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Japan Tobacco unveils 13 new brands ($$) 

Japan Tobacco, the world’s third biggest cigarette maker, on Thursday unveiled 13 new tobacco brands to add to its 100-plus stable, marking the single biggest product launch in its history.

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Former RJR executive to testify on smuggling 

A former executive at RJR-Macdonald Corp. has agreed to plead guilty to a criminal charge and testify against tobacco firms over allegations they profited from cigarette smuggling. Stanley Smith, a former vice-president of sales at RJR-MacDonald, will testify at a preliminary hearing in Toronto to determine if the Crown has enough evidence to take its case against Japan Tobacco Inc.'s JTI-MacDonald unit and other firms to trial, Mr. Smith's attorney Brian Heller told an Ontario court judge. . . .

JTI-MacDonald, a successor to RJR-Macdonald, and three companies that were associated with or were units of RJR Nabisco Holdings Corp. are accused of defrauding Ottawa of more than $1.2-billion in taxes and duties by exporting cigarettes to the United States, knowing they would be smuggled back into Canada for sale on the black market.

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• Tobacco Industry Joint Representations On “progressing Toward A Tobacco-free Quebec - Developing Quebec Anti-tobacco Legislation” (PDF) 

There can be no comparison between the potency of nicotine dependence and that of heroine or cocaine dependence.

Denormalization which brands the manufacture and use of products that are otherwise legal as “illegitimate” encourages and sanctions behaviour that is contrary to the law by inciting anti-smoking activists to attack the reputation and integrity of those who smoke or who manufacture tobacco products.

The government is not above the law and any attempt to interfere in the moral choices of citizens by encouraging such serious offences is bound to give rise to legal challenges.

The study cited by the Minister in support of the assertion that environmental tobacco smoke causes diseases such as lung cancer, emphysema or cardiovascular diseases does not bear out such a claim at this time, even according to the author of the study . . .

Rather than multiplying current legal restrictions and prohibitions, we hope that the Minister will recognize the validity of the alternatives proposed in this submission which are respectful of both smokers and non-smokers.

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• QUEBEC CONSULTATION DOCUMENT 

On February 25, 2005, Imperial Tobacco Canada Ltd. together with Rothmans Benson & Hedges Inc. and JTI-Macdonald Corp. filed a joint submission with the government in response to the Consultation Document. To learn more about Imperial Tobacco Canada Limited’s position, the Consultation Document may be accessed:

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Smoking addiction class action certified in Quebec 

The Honourable Pierre Jasmin of the Superior Court of Québec authorized two class actions today against the Canadian tobacco manufacturers. The decision cannot be appealed. Imperial Tobacco, Rothmans Benson & Hedges and JTI MacDonald will therefore face a trial on the merits on several important issues relating to their potential liability for damages and punitive damages for the manufacture and marketing of a toxic, addictive product.

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• Tobacco giant sues Quebec 

Claiming it is the victim of "abusive conduct," tobacco maker JTI-Macdonald Corp. has sued the government of Quebec for driving it into bankruptcy protection with a $1.36-billion tax bill three months ago.

"The [Revenue] Minister acted arbitrarily and for improper considerations for the politically expedient purpose of crushing JTI-Macdonald financially and make it virtually impossible for [the firm] to defend the [tax bill]," JTI said in a motion filed with Quebec Superior Court.

Quebec obtained a court judgment on Aug. 10 in favour of its tax assessment. It had alleged the firm -- the Canadian subsidiary of Japan Tobacco Inc. and Canada's oldest tobacco maker -- owed the province for cigarettes exported duty-free to the United States and then smuggled back to Canada through the Cornwall, Ont., area in the 1990s. Two weeks later the firm filed for creditor protection in Ontario after Quebec began seizing cash from its customers.

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JTI 3Q profit down 42% 

JT International Bhd's (JTI) net profit for the third quarter to Sept 30, 2004 fell some 42% to RM29.02 million from the RM41.14 million a year ago despite an 18% jump in revenue to RM242.16 million.

At pre-tax level, its profit was marginally higher at RM40.76 million compared with the RM38.65 million a year earlier.

For the nine months period, JTI posted improved net profit and turnover of RM78.85 million and RM606.92 million compared with RM66 million and RM529.02 million, respectively in the previous corresponding period.

In a statement on Nov 9, it said better pre-tax earnings for the third quarter were due to higher sales volume registered in the period coupled with the increase in cigarettes prices in both September 2003 and 2004.

