Lorillard Responds to Menthol Recommendation

Last week the Food and Drug Administration's (FDA) Tobacco Products Scientific Advisory Committee (TPSAC) determined that there is scientific evidence to back up the notion that removing menthol cigarettes from the market would benefit public health in the United States.

Meanwhile, Lorillard Inc. said in a press release that TPSAC members concluded that the removal of menthol cigarettes from the marketplace would benefit public health — despite the fact that they found there was no difference in disease risk between smokers of menthol cigarettes and smokers of non-menthol cigarettes.


TPSAC did acknowledge that the potential for an illegal market in menthol cigarettes exists and therefore noted that the FDA should consult with appropriate experts should it decide to take policy action that restricts the availability of menthol cigarettes.


"While we fundamentally disagree, we are not surprised by what we believe is TPSAC's unsubstantiated conclusion relative to the impact of menthol cigarettes on public health," stated Murray S. Kessler, chairman, president and CEO of Lorillard. "Most importantly, TPSAC's report is just the first step in what we believe will be a very long process that ultimately does not result in the removal of menthol cigarettes from the marketplace, especially when contraband and other unintended consequences are seriously considered."


Dr. Lawrence Deyton, Director of FDA's Center for Tobacco Products, stated that TPSAC's recommendation is simply advice and does not set FDA policy or action and that the FDA would conduct its own review. The advisory committee recommendation is not binding and the FDA is not obligated to take any regulatory action whatsoever.


Lorillard believes that as the FDA conducts its own assessment of menthol, it will follow a rigorous scientific evaluation that will come to the same conclusion as the Industry Report on Menthol. The report clearly demonstrates that a menthol cigarette is no more dangerous than a non-menthol cigarette and should be regulated no differently and further, that the countervailing effects of any restriction in availability would overwhelm any potential public health benefit. The Industry Report will be formally submitted to the FDA by their deadline of March 23, 2011.

Background: As part of the Family Smoking Prevention and Tobacco Control Act, TPSAC was created as an advisory committee to the U.S. Food and Drug Administration (FDA) to issue a non-binding report and make recommendations on the issue of menthol's impact on the public health by March 23, 2011.

Brookfield acquires European high yield fund management business of Pall Mall

Brookfield Investment Management (UK) has acquired the European high yield fund management business of Pall Mall Investment Management.

The acquisition encompasses Pall Mall's high yield business, which manages corporate high yield securities on behalf of institutional clients and German financial institutions.

It also includes the fund, $305m Pallmall Funds ICVC, which has been renamed as Brookfield Funds ICVC. With an 11-year track record, the Pall Mall silver High Yield Europe Plus Fund, a sub fund of Pall mall Funds ICVC.

The team of five investment professionals from Pall Mall will join Brookfield Investment Management (UK) and they will be led by Curt Schibli and Jonathan Goble.

Pall Mall operates in London and Germany.

Brookfield Investment Management the CEO Kim Redding said that this acquisition represents a strategic opportunity to extend the existing high yield business into a global asset class.

"Exploiting the expected growth of the global high yield bond market is a key priority for Brookfield Investment Management and the integration of Pall Mall's high yield business is a significant part of that effort," said Redding.

