Was Science Sidelined in Cigarette Debate?

It was instructive to be reading Golden Holocaust, Robert N. Proctor's new history of the tobacco industry, during the recent debates over Mitt Romney's leadership of Bain Capital.

Bain made some of its money by closing unprofitable companies that it had bought, often firing hundreds of people along the way. During his 15 years at Bain, Romney became a multimillionaire.

To many observers, the Bain story was a yawn. Those who have studied the history of capitalism, dating back to the days of John D. Rockefeller and Andrew Carnegie, have shown that it is generally a dirty business, in which more ruthless practitioners generally get ahead and deftly use science and statistics to support their causes.

But perhaps due to the current economic downturn and high unemployment rate, others asked whether someone who had made his fortune as Romney did was an appropriate person to lead our country. It was, of course, only a momentary pause, but one that may have actually forced people to rethink something that they have long taken for granted.

This type of dramatically new perspective, "making the familiar seem strange and the strange familiar," is what Proctor is trying to achieve in Golden Holocaust. Is the tobacco industry so inherently duplicitous that it does not deserve to exist, even if it is a great capitalist success? Proctor challenges his readers to conceptualize a much happier and healthier world in which the manufacture and sale of cigarettes is prohibited.

Proctor is hardly the first accomplished author to mine this topic. Books by Richard Kluger, Stanton Glantz and Allan Brandt have savaged the cigarette industry, relying in part on internal tobacco company documents that were released as a result of a series of lawsuits.

Proctor builds not only on this earlier work but on the continued release of documents in an easily searchable online database, now containing 70 million pages. As the author notes, being able to search for specific terms -- like candy cigarettes, cyanide and the famous 1964 surgeon general's Report -- made it easy for him to document the industry's perfidies. Through such searches Proctor learned, for example, that cigarette filters don't filter and that light and low tar cigarettes are especially deadly. He also learned that, remarkably, the tobacco industry was given the power to veto membership on the surgeon general's committee, leading to a report that did not condemn smoking nearly as forcefully as it might have.

Indeed, Golden Holocaust is like a 700-page how-to manual of how to sell a dangerous product that no one needs and make lots of money as a result. Here is the full story of the December 1953 meeting of tobacco company CEOs that engineered several public strategies for obfuscating the growing proof -- privately well-known to these executives -- that smoking was both addictive and almost surely linked to lung cancer. The main plan, engineered by the public relations firm Hill and Knowlton, was to repetitively insist that no definitive proof of harm existed and that "more research was needed." It was a masterful example of what we now call "plausible deniability." Proctor calls it an "oncologic Ponzi scheme."

How to Profit off Addicts

If you want to get rich, don't invest in things people want. Invest in things people need.
Of course, besides food, shelter, and safety, needs change. Those changing needs are often the most profitable, and the more people need, the more suppliers can profit.
History shows us that one of the most profitable needs of all is the need for an addictive drug. Before being shot by Colombian security forces, Pablo Escobar was one of the wealthiest men in the world, with a personal fortune near $25 billion. Thanks to an unstoppable demand for cocaine, Escobar rose from poverty by smuggling tons of cocaine into the United States back when the white powder was the drug of choice of American yuppies and junkies alike. Such is the wealth to be had in feeding addictions.
Tobacco companies have known for a long time how profitably supplying addicts can be, and the firms have become the dividend darlings that yield-hungry investors dream of. Reynolds American (NYSE: RAI [FREE Stock Trend Analysis]), producer of Camel, Pall Mall, and Winston cigarettes through its R. J. Reynolds subsidiary, has been offering dividends of around 5 percent (usually much higher) since the middle of 2004, while its stockprice has climbed steadily despite lower cigarette smoking rates from 2005 to 2010. Meanwhile, stock in Reynolds increased nearly 4 percent--and that's including the market crash of 2008.

Social media more addictive than cigarettes, alcohol

Cannot resist your urge to tweet or check emails? Don't get surprised, as a new study has found that checking email and social media is more addictive than cigarettes and alcohol.

