Friday, May 27, 2011

Kansas is Test Market for New Tobacco Product

New Tobacco Product

Tuesday, May 31 is World No Tobacco Day, a day to consider the dangers of tobacco products and an opportunity to share with Kansans that the tobacco industry has introduced a new product that comes with some of the same health risks as other tobacco products. KDHE wants Kansans to know that the state is currently a test market for tobacco sticks and the potential dangers of this new product.

The tobacco sticks, sold under the popular brands Marlboro and Skoal, are sold in matchbook-size packages and look like chocolate-covered toothpicks. According to one tester, the products not only look like candy, they also taste like candy. The tobacco sticks have been seen at convenience stores across the state. Kansas is one of only three states where tobacco sticks are currently being test marketed.

“As the state’s health agency, KDHE is particularly concerned about the potential appeal of these new tobacco sticks to youth,” KDHE Secretary Dr. Robert Moser said. “The packages are so small that they could easily be concealed in a shirt or pants pocket and youth could use tobacco sticks in front of parents or teachers while appearing to have a simple toothpick in their mouth. We are also concerned about the risk of young children accidentally ingesting these products.”

The possibility that adults will carry the small packages in their pockets or leave them in other unsecured places means that young children may have easy access to tobacco sticks. As with any tobacco product, there is a risk that a young child may ingest a lethal amount of nicotine. The estimated minimal lethal pediatric dose is 1 mg of nicotine per 2.2 pounds of body weight. Ingestion of as little as 1 mg of nicotine by a small child can produce symptoms such as nausea and vomiting. While the nicotine content of Marlboro and Skoal tobacco sticks has not been tested, a study in Pediatrics found that a similar product Camel Sticks had 3.1 mg of nicotine per stick.

Each year the World Health Organization (WHO) celebrates World No Tobacco Day, highlighting the health risks associated with tobacco use and advocating for effective policies to reduce consumption. According to WHO, tobacco use is the second cause of death globally (after hypertension) and is currently responsible for killing one in 10 adults worldwide.

When Kansans are ready to quit tobacco use, the Kansas Tobacco Quitline 1-800-QUIT-NOW (784-8669) will provide support and work with the caller to develop a plan to quit. Counselors will provide information and guidance during one-on-one telephone sessions. Kansans can call the Quitline anytime day or night to start the process. Once enrolled in the free service, callers will work with a counselor who will set up sessions that fit the caller’s schedule. During these sessions, callers will discuss the reasons they want to quit and find ways to handle any barriers. Studie

How far are you willing to go to get cigarettes?

get cigarettes

How much of a difference is there between Missouri and Iowa cigarette taxes? That was chosen as Thursday’s story of the day.

In the state of Missouri, cigarette taxes are the lowest in the nation at .17 cents per pack. With eight bordering states (Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska), people are coming from all over to buy cigarettes in the Show-Me-State.

According to state representative, Zachary Wyatt, this is actually helping the state economy at a time when in needs the help.

“When citizens from these eight states come into Missouri to buy our cheaper cigarettes. They're also possibly, they probably are buying possibly their groceries, their any type of commodities they might need, gas. So we're getting an economic benefit from them coming into our state.” Said Wyatt.

Wyatt also said that the cigarette tax hasn’t been raised since 1993. Some lawmakers in the past have tried to raise it, but voters refused to let it happen. There are no plans to raise it anytime soon.

In Iowa, the cigarette tax is a bit more pricy with $1.36 per pack. That is in the middle compared to the rest of the country.

If you are one of those Iowa who cross into the Missouri border to grab a pack of smokes, you better be careful. Only two packs of cigarettes may be brought into the state of Iowa at a time. The penalty for not following the law can include a $200 fine and the seizing of the cigarettes.

Also, if you are trying to get them sent by mail or by the internet, it is in fact illegal to do that without the official Iowa cigarette stamp on it.

Mass. jury rejects claim against cigarette maker

cigarette maker

A Massachusetts jury has found that Phillip Morris Inc. was not responsible for the death of a longtime smoker whose family claimed the company’s cigarettes could have been made safer.

The Worcester Superior Court jury returned its verdict Thursday after hearing three weeks of testimony and deliberating over three days.

The family of Stephen Haglund of Douglas filed the lawsuit in 2001, the year after he died of lung cancer at age 51.
The lawsuit said Phillip Morris should have used technology to remove nicotine from cigarettes to make them safer and less addictive. The company’s attorney said that the technology, solvent extraction, did not remove all nicotine, and would not remove carcinogens.