State to return tribe's cigarettes

The Nebraska Department of Revenue has returned nearly $14,000 worth of cigarettes seized last week from the Ponca Tribe, a tribal official said Monday.
"I'm pretty stoked," Ponca Chairwoman Rebecca White said. "They were flat out wrong."
Revenue Department spokeswoman Deepa Buss confirmed Monday that the state would be returning the tribe's cigarettes.
A statement posted on the Revenue Department website said that after further research and discussion with the offices of the Nebraska attorney general and the U.S. attorney, "the department will be returning the improperly seized cigarettes to the Ponca Tribe of Nebraska this afternoon.
"Tax Commissioner Doug Ewald, has been in direct communication with Rebecca White, chairwoman of the Ponca Tribe of Nebraska. On behalf of the department, Commissioner Ewald apologized to Chairwoman White and the tribal council of the Ponca Tribe of Nebraska."
Revenue Department representatives entered the tribe's Ponca Smoke Signals shop in Niobrara at about 11:40 a.m. Thursday, according to White. She said they informed the shop's manager that the shop had failed to affix its cigarette packages with a state cigarette tax stamp and began packing up the store's entire inventory of cigarettes.
The tribal smoke shop is on federal trust land owned by the tribe. The shop sells only Native-manufactured cigarettes and affixes its own tribal stamp on each carton, White said. She said the seizure violated the tribe's sovereign immunity.
A cigarette tax stamp is placed on each package of cigarettes sold in Nebraska as proof that a distributor has paid the state's cigarette tax, according to the Revenue Department's website. However, the Ponca Tribe is not required to pay taxes to the state for the cigarettes it sells, as it is a sovereign nation, White said.
The tribe's Niobrara shop opened in October and is the tribe's second smoke shop. The other, also named Ponca Smoke Signals, opened in December 2009 in Carter Lake, Iowa. The shops sell only tribal-manufactured cigarettes, including Seneca, Signals, Smokin Joes, Sky Dancer and Buffalo brands.
The tribe lost its federal recognition in the 1960s but regained it in 1990. The Poncas do not have a reservation, but they do have service areas spread across 15 counties in Nebraska, Iowa and South Dakota.
White said the Revenue Department's decision to apologize and return the cigarettes "is our first step for having the state understand what federally recognized land in trust means and how our service areas are and should be recognized as reservation land."

Middle East unrest hits FTSE, helps energy stocks

Unrest in the Middle East and North Africa hit Britain's top shares again on Thursday, though rising crude prices and upbeat comment from oil major BP on its Indian activities lifted energy stocks.

The FTSE 100 closed down 3.55 points, or 0.1 percent, at 5,919.98, pinned just below a seven-month technical support level of 5,920.

U.S. crude oil futures rallied for a third session on Thursday as prices soared to their highest since late August 2008 as escalating violence in Libya sparked supply worries. Tullow Oil added 3 percent.

BP's Indian head, Sashi Mukundan, estimated there were 15 trillion cubic feet of gas resources in the 23 blocks it has bought into in its $7.2 billion deal with Reliance Industries, and there could be more.

BP gained 0.9 percent on the news, which also helped spark a 2.4 percent rally in oil explorer Cairn Energy.

Cairn Energy, which has blocks in India, is currently trying to sell a majority stake in its Indian arm Cairn India to Vedanta Resources.

However, weakness from risk-sensitive banks helped keep the index in the red for a fifth session.

It is down 2.7 percent so far this week, on track for its biggest weekly drop in nearly eight months as the price of oil has hit multi-year highs, threatening to derail the global economic recovery.

"Oil is the lubricant of economic expansion, and its rising price acts as a tax on global growth, which is making investors risk averse and encouraging them to book profits," said Henk Potts, strategist at Barclays Wealth.

The FTSE volatility index, which measures investor appetite for risk, is up 35 percent this week.

BANKS SAG

Banks were the most significant drag on the index, as investors looked uneasily at the unrest in the Middle East and North Africa.

RBS came off worst, down 3.6 percent, as its results met with disappointment.

Bad debts from Ireland, an uninspiring investment banking performance and lack of dividend put pressure on the shares, traders said.

British American Tobacco fell 0.7 percent, after the maker of Kent, Dunhill, Lucky Strike and Pall Mall cigarettes reported full-year results.

"(The numbers) all looked in line, the dividend was slightly better than expected, and (it announced) a 750 million pound buyback, but the market expected 1 billion, so that was a little disappointing," said Alwyn Phillips, a trader at IG Index.

GKN shed 2.3 percent after Citigroup cut its rating for the automotive and aerospace parts group to "hold" from "buy" ahead of upcoming full-year results.

"We sense a pause in the pace of its recent rapid profit rise," Citigroup says in a note.

Profits are up but investors seem disappointed.

