Tobacco.org

• Smugglers Prosper in Spain’s ‘Perfect Storm’ for Tobacco  

Spanish smokers, squeezed by higher taxes and a deepening recession, are increasingly relying on smugglers to feed their habit.

Illegal imports now account for 7 percent to 8 percent of Spanish cigarette sales, compared with almost nothing a year ago, according to the country’s tobacconists association. In southern provinces such as Cadiz, Seville and Malaga, the proportion is 20 percent.

“Smuggling and fake tobacco, which had been eradicated since 1993, came back strongly last year,” said Jaime Gil- Robles, corporate affairs director at Altadis, the Spanish unit of Imperial Tobacco Group Plc. (IMT)

Smuggling, encouraged by a December 2010 increase in tobacco taxes and a ban on smoking in public places, has eroded both government coffers and company revenues. Spain, which has the European Union’s highest jobless rate, collected 14 percent less tobacco taxes in 2011 than a forecast of 9.05 billion euros ($12 billion), excluding value-added tax, according to Altadis.

Jump to full article »

• Smugglers Prosper in Spain’s ‘Perfect Storm’ for Tobacco  

Spanish smokers, squeezed by higher taxes and a deepening recession, are increasingly relying on smugglers to feed their habit.

Illegal imports now account for 7 percent to 8 percent of Spanish cigarette sales, compared with almost nothing a year ago, according to the country’s tobacconists association. In southern provinces such as Cadiz, Seville and Malaga, the proportion is 20 percent.

“Smuggling and fake tobacco, which had been eradicated since 1993, came back strongly last year,” said Jaime Gil- Robles, corporate affairs director at Altadis, the Spanish unit of Imperial Tobacco Group Plc. (IMT)

Smuggling, encouraged by a December 2010 increase in tobacco taxes and a ban on smoking in public places, has eroded both government coffers and company revenues. Spain, which has the European Union’s highest jobless rate, collected 14 percent less tobacco taxes in 2011 than a forecast of 9.05 billion euros ($12 billion), excluding value-added tax, according to Altadis.

Jump to full article »

Scottsville legislator goes to bat for burley  

A southcentral Kentucky lawmaker hopes that Kentucky burley is given its due when future trade agreements are negotiated between the United States and foreign countries.

"There is some discussion of excluding tobacco from the agreements," said state Rep. Wilson Stone, D-Scottsville.

On Tuesday, Stone filed a nonbinding House resolution that says Kentucky farmers need to have the same access to trade as other agriculture commodities. The measure is expected to be voted on soon. Sen. Paul Hornback, R-Shelbyville, filed the same resolution in the state Senate, signaling bipartisan support for the issue.

Stone said there have been rumors that President Barack Obama's administration wants to take tobacco out of the equation in the Trans-Pacific Partnership Agreement, a regional trade agreement between the U.S., Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam. Those negotiations are expected to finish this summer.

"It's not so much a price issue, because world markets determine that, but one of access," Stone said. "If you take tobacco out of those agreements, it will dearly hurt Kentucky and Kentucky's farmers,"

Jump to full article »

• PAHO Report Urges Higher Tobacco Taxes, Bans on Advertising  

A growing number of countries in the Americas are adopting effective measures to reduce consumption of tobacco and exposure to secondhand smoke. But a new report from the Pan American Health Organization/World Health Organization (PAHO/WHO) recommends further measures, particularly increases in tobacco taxes and bans on tobacco advertising, promotion, and sponsorship.

The new Tobacco Control Report for the Region of the Americas summarizes progress in countries’ implementation of the Framework Convention on Tobacco Control (FCTC), the world’s first international public health treaty, which requires States Parties to apply a series of policies and measures aimed at reducing tobacco consumption and protecting people from secondhand smoke. The treaty has been in force since 2005.

Of 35 countries in the Americas, 29 have ratified the FCTC, most recently, St. Vincent and the Grenadines and St. Kitts and Nevis.

Jump to full article »

Philip Morris, Lorillard Smoke Analysts Q4 Profit, Sales Forecasts, Gain Share PM LO  

Cigarette maker Philip Morris International (PM) beat fourth-quarterexpectations, while smaller rival Lorillard (LO) also recorded strong gains during the quarter and hiked its quarterly dividend.

Both companies claimed market share gains.

Philip Morris International, which was split off from Philip Morris USA in 2008, said earnings per share climbed 13% to $1.10, a penny above estimates. Revenue rose 9% to $7.7 billion.

The tobacco giant also issued an upbeat 2012 profit forecast. It sees full-year EPS of $5.25-$5.35, vs. $4.85 in 2011, the midpoint topping analyst projections by 11 cents.

Philip Morris shares jumped 3% to 80.39. Shares have climbed 33% from a closing price of 60.45 on Oct. 7.

Jump to full article »

Philip Morris, Lorillard Smoke Analysts Q4 Profit, Sales Forecasts, Gain Share PM LO  

Cigarette maker Philip Morris International (PM) beat fourth-quarterexpectations, while smaller rival Lorillard (LO) also recorded strong gains during the quarter and hiked its quarterly dividend.

Both companies claimed market share gains.

Philip Morris International, which was split off from Philip Morris USA in 2008, said earnings per share climbed 13% to $1.10, a penny above estimates. Revenue rose 9% to $7.7 billion.

The tobacco giant also issued an upbeat 2012 profit forecast. It sees full-year EPS of $5.25-$5.35, vs. $4.85 in 2011, the midpoint topping analyst projections by 11 cents.

Philip Morris shares jumped 3% to 80.39. Shares have climbed 33% from a closing price of 60.45 on Oct. 7.