An attorney for the family, Michael Weisman, tells the Telegram & Gazette there are issues to consider for an appeal.

Philip Morris Int'l buys rights to nicotine system

Philip Morris International

Cigarette maker Philip Morris International Inc. has purchased the rights to a technology that lets users inhale nicotine without smoking.
The world's largest nongovernmental cigarette seller told The Associated Press on Thursday it has bought the patent for an aerosol nicotine-delivery system developed by Jed Rose, director of the Center for Nicotine and Smoking Cessation Research at Duke University in Durham, N.C. The school does not have a role in Rose's agreement with the company and won't receive any money. Terms were not disclosed.

"By avoiding the burning process altogether, finding a way of giving smokers nicotine to inhale but without those toxic substances that we can reduce the death and disease associated with smoking," said Rose, who led the initial studies in the early 1980s that helped pave the way for commercial nicotine patches as a smoking cessation treatment.

"Hopefully it's a wave of the future that inhaling combusted, burning tobacco will someday be a thing of the past."
Rose said the next step is for Philip Morris International, with offices in New York and Lausanne, Switzerland, to develop a commercial product using the technology. The system differs from current medicinal nicotine inhalers available on the market as stop-smoking aids because it delivers nicotine more rapidly to mimic the nicotine "hit" a cigarette provides smokers.
"The other methods of delivering nicotine fall short of providing smokers with the satisfaction that they crave," Rose said.
The move is an "important step in our efforts to develop products that have the potential to reduce the risk of smoking-related diseases," Doug Dean, Philip Morris International's senior vice president for research and development, said in a statement.
Spokesman Peter Nixon said it may take three to five years to develop a commercial product that would be considered an alternative to conventional cigarettes.
Its shares rose 93 cents, or more than 1 percent, to $70.42 in afternoon trading.
Thursday's announcement is the latest in a series of steps by tobacco companies to venture into smokeless tobacco and other nicotine products as tax increases, health concerns, smoking bans and stigma cut into demand for cigarettes.
Last month, British American Tobacco PLC created a subsidiary called Nicoventures focused on nicotine alternatives. In 2009, the nation's second-largest tobacco company Reynolds American Inc. purchased Swedish company Niconovum whose nicotine gum, pouches and spray help people stop smoking.
"We know that people smoke for the nicotine and die from the smoke," said David Sweanor, a Canadian law professor and tobacco expert who consults with companies and others on industry issues. The question becomes, "can you give them the nicotine without the smoke in some way that's consumer acceptable."
The U.S. Food and Drug Administration is developing guidelines for companies interested in developing what the agency calls modified-risk tobacco products.
"Changes in the regulatory systems are creating an environment where competitive forces will move this market quite dramatically," Sweanor said.
Nearly 6 million people die from tobacco use each year, from both direct use and secondhand smoke, according to the World Health Organization.
Philip Morris International, smaller only than state-controlled China National Tobacco Corp., was spun off from Richmond, Va.-based Altria Group Inc. in March 2008. Altria, owner of the nation's largest tobacco company, Philip Morris USA, still sells Marlboro and other brands in the U.S.

Smoking ban inquiries tackled in city Q&A

When Springfield's new smoking ordinance takes effect in June, patrons will be able to continue smoking legally on restaurant patios -- even those with roofs -- as long as the walls don't extend to the ceiling on all sides.

Add floor-to-ceiling wind screens, however, and smoking is out, even if all the flaps are raised.

Sound complicated?

The city hopes the answers in an expanded list of frequently asked questions will bring clarity to some of the murkier issues raised by the smoke-free air ordinance approved in April.

The expanded FAQ was drafted by city legal staff and was expected to be posted online today, at www.springfieldmo. gov/smokefree.

City Attorney Dan Wichmer said the FAQ is meant to guide the public as well as Springfield-Greene County Health Department staff charged with enforcing the ban.

It is scheduled to take effect at midnight June 11.

Many of the questions pertain to the division between private residences -- where smoking generally will be allowed -- and enclosed workplaces, where it will be prohibited.

Is someone who telecommutes or works from home prohibited from smoking there?

No, the document says, although it's less clear on the question of whether a home becomes a place of employment when service workers -- such as a housekeeper, plumber or home health care worker -- are present.