Tobacco has been a popular defensive play during the recession but could it be time to kick the BATS habit?
While full-year figures from the cigarette maker were largely in line with analysts' expectations, they were hardly smoking hot. Sales volumes were down and the shares dipped by just over 2% in the morning's trade.
Group revenues for 2010 rose by 5% to £14.8 billion and profits increased to £4.4 billion (from £4.1 billion in 2009), bolstered by the acquisition of Bentoel in Indonesia and favourable currency fluctuations. Stripping out this currency benefit worth £239 million, organic revenue increased by 3%.
Smoke gets in your eyes
However, during the year, cigarette volumes fell by 2 per cent to 708 billion compared to 2009.
British American Tobacco (LSE: BATS) is being hit by a toxic combination of excise hikes and growing unemployment in a number of its markets which have boosted sales of black market cigarettes. Where consumers have less disposable income, management says they are more likely to buy illegal products to save money.
The market in illicit tobacco is a particular headache for BATS in Romania. Incoming chief executive Nicandro Durante, currently chief operating officer who takes over from Paul Adams next month, calls the black market trade 'a growing threat'.
What's more, while BATS supports the World Health Organisation's Framework Convention on Tobacco Control, Mr Durante fears that certain measures, such as hikes in excise duty and plain packaging, could 'play into the hands of organised crime'.
Growth across BATS' five regions -- soon to be cut to four -- was mixed.
A strong performance was seen in Africa and the Middle East, where profits rose by £134 million to £858 million, the Americas, where profits were up by £196 million to £1.4 billion, Asia Pacific and even Western Europe. However, profits in Eastern Europe fell by £51 million to £358 million due to falling volumes and adverse currency.
Volumes were also down in South Africa where further black market activity was seen, although profits were offset by higher pricing. In terms of the brands, Lucky Strike grew volumes by 2%, Pall Mall by 8% and Dunhill by 18%, although both Pall Mall and Lucky Strike also experienced declines in some of their main markets.

Cigarette Makers Want Advisory Panel To Butt Out

Two of the nation's largest cigarette makers are asking a federal court to stop the Food and Drug Administration from relying on recommendations made by an advisory panel on issues such as menthol cigarettes.

Lorillard Inc. and R.J. Reynolds Tobacco Co. filed the suit Friday in U.S. District Court in Washington. The suit alleges financial conflict of interest and bias by several members of the Tobacco Products Scientific Advisory Committee.

The panel is tasked with advising the agency on various tobacco-related issues. It is set to release a report in March on the public health impact of menthol cigarettes.

Lorillard, based in Greensboro, N.C., makes the top-selling Newport menthol brand. R.J. Reynolds, based in Winston-Salem, N.C., sells brands like Camel and Pall Mall Red.

Smokeless Tobacco Use Sees Upward Trend

Smokeless tobacco products are continuing to grow in popularity, even at a time when the cigarette market appears to be contracting.

According to an industry report released by World Street Fundamentals, the smokeless tobacco market has been growing between 2 and 3 percent every year since 2003. Smokeless products include moist snuff, chewing tobacco and dry snuff. The competition between the smoked (including cigarettes, cigars and roll-your-own) and the smokeless tobacco markets has been heating up as companies have begun to market smokeless tobacco as an alternative to cigarettes in situations where adult tobacco users cannot or choose not to smoke. Changing consumer mindsets, government regulation and taxation will continue to be an ever-present influence on tobacco sales, resulting in widespread shifts within the marketplace, the report stated.

In the report, World Street Fundamentals highlights two national tobacco manufacturers: Reynolds American Inc. and Star Scientific Inc. Reynolds American was highlighted for its two business segments: RJR Tobacco, which includes cheap Camel cigarettes and Pall Mall cigarette brands, and Conwood, which includes its moist snuff brand. Star Scientific was highlighted for its proprietary technology for producing low-TSNA tobacco, which is used in its dissolvable smokeless products Ariva and Stonewall.

It looks good on paper but bricks and mortar tell a different story

Paper maker Mondi, which is also listed in London, posted a more than fourfold rise in full-year profit, lifted by stronger demand, and says it expects further growth this year, though at a slower rate.
Foreigners were net buyers of SA bonds in the week ended February 18, buying R618-million worth of paper, according to data released by the JSE. Foreigners sold R162-million worth of shares during the same week.

Shares of SacOil gained nearly 4% after the gas and oil explorer said it would issue more than 46million new shares, or a 7.4% stake, to the Public Investment Corporation, which runs the government pension fund.
Simmer & Jack shares jumped by more than 1%, outperforming the weaker JSE All Share index, after the junior gold mining company said third-quarter output rose 34%.
Shares in Metair Investments gained more than 5% after the company said it expects full-year headline earnings per share to rise 183-196 cents, versus 67 cents in the previous year.