US researchers who carried out an experiment to test the will power of 205 people, aged 18 to 85, in the German city of Wurtzburg found that most of them were more likely to give in to urge to tweet or check email than other cravings like drinking or smoking.
"Desires for media may be comparatively harder to resist because of their high availability and also because it feels like it does not 'cost much' to engage in these activities, even though one wants to resist," said lead researcher Wilhelm Hofmann at Chicago University's Booth Business School.

In the experiment using BlackBerry devices, participants were asked seven times a day over the course of a week to identify desires they were experiencing and the strength of said desires.

The team sifted through thousands of responses and came up with some telling results. Thankfully, the study showed we're all not slaves to vice and distraction, as the need for sleep and leisure topped the list.

However, next on the list of "self-control failure rates" was checking in with social media, email and work -- ahead of the urge to have a Camel Light, while sipping on that glass of 12-year single malt scotch.

"With cigarettes and alcohol there are more costs -- long-term as well as monetary -- and the opportunity may not always be the right one," the Discovery News quoted Hofmann as telling the Guardian.

"So, even though giving in to media desires is certainly less consequential, the frequent use may still 'steal' a lot of people's time," Hofmann added.

The results of the study are to be published soon in the journal Psychological Science

Reynolds American 4Q profit up 16 pct

Reynolds American Inc., the nation's second-biggest tobacco company, said Wednesday that its fourth-quarter profits rose 16 percent as higher prices and productivity gains helped offset declining cigarette sales.

The maker of Camel, Pall Mall and Natural American Spirit brand cigarettes reported net income of $304 million, or 52 cents per share, for the three-month period ended Dec. 31, up from $262 million, or 45 cents per share, a year ago.

Reynolds American said that adjusted for charges related to the value of one of its trademarks and other costs, it earned 72 cents per share, beating Wall Street estimates of 68 cents per share.

The Winston-Salem, N.C., company said revenue excluding excise taxes was flat at $2.08 billion. Analysts polled by FactSet expected revenue of $2.04 billion.

Shares fell 60 cents, or about 1.5 percent, to $39.51 in morning trading on Wednesday.

"Over the past year, the marketplace environment has been a difficult one and the year ahead is not likely to be any easier," CEO Daniel M. Delen said in a conference call. "The weak economy and high unemployment rates continue to put pressure on consumers' disposable income and competitive promotional activity remains intense."

Reynolds American also said Wednesday that it has started a detailed review of its businesses to "ensure they are aligned with today's economic and competitive landscape." It expects that review to be completed by March 31.

Meanwhile, the company confirmed that it has laid off workers at its Tobaccoville, N.C., manufacturing plant, but would not say how many. It also has asked some of its salaried and hourly employees whether they'd be interested in leaving the company in return for a severance package, spokeswoman Maura Payne said.

The company said heavy promotional activity by its competitors drove its cigarette volumes down about 7 percent to 10.5 billion cigarettes.

Its R.J. Reynolds Tobacco subsidiary sold 4.5 percent less of its Camel brand, and volumes of Pall Mall grew less than 1 percent.

Camel's market share remained stable at 8.0 percent of the U.S. market, while Pall Mall's market share grew 0.3 percentage points to 8.6 percent.

The company has promoted Pall Mall as a longer-lasting and more affordable cigarette as smokers weather the weak economy and high unemployment, and has said half the people who try the brand continue using it.

Reynolds American and other tobacco companies are also focusing on cigarette alternatives such as snuff and chewing tobacco for future sales growth as tax hikes, smoking bans, health concerns and social stigma make the cigarette business tougher.

Volume for its smokeless tobacco brands that include Grizzly and Kodiak rose 6 percent compared with a year ago. Its share of the U.S. retail market grew 0.9 percentage points to 32.1 percent.

For the full year, the company said it earned $1.4 billion, or $2.41 per share, in 2011 compared with $1.1 billion, or $1.92 per share, in the previous year. It said its adjusted earnings for the year were $2.81 per share. Revenue excluding excise taxes was flat at $8.5 billion.