"Private residences are exempted from the ordinance unless used as a child care, adult day care, or a health care facility," the document says -- repeating what the ordinance says without offering any insight into what the sentence means.

Pressed for a more direct answer, Wichmer offered an unequivocal "No."

"Even if you hire a home health care worker, it's still a house," he said. Same with hiring a housekeeper or babysitter -- "It's kind of just incidental to you living there."

The difference, Wichmer said, centers on whether a homeowner has hired someone to provide a service at the home, or is employing workers who help the homeowner earn a living. In the latter case, the home likely counts as a place of employment (and may be in violation of city zoning codes, to boot).

In some cases, different answers may apply to different kinds of people -- for example, workers versus tenants -- when determining if a building is a home or place of employment.

At an apartment complex, for example, management could allow tenants to smoke in their own apartments or private balconies, although not in hallways, rec rooms or other common areas.

An apartment complex worker fixing a leak in a smoker's kitchen couldn't legally light up, however, even if invited.

"You can smoke in there because it's a residence," Wichmer said. "For the worker, the entire complex is a job site."

Tuesday, May 17, 2011

Cigarette maker spends big to fight per-pack tax

Cigarette maker

Supporters of a proposed $1-per-pack tax on cigarettes argue lives and billions of dollars could be saved by the ballot measure. But they are being outspent by a cigarette company that has mobilized to fight the campaign.
Backers of the California Cancer Research Campaign briefed lawmakers and staff last week, unveiling research showing that the ballot measure, if passed, could cut state health spending and the burden of cigarette-related illness.

The measure could raise $855 million in its first full year, with about half the funding going to cancer research and the rest to campaigns to cut tobacco use and prevent illegal cigarette sales, according to the nonpartisan [PDF] Legislative Analyst's Office. Voters could get a chance to cast ballots on the measure [PDF] next year, or as soon as June if Gov. Jerry Brown succeeds in getting a special election set to extend some taxes.
University of California researchers predict the cigarette tax could lead to an 11 percent decline in the number of smokers in the state, studies show. Without the measure, the current smoking rate of 12.9 percent could rise by 9 percent by 2016, researchers say.
The measure might save the lives of 4,174 Californians between 2012 and 2016, researchers concluded. Health cost savings might range from $3.3 to $28.2 billion, they said.
Researchers warn that cuts in California smoking and lung cancer rates may begin to reverse if smoking prevention efforts don't see sustained support.
The findings add a dollars-and-cents argument in favor of the ballot measure that already has the support of sports icon and cancer survivor Lance Armstrong and former California Senate Pro Tem and cancer survivor Don Perata, who is co-chairing the ballot committee with Armstrong.
Working against the measure is a group called Taxpayers Against Out-of-Control Spending, which is almost solely funded by the Altria Group, which owns the Philip Morris cigarette company.
The group's website lists other supporters and says "we all believe cancer research is important." But the group criticizes the per-pack tax, citing concerns about funds being spent out of state and accountability to taxpayers.
David Sutton, a spokesman for Altria, wrote in an e-mail that "we oppose additional targeted taxes on tobacco" and funded the group to "evaluate our options regarding this measure."
During the first three months of this year, opponents outspent supporters by more than a 2-to-1 margin. Altria spent $1.2 million, far more than the supporters’ $424,000.
Cigarette-maker money went to pollsters, campaign consultants and a prominent political attorney.
Also working against the measure is a current raid on other funds derived from cigarette taxes. Motivated by the deep budget shortfall, Gov. Brown is dipping into $1 billion in Proposition 10 funds, which taxpayers approved in a 1998 ballot measure meant for early childhood education and health programs. The budget raid wipes out about half of county funds for such efforts.
Rhys Williams, a spokesman for the California Cancer Research Act campaign, said supporters “would oppose” any effort to move the funds to solve state budget crises.
“The ultimate goal of CCRA is to end smoking so at some point in the future we hope we don’t get any revenue from CCRA, because no one’s smoking anymore,” Williams said.
The legislative analyst raises another point that quashes one favorable financial argument: While some health costs may be saved in the short term, the state may pay more for long-term care if people live longer. The state analyst office did not account for the intangible benefits or boost in productivity related to Californians living longer, healthier lives.
California has among the lowest smoking rates in the U.S. at 12.9 percent, compared to the highest rates of 25 percent in Kentucky and West Virginia, according to 2009 Centers for Disease Control data. The added tax is expected to increase cigarette prices to about $6 to $7 per pack, depending on the brand and vendor.