Imperial, which runs car rental, car dealerships and logistic businesses, posted a 44% rise in first-half profit, helped by a recovery in consumer demand, but warned that a strike by truck drivers is likely to hit its second-half performance. (See page 6)
SA's largest listed property firm, Growthpoint, boosted its half-year payout to investors by 8% as occupancy levels picked up due to improved economic conditions.

Exxaro, which mines for coal, mineral sands and base metals, doubled its full-year profit on higher prices and sales.
Statistics SA said producer inflation, which represents domestic output, slowed to 5.5% year on year in January from 5.8% in December.

Truworths, SA's biggest listed clothing retailer, posted a 19% rise in first-half profit as lower interest rates boosted consumer spending.
Shoprite, Africa's biggest grocer which caters for the lower end of the retail food market, posted 13.6% rise in first-half profit as cash-strapped consumers flocked to its supermarkets.

The Bad

Wilson Bayly Holmes Ovcon posted a 19% drop in half-year profit, hurt by the slowdown in construction after the World Cup boom, and cautioned about the outlook for 2012.

SA's third-largest construction firm said diluted headline earnings per share totalled 676.3 cents in the six months to December compared to 836.7 cents in the same period last year.

Pre-tax profit at Mauritius-based luxury hotel group Sun Resorts sank 44.3% in 2010, hit by the eurozone crisis and heavy discounting in the island's tourist industry.
Indian Prime Minister Manmohan Singh gave in to demands for a parliamentary probe into a multibillion-dollar scandal over sales of telecoms licences for kickbacks.
The Hindu newspaper called the scandal, in which the state auditor said up to $39-billion was lost in revenues, "the biggest scam in the history of independent India".

The Sensex index of Indian stocks is down around 11% this year, and foreign direct investment is down 27% this year.

Murray & Roberts fell to a half-year loss and said it will sell some assets in the Middle East and Australia as it fights to ride out an industry-wide slump. SA's second-biggest building firm by market value reported a diluted headline loss per share of 124c in the six months to end-December, from a profit of 200c per share a year earlier.
Shares of Grindrod tumbled more than 3% after the shipping firm reported a 12% fall in full-year profit. Grindrod was hurt as the stronger rand ate into overseas earnings and increased competition put pressure on freight rates. (See page 7)
JSE-listed shares of British American Tobacco fell more than 4% as investors fretted over declining cigarette volumes despite the world's second-biggest cigarette maker having resumed a share buy-back and giving an upbeat 2011 outlook. BAT, which also trades in London, makes Kent, Dunhill, Lucky Strike and Pall Mall cigarettes. Underlying cigarette volumes are still in decline and likely to stay weak in 2011. BAT has suffered as smokers switch to cheaper - and sometimes illicit - cigarettes.
British retail sales growth slowed more than expected in February to its weakest since last June, but firms ramped up prices at their fastest in 20 years, adding to worries about inflation, a survey showed on Thursday.
Shares in Massmart fell nearly 2% after the retailer forecast a tough second half as consumers struggle with the slow recovery.

Fewer cigs in a pack... price stays the same

Crafty companies are now putting only 19 ciggies in packs instead of the usual 20, equal to a FIVE per cent reduction in size.

But when the Pall Mall brand first tried the trick the price was cut from £4.25 to £4.22 - a saving of only ONE per cent.

Since then Pall Mall has hiked the price back to £4.67 for 19 cigarettes, with some shops charging up to £5.21.

And while multi-buy cartons warn there are fewer fags than normal, there is no wording on the 19-pack.

Ronson Superkings are also being sold in 19s in a multi-pack of five, giving 95 fags for £23.60.

The cuts are the latest example of a tactic known in the US as the "Grocery Shrink Ray".

Hundreds of shopping items including Penguin chocolate biscuits, Yeo Valley yogurts and KP nuts have been cut in size.

Consumer champion Martin Lewis, of moneysavingexpert.com, said: "It is a stealth price rise.

"Consumers are irked by companies not being honest."

Lucy Yates, of Consumer Focus, said: "Shrinking size but not price could damage trust in brands."

Pall Mall's makers British American Tobacco claimed consumers preferred stable prices over size.

