Harvard study confirms tobacco companies increased nicotine levels in cigarettes, highlights need for FDA regulation of tobacco
A new study conducted by the Harvard School of Public Health found that tobacco companies have increased the level of nicotine in cigarettes since 1998, including increases in nicotine in the three brands most popular among youth smokers- Marlboro, Newport, and Camel. The findings lend further support to a study with similar results conducted in August 2006 by the Massachusetts Department of Public Health. This study has called into question the fact that the tobacco industry is currently exempt from FDA regulations that require disclosure to the public of any changes made to their products. U.S. senators Edward Kennedy and John Cornyn and U.S. Representative Henry Waxman and Tom Davis have introduced identical, bipartisan bills to grant the U.S. FDA authority to regulate tobacco products. Click here for the Campaign for Tobacco-Free Kids press release of the new study and here to read about what the new FDA legislation would do.

Avoiding "truth":  Tobacco industry promotion of life skills training
An article in the December 2006 issue of the Journal of Adolescent Health shows industry documents revealing that Philip Morris and Brown and Williamson have promoted the Life Skills Training program into schools across the country. Click here to view the abstract.

Tobacco firms may cut payments to states - report
Tobacco companies may cut their payments to U.S. states by $1.14 billion this year under their $206 billion Master Settlement Agreement. Tobacco manufactures are permitted to reduce their payments if they lose market share to companies not a part of the Master Settlement and if an independent consultant determines that the Settlement contributed to the loss. The Brattle Group, an independent consultant, issued preliminary findings confirming that the Settlement was a significant factor for loss of market share in 2004. Click here for the press release.

States’ responses differ in response to decline in Master Settlement funds
The projected loss of funds paid to the states by the Master Settlement Agreement could be devastating for states. For example, Virginia’s loss of $23 million will affect funding for programs such as youth-smoking prevention efforts. Some states, such as Ohio are considering lump sum payout options. Instead of continuing with payments over 20 years, Ohio Governor Ted Strickland is considering taking a $6 billion payout. The state would then use the money to sell bonds, paying off the debt from the bonds but also earning interest by investing the proceeds. Click here to read more about Virginia and here for Ohio.

Philip Morris breaks promise not to fight smoke-free laws even as evidence grows of health risks from secondhand smoke
For the past two years, Philip Morris USA has claimed that it has stopped opposing smoke-free workplace laws. The company’s website claims that “the public should be guided by the conclusions of public health officials regarding the health effects of secondhand smoke.” Now, however, Philip Morris is leading the fight against proposed smoke free legislation in Texas and Virginia according to a study published by the Associated Press and The Washington Post. Click here for the Campaign for Tobacco-Free Kids press release.

Philip Morris USA raises prices on smaller brands
Phillip Morris USA has raised prices on all but its four largest cigarette brands by $1.99 per carton. The price increase affects the company’s smaller brands including Merit and Benson & Hedges, but not the company’s “Focus on Four” brands – Marlboro, Virginia Slims, Parliament, and Basic. Click here for the full story.

University of Virginia receives $25 million for Philip Morris
The University of Virginia in Charlottesville has announced a $25 million contribution from Philip Morris USA, the largest corporate gift to date to the school, to create a partnership between the two organizations supporting research on addiction and youth smoking. Approximately $20 million of the funds will be used to for research within the UVA School of Medicine aimed at preventing youth smoking, improving the effectiveness of smoking cessation programs, and reducing the harm caused by smoking. Click here to read more.

Altria Group, Inc. to spin-off Kraft Foods, Inc.
The Board of Directors of Altria Group, the company once known as Phillip Morris and current leader in world cigarette production, voted to authorize the spin-off of all shares of Kraft Foods Inc owned by Altria to Altria’s shareholders. The distribution of 89% of Kraft’s shares owned by Altria will be made on March 30, 2007, distributing approximately 0.7 of a share of Kraft for every share of Altria common stock outstanding as of the record date. Kraft trails rival companies Kellogg and General Mills in profit growth, and multibillion dollar smokers’ lawsuits against the cigarette industry have damped Kraft’s shares. Click here for the Altria press release.

Imperial Tobacco to buy Commonwealth to enter United States
Imperial Tobacco Group, the U.K. maker of Lambert & Butler, agreed to buy Commonwealth Brands, the fourth largest U.S. cigarette manufacturer, for $1.9 billion.  Imperial, the world’s fourth largest cigarette company, views the acquisition as a way to gain access to the U.S. market, which accounts for more than 20 percent of the tobacco industry’s profit worldwide. European tobacco companies have avoided the U.S. for more than a decade because of the legal risk. Click here for the press release.

RJ Reynolds gets over the ‘hump’ with Camel No. 9 for women
Camel cigarettes has launched a new product, Camel No. 9, aimed at women. The product, described as ‘light & luscious’, is offered in a sleek looking black pack with chamfered corners and fuchsia accents. Camel has traditionally been a male dominated brand; women compose just 30% of Camel’s consumer base. Click here to read more.

Godfrey Philips launches slim cigarettes
Indian cigarette manufacturer Godfrey Philips has launched Stellar Slims, India’s first slim cigarettes. Stellar Slims contain 10% less nicotine than other king size cigarettes. The executive vice-president of the new product development center at Godfrey Phillips said that the product was developed to offer “full satisfaction and low nicotine” to the consumer. Click here to read more.

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