http://www.tobacco.org/newsfeed/org/bat.rss Latest top tobacco news headlines en-us http://www.busrep.co.za/index.php?fSectionId=553&fArticleId=4688636 http://tobacco.org/news/274495.html It will be interesting to see how much local pension funds will move to increase stakes in British American Tobacco (BAT) now that they can hold the share directly, instead of diluting it with Richemont's luxury interests, or Remgro's banking and other interests. BAT offers steady sales, global geographic diversity and earnings in pounds - just about everything a fund could want in uncertain times, unless, of course, holding tobacco is against the ethical rules of a fund. But there are risks cigarette companies face, including litigation over health, as has been seen previously. Sales are also down in the West, proving that high government sin taxes, regulation of smoking and banning of advertising do cut demand. . . . In this country, BAT has responded to the advertising restrictions by changing the packaging on cigarette boxes. The change is a gradual evolution and creates a talking point among smokers about a brand. It is believed that innovation of the actual cigarette product is the next step in marketing: expect fags that change taste midway through a smoke. . . . Long-term family investments in tobacco companies such as BAT and Philip Morris International may help put many children and grandchildren through tertiary education, but one wonders if cigarette companies will still be a top investment choice when the next generation goes through its recession. Business Report South Africa Fri, 31 Oct 2008 04:00:00 GMT http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/11-13-2008/0004925073&EDATE= http://tobacco.org/news/274484.html The 7th Civil Chamber of the Court of Appeals of the State of Sao Paulo vacated yesterday, by unanimous vote, the judgment of the court of 1st instance that had found in favor of the indemnification claim brought by the Association for the Defense of the Health of Smokers ("ADESF") against the Brazilian cigarette manufacturers Souza Cruz (a subsidiary of British American Tobacco) and Philip Morris Brasil (a subsidiary of Philip Morris International). The Court of Appeals granted the appeals of the manufactures on grounds that the lower civil court decision had violated the constitutional principle of due process of law since it had failed to extend to the manufacturers the opportunity of producing any evidence, including expert evidence that had already been ordered by the Court of Appeals itself. This case, which is the first lawsuit of this nature filed in Brazil, began with the filing of a class action at the 19th Civil Court of Sao Paulo in July of 1995. The Plaintiff is ADESF, an association initially created by three attorneys and a doctor, 14 days prior to the filing of said lawsuit, which, without a verifiable list of associate members, seeks to represent all smokers in Brazil. The entity is also linked to several anti-tobacco organizations and maintains a broad network of attorneys throughout the country for the sole purpose of filing lawsuits against cigarette manufacturers, trying to import into Brazil the so-called "compensation industry." . . . All class actions of this type that have already been judged conclusively by Brazilian Courts ended without the intended liability of the manufacturers. It is also important to note that the subject matter of these class actions is identical to that of hundreds of individual actions already dismissed conclusively throughout the country. Just the Sao Paulo State Court of Appeals alone has already rendered more than 30 rulings rejecting this type of product liability claim. In all tobacco-related class actions and individual lawsuits with conclusive rulings already rendered by the Brazilian Courts, the indemnification claims have been rejected. The main reasoning of the Brazilian Courts for rejecting this type of claim is: consumers have free will to decide (or not) to smoke, since the decision to consume the product or not is a question of free choice, the widespread public knowledge of the diseases associated with cigarette consumption and the absence of defect in the product because it is a product of inherent risk, the manufacture, distribution and sale of which in Brazil is authorized and subject to severe regulations by the State. PR Newswire Brazil Thu, 13 Nov 2008 05:00:00 GMT http://www.news.com.au/heraldsun/story/0,21985,24649603-662,00.html http://tobacco.org/news/274441.html ONE of Australia's biggest tobacco