Careless disposal of cigarette blamed for $3m Boston harbor fire

disposal of cigarette

A worker who tossed a lit cigarette from a second-floor deck sparked a three-alarm fire that destroyed a Commercial Wharf office building perched on wooden pilings in Boston Harbor, the fire department said this afternoon. Damage was estimated at $3 million.

Five firefighters were injured fighting the blaze that required the use of the department’s fire boat and about a dozen rescue divers, who got into the harbor so they could direct fire hoses onto the burning wooden pilings underneath the building, said department spokesman Steve MacDonald.
“The employee was working late into the night and would go out onto the second floor balcony for a cigarette break,’’ MacDonald said, summarizing what the unidentified worker told fire investigators.

MacDonald said investigators reached the conclusion that cigarette disposal was to blame after studying the burn pattern of the property and eliminating all other possibilities, such as malfunctioning utility systems.

“The cause was careless disposal of the cigarette,’’ MacDonald said.

He said it was not clear if the fire was started by improper disposal of just one cigarette, or multiple cigarettes. However he said, a single, still-burning cigarette could easily be responsible for the fire and the building's destruction.

“The place is a total loss and the property owners are going to have to make some decisions about the building itself,’’ said MacDonald.

MacDonald said the first alarm was struck around 5:15 a.m. and the arriving companies immediately struck a second alarm. A third alarm quickly followed, he said. The five firefighters suffered minor injuries.

With the noise of smoke alarms still sounding in the background, attorney Steve Lyons described how he learned his office was destroyed, taking with it the files and mementos he had amassed over a 31-year legal career.

“I live nearby and this morning I woke up and looked out from my balcony and saw my office in flames,’’ Lyons said in a calm but sad voice. “So I came down here, unfortunately to find my office totally engulfed and all the offices around it in flames.’’

"What I found out is that everything appears to be a total loss, 31 years of work. But everybody is safe and no one was hurt. That’s what I found out," he said.

The main occupant of the building was the Sarrouf Corso law firm, according to MacDonald.

Lyons said his goal is to rebuild his professional life.

“My plan is to salvage what I can and to save what I can of my clients' records, and rebuild,’’ he said. “But unfortunately, it looks like it’s not going to be an easy task.’’

Tuesday, May 10, 2011

Cheaper cigarettes Lucky Strike and Pall Mall

British American Tobacco (BAT) announced today decision to lower price of cigarettes Lucky Strike and Pall Mall. New prices will take effect on Wednesday, April 13th 2011.

Lucky Strike entire portfolio will be cheaper 20 dinars, except Lucky Strike 100's which will be cheaper 10 dinars. The new price of Lucky Strike is 130 dinars, except Lucky Strike 100’s which will cost 140 dinars.

At the same time, the entire Pall Mall portfolio will be cheaper for 10 dinars and will be 110 dinars instead so far 120 dinars.

As stated in BAT statement, cheaoer portofolio is result of recent changes in business environment and inadequate excise structure to which the representatives of BAT had warned when it was past at the end of last year.

On the Call: Reynolds American CEO Delen

Reynolds American Inc., the second-biggest U.S. cigarette company, has aggressively promoted its Pall Mall brand in recent quarters as a longer-lasting, more affordable cigarette as smokers weather the weak economy and high unemployment.

The company says that half the smokers who try the brand continue using it.

Pall Mall sales are growing despite industrywide declines in the number of cigarettes sold as taxes, smoking bans, health concerns and social stigma all increase.

Reynolds sold 16 percent more Pall Mall cigarettes in the first quarter even as the Winston-Salem, N.C., company's overall volume fell 5.2 percent. Reynolds American said Pall Mall gained 2 points of U.S. retail market share to hold 8.5 percent in the quarter.

In a conference call with analysts regarding the company's first-quarter earnings, CEO Daniel Delen discussed Pall Mall.

QUESTION: The brand has experienced very good growth and the equity of the brand seems pretty resilient. How do you think about the price positioning of the brand and whether you can look forward to raising the profitability of the brand going forward?

RESPONSE: Pall Mall has had a great run more recently, but I would just remind everyone that Pall Mall was growing already even prior to this downturn over the last couple of years. ... I'm very, very pleased with the brand. It is contributing significantly to profitability. And over the last year and a bit, we've been able to actually increase profitability over and above the marketplace. We continue to look for opportunities like that to make sure that the growth isn't just a volume and market share growth.