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JTI seeks to annul Quebec tax debt 

Tobacco giant JTI-MacDonald Corp. has filed a motion in Quebec Superior Court seeking the annulment of a demand by the Quebec government to pay almost $1.4-billion in unpaid taxes.

The Quebec government has charged that Toronto-based JTI profited from contraband trade in cigarettes and did not pay taxes on profit from 1990 through 1998.

The federal government made the same allegation against about a dozen companies in a lawsuit filed in Ontario a year ago. All defendants fell under the R.J. Reynolds Holdings Inc. and Japan Tobacco Inc. groups, including JTI.

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Smokers closer to suing tobacco giants 

A hearing got underway in Montreal Thursday to determine whether two groups of Quebecers will be allowed to proceed with class action lawsuits against Canada's three big tobacco companies.

JTI MacDonald, Imperial Tobacco and Rothmans-Benson and Hedges are implicated in the class action lawsuits

One suit represents Quebecers addicted to tobacco products, the other is on behalf of Quebecers who suffered respiratory-related cancers from tobacco consumption.

If the province's superior court allows the cases go ahead, JTI MacDonald, Imperial Tobacco et Rothmans-Benson and Hedges could be sued up to $4 billion.

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Ontario Court Allots 5 Months to Decide If Tobacco Trial Needed 

An Ontario court plans to spend at least five months next year to determine if prosecutors have enough evidence to take Japan Tobacco Inc.'s Canadian unit and other tobacco companies to trial on charges related to the smuggling of cigarettes from the U.S. to Canada in the 1990s.

``Usually preliminary inquiries are much shorter, even in murder cases,'' said Nicholas Bala, law professor at Queen's University in Kingston, Ontario. ``But this is clearly a very complex case.''

Japan Tobacco's JTI-Macdonald Inc., three units of Reynolds American Inc. and eight former executives of the companies are accused of defrauding Canada of more than C$1.2 billion ($994 million) in taxes and duties by exporting cigarettes to the U.S., knowing they would be smuggled back into Canada for sale on the black market.

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Accused tobacco smugglers opt for jury trial 

A major Canadian tobacco company, accused of what police say is the biggest fraud in the country's business history, opted Thursday to be tried before a judge and jury.

Toronto-based JTI-MacDonald Corp., along with eight former senior executives, stands accused of smuggling cigarettes into Canada from the United States in the early 1990s.

In February 2003, police laid six counts of conspiracy to commit fraud over $5,000 and another of possessing the proceeds of crime.

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Enlightenment: A website with helpful hints on smoking 

I'm sure you'll be reassured to know that Japan Tobacco Inc., one of the world's largest tobacco manufacturers (annual revenue runs to a modest $37-billion [U.S.], more than the GDP of many nations), is working hard to make a difference. It says so on its website, under the banner of "corporate responsibility." It claims it is taking "action to address society's concerns about smoking," and is "committed to preventing youth smoking."

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BAT hits seven-month low on selling pressure 

British American Tobacco Bhd (M) Bhd (BAT) shares ended RM1.75 down at a seven-month low of RM44.50 yesterday under renewed institutional selling pressure.

The counter has lost 8.7% of its value in the past month on concerns that the new tough measures aimed at curbing the smoking habit among Malaysians would hurt the company's earnings.

"The market expects BAT to be hit the hardest,'' a fund manager said.

Analysts said the steep increase in the duty on cigarettes introduced in Budget 2005 and the ban on smaller packs would translate into lower profits for BAT and JT International Bhd (JIT) this year.

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Cigarette makers mount smokers' lobby 

Tobacco makers have set up an online association to be "a voice" for Canadian smokers and promote their rights as the non-smoking lobby calls for more smoking bans and governments increase taxes. The non-profit national smokers' organization will be based around a website, Mychoice.ca, and its policies will be driven by members, the Canadian Tobacco Manufacturers' Council said yesterday.

"Our research shows that adult smokers want to get involved in discussions about existing tobacco controls as well as new regulations that are on the table," council president Pierre Fortier said at a news conference.

"Positions will only emerge if adults who smoke use this platform to voice their issues," said Fortier, who is also vice-president of corporate affairs for Imperial Tobacco Canada Ltd.

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Judge continues court protection for JTI-Macdonald ($$) 

An Ontario judge has extended the bankruptcy protection granted to JTI-Macdonald Corp., the Canadian tobacco giant saddled with a whopping $1.36-billion tax bill from the province of Quebec.

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