companies has asked the Federal Government for a tax cut. In a submission to the Treasury's review of the tax system, British American Tobacco Australia has called for a reduction in the corporate tax rate and the abolition of state payroll taxes. The cigarette manufacturer also warned the Government against increasing tobacco taxes. It said rises in excise above regular six-monthly increases linked to inflation could encourage poorer smokers to buy black-market products and reduce Government revenue. "It is estimated that the illicit tobacco market was around 1.8 billion cigarettes in 2007, which equates to about $450 million in lost excise revenue," the company said. "The regressive nature of indirect taxes means any sudden increases impact those in lower socioeconomic groups more. Which in the case of tobacco only further fuels the growth in illicit tobacco consumption." . . . But Prof Simon Chapman of the University of Sydney School of Health accused the company of displaying "naked self-interest." He said more tax rises on cigarettes were needed to drive down smoking rates. News Interactive Network/News Limited/News.com Australia Fri, 14 Nov 2008 05:00:00 GMT http://business.timesonline.co.uk/tol/business/markets/article5058416.ece http://tobacco.org/news/273862.html The inevitable question for investors is how much longer that strength can be sustained. With emerging market economies - the source of recent profit growth - increasingly under strain, with cash-strapped governments seeking ways to supplement tax revenues and with public smoking bans spreading around the world, are tobacco shares set to run out of puff? If tobacco companies are assessed on their dividend-paying potential alone, the answer must be no. . . . For those companies that derive most of their revenues in nonsterling currencies, there is also issue of devaluing emerging market currencies. Of the £457 million rise in nine-month operating profits reported by BAT this week, about half of that sum was driven by the appreciaton of the dollar against sterling. The worry for next year is that those foreign exchange benefits will be offset by a weakening of the South African rand and the Brazilian real, two big currencies for BAT. The broader comfort is that the effect of any faltering of profit growth at BAT and Imperial will be mitigated by extensive cost-saving programmes – either as a result of internal restructuring or, in the case of Imperial, the postmerger shake-up after the takeover of Altadis. Both stocks may prove volatile in the short term – BAT because of this week’s distribution of shares to two to its biggest shareholders, Richemont and Remgro, whose own investors may choose to sell, and Imperial because of concerns over its £10 billion of net debt, part of which matures next year. In the longer term, the risk is that tobacco’s allure of relatively predictable earnings and dividend will be replaced by the stock market’s pursuit of cheaper sectors that are explicitly geared to economic recovery. Either way, the inclination must be for those with profits to take them. Times Of London UK Sat, 01 Nov 2008 04:00:00 GMT http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/200811030139DOWJONESDJONLINE000038_univ.xml http://tobacco.org/news/273850.html Luxury goods maker Compagnie Financiere Richemont S.A. ( CFR.VX) Monday announced further steps tied to the ongoing spin-off of the minority stake in British American Tobacco Plc (BTI). Luxembourg-based Reinet Investments SCA, a fund set up under the spin-off transaction, will distribute 90% of its interest in to its shareholders and holders of Reinet Investments depositary receipts. The distribution is against the cancellation of 86.3% of shareholders' and DR holders' interests in Reinet. Morningstar Mon, 03 Nov 2008 05:00:00 GMT http://uk.reuters.com/article/consumerproducts-SP/idUKLR56514920081030 http://tobacco.org/news/273811.html British American Tobacco Plc, the world's second-biggest cigarette maker, reported a 17 percent rise in nine-month earnings, at the top end of market forecasts, and said it was well-placed to cope with the impact of a downturn in consumer spending. London-based BAT, which makes Dunhill, Kent, Pall Mall and Lucky Strike cigarettes, said its range of differently priced brands and its wide geographic spread would help to mitigate the effects of any consumer downturn. The cigarette maker, second in size to Philip Morris International, posted adjusted diluted earnings per share of 95.97 pence for the first nine months of 2008. Analysts on average