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Your editorial and its headline did not acknowledge the different actions taken by the nation's leading tobacco companies with regard to regulation of tobacco products by the Food and Drug Administration.
Altria Group, parent company of Philip Morris USA, the nation's largest cigarette manufacturer, and U.S. Smokeless Tobacco Company, the largest smokeless tobacco manufacturer, supported the enactment of legislation granting the F.D.A. such authority for more than eight years.
Further, while we have repeatedly voiced concerns about the constitutionality of certain provisions in the bill, none of our companies are party to the lawsuit filed by other tobacco companies. We are currently monitoring the litigation and seeking ways to work constructively with the F.D.A. in resolving those concerns.
We feel that it is a disservice that you did not mention that two of the largest tobacco operating companies in the United States are not a part of the "Big Tobacco" action about which you wrote. We respectfully ask that any future articles reflect the differences between the positions and actions of companies in our industry.
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At least 15,000 purchasers of chewing tobacco in Massachusetts could be eligible for a piece of a $10.65 million class action settlement with U.S. Smokeless Tobacco Co., according to a lawyer for plaintiffs who sued the company.
The plaintiffs’ legal team, which had alleged that UST artificially inflated the cost of chewing tobacco through its large market share, has launched a Web site to explain to consumers how they can access their share of the settlement.
Frequent purchasers of chewing tobacco could be eligible to get up to $700 depending on how many UST products – which include the Copenhagen and Skoal brands – they purchased from Jan. 1, 1990, through May 21. Infrequent purchasers could get $25 to $100.
Robert Bonsignore, one of the lawyers who represented the plaintiffs, said he was initially approached by chewing-tobacco users about filing a lawsuit after Conwood, a competitor of UST’s, had made similar claims against the company.
Suffolk Superior Court Judge Stephen Neel is expected to approve a $10.65 million Mass. settlement today of a class-action lawsuit filed against the U.S. Smokeless Tobacco Co. for price fixing.
"This is the largest settlement per consumer in the country in a case involving price fixing for smokeless tobacco," said Robert Bonsignore, the attorney who represented Massachusetts consumers. "It wasn't bad enough that they have more than 80 percent of the market share on a product that is more addictive than heroin, they also fixed the price."
According to a recent Zogby poll, Americans believe media bias is alive and well. Almost 2 out of 3, or 64 percent, say the media lean left. . . .
This perception is really nothing new. My father, Dr. Louis S. Hansen, was vice chairman of the Division of Forensic Pathology, School of Medicine, at the University of California, San Francisco. He was considered a world authority on diseases of the mouth, especially oral cancer. This background often led to him being called as an expert witness in civil litigation.
One of his most famous trials took place in 1986 in Oklahoma City. The case involved a 19-year-old youth named Sean Marsee, who had died from cancer of the tongue. His mother sued the U.S. Tobacco Company, claiming her son's death was a result of using snuff.
My father testified for the tobacco company . . .
The story was followed nationally and picked up by several newspapers. It also found a place on "60 Minutes" and in Readers Digest.
Whether the public got the full story or not depended upon what media outlet was used. The most accurate and complete accounts were found in Southern newspapers. For example, the Dallas Morning News, via an Associated Press story by Judy Gibbs, reported the trial evidence, including testimony by University of Texas professor Dr. John Helfrick, who agreed with Hansen's conclusions. . . .
Were the facts in the Washington Post story accurate? Yes. Did the writer leave out important information as to how the jury reached its conclusion? Yes. Did the story lead the reader to believe the jury may have had erred in its decision -- or that justice had not been served? You be the judge.
Perhaps Mark Twain was correct when he said, "If you don't read the newspaper, you're uninformed. If you read the newspaper, you're misinformed."
On the other hand, a Washington Post story, also picked up by The Sacramento Bee, on June 21, 1986, failed to mention any of the specific facts presented at trial by the two professors. Instead, comments were made such as " ... the tobacco industry has never lost or settled a product-liability lawsuit," and "Two of the four women jurors cried ... "
The nation's largest maker of smokeless tobacco products is now operating its business from Altria Group Inc.'s Henrico County headquarters campus.
About 80 employees of U.S. Smokeless Tobacco Co., the former UST Inc. which Altria bought in January, are moving to the Richmond area, company president Dan Butler said today.
