Tobacco Industry News

Reports

FDA starts collecting tobacco fees
On October 1, the Food and Drug Administration began collecting millions of dollars in fees from U.S. tobacco companies to help fund the agency’s newly granted authority to regulate the industry. The agency is expected to collect about $23 million during fiscal year 2009, $235 million in 2010, and $712 million by 2019. The fees, collected quarterly, are based on tobacco companies’ market share in the U.S. The FDA has not disclosed the fees for individual companies, but an analyst announced to investors that Altria Group, the industry leader in the U.S., would be responsible for approximately 50% of the fees. Read more here.

New rules, new smoke signals: Color shift called trick to subvert word ban
Leading tobacco companies have begun to use a new tactic of using certain colors on their cigarette packages to evoke feelings of smoothness and health. This strategy is similar to the use of the words “mild,” “light,” and “ultralight” to guide health conscious smokers to certain brands. Harvard researchers and other tobacco control specialists recognize the changes in packaging as a tactic the tobacco industry has used in other countries with stringent tobacco rules. The FDA has stated its awareness of the changes to packaging, and the agency intends to “thoroughly review the use of descriptors, including the use of color” before the new regulations of tobacco labeling go into effect. Read more here.

Professional Rodeo Cowboys Association announces that U.S. Smokeless Tobacco Co. will not renew their national sponsorship agreement after 2009
The U.S. Smokeless Tobacco Company (USSTC) recently announced that it will end its sponsorship of the Professional Rodeo Cowboys Association (PRCA) at the end of 2009. USSTC will continue to sponsor the Professional Bull Riders (PBR). PRCA Commissioner Karl Stressman notes, “This transition will provide a great opportunity for additional sponsors to become involved in some of our key programs.” Tobacco control advocates have worked for years to end tobacco industry sponsorship of rodeo events. Click here to read the statement from PRCA. Click here to read a press release from the Buck Tobacco Sponsorship Project applauding PRCA for ending tobacco sponsorship. For more information on tobacco sponsorship of rodeos, visit bucktobacco.org.

Philip Morris International: Website on tobacco display bans
As more countries are passing or considering tobacco display bans, Philip Morris International (PMI) has created a website to provide information to support the company’s viewpoint on the effects of such policies. PMI does not support a ban on the display of tobacco products at the point of sale. Included on the website are multiple tobacco industry-sponsored studies that detract from the intended health effects of tobacco display bans by focusing on the negative effects on sales, impact on tobacco smuggling, and costs of implementation and enforcement. Click here to view the PMI website. Multiple peer-reviewed studies have shown that tobacco displays stimulate unplanned tobacco purchases among smokers and increase the likelihood of smoking initiation and susceptibility to smoking among children.

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