had forecast 94.4 pence with individual estimates ranging between 93.6p and 96.6p. Chairman Jan du Plessis said he had seen no effect on the group from concerns over the prospects for the world economy and consumer behaviour and was upbeat about the group's prospects. Reuters Thu, 30 Oct 2008 04:00:00 GMT http://www.bloomberg.com/apps/news?pid=newsarchive&sid=agrG0yQa2biU http://tobacco.org/news/273769.html Paul Adams, chief executive officer of British American Tobacco Plc, talks with Bloomberg's Mark Barton in London about the impact of the economic slowdown on tobacco sales, emerging-market demand and the outlook for growth. BAT, the maker of Lucky Strike cigarettes, announced plans for a venture with China Eastern Investment Corp. in 2004 and is still waiting for consent from China's State Tobacco Monopoly Administration, which claims jurisdiction over all projects. (Source: Bloomberg) Bloomberg News China Thu, 30 Oct 2008 04:00:00 GMT http://www.thisdayonline.com/nview.php?id=126675 http://tobacco.org/news/273739.html Government of Switzerland has protested the mode of service of court processes in the N130 billion tobacco suit filed by the Federal Government against British American Tobacco Nigeria Limited, and a Swiss-based cigarette company, Philip Morris International. Philip Morris was joined in the suit as the fifth defendant. The Federal Government is yet to effect service on the company since last year when the case was filed. Justice Adamu Umar of a federal high court sitting in Abuja, had ordered that service be effected on the fifth defendant through a substituted means and that the court processes be published in a national daily in Switzerland. But counsel to BATN, Mr Dapo Adeosun, told the court that the Swiss government, through a letter to the Ministry of Justice in Abuja, protested the mode of service. At the last adjourned date, the Federal Government accused Philip Morris of evading service in the suit it filed against British American Tobacco Nigeria Limited and four other companies over production and marketing of tobacco products in the country. This Day Nigeria Switzerland Thu, 30 Oct 2008 04:00:00 GMT http://ap.google.com/article/ALeqM5j9UEz_b7a3JnqY5tyfgJXolSLRwQD944V62O3 http://tobacco.org/news/273737.html British American Tobacco PLC, Europe's largest cigarette maker, said Thursday net profit rose 9.5 percent in the third quarter on better sales of global brands, particularly in emerging markets, and a gain from changes in currency values. Net profit in the three months to Sept. 30 was 657 million pounds ($1.09 billion), up from 600 million pounds a year earlier, the maker of Dunhill, Pall Mall and Lucky Strike cigarettes said. Revenue for the period increased 25.5 percent to 3.25 billion pounds ($5.38 billion) from 2.59 billion pounds. The company said its expansion into more emerging markets, with their favorable exchange rates and growing sales, helped offset falling sales in some developed countries like France, Germany and Japan. AP Thu, 30 Oct 2008 04:00:00 GMT http://www.ft.com/cms/s/0/f4b01692-a6d6-11dd-95be-000077b07658.html http://tobacco.org/news/273731.html British American Tobacco grew faster than expected in the three months to September, showing the resilience of cigarette sales in the face of the global downturn. The world’s second biggest cigarette maker said income from emerging markets meant revenues were more than a quarter higher than the same period last year at £3.2bn ($5.2bn), bringing basic earnings per share for the quarter up 10 per cent to 33.01p. Michael Prideaux, BAT’s director of corporate and regulatory affairs, said: “Our growth is ahead of expectations. Even without currency fluctuations, it is still well above target.” The company’s premium products continued to perform well, with sales rising 7 per cent on brands such as Kent and Dunhill, showing that customers are not yet trading down to cheaper brands to cope with an impending recession. “We don’t tend to see customers downtrading unless there are high levels of unemployment, and so far we have not seen that,” said Mr Prideaux. Financial Times Fri, 31 Oct 2008 04:00:00 GMT http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-30-2008/0004914678&EDATE= http://tobacco.org/news/273727.html The reported Group revenue increased by 19 per cent to GBP8,704m as a result of favourable exchange rate movements, improved pricing, better product mix and the acquisitions of Tekel and Skandinavisk Tobakskompagni (ST) mid year. Revenue would have increased by 9 per cent at constant rates