbon monoxide (16–20%), acrylonitrile, ammonia, aromatic amines, pyridine, quinolene and hydrogen cyanide (33–51%), tobacco specific nitrosamines (25–32%); phenolics (24–56%), benzene (16%), toluene (25%) and cadmium (34%) were obtained. There were significantly increased yields of formaldehyde (49%) and isoprene (17%). Reductions in sidestream yields of nitrogenous smoke toxicants and increases in sidestream yields of several carbonyls, benzo(a)pyrene and isoprene were also observed.

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• Reducing tobacco toxicants / Treatment removes harmful proteins, polyphenols 

RESEARCHERS have developed a novel process that they claim reduces the levels of certain dangerous chemicals found in cigarette smoke.

The scientists, working for British American Tobacco and its subsidiary Imperial Tobacco Canada, hoped to remove toxicants generated when proteins and polyphenols burn in tobacco.

The team said: “The most promising approach to achieving substantial specific reductions in particulate toxicants from a conventionally structured cigarette is to modify the tobacco.

“However, decreases in one toxicant or set of toxicants are often offset by increases in [others]. To avoid this it would be useful to be able to identify and remove precursors to smoke toxicants from the tobacco leaf.” . . .

However, Chris Proctor, chief scientific officer at British American Tobacco, cautioned that: “Even if you can reduce the levels of a significant number of toxicants in tobacco smoke, there is no guarantee that this will result in reduced exposure in people or result in a reduction in health risks.” . . .

Food Chem Toxicol doi: 10.1016/j.fct.2011.02.015

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Pricing change may butt out small retailers  

What's good news for London smokers may be bad for many small retailers as Canada's biggest tobacco company moves to drive down cigarette prices.

As of Nov. 1, Imperial Tobacco launched a new pricing program that gives about 10,000 retailers, roughly a third of all stores, a $5-a-carton price break they're supposed to pass along to consumers.

Retailers who get the deal agree not to sell above a maximum price but can decide to sell for less.

The other retailers, though, are just out of luck.

Now, the Ontario Korean Businessmen's Association (OKBA) is fighting back, saying all convenience stores will be forced to slash cigarette prices and lower profit margins to remain competitive -- and some could go under.

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• Imperial Tobacco offers price break  

What's good news for London smokers may be bad for many small retailers as Canada's biggest tobacco company moves to drive down cigarette prices.

As of Nov. 1, Imperial Tobacco launched a new pricing program that gives about 10,000 retailers, roughly a third of all stores, a $5-a-carton price break they're supposed to pass along to consumers.

Retailers who get the deal agree not to sell above a maximum price but can decide to sell for less.

The other retailers, though, are just out of luck.

Now, the Ontario Korean Businessmen's Association (OKBA) is fighting back, saying all convenience stores will be forced to slash cigarette prices and lower profit margins to remain competitive -- and some could go under.

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STILL NOT CONVINCED CONTRABAND TOBACCO IS AN ISSUE IN CANADA? 

Imperial Tobacco Canada Limited (ITCAN) today pointed to two recent seizures of over 20 million illegal cigarettes to remind Members of Parliament that they have not yet addressed Canada's illegal tobacco crisis.

On January 6, the RCMP reported a seizure of 14 million illegal cigarettes in Hobbema, Alberta, and also announced a seizure of a tractor trailer load of 6.3 million illegal cigarettes in the Cornwall area of Eastern Ontario.

"The Alberta seizure is a welcome first step and it is now time for governments to shut down all illegal cigarette factories operating in Canada," said John Clayton, vice president, Corporate Affairs. "Unfortunately, the Ontario government has yet to announce a strategy to fight contraband and we have only seen empty promises from the Federal government," he added.

ITCAN is particularly frustrated that the Minister of Health has failed to act on her September pledge to make illegal tobacco a priority.

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Contraband Cigarettes Canada’s ‘Real tobacco problem,’ Says Company 

Imperial Tobacco Canada Ltd. says Health Minister Leona Aglukkaq should instead tackle the illegal cigarette trade, Canada's "real tobacco problem," as she promised to do in September.

"Three months ago, the Minister of Health said illegal tobacco was her priority. However, she has done nothing to crack down on the illegal trade since then. Instead, she caved in to the pressure of a handful of anti-tobacco groups," says John Clayton, Imperial Tobacco's VP of corporate affairs.

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• CANADA'S HEALTH MINISTER CHOOSES TO IGNORE TODAY'S REAL TOBACCO PROBLEM 

Impérial Tobacco Canada Limited today lamented the Minister of Health's decision to abandon her commitment to tackle the nation's contraband tobacco problem and imposing new regulations on the legal tobacco industry.

"This announcement is simply poor policy for political gain and has little to do with its stated health objectives," said John Clayton, vice president, Corporate Affairs.

Since 2006, illegal cigarettes have made up between 18-33% of the national market with rates soaring to as much as nearly half of the market in Ontario. The RCMP has reported recently there are now 50 illegal cigarette factories and over 300 smoke shacks selling tobacco on First Nations reserves in Canada. After announcing in September that tackling illegal tobacco was her priority, special-interest anti-tobacco groups lobbied the Minister heavily to focus on increasing the size of health warnings on legal products. Most of these groups are funded by her own department.

"Three months ago, the Minister of Health said illegal tobacco was her priority. However, she has done nothing to crack down on the illegal trade since then.

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Graphic cigarette warnings ignore contraband problem: Tobacco company  

The federal government's intention to launch updated, larger and more graphic health warnings on cigarette packs is being applauded by anti-smoking and health advocates. But one tobacco company is questioning whether Thursday's announcement evades a bigger problem — the sale of contraband cigarettes.

"Health Canada is ignoring the real tobacco problem in Canada today, and has decided to put further regulations on a legal industry that is already operating with a ton of regulations," said Eric Gagnon, a spokesman for Imperial Tobacco.

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• Imperial Tobacco denies sparking price war 

The cost of buying a package of cigarettes is at the centre of a controversy in the Maritimes, where Imperial Tobacco has come under fire for its new discounting program. (CBC)Imperial Tobacco Canada Ltd. has denied starting a price war for cigarettes in the Maritimes despite concerns by some store owners, another tobacco company and the Canadian Cancer Society.

The reaction comes after Imperial Tobacco introduced a discount program, called the expansion preferred pricing program, in November. It has been offered to about one-third of retailers in Nova Scotia.

As a result, some cigarettes are being sold for as much as 50 cents less per package in 621 stores across the Maritimes.

Sid Chedrawe, a convenience store owner in Dartmouth, N.S., said he was not invited to participate in the program.

"You are only given the opportunity to join this program by invitation and there's just something that seems at odds with fair competition rules that we have here in Canada," he told CBC News.

Eric Gagnon, a spokesman for Imperial Tobacco, said the program is designed to encourage competitive pricing, and it's up to store owners to decide how much of a discount — if any — is offered to customers.

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