Tobacco Industry News

National

R.J. Reynolds' new smokeless products will appeal to children and show need for FDA regulation of tobacco products
R.J. Reynolds tobacco is expanding its offerings of tobacco products with its launch of Camel Dissolvables, a line of smokeless, spit-free tobacco products. The products are placed in the mouth to gradually dissolve and release up to three times the amount of nicotine administered from smoking one cigarette. The line of three new tobacco products is offered in two flavors, and although the packaging is child-safe, the containers look similar to candy packages. The products will launch in the first quarter of 2009 in Columbus, Ohio, Portland, Oregon, and Indianapolis, Indiana. Smokeless tobacco has become an area of tobacco industry expansion due to declining cigarette sales, and these novel products are highly attractive to youths and to adult smokers as supposed safer alternatives to cigarettes. Click here to read a press release from Campaign for Tobacco Free Kids. The press release calls for FDA regulation of tobacco products to prevent these products from attracting young customers and from derailing smokers’ tobacco cessation efforts. To read RJR promotional material on Camel Dissolvables, click here.

Philip Morris Int'l completes Rothmans buyout
Global tobacco giant Philip Morris International has announced that it now holds 94% of shares of the Canadian tobacco company Rothmans Inc. This acquisition is part of a global trend toward consolidation of multiple tobacco companies into larger entities. Altria Group—the parent company of Philip Morris USA—recently announced a merger with UST Inc., and earlier this year, Imperial Tobacco Group PLC purchased Altadis. Click here for more information.

Altria says lenders want UST deal pushed into 2009
Since Altria Group’s September announcement of its buyout of smokeless tobacco company UST, worldwide financial woes have slowed the closing of the deal. In the currently uncertain financial climate, the loan market has come to a standstill, and Altria has simply issued a statement that its lender suggested a closing date in 2009 would be advantageous. The closing of the deal will occur in January 2009, as long as closing conditions are met by the end of 2008. To read the full story, click here. Click here for an update on closing information.

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International

Cheaper cigarettes target consumers on budget (UK)
In the midst of the current global economic downturn, two European tobacco companies have announced plans to make their cigarette prices easier on smokers’ wallets. Imperial Tobacco will launch a new discount brand, while Gallaher will reduce the price of its existing budget brand by 7%. British public health advocacy group Action on Smoking and Health has spoken out against these moves because cigarette prices most dramatically affect cigarette consumption in low-income individuals, and lower cigarette prices do not encourage cessation. Budget cigarette sales have grown in recent years, partly because of the economic slump, which may be causing smokers to downgrade to lower priced cigarettes to reduce the financial cost of smoking. Click here to read more.

Tobacco underground:  The booming global trade in smuggled cigarettes
According to an expose from the International Consortium of Investigative Journalists, illegal trafficking of tobacco products is a multibillion-dollar international problem that has been linked to organized crime, terrorism, and various illegal activities. Contraband tobacco is often tainted or of low quality, and inexpensive cigarettes are likely to fall into the hands of the young and the poor. Yet, few resources have been devoted to investigating and preventing this public health threat. Countries ratifying the WHO Framework Convention on Tobacco Control (FCTC) are tied to implementing tobacco control measures, but the FCTC faces challenges to addressing tobacco smuggling. Smuggling is difficult to investigate and prosecute, and the sheer vastness and complexity of smuggling operations is daunting. Furthermore, cigarette smugglers are not aggressively pursued in many countries, either because smuggling is not considered illegal, or due to a lack of resources. At a WHO meeting in October, leaders from 160 countries will meet to discuss an amendment to the FCTC that would institute control measures against the largely unchecked world of tobacco smuggling. Click here to read an overview on tobacco smuggling, which was produced as a project of the Center for Public Integrity and funded by a grant from the Johns Hopkins Bloomberg School of Public Health. Click here for a related statement from the Campaign for Tobacco-Free Kids.

Legacy Tobacco Documents Library adds over 14,000 Tobacco Industry documents
Over 14,000 new industry documents were posted to the Legacy Tobacco Documents Library  (R.J. Reynolds: 7,090 documents, 152,244 pages  Lorillard: 7,125 documents 59,052 pages  Brown and Williamson: 37 documents, 1,298 pages, Philip Morris: 44 documents, 188 pages Total: 14,296 documents, 212,782 pages) To find these new documents, search for ddu:20081028 in the Expert Search page.

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