Tobacco Articles: category international

INVESTING IN TOBACCO

Fri, 16 May 2008 04:00:00 GMT

Still, smoking rates in Beijing are lower than the national average, and have fallen since the 1990s when limited restrictions were first put in place. According to a study by the Capital Medical University in Beijing, the proportion of smokers in the capital dropped from 34.5% in 1997 to 23% last year. But those who keep at it can be a stubborn lot. When Meizhou Dongpo, a restaurant chain, tried to implement a total smoking ban at its Beijing outlets last October, it saw a rapid and drastic decline in its business. The chain's waitresses found themselves locked out of private dining rooms by renegade puffers. So, while the authorities have even encouraged citizens to rat on violators through a new telephone hotline, resistance from dedicated nicotine fiends, as well as worried restaurants--originally to be covered by an outright ban--has already led to a watering down of the restrictions. As rich countries have clamped down on smoking, tobacco firms have shifted their focus to less developed places. The tobacco industry is regrouping in order to focus on "promising" markets and escape the pesky lawsuits it is likely to face in rich, litigious countries. China is now home to more than a quarter of the world's smokers, and it will soon be manufacturing one of the world's leading cigarettes for the second largest seller of cigarettes in the world, a firm that will also be exporting Chinese tobacco to other countries. Selling cigarettes is an extremely profitable business and the Chief Financial Officer of this tobacco group has just spent over $1 million of his own money buying his company's shares. To know more, and why this company's stock looks attractive, read Insider Moves.

Cigarette Deal Has Bankers Scrambling

Wed, 14 May 2008 04:00:00 GMT

The spinoff of Altria Group Inc.'s international cigarette arm -- Philip Morris International, valued at $113 billion -- is causing angst in the London offices of Wall Street investment banks, particularly Morgan Stanley, that failed to land advisory roles. Being one of the few firms to miss out on such a large deal hurts a bank's ambitions in the annual merger rankings known as league tables, especially in a year when big merger deals are few and far between. . . . Seven investment banks got credit for separating Philip Morris International, whose operations center is in Lausanne, Switzerland. It was a massive share distribution that handed Philip Morris International stock to Altria shareholders on a one-for-one basis on March 28. They are: Lehman Brothers Holdings Inc., Centerview Partners LLC, J.P. Morgan Chase & Co., Deutsche Bank AG, Citigroup Inc., Goldman Sachs Group Inc., and Credit Suisse Group. Morgan Stanley's failure to land an advisory role on the deal is a major setback for its quest to remain the No. 1 M&A adviser in Europe

Lance Armstrong speaks out on smoking laws

Thu, 08 May 2008 04:00:00 GMT

Seven-time Tour de France winner and anti-cancer advocate Lance Armstrong said Thursday he has discussed banning smoking in public places across the United States with the three White House contenders. "I've asked all the presidential candidates whether America should be smoke-free," he told a Senate committee hearing on how to tackle cancer. "The consensus is that it's better left to the cities and states," he said, agreeing that state- or community-level bans were "the way to go." "Second-hand smoking is something I'm very passionate about," he told the committee. . . . Armstrong said banning smoking, or using other means to make people never start, or kick a tobacco habit, were good preventive measures against cancer. "We know what works in terms of cancer prevention — targeting tobacco, sun, diet and exercise. "You now have cities like New York; Austin, Texas that are smoke-free," Armstrong lauded, before looking to the traditionally smoke-filled pubs, cafes and bars of Europe.

LETTERS: High Taxes Discourage Consumption, Boost Smuggling

Mon, 12 May 2008 04:00:00 GMT

I'm looking at the photo accompanying Patrick Fleenor's May 7 op-ed, "Cigarette Taxes Are Fueling Organized Crime," and thinking, "Look at all that revenue going up in smoke." Maybe the government should go retail and sell what it has confiscated -- after all, cigarettes are legal.

Patrick Fleenor turns logic on its head by arguing that high tobacco taxes do more harm than good. The fact that criminals have learned to make money by smuggling cigarettes from low-tax states to high-tax states does not mean that we should, therefore, eliminate tobacco taxes. While Mr. Fleenor calls high tobacco taxes bad public policy, tell that to the citizens of New York City, where less than 9% of youths smoke compared to 23% nationally. If we were to eliminate high tobacco taxes, we would be giving up the most effective tool in our arsenal -- higher prices -- in battling the nation's leading cause of preventable death. . . . Eliminating tobacco taxes will not eliminate the existence of organized crime nor the threat of terrorism -- nefarious groups will simply find other ways to replace lost funds, just as they always have. Eliminating tobacco taxes however, would lead to more people smoking, resulting in higher rates of death and disease as well as increased health-care spending. Rather than scale back our efforts to fight the nation's number one public health problem, we should intensify our efforts and use those strategies that we know work.