of exchange. The reported Group profit from operations was 18 per cent higher at GBP2,714 million, up 20 per cent if exceptional items are excluded, with all regions contributing to this strong result. Profit from operations, excluding exceptional items, would have been 10 per cent higher at constant rates of exchange, with Latin America the only region lower. Group volumes from subsidiaries were 524 billion, up 4 per cent, a combination of organic volume growth of over 1 per cent and the benefits from the two acquisitions. The four Global Drive Brands continued their strong performance and achieved overall volume growth of 17 per cent with around a quarter of the rise coming from brand migrations. PR Newswire Thu, 30 Oct 2008 04:00:00 GMT http://business.iafrica.com/news/1263280.htm http://tobacco.org/news/273710.html British American Tobacco, the maker of cigarettes such as Lucky Strike, on Thursday reported a 17 percent rise to 95.97 pence in adjusted diluted earnings per share for the nine months ended September compared with the same time a year ago. Revenue rose 19 percent to £8.704-billion and profit from operations grew 18 percent to £2.714-billion as the group benefited from favourable exchange rate movements, improved pricing, better product mix and acquisitions. BAT, which debut on the JSE on Tuesday as one of largest listed stocks, said volumes from subsidiaries were 524 billion, up four percent, boosted by a combination of organic volume growth of over one percent and the benefits from the two acquisitions - Tekel and Skandinavisk Tobakskompagni. "The four Global Drive Brands continued their strong performance and achieved overall volume growth of 17 percent with around a quarter of the rise coming from brand migrations," the group said. iafrica.com business@metropolis.co.za South Africa Thu, 30 Oct 2008 04:00:00 GMT http://uk.reuters.com/article/consumerproducts-SP/idUKLR56514920081030?sp=true http://tobacco.org/news/273709.html British American Tobacco Plc, the world's second-biggest cigarette maker, reported a 17 percent rise in nine-month earnings, at the top end of market forecasts, and said it was well-placed to cope with the impact of a downturn in consumer spending. London-based BAT, which makes Dunhill, Kent, Pall Mall and Lucky Strike cigarettes, said its range of differently priced brands and its wide geographic spread would help to mitigate the effects of any consumer downturn. The cigarette maker, second in size to Philip Morris International, posted adjusted diluted earnings per share of 95.97 pence for the first nine months of 2008. Analysts on average had forecast 94.4 pence with individual estimates ranging between 93.6p and 96.6p. Chairman Jan du Plessis said he had seen no effect on the group from concerns over the prospects for the world economy and consumer behaviour and was upbeat about the group's prospects. Reuters Thu, 30 Oct 2008 04:00:00 GMT http://business.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article5046182.ece http://tobacco.org/news/273708.html British American Tobacco (BAT), the world's second-biggest cigarette maker, said that its third-quarter earnings were up by 17 per cent as Eastern European countries started smoking more premium brand cigarettes. The company, which makes Dunhill, Kent, Pall Mall and Lucky Strike cigarettes, said that it is continuing to perform well despite the downturn in consumer spending on other goods. Paul Adams, chief executive of BAT, said: "It would be foolish to ignore the fact that the economic situation may have an impact on us, but at the moment we are not seeing that impact and it's difficult to predict." Times Of London Thu, 30 Oct 2008 04:00:00 GMT http://www.bworldonline.com/BW103108/content.php?id=056 http://tobacco.org/news/273707.html THE SUPREME Court has denied the request of British American Tobacco (Phils.), Inc. (BAT) to hear its arguments on the alleged unconstitutionality of freeze on the tax classification of tobacco products. In a resolution, the high court instead ordered the Department of Finance and the Bureau of Internal Revenue to answer the tobacco firm's motion for reconsideration. The firm had asked the high court to reverse its earlier decision upholding Section 145 of the Tax Code. Section 145 classified cigarettes into four tax tiers based on their net retail prices as of October 1, 1996. However, brands introduced to the market beginning January 2,1997 are to be classified according to their current net retail prices. Business World Philippines Thu, 30 Oct 2008 04:00:00 GMT