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Tobacco Industry News
Reports
RJR Tobacco cuts off free cigarettes
Cigarette giant R.J. Reynolds Tobacco Co. has temporarily stopped a discount promotion for smokers to get additional packs for free when buying cigarettes. During the time the promotion is on hold, the company plans to evaluate promotions in its growth brands including Camel, Kool, and Pall Mall. According to one marketing analyst, the company is most likely responding to growing cigarette taxes and legal restrictions by attempting to capitalize on the recent popularity of other tobacco products. Click here to read more.
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International
Philip Morris readies aggressive global push
As Philip Morris International becomes a separate division from its parent company Altria Group Inc. next month, the company is readying itself for worldwide expansion, directed from its new office in Geneva, Switzerland. By spinning off from Altria, PMI will no longer be under U.S. legal and regulatory control, and will be free to take advantage of more relaxed health standards and often nonexistent tobacco legislation abroad. PMI plans to entice foreign tobacco consumers by releasing a host of innovative products including the Marlboro Intense, a shorter cigarette that can be smoked quickly on an outdoor smoking break in inclement weather, and the Heatbar, which is a handheld electronic smoking device that gives off less smoke than a cigarette. Read more about Philip Morris’ new products and company restructuring here.
WHO takes aim at tobacco smuggling with new pact
Officials from various international agencies have begun negotiations for a World Health Organization (WHO) treaty to regulate global tobacco distribution and prevent smuggling. Illegal tobacco distribution causes annual losses of up to $50 billion in tax revenues, and makes tobacco products cheaper and more readily available to the public. Many countries agree that the pact should include a system for tracking and tracing tobacco products through the supply and distribution chain. The WHO negotiations are expected to continue through the next year. Find out more here.
Government plans to halve tobacco cultivation in 10 years The Indian government’s Tobacco Board is formulating a plan for cutting down the amount of tobacco grown in India. The plan would compensate farmers for the switch to new crops, and would aid the transition to cultivating other crops appropriate to the climate. India is among several other countries, including the U.S. and U.K., who have decreased their tobacco farming because of tobacco’s health implications. Read more here.
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