Earnings Preview: Lorillard

Lorillard profit

Lorillard Inc., the nation's third-biggest cigarette maker, reports its first-quarter results before the stock market opens Tuesday.

WHAT TO WATCH FOR: Whether smokers bought more of Lorillard's top-selling Newport menthol brand and its Maverick discount brand.

While cigarette sales have declined industrywide in recent quarters in the face of tax increases, smoking bans, health concerns and social stigma, Lorillard, based in Greensboro, N.C., has sold more cigarettes in recent quarters. That compares with declines for the two bigger U.S. tobacco companies -- No. 1 Philip Morris USA, the maker of Marlboro and owned by Altria Group Inc., and No. 2 Reynolds American Inc., the maker of Pall Mall Blue and Camel.

The weak economy and high unemployment have caused some smokers to trade down to cheaper brands during the recession in a bid to save money. Lorillard's Maverick and Reynolds American Inc.'s Pall Mall brands have been among the beneficiaries.

In addition, the market for menthol cigarettes, which Lorillard dominates, is still growing.

Lorillard is battling to keep its roughly 35 percent share of the U.S. market. Newport saw its volumes increase 2.2 percent last quarter, but its top competitors have ramped up efforts to grab some of the menthol market.

Lorillard, the oldest continuously operating U.S. tobacco company, spun off from Loews Corp. in 2008.

It is the last of the country's top tobacco companies to report its first-quarter results. Altria said the number of cigarettes it sold fell 6.4 percent to 31.9 billion cigarettes, while Reynolds said its cigarette volumes fell 5.2 percent to 17.2 billion cigarettes during the quarter.

Analysts also will be looking at how the nonmenthol version of Newport released in November has performed.

WHY IT MATTERS: Continued strong performance by Maverick could mean smokers are still switching to cheaper brands to save money because they have less discretionary income, and that those who tried the brand during the recession are remaining loyal.

A rebound in overall cigarette volumes could signal consumers are adjusting to higher prices on cigarettes following federal and state tax hikes. Other companies are selling fewer cigarettes, but their revenue has risen with higher prices.

Pall Mall event celebrates Tennessee cultural arts and heritage

Art, music, food and history are all part of the Sgt. York Cultural Arts and Heritage Celebration, a free event May 7 at the Sgt. Alvin C. York State Historic Park.

Sponsored by the non-profit Sergeant York Patriotic Foundation and funded in part by an Arts Build Communities grant from the Tennessee Arts Commission, the event features craftsmen and artisans demonstrating skills utilized throughout the Wolf River Valley and Cumberland Plateau during Sgt. Alvin C. York’s lifetime.

Among the artists demonstrating are Mary Curren, who spins llama hair into wearable creations; Natali and Paul Devine, a husband and wife team who make colorful hand-dyed baskets using reeds and white oak; and Julie Styer, whose talents include wood burning and painting among others.

In addition to the arts, the celebration will offer World War I displays of artifacts, interpreters in period attire, a live, online genealogical research booth, book signings by local authors and tours of Sgt. York’s home, farm, mill, Bible School, nature trail and burial site.

Wednesday, May 4, 2011

Retailer fumes about new cigarette packaging laws

cigarette packaging laws

THE owner of the Cobbitty General Store has condemned the federal government's plan to implement plain packaging for all cigarettes.
Debbie Zarbalis said the new laws, to be implemented on January 1 next year, would slow down customer service times and make the job more confusing.

"Nearly every second or third person (we serve) buys cigarettes," Mrs Zarbalis said.

"Our cigarettes aren't on display but we get asked all the time if we sell them."

Mrs Zarbalis said there was the possibility her business's reputation for fast service could be affected by the amount of time it could take to serve cigarette customers once plain packaging is introduced.

"Our customers work long hours and they only get a short time for lunch," she said.

"If it takes a long time to serve we will need to employ more staff."

An employee at the Cobbitty General Store, Vicki Thick, said the new packaging would make it difficult to find the brand customers were after.

"None of us smoke so we don't know what cigarettes are 4mg and what are 12mg," Mrs Thick said.

"It is going to be more time consuming to sell cigarettes."

Federal health minister Nicola Roxon said the plain packaging was part of the government's attempt to reduce the toll smoking took on Australians.

"Plain packaging will help to reduce the number of people who start smoking, particularly young people, and it will save lives," Ms Roxon said.

