Tuesday, July 26, 2011

Classes aim to help people quit smoking

Salem Health will offer a series of classes in Salem and Dallas to help smokers quit starting Wednesday.

"Freedom From Smoking," developed by the American Lung Association, offers tools and tips from ex-smokers.

The classes will be from 6 to 8 p.m. Wednesdays through Sept. 7, at Salem Health's Community Health Education Center, 890 Oak St. SE. The classes will also be available by videoconference at West Valley Hospital, 525 SE Washington St., Dallas.

Cost is $120. Some insurance providers offer benefits related to quitting smoking.

Marijuana Eradication Raids Underway In 6 California Counties

Marijuana Eradication

Mendocino County, California officials have confirmed that a massive, 6-county marijuana eradication sweep is currently underway, aimed at clearing away the illegal cannabis cultivation in the Mendocino National Forest.

According to Michelle Gregory, a Department of Justice spokeswoman, the sweep has produced roughly 292,000 plants and 77 arrests as of yesterday. Numerous agencies are said to be participating in the raids, which started last week and which authorities were trying to keep secret.
“Good progress.” These grows only exist because of cannabis prohibition and the inflated price it causes for a naturally-growing plant on the black market. So the state enforces the prohibition that causes these illegal grows, then shells out taxpayer money to send highly-trained men swooping in with helicopters to chop down and burn plants.

An endless cycle of silliness that would be funny if it wasn’t costing so much money and wasting so many man-hours that could be used toward ridding society of violent crime.

Cigarette maker Reynolds American earns fall nearly 11 pct; adj profit up 2 pct

Cigarette maker Reynolds American Inc. said its second-quarter profit fell almost 11 percent to $304 million, chiefly on charges related to a legal case. Excluding those charges, its earnings rose 2 percent as higher prices and smokeless tobacco gains offset cigarette volume declines.

FEWER CIGARETTES: The nation’s second-biggest tobacco company and maker of Camel, Pall Mall and Natural American Spirit cigarettes said it sold 4.4 percent fewer cigarettes than last year’s quarter.

Brit Inventor Develops "Safe" Cigarette

A British inventor has created a 'safe' cigarette that doesn't contain tobacco or burn when you puff it, meaning it won't pollute your lungs with carcinogenic tar.

The 'safe' cigarette is a nicotine inhaler shaped like a cigarette that delivers doses of the addictive chemical equal to those of cigarettes.
Alex Hearn, the Oxford-educated 28-year-old who designed the product, has earned the backing of several wealthy investors as well as a licensing deal with British American Tobacco (BAT), the company behind the cigarette brands Dunhill, Kent, Lucky Strike and Pall Mall. Currently under development, BAT said the inhalers will hit the market within two years.

"If you need to deliver nicotine, it's certainly a safer route than what you get in a cigarette," Live Science quoted Scott Rogers a University of Utah neurobiologist who studies nicotine addiction and its effects, as telling Life's Little Mysteries.

Camel Crush Gets Bold

Reynolds Tobacco Co. is expanding its Camel Crush line nationally with Camel Crush Bold.

Bold's tobacco blend is the same Turkish-Domestic blend as in Camel Filter cigarettes. And as with Camel Crush, the filters of the Bold cigarettes contain a capsule that releases a small amount of menthol in the filter when squeezed. (Camel Menthol cigarettes also use the technology to provide extra menthol.)

According to Richard Smith, a company spokesperson, the Bold cigarettes provide adult smokers "the opportunity to experience full-flavor non-menthol with 'menthol on demand'."

In testing, Camel Crush Bold had high appeal with smokers of both Camel and competitive brands, and smokers liked being able to decide when or if they wanted to add the menthol taste, according to Smith.

"From our initial feedback in the development of Camel Crush, leading up to its national expansion in 2008, having a full-flavor option has been something adult tobacco consumers have told us they would be interested in," he told CSP Daily News.

Reynolds American's CEO Discusses Q2 2011 Results

Operator

Good day, ladies and gentlemen, and welcome to Reynolds American Second Quarter Earnings Conference Call. [Operator Instructions] And as a reminder, this conference is being recorded. I would now like to introduce Mr. Morris Moore, Vice President of Investor Relations. You may begin.

Morris Moore

Good morning, and thank you for joining us. Today, we'll discuss Reynolds American's results for the second quarter and first half, as well as our revised outlook for the full year. We'll focus our discussion on adjusted results as management believes this better reflects the underlying business performance. A reconciliation of reported to adjusted earnings is in our press release, which is on our website at reynoldsamerican.com.

With me this morning are RAI's President and CEO, Dan Delen; and Tom Adams, our CFO.