Jump to full article »

Philip Morris's Strong Quarter Sets Up A Great Year  

Philip Morris (PM) was the Dow Jones Industrial Average's best performer in 2011, rising 34%. Including dividends, total shareholder return was 40%.

Can the stock continue to deliver in 2012 after last year's strong performance? So far, this year, the stock has been a laggard. I'm a shareholder and like the stock despite the 2011 run.

First, Philip Morris started the year off with a bang.

Jump to full article »

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

Jump to full article »

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

Jump to full article »

Philip Morris Climbs to Highest Since 2008 on Forecast  

Philip Morris International Inc. rose to the highest since its spinoff by Altria Group Inc. almost four years ago after forecasting profit this year that was higher than analysts estimated.

The world's largest publicly traded tobacco manufacturer gained 3 percent to $80.18 at 2:41 p.m. in New York after climbing to $80.99, the highest intraday price since March 2008.

Profit per share in 2012 will be $5.25 to $5.35, the New York-based company said today in a statement. The average estimate of 16 analysts surveyed by Bloomberg was $5.20.

Chief Executive Officer Louis Camilleri boosted shipments of Marlboro and the company's nine other biggest brands in 2011, leading to higher global market share for the fourth straight year. Philip Morris anticipates stronger growth in Asia in 2012, Camilleri told analysts today on a conference call.

Jump to full article »

Lorillard Exceeds, Ups Dividends - Analyst Blog  

Lorillard Inc. ( LO ) delivered better-than-expected fourth-quarter and fiscal year 2011 adjusted earnings of $2.20 and $7.88 per share, beating the Zacks Consensus Estimate of $1.96 and $7.65 per share, respectively. The results also exceeded the prior-year quarterly earnings by 26.4% and prior-year earnings by 16.2%.

The adjusted earnings exclude the favorable impact on tobacco settlement expense of $25 million. However, the adjusted results include the benefit of the company's share repurchase program which resulted in lower outstanding shares and thus contributed 22 cents and 63 cents per share to the increase in the earnings of fourth quarter and fiscal year 2011, respectively.

Jump to full article »

Star Scientific and Reynolds American Focus on New Tobacco Trends  

Tobacco stocks have been relatively flat in 2012 as the industry continues to negotiate strict regulations pushed by governments across the world. Tobacco manufacturers continue to focus more attention on their respective smokeless tobacco segments to offset the decline in cigarette demand. Thus far, this has benefitted margins industrywide. Five Star Equities examines investing opportunities in the tobacco industry and provides equity research on Star Scientific, Inc. (NASDAQ: CIGX - News) and Reynolds American, Inc. (NYSE: RAI - News). Access to the full company reports can be found at:

www.fivestarequities.com/CIGX www.fivestarequities.com/RAI

Global Industry Analytics, Inc. (GIA) recently issued a report, "Tobacco: A Global Outlook," arguing that dropping consumption of tobacco products across developed economies has prompted tobacco companies to augment their focus on developing markets, "which have been exhibiting positive trends." Moreover, GIA says that new Low Tar Cigarettes are expected to do well in the market with the industry being optimistic to "sail through" the disturbing phase.

Jump to full article »

Star Scientific and Reynolds American Focus on New Tobacco Trends  

Tobacco stocks have been relatively flat in 2012 as the industry continues to negotiate strict regulations pushed by governments across the world. Tobacco manufacturers continue to focus more attention on their respective smokeless tobacco segments to offset the decline in cigarette demand. Thus far, this has benefitted margins industrywide. Five Star Equities examines investing opportunities in the tobacco industry and provides equity research on Star Scientific, Inc. (NASDAQ: CIGX - News) and Reynolds American, Inc. (NYSE: RAI - News). Access to the full company reports can be found at:

www.fivestarequities.com/CIGX www.fivestarequities.com/RAI

Global Industry Analytics, Inc. (GIA) recently issued a report, "Tobacco: A Global Outlook," arguing that dropping consumption of tobacco products across developed economies has prompted tobacco companies to augment their focus on developing markets, "which have been exhibiting positive trends." Moreover, GIA says that new Low Tar Cigarettes are expected to do well in the market with the industry being optimistic to "sail through" the disturbing phase.

Jump to full article »

PARTIAL LISTING OF KEY SCIENTISTS AND ACADEMICIANS SUPPORTING THE ADVANCEMENT OF SOUND SCIENCE COALITION (TASSC) (PDF) 

Collection Philip Morris

Pages 13

. . .

Dr. James E. Enstrom

Associate Research Professor

School of Public Health

University of California . . .

Dr. Michael R. Fox

Principal Engineer

American Nuclear Society . . .

Dr. Gary L. Huber

Director

Nutrition Unit, Department of Medicine

University of Texas Health Center . . .

Mr. Peter Huber

Senior Fellow

Manhattan Institute . . .

Jump to full article »

WILLIAMS: Tobacco ban wouldn't be most effective step 

According to researchers, more than 1 in 5 high school and middle school students are passengers in cars while others are smoking. (One caveat: In the case of the high school students, the study did not determine if they were in cars with their parents or their peers.)

The study, based on national surveys in schools, and released by the CDC Monday, reports that more than 22 percent of teens and preteens were exposed to secondhand smoke in cars in 2009. That's the latest year that data are available, according to the Associated Press, but we doubt it has changed much, except perhaps to rise. . . .

Smoking is a bad habit. Smokers know it. But turning smokers into criminals isn't the answer. Raising cigarette prices has been somewhat effective, although that has created a black-market trade that will only get worse.

Attempts at prohibition didn't work with alcohol. And let's be honest: It hasn't worked with drugs. Why would we expect it to work with tobacco?

Education would be a more worthy effort, if we spent as much time ― and funding ― on discussion as we spend trying to dictate individual behavior.

Jump to full article »