That includes employees from UST's former headquarters in Stamford, Conn. which is closing this year.
About 50 employees are now working at Altria's headquarters annex on West Broad Street, and 30 more are scheduled to arrive this summer to work in Altria's research and technology center in downtown Richmond.
The top cigarette company in the nation is also its top seller of smokeless tobacco.
Henrico County-based Altria Group Inc., the parent company of cigarette maker Philip Morris USA, said yesterday that it completed its $10.4 billion acquisition of UST Inc., maker of the top-selling premium moist snuff brands Skoal and Copenhagen.
The acquisition, which includes the assumption of $1.3 billion in debt, gives Altria a leading position in the growing smokeless-tobacco category and a platform for potential growth as cigarette consumption declines in the United States.
Altria has said the smokeless category, worth $3.7 billion in the U.S. in 2007, has grown 6 percent or 7 percent in the past two years.
UST's operating units -- its smokeless-tobacco business and its premium-wine subsidiary, Ste. Michelle Wine Estates Ltd.-- are subsidiaries of Altria, which is planning to cut about $250 million in expenses by combining administrative functions.
The integration plan includes closing UST's Stamford, Conn., headquarters by the end of this year and moving the management operations to Altria's headquarters annex on West Broad Street
Altria Group Inc. (MO) on Tuesday completed its $10.4 billion acquisition of UST Inc. (UST), after lenders requested that the closing take place in early 2009.
The delay, requested in October, reflected turmoil in the credit markets and not the fundamentals of the tobacco industry, an analyst said at the time.
Holders of smokeless-tobacco producer UST's common shares will receive $69.50 a share in cash. UST's common shares will no longer trade on the New York Stock Exchange.
Under the deal, Altria also will assume $1.3 billion of UST debt.
UST Inc. (NYSE: UST) announced that earlier today, during a special shareholder meeting held in New York, a majority of its shares were voted to approve the company's acquisition by Altria Group, Inc. (NYSE: MO).
The transaction, which is expected to close during the first full week of January 2009 and no later than January 7, calls for UST shareholders to receive $69.50 in cash for each share held of outstanding UST common stock. Upon closing, UST will become a wholly-owned subsidiary of Altria. On October 16, 2008, the companies announced that Altria's proposed acquisition of UST passed federal antitrust review.
"We are pleased that an overwhelming majority of shareholders agreed with the Board that this transaction is clearly in the best interests of shareholders," said Murray S. Kessler, UST chairman and chief executive officer. "With federal antitrust review and shareholder approval now secured, we look forward to closing the deal in early January."
The vast majority of Utah legislators are devout members of the LDS Church, which counsels against the use of tobacco, and the bills they pass often reflect their religious affiliation. But many of these same lawmakers have no compunction about taking money from tobacco companies.
The Altria Group, parent company of the Phillip Morris tobacco conglomerate, just reported to the lieutenant governor's office that it dumped $42,000 into campaign funds this election cycle, covering both 2007 and 2008.
Besides the 31 representatives and eight senators - Republicans and Democrats - who directly benefited, the House Republican Caucus received $2,500, the House Conservative Caucus got $2,500, the House speaker's political action committee got $5,000, the Senate Republican Caucus $5,000, the Salt Lake County Republican Party $3,000, the Utah County Republican Party $2,500, the Utah Republican Party $2,000, the Senate Democratic Caucus $3,000, the House Democratic Caucus $1,500 and Utah Attorney General Mark Shurtleff $3,000.
Talk about hedging your bets. . . .
All that good corporate cheer may be paying off.
Altria was in the process of buying U.S. Smokeless Tobacco Company last legislative session when Rep. Rebecca Lockhart, R-Provo, sponsored a bill to change the way smokeless chewing tobacco was taxed in Utah. Instead of 35 percent of the wholesale price, her bill would tax each can by weight. Since most brands come in 1.2-ounce cans, they all would be taxed the same - 90 cents per can.
That benefited USTC, and its buyer Altria, because they produce Skoal and Copenhagen, the two most popular, and pricey, brands of chewing tobacco. The tax change would reduce the companies' state tax obligation by 15 cents per can, while the cheaper brands made by their competitors would see a tax increase. . . .