The information we're about to discuss includes forward-looking statements. When we talk about future results or events, a number of factors could generate results materially different from our projections today.

These factors include, but are not limited to, items detailed in our press release and SEC filings. Except as provided by Federal Securities laws, we are not required to publicly update or revise any forward-looking statement. and now I'll turn the call over to Dan.

Daniel Delen

Good morning, everyone. Reynolds American delivered higher earnings in the second quarter as its operating companies key brands made additional gains despite the challenging economic and competitive environments.

Both of our reportable business segments continue to execute their business strategies effectively. With R.J. Reynolds growth brands increasing their combined market share and American Snuff reporting excellent growth in volume, share and operating margin.

At Santa Fe, I'm pleased to say second quarter results were strong. Once again, the company generated growth in volume, share and earnings. As we reported today, RAI's first half results allowed us to tighten our earnings projections for the full year.

RAI and its operating companies continue to demonstrate strength and resilience despite significant competitive activity in the second quarter and the ongoing weak economy.

As a result, we remain on track to deliver 2011 adjusted EPS growth in the mid- to high-single digits. This range excludes the charge for the Scott smoking cessation lawsuit in Louisiana, as well as implementation costs related to plant closings and tax items recognized in the first half of the year.

Over the long term, our strategy is straightforward and bold. RAI and its operating companies are focused on leading transformation of the tobacco industry, while continuing to deliver outstanding results for our shareholders. We continue to drive innovation across our businesses, with a commitment to redefining enjoyment for adult tobacco consumer.

Now I'll provide additional details on our operating companies. R.J. Reynolds' second quarter adjusted operating income was down slightly in both the second quarter and for the first half. Gains in the company's growth brands were offset by cigarette volume declines in its support and non-support brands. The cigarette category continues to demonstrate good pricing power as evidenced by the price increase that R.J. Reynolds took early this month.

I would also note that R.J. Reynolds remained focused on achieving the right balance between profitability and market share growth. Competitive promotional activity increased significantly with the timing of promotional cycles in April and May, while R.J. Reynolds had relatively normal promotional levels in the quarter.

The company's total second quarter cigarette market share was down half a percentage point at 27.4%. However, if we exclude the private label brands that have been delisted as part of the company's portfolio simplification efforts, it's total cigarette market share was in line with the prior year quarter at 27.3%.

R.J. Reynolds' growth brands, Camel and Pall Mall, continued to perform well in the second quarter. Their combined market share increased 1.5 percentage points from the prior year quarter to 16.3%. And these 2 brands accounted for almost 60% of the company's total cigarette volume in the quarter.

Camel's second quarter cigarette market share was steady at 7.8%, which is good performance, especially for premium priced brand in this challenging environment. R.J. Reynolds continue to focus on building brand equity for Camel. The brand's most recent promotion, the Hump Day Sweepstakes campaign started in March. And the response from adult tobacco consumers to this web-based initiative have been nothing short of fantastic.

Indeed, this is the company's most successful promotion in recent years, with more than 1 million visits to the brand's websites. A key driver behind Camel's performance is its menthol styles, which use R.J. Reynolds' innovative capsule technology. Camel share of the growing menthol market increased by 0.3 of a percentage point in the second quarter and now stands at 2.1%.

R.J. Reynolds will continue to build momentum with next week's national expansion, Camel Crush Bold. This one additional SKU also uses the capsule technology and offers a richer, more full-bodied tobacco taste. I would also point out that this is R.J. Reynolds' first new national cigarette line extension since Camel Crush went national 3 years ago.

The company expects this new style to drive additional growth and further broaden the appeal of the Camel brand.

Now moving to Camel's modern smoke-free tobacco products. Camel SNUS again performed well in the second quarter. Its interest continues to grow in this convenient smoke-free option for adult tobacco consumers. As we mentioned last quarter, R.J. Reynolds introduced 2 new Camel SNUS styles in lead market, SNUS mint and Frost Large. Although they've been in the markets for only one quarter, they're showing encouraging results. These 2 styles offer adult tobacco consumers more options to try and ultimately switch to this innovative product.

In addition, the company launched the Camel SNUS Pleasure Switch Challenge promotion, which is also increasing the brand's awareness and trial.

On Camel's line of dissolvable tobacco products, these products, Orbs, Sticks and Strips, were refined and improved and introduced in 2 new lead markets in March. The products are attracting good consumer interest and the company continues to gain valuable insights about this new category.

Now turning to R.J. Reynolds second growth brand. Pall Mall reported another excellent quarter, delivering double-digit volume growth and increasing its market share by 1.5 percentage points. The brand achieved an 8.5% share of market for the quarter. This high-quality, longer-lasting cigarette has proven to be a very popular choice for adult smokers taking value, especially in this weak economy.