Reynolds American also said it expects its full-year adjusted earnings to be between $2.91 and $3.01 per share.

Last week, rival Altria Group Inc., owner of the nation's biggest cigarette maker, Philip Morris USA, said its fourth-quarter profit fell about 9 percent on charges even as higher prices and gains from its smokeless tobacco products helped bolster its sales. Its cigarettes volumes were flat at 33.7 billion cigarettes and its top-selling Marlboro brand lost 0.7 points of market share to end up with 41.6 percent of the U.S. market.

Saugus health board aims to regulate e-cigarettes

The Saugus Board of Health is looking into adopting a new regulation that would limit the sale of electronic cigarettes and place them in the same category as tobacco products.

An e-cigarette is a nicotine delivery product that reproduces the act of smoking, but the user inhales a mist generated through an electronic heating source. A small vial of “e-liquid” is placed in a battery-operated, cigarette-shaped device, which is then heated and inhaled, according to Joyce Redford of the North Shore/Cape Ann Tobacco Alcohol Policy Program.

“Our current regulations restrict the sale of tobacco products, but it doesn’t address nicotine,” said Public Health Director Frank Giacalone on Tuesday. “That’s what e-cigarettes are, a nicotine product.”

Saugus Board of Health regulations state that tobacco products are not allowed to be sold to anyone under 18 and cigarettes cannot be smoked in public places.

Redford presented the regulation at the Board of Health meeting Monday night, and said e-cigarettes aren’t regulated by the Food and Drug Administration.

“We’re not trying to ban them,” said Redford on Monday. “We’re just trying to regulate them out of [concern over] use by youth and to ensure that they’re getting asked for ID, and because we don’t know what’s in the vapor, we don’t want it in a workplace like a cigarette.”

If added to the town’s current tobacco policy, e-cigarettes would not be allowed to be sold to minors and would be prohibited from being used in public areas, including private clubs and outdoor seating.

Giacalone said the opening of two e-cigarette retailers in Saugus, one called Eastern Vapor in Saugus Center, and another in a kiosk at the Square One Mall, prompted the recent discussions.

Mark Petrillo, owner of Eastern Vapor, said e-cigarettes are a good way to quit smoking and noted he would support the new regulation since he already sells his products like they are regular cigarettes.

Tobacco tax proponents gear up June ballot campaign

There's another battle brewing in this year's California ballot wars: The Yes on Proposition 29 campaign is cranking up.

Prop. 29 -- called the California Cancer Research Act -- would hike tobacco taxes by $1 per pack of cigarettes to fund research and smoking prevention efforts. It's one of two measures on the June primary statewide ballot.

Expected to be on hand at proponents' presser today are Jim Knox of the American Cancer Society's state's division, Kimberly Weich Reusché of the American Lung Association in California, and American Lung Association volunteer Steve Larson, who has stage 4 lung cancer. The event runs from noon to 2 p.m. on the Capitol's west steps.

Gov. Jerry Brown takes to the airwaves this evening, appearing on Current TV's "The War Room with Jennifer Granholm" starting at about 6:05 p.m. Pacific Time.

The California Newspaper Publishers Association, meanwhile, is in town for its 15 annual Governmental Affairs Day, and no fewer than five elected officials are scheduled to address its members.

Assembly Speaker John A. Pérez is up first this morning, followed by Senate President Pro Tem Darrell Steinberg, then Assembly Republican leader Connie Conway and Senate Republican leader Bob Huff. State Controller John Chiang is to address the group after lunch. (The state's cash flow may well be on the agenda.) The event starts at 10 a.m. at the Sheraton Grand in Sacramento.

Under the dome, a joint legislative hearing held with the Legislative Women's Caucus and the state Commission on the Status of Women looks at a new report, "Falling Behind," on the effects of the recession and the state's budget on women and their families. Listed presenters include Judy Patrick of the Women's Foundation of California, Jean Ross of the California Budget Project, and Sandy Gleysteen, who heads the commission. The hearing starts at 1:30 p.m. in Room 4202.