BAT's growth in emerging markets puffs up profits

Sat, 10 May 2008 04:00:00 GMT

It is a good time to be a cigarette company. That is a statement you will not have read many times over the last decade. After years of vilification at the hands of the health brigade and fears over the impact of declining tobacco consumption in the developed world, British American Tobacco and its peers have been through the mill. However, times have changed. The health lobby has turned its ire on the drinks industry - prompting some observers to conclude that alcohol is the new tobacco - while BAT's focus on emerging markets has left it well-placed.

BAT Still Smokin' : Market Scan

Wed, 07 May 2008 04:00:00 GMT

The anti-smoking clampdown in Western Europe is not clamping down on profits from British American Tobacco. Europe's largest cigarette maker reported a 21.0% rise in first-quarter profits Wednesday, as it raised prices and improved sales of its premium brands across the globe. British American Tobacco shares rose 2.5%, or 48 pence (94 cents), to £19.86 ($38.87), on Wednesday morning in London, after announcing a net income of £599 million ($1.2 billion), 4.0% ahead of what analysts had been expecting. London-based BAT said sales of its premium brands, Dunhill, Lucky Strike, Kent and Pall Mall, increased in all markets, even after it put up prices.

The Investment Column: BAT strikes it lucky with steady market of a billion smokers

Sat, 10 May 2008 04:00:00 GMT

As the Western market looks increasingly mature, the emerging markets are the big battleground, and BAT is well placed, currently operating in 180. Yet there are other reasons to believe that tobacco may be good for your portfolio's health, if not that of its consumer. Despite an ever more health-conscious market and cigarette advertising banned worldwide, revenues from cigarettes are unlikely to spiral. The World Health Organisation said that despite falls in consumption levels, today's level of one billion consumers is likely to remain constant as population rates soar. In the past few years, companies have also noticed that smokers have enjoyed the benefits of a buoyant economy and traded up to premium, and consequently more expensive, brands. Outside the closed Chinese market, BAT is the second largest group in the world, behind Marlboro-maker Philip Morris. Profits look set to remain healthy . . . In the satirical movie Thank You For Smoking the boss of a tobacco lobbyist sums up by saying: "We don't sell tic tacs, we sell cigarettes. And they're cool, available, and 'addictive'. The job is almost done for us." BAT will always have a market and good cash generation, and should rise out a consumer slowdown in the wider market. Buy.

ABDULLAHI: Effective Panacea to Illicit Tobacco Trade (1)

Thu, 08 May 2008 04:00:00 GMT

No single national government or international agency, however sophisticated and powerful it may be, can single-handedly confront the ills of illicit trade. . . . For example, the Framework Convention Alliance rightly noted that, illicit trade is a major international problem that requires an international solution. And to reduce the consumption of risk prone products like alcohol and tobacco and save lives, combat organised crime as well as recoup billions of dollars in lost government revenue. How can Nigeria participate in the global initiatives to halt the growth and development of illicit trade? . . . While pointing out that there were about 10,000 wholesale tobacco traders in the world, the convention suggested that these could be built into a licensed system in which they would record movements of tobacco products by scanning pack markings, adding that technology is available to do this at less than USSO.02 per pack. Another transnational initiative is the Framework Convention Alliance (FCA), an international alliance of more than 300 non-governmental organisations. The FCA urges countries to negotiate a strong treaty that can help reduce tobacco use and its health and financial consequences around the world.

Scots 'outspend UK on drink and smoking'

Fri, 09 May 2008 04:00:00 GMT

THE stereotype of Scotland being a nation of drinkers and smokers appears to have been borne out by new research. The country spends £3 per household a week more than the rest of the UK on alcohol, tobacco and drugs �?" but less on food. Scotland also has the highest adult mortality rates in the UK for cancer and circulatory diseases. New figures published yesterday by the Office for National Statistics (ONS) detail the disparities between the different countries and regions of the UK. . . . SCOTLAND has the worst mortality rate in the UK – a clear indication of the poor state of the nation's health. A total of 361 people per 100,000 population died early from circulatory diseases such as heart attacks, while 128 per 100,000 died from respiratory diseases. Scotland topped the league for lung cancer – with women even more at risk than men

2nd UPDATE: BAT Pricing, Currency Pushes 1Q Operating Profit Up 18%: (Adds comment from management and an analyst.)

