Tobacco Industry News

Reports

Camel Dip to be test marketed
In mid-June, tobacco company Reynolds American, Inc. will be launching a new premium moist smokeless tobacco product in test markets in Florida and Colorado. Camel Dip will be the newest item in Camel’s smokeless tobacco line. Other relatively new products in the line include Camel Snus, which is being distributed nationally, and the dissolvable smokeless products Camel Orbs, Camel Sticks, and Camel Strips, which are currently in test markets. As cigarette taxes and comprehensive smoke-free laws have driven cigarette sales down, smokeless tobacco products are increasing in popularity. Reynolds’ rapid launch of multiple products has prompted some to ask whether the company is rushing to release these products before potential FDA regulation of tobacco products goes into effect, although a company spokesperson asserts that this is not the case. Find out more here.

Acquisition charge hits Altria profit
Tobacco company Altria, parent company of Philip Morris, saw a 76% drop in profits during the first quarter of 2009, earning 28 cents per share compared to $1.16 during the same time last year. This is attributed to an 8% decline in cigarette sales and interest charges resulting from the company’s buyout of smokeless tobacco company UST and spinoff of Philip Morris International. The company’s revenue increased 2.6% from last year, and it is forecasted that this figure will rise in the next quarter. Revenues increased largely because the company was able to offset losses on cigarettes with profits from cigar and smokeless tobacco sales. Like other tobacco companies, Altria is promoting its smokeless tobacco products in order to stay profitable. Read more here.

The original Swedish Snus by Swedish Match North America launches brand new website
According to a press release from tobacco company Swedish Match North America, the company’s General Snus website was recently launched to target a North American audience. Snus is a smokeless tobacco product that originated in Sweden, but is being heavily promoted in the U.S. as smoke-free legislation increasingly limits the range of places where smoking is permitted. The press release includes a claim that smokeless tobacco reduces the risk of adverse health effects compared to cigarette smoking. The press release links to a YouTube video (which is not age-restricted to adults) promoting General Snus and to the product website, which offers free product samples. Click here to view the press release.

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International

Swedish Match and Philip Morris International announce global joint venture to commercialize smoke-free tobacco products
In February, Swedish Match and Philip Morris International issued a press release to announce a partnership between the two companies to promote snus and other smokeless products to global markets beyond Scandinavia and the United States. The companies plan to capitalize on Swedish Match’s smokeless product development and Philip Morris’  global distribution network. The companies believe the growth in the smokeless tobacco industry in Sweden can be replicated in other countries. Referring to research suggesting that using snus poses fewer health risks than smoking, the two companies state their belief that snus may play a role in tobacco harm reduction. Researchers have not conclusively proven whether smokeless tobacco use aids in smoking reduction or cessation. Click here to find out more.

Tobacco giants to fight threat to branding (Australia)
Philip Morris, British American Tobacco, Imperial Tobacco, and the U.S. Chamber of Commerce are preparing to fight a recommendation by the Australian government’s National Preventative Health Taskforce to make Australia the first country in the world to mandate that all cigarettes be packaged in plain, unbranded packs. The groups fighting the branding proposal maintain that it breaches Australian and international laws that prohibit a seizure of tobacco companies’ intellectual property, such as branding and package design. The taskforce cites evidence that the proposal could be implemented without cost to taxpayers, and would decrease the allure of smoking, particularly for image-conscious youths. The proposal is one step toward the government’s goal to cut the number of Australian smokers in half by 2020. Click here to read more.

NGO wants cigarette brand name snuffed out (China)
An anti-tobacco non-governmental organization in China is putting pressure on the government to discontinue the sale of a cigarette brand that shares its name with a central government facility called Zhongnanhai. The NGO, Think Tank Research Center for Health Development, maintains that the use of a brand name associated with the government misleads customers by giving legitimacy to the brand as if it were being endorsed by the government. Find out more here.

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