"Research shows that branding and packaging design can mislead about the safety of tobacco, reduce the effectiveness of graphic health warnings and increase the appeal of tobacco to young people."

Ms Roxon said the federal government would not back down in the face of the campaign against the laws being run by the tobacco companies.

"I think this is just the beginning of a large and co-ordinated campaign by big tobacco," she said.

"But, we will fight back. We have won these fights in the past and we will win again."

Doctor Ross Mckay, from the Camden Medical Centre, said smoking had "a very deleterious effect on anyone who smokes".

"A lot of smokers enjoy it and will not quit until they make up their minds to do so," Dr Mckay said.

Amherst Co. Thieves Steal Hundreds of Cartons of Cigarettes

Cartons of Cigarettes

In this week's Crime Stoppers report, an Amherst County business is hoping you'll help find a group of thieves who have a thing for cigarettes.

They took nearly 300 cartons from a Quality Foods distribution center last week. The haul is valued at almost $12,000.

The whole thing was caught on surveillance video, and it appears as though they knew what they were doing. The suspects worked extremely hard to hide their identities, wearing black hoodies with masks and white gloves. They snuck in under the cover of night, around 2:30 in the morning.

Managers and investigators are thinking it could be an inside job.

"This is major here, this was a thought-out plan," said Thomas Carter, Quality Foods, Inc. Operations Manager.

In just 13 minutes, they carried out about 800 cartons of cigarettes.

"Hauling three cases of cigarettes at a time, that's 90 cartons of cigarettes in those boxes," said Carter.

Charles Lewis was the first to discover the theft, when he came into work.

"I haven't seen nothing like it," said Lewis, Quality Foods, Inc. Transportation Director.

He calls it a scene out of a movie.

"I mean I never thought that I would have, you know, guys in black suits and white gloves just probably sitting there watching me," said Lewis.

Turns out, Lewis likely scared them off. And they left behind 500 cartons of cigarettes in the woods.

Their other mistake, came when one suspect looks directly into the camera. Managers are still trying to identify him, and any connection he might have with current employees.

"These individuals know what time to hit, they know what time they've got to be out and they also know which trucks the cigarettes are on," said Carter.

Some Quality Foods workers call the theft personal, a crime that's taken money out of their pockets.

"It takes away from our employees that work hard here everyday. You know, of course we have to make up for the money we've lost and add extra security," said Carter.

"I want them done. I want this thing done, finished," said Lewis.

Only three suspects were caught on camera, but investigators think several others could have been helping them.

If you know anything about this crime or recently noticed someone with large quantities of cigarettes, contact Crime Stoppers at 888-798-5900. It could earn you up to $1,000 and it's always anonymous.

UPDATE 1-BAT Q1 volumes fall, trading remains challenging

Dunhill cigarettes

British American Tobacco (BATS.L), the world's No 2 cigarette maker, reported a 1.8 percent drop in underlying first-quarter volumes but said it was managing to raise prices despite challenging trading conditions.

The London-based group, which makes Kent, Dunhill, Lucky Strike and Pall Mall cigarettes, said on Thursday that overall group volumes dropped 2.4 percent to 164 billion cigarettes from 168 billion a year earlier.

Volume declined significantly in markets such as Spain, Mexico, Australia and Vietnam, the company said, noting however that it had grown market share in all those markets.

"British American Tobacco has made a good start to the year and our rate of organic volume decline is slowing," Chief Executive Nicandro Durante said in a trading update.

Its top four "global drive" brands saw volumes grow 9 percent, led by Kent which grew by 16 percent, driven by growth in Russia, Japan, South Korea, Romania and Ukraine.

"This good performance was achieved in trading conditions which remain challenging, with industry volumes markedly lower in a number of markets," the company said.

"There were higher than expected shipments to Japan, where the environment remains highly uncertain following the devastating earthquake."

The 1.8 percent drop in BAT's first-quarter underlying volume compared to European rival and the world No 4 Imperial Tobacco (IMT.L) which reported a 1 percent dip in its October-March half-year cigarette volumes [nLDE72M1FH].

In February, BAT's resumed share buyback and upbeat 2011 outlook failed to offset concern about declining cigarette volumes with underlying volumes off 3 percent in 2010 but these were offset by price rises to see overall annual sales up 5 percent. [nLDE71K1QO] (Reporting by Paul Hoskins, Editing by Matthew Scuffham)