Pop Art On Pall Mall? Charlie Anderson First Solo Exhibition in London

Anderson is to hold his first solo exhibition and sale in London at the Royal Opera Arcade Gallery between Monday, 28th March and Saturday, 2nd April 2011.
Primarily based in Edinburgh, Charlie Anderson is a painter whose work explores the historical role of painting and its place in contemporary art. By juxtaposing information and imagery taken from all aspects of contemporary life, he develops new and critical definitions, often with a satirical twist.

His paintings are reminiscent of the weathered, layered effect of street advertising and billboards, which he re-creates through the sole use of paint.
While not denying the talent or popular and commercial appeal of Banksy, Lichtenstein and others, Charlie rejects such simplistic labels as Pop Art, Urban Art or Graffiti Art and feels that his own work speaks to the eye of a more demanding and discerning collector: One who recognizes and values the classic skills of the artist.

“It is important to recognize the classic skills of the artist; such as drawing and painting. In my view, being edgy, observational or humorous is, in and of itself, simply not enough” said Charlie.

“My exhibition in London, the epicenter of the Art World, is an opportunity for me to define what I mean. I value and relish the opportunity and hope people will come and see my work.” he added.

Amongst his recognitions, Charlie won the British Airways Degree Show Prize and was awarded the Meyer Oppenheim Prize by the Scottish Academy.

Institute of Directors Expands Its IoD Office Solutions at 116 Pall Mall

The Institute of Directors’ fully managed office solutions service -- IoD Office Solutions -- has been so successful since its launch in April last year, that it is expanding its services throughout 2011. By the end of the year, many more companies will be able to avail themselves of Address and Mail Forwarding, Virtual Office, Hot Desk Office or Platinum Office from the IoD’s prestigious Pall Mall Silver SW1 address, all at highly competitive rates and with no set up costs or long term commitments.

All the new offices will be fully equipped with award-winning, ergonomically designed furniture including the Resolve Canopy which helps define space, modulate privacy and provide acoustic benefits by reducing noise distractions, and Aeron chairs with their innovative posture-fit design. The telephone switchboard has also just been updated to the most advanced system available.

"In today’s tough economic climate, managed offices are an attractive solution to businesses in that they provide flexible working and are a great way to reduce costs and avoid long term financial commitments," says Andrew Main Wilson, IoD Chief Operating Officer. "I think the success of IoD Office Solutions which has prompted the current expansion is not only down to the office’s first class facilities but also because we treat all clients like VIPs and ensure they are provided with absolutely everything they need."

IoD Office Services is an ideal solution for those who often travel and so have no need for conventional office space; for those who are looking to test the market before committing to permanent office premises; or those who wish to expand from a professional city centre location.

Pall Mall developer urges agencies to work harder on investment

AN IRISH developer is urging Liverpool’s economic development agencies to up their game in order to ensure a huge office scheme is a success.

Ashley Moore claims he is making “good progress” in securing funding for his Pall Mall project, which would create 230,000 sq ft of Grade A office space.

Mr Moore is echoing concerns expressed last week by Rumford Investments director Mike Stares, in LDP Business, about a lack of inward investment into the city.

Mr Moore is a director of 30 Pall Mall, which wants to start building its scheme this year.

It forms part of a wider plan for the area in Liverpool’s central business district which would eventually see 1m sq ft of space created.

Mr Moore told LDP Business that the city’s public and private partners must also develop a more targeted and proactive strategy to market the project to potential occupiers from outside the city region.

He said: “This is a uniquely attractive and marketable opportunity in a city that has a fantastic business offer, but it needs to be presented to the market in a much more coherent and positive way.”

Mr Moore believes that it is vital that the city not only ensures that it has adequate supply to meet new requirements, but it also needs to ensure that it can attract significant new occupiers to the city.

He added: “We are making good progress securing funding for our development at 30 Pall Mall, but ultimately we will need to find an occupier.

“Of course, it’s important that the city continues to improve and refresh its supply, but this has only a limited benefit so long as the same occupiers are simply moving from existing to new accommodation.

“The big challenge is to bring new players into the city that are creating new jobs and generating additional wealth.”

Mr Moore is meeting with Liverpool City Council and Liverpool Vision in the coming weeks to discuss how private and public sector partners can work together to best present Liverpool’s case to prospective new occupiers.