Another joint hearing will consider recommendations from the California Community Colleges' task force on student success from 9:30 to 11:30 a.m. in Room 4202. Later, an oversight hearing will look at the affordability of college textbooks starting at 2 p.m. in Room 444.

The Senate Rules Committee will take up the governor's appointments, starting at 1:30 p.m. in Room 113, with California Technology Agency Secretary Carlos Ramos and California State University trustee Herbert Carter required to appear. Carter is likely to face questions about executive compensation, given the reaction after CSU trustees hiked a campus president's pay package amid tuition increases.

BALLOT INITIATIVES: Democratic Sen. Loni Hancock of Berkeley and Assemblyman Paul Fong of Cupertino join with Kim Alexander of the California Voter Foundation and representatives of the Greenlining Institute to discuss the results of a recent poll on ballot initiative reform as well as responses from a statewide "listening tour." The briefing runs from 11:30 a.m. to 1 p.m. in the Capitol's Room 2040.

Health System Says No to Hiring Tobacco Users

Beginning February 1, 2012, Geisinger Health System will no longer hire job applicants who use tobacco products, including Parliament One cigarettes, cigars, and chewing or smokeless tobacco.
The policy also affects applicants receiving offer letters as of February 1. Geisinger serves more than 2.5 million residents in central and northeastern Pennsylvania.

According to a company press release, all applicants will be tested for nicotine as part of routine drug screening during the hiring process. The test will even check for nicotine patches and gum.

The policy affects those seeking full- and part-time positions, volunteers, and students enrolled in Geisinger-based schools.

Geisinger Chief Human Resources Officer Richard Merkle commented that, “Geisinger is joining dozens of hospitals and medical organizations across the country that are encouraging healthier living, decreasing absenteeism, and reducing healthcare costs by adopting strict policies that make smoking a reason to turn away job applicants.”

Those who test positive for nicotine use will be welcome to reapply in 6 months if they are nicotine-free at that time, said Merkle. Geisinger will provide a list of smoking-cessation resources to applicants found to be using tobacco.

The new policy does not affect current employees, but Geisinger is encouraging them to take advantage of its quit-smoking programs.

So far, so good in mum’s bid to end smoking habit

FOR asthmatic Wendy Austin, six years of smoking up to 25 cigarettes a day was beginning to take its toll on her health.

Wendy, 24, from Penhill, decided to make it her New Year’s resolution to stub out her habit for good in a bid to protect her own health as well as that of her six-month-old son Michael John Austin-Bucksey.

With the help of NHS Swindon’s Stop Smoking Service, Wendy has been smoke-free for one whole month and is feeling confident that this time it will be forever.

She said: “I feel so much healthier now.

“I walked from Penhill into town the other day, and usually I would be puffing because I am asthmatic as well. But I wasn’t out of breath at all, it really cleared my chest.

“I would recommend it to anyone thinking about giving up, don’t just give in if you feel like you need a cigarette, you will feel so much better about yourself.”

Wendy has been using nicotine patches and quick mist during her first four weeks of quitting and is in regular contact with NHS Swindon, which monitors her progress.

She said: “They have been so helpful and encouraging, I couldn’t have done it without their help. The quick mist is really good, it is like a relief. If you want a cigarette you spray it straight away and, within a minute, that feeling has gone.

“It has been difficult. The worst was when it was my partner’s birthday not long ago and we were having a drink at the pub, and you would usually have a cigarette.

“It can be quite difficult watching him smoke, but he is hoping to quit next year now too.”

Last year, an estimated 35,699 people in the South West quit smoking with the help of the NHS Stop Smoking Service.

The Swindon NHS Stop Smoking Service has a network of advisers across the town who run free advice sessions and can offer practical support and guidance on the best methods for each individual to quit smoking in more than 60 locations.