Those corporate campaign contributions could pay off in the coming legislative session as well. Rep. Paul Ray, R-Clearfield, has proposed a $1.35 tax increase per pack of cigarettes. And you can bet that legislators voting on that bill who took contributions from Big Tobacco will be reminded of past generosities, and perhaps future expressions of gratitude.
UST Inc., the snuff maker being acquired by Altria Group Inc., reported third-quarter profit that declined less than analysts estimated as promotions helped boost sales of its top-selling Copenhagen and Skoal brands.
Net income fell 6.2 percent to $125.3 million, or 84 cents a share, the Stamford, Connecticut-based company said today. Earnings excluding one-time costs rose 4.6 percent to 91 cents, topping by 1 cent the average estimate of six analysts surveyed by Bloomberg. UST reaffirmed its full-year profit forecast.
Chief Executive Officer Murray Kessler, 49, told analysts today he plans to accelerate promotions during the rest of the year to spur demand amid rising unemployment and a drop in U.S. consumer confidence.
Revenue rose 1 percent to $484.6 million, helped by growth in its Copenhagen and Skoal brands by the middle of the quarter
Altria Group Inc. said it may put off completing its planned $10.3 billion acquisition of UST Inc. until early next year on the recommendation of its lenders.
Altria, which owns cigarette maker Philip Morris USA Inc., didn't elaborate on the reason for the extension, and company officials weren't immediately available to comment.
"While Altria currently has fully committed financing to complete the transaction, Altria's lenders advised that it would be preferable to close the transaction in 2009," Altria said in a brief statement.
Swedish Match, the last independent smokeless tobacco group, may attract a bid from a cigarette maker after Altria's bid for UST is set to make the United States snuff market more competitive.
While cigarette smoking in the mature markets of western Europe and the United States is declining, snuff consumption is rising in the U.S. driven by the perception it is not as harmful as cigarettes, prompting two takeovers in the last two years. . . .
With the two biggest snuff makers in the U.S. market being bought by big tobacco groups, the third -- Swedish Match -- may be next. Some analysts tip the third-largest U.S. cigarette maker Lorillard Inc, which unlike some potential buyers already has a large distribution network in the country, as a front-runner.
"I think that Lorillard could want to buy Swedish Match.
Reynolds American Inc. (RAI) has played second fiddle to tobacco giant Altria Group Inc. (MO) for years, and its battles with its larger competitor may soon get tougher.
Reynolds American, which sells Camel cigarettes and Grizzly smokeless tobacco through its subsidiaries, is expected to face more competition after Altria buys smokeless tobacco maker UST Inc. (UST). Altria is expected to use its marketing ability and resources to boost growth for UST's smokeless tobacco brands like Copenhagen and Skoal.
On Tuesday, just a day after Altria announced the deal, Reynolds American unveiled plans to cut roughly 8% of its total work force and change its strategy on some key brands. The added competition from Altria may also push Reynolds to buy rival cigarette maker Lorillard Inc. (LO), some analysts say.
"We see Reynolds American now facing a more formidable competitor in the total tobacco industry and a potential for heightened competition in the smokeless tobacco category," Goldman Sachs analyst Judy Hong wrote
-- Creates a total tobacco platform with superior premium tobacco brands that includes Marlboro, Copenhagen, Skoal and Black & Mild
-- Accretive to adjusted diluted earnings per share within twelve months of closing
-- Generates estimated annual synergies of $250 million by 2011
-- Diversifies Altria's revenues and operating income
Altria Group Inc. said Monday it will buy UST Inc. for nearly $10 billion in a deal that will give the maker of Marlboro cigarettes access to the smokeless tobacco market with the Skoal and Copenhagen brands.
Richmond, Va.-based Altria said it will buy Stamford, Conn.-based UST for $69.50 per share in cash, a 3 percent premium to UST's closing price Friday of $67.55. . . .
Under the terms of the transaction, UST will be a wholly-owned subsidiary of Altria. UST Chief Executive Murray S. Kessler will be named vice chairman of Altria and will oversee the integration.
"We are excited about this strategic and financially attractive acquisition as it will enhance our ability to deliver superior shareholder return," said Altria CEO Michael E. Szymanczyk.