Wed, 07 May 2008 04:00:00 GMT

British American Tobacco PLC (BTI) Wednesday unveiled better-than-expected first-quarter results, citing better pricing and favorable exchange rates. The London-based maker of Lucky Strike, Kent, Dunhill and Pall Mall cigarettes, said that net profit rose to GBP599 million in the three months to March 31, from GBP495 million a year earlier. Sales were up 14% at GBP2.54 billion, while operating profit - the key figure U.K. analysts and investors track - rose 18% to GBP807 million in the first quarter. Analysts had predicted a 13% first-quarter rise in average operating profit to GBP782 million from GBP692 million a year earlier.

BAT Profit Rises 21% on Currencies, Premium Brands (Update5)

awilson23@bloomberg.net (Amy Wilson and Thomas Mulier) — Wed, 07 May 2008 04:00:00 GMT

British American Tobacco Plc, Europe's largest cigarette maker, said first-quarter profit gained 21 percent on favorable currency movements and higher sales of the premium Kent, Dunhill and Lucky Strike brands. Net income climbed to 599 million pounds ($1.18 billion), or 29.73 pence a share, in the three months ended March 31, from 495 million pounds, or 24.06 pence, a year earlier, London-based BAT said today. That beat the 559 million-pound median estimate of six analysts. Revenue rose 14 percent to 2.54 billion pounds. BAT gained the most in six weeks in London trading after the pound's decline against currencies from the euro to the Brazilian real added 54 million pounds to operating profit. The cigarette maker has also exploited smokers' switch to higher-priced brands such as the ultraslim Kent Nanotek in Russia. A 12-month, $42 billion wave of tobacco mergers reduced competition, enabling companies to raise prices for their costliest brands.

UPDATE 3-BAT Q1 earnings up 17 pct as 2008 starts well : (Rewrites with analyst comments, further details, shares)

india.advertising@reuters.com (David Jones) — Wed, 07 May 2008 04:00:00 GMT

British American Tobacco Plc, the world's second biggest cigarette maker, posted a bumper 17 percent rise in first-quarter earnings on Wednesday as 2008 got off to a great start which helped to boost its shares. The London-based group which makes Lucky Strike, Kent, Dunhill and Pall Mall cigarettes, said it saw profits growth in all its regions and benefited from currency translation as the pound was weaker against most of the world's major currencies. Chairman Jan du Plessis said 2008 had clearly got off to a great start and the group was well placed for the rest of the year helped by its wide spread of businesses in both developed and developing markets across the world.

BAT Profit Rises 21% on Currencies, Premium Brands (Update4)

awilson23@bloomberg.net (Amy Wilson and Thomas Mulier) — Wed, 07 May 2008 04:00:00 GMT

Get rid of smoking, win money

Tue, 06 May 2008 04:00:00 GMT

If you are a regular smoker, your daily habit is, whether you admit it or not, costing your money and health. Now you are offered a chance to win some money and save your health at the same time. Easy? The first nationwide give-up-smoking competition, to be launched on June 1, is accepting applications through to May 31, the World No Tobacco Day. Citizens can sign up for the event at local centers for disease control and prevention. As a joint effort by the Ministry of Health and several other government departments, the competition aims to promote healthy living and a smoke-free Beijing Olympics.

Healthy lifestyles become a political affair: EuroAspire and EuroAction results to be presented

jpartarrieu@escardio.org — Thu, 01 May 2008 04:00:00 GMT

Heart disease is the number one killer in Europe, taking over 2 million lives every year1, yet it is a preventable condition. Some segments of the population such as women and young athletes are not even aware that they are at risk. Experts from all over Europe will gather from today in Paris to exchange scientific knowledge, professional experiences, upgrade skills and propose strategies to reduce the burden of cardiovascular disease across the continent. EuroPrevent is the annual congress of the European Association for Cardiovascular Prevention and Rehabilitation2. . . . Despite repeated campaigns calling for individuals to adopt healthy lifestyles including a balanced diet, moderate exercise, avoidance of tobacco and stress, controlling cholesterol, diabetes and hypertension, the public does not seem to grasp exactly what "prevention" entails. Cardiovascular disease is estimated to cost the European Union 192 billion Euros a year thus making efforts to check the ailment a political priority.