This distinctive blend of quality and value offers a strong foundation for Pall Mall's long-term success. So in summary, R.J. Reynolds demonstrated strength and resilience in the face of some strong headwinds in the quarter and is well positioned for growth in the remainder of the year. Now turning to American Snuff.

I'm pleased with the company's solid underlying performance in the quarter despite low price line extensions of premium brands and significant promotional activities on deep discount brands. I would note that the sale of Lane in February negatively impacted the earnings comparison for the quarter, and Tom will give you more details on that in just a moment.

American Snuff's second quarter moist-snuff consumer offtake share performed extremely well, increasing 1.5 percentage points from the prior year quarter to 31.3%. This performance was driven by the company's flagship brand, Grizzly, which reported strong gains in both volume and share. Grizzly's momentum continued in the second quarter, with consumer offtake share increasing by 1.9 percentage points from the prior year. Grizzly now holds a 27.4% share of market. The brand continues to benefit from the strength and scale of R.J. Reynolds field trade-marketing organization that now also serves American Snuff.

Addition, the new retail moist snuff contracts that were introduced in the second quarter are giving Grizzly more retail space, as well as improved brand and pricing communication. This investment has better positioned the brand for continued long-term growth. And American Snuff continues to invest in the equity of Grizzly with promotions like its current "giving it to you straight" sweepstakes, which engages adult tobacco consumers in an exciting web-based campaign.

And the brand is planning activities to celebrate its 10th anniversary by September. Grizzly's post sales continued to be a key factor in the brand's strong performance. The growing pouch segment accounts for more than 9% of the moist-snuff category. Grizzly has also seen rapid growth in its pouch styles since their introduction just 3 years ago. I'm proud to say that Grizzly Wintergreen Pouches are the best-selling pouch styles in the market.

In summary, both American Snuff and R.J. Reynolds continued to successfully leverage their sound business strategies and grow their key brands while navigating through a challenging environment. Now Tom will provide some additional financial details. Tom?

Thomas Adams

Thank you, Dan. Good morning, everyone. During my discussion, I'll focus primarily on adjusted results to provide perspective on our underlying business performance. Reconciliations of adjusted-to-reported results are in our press release, which is on our website. RAI have a solid quarter posting adjusted earnings per share of $0.67, up 1.5%. Higher pricing and moist-snuff volume gains more than offset cigarette volume declines. These adjusted results reflect the impact of the Lane sale and exclude a charge of $0.15 per share related to the Scott lawsuit.

On a reported basis, RAI second quarter earnings per share was $0.52, down 10.3% from the prior year quarter. For the first half of 2011, adjusted earnings per share was $1.26, up 4.1% from the prior year period. This adjusted results exclude the second quarter charges I just mentioned, as well as first quarter tax items.

In addition, there were prior year charges for plant closings and the single sales force implementation. RAI's second quarter adjusted operating margin was 30.1%, in line with the prior year quarter. First half adjusted operating margin was 29.9%, up 0.5% from the prior year period.

Friday, July 22, 2011

Cutting cigarette tax is foolish and reckless

Cigarettes are addictive

I thought I was reading an article from April Fools' Day in the July 11 edition of Daily Press & Argus ("Senator wants cigarette tax slashed 50 percent").

State Sen. Joe Hune's idea to cut cigarette taxes by 50 percent while imposing more barriers to women, children and people with disabilities (i.e., the overwhelming majority of Medicaid recipients) to make up the difference from revenue loss of the tax cut is ridiculous.

I understand why the senator wants to cut benefits for poor people because that's what the hard-right, "tea party" perspective embraces. I may not agree with it, but everyone is free to have their own opinions.

But, the thing that is so blatantly terrible on a multitude of levels is his idea to decrease cigarette taxes. What? Cigarettes are addictive and dangerous and cause cancer. The last thing Michigan needs is more people smoking particularly when demographics show that it is largely people from lower socioeconomic levels who smoke and many, if not most, of these people do not have health insurance. Thus, Michigan would end up paying more and more and more money for their short- and long-term care when they end up in hospital.

The idea of decreasing the Legislature-approved tax on cigarettes is foolish, stupid and reckless.

New York man indicted for trafficking 900 cartons of cigarettes in West Virginia

A New York man is facing charges that he illegally possessed more than 900 cartons of cigarettes.

U.S. Attorney William Ihlenfeld II says Mohammad D. Mohammad was indicted on one count of transporting and possessing contraband cigarettes without paying applicable state cigarette taxes.

The indictment says officers found the cigarettes and $499 on Mohammad when he was stopped in Lewis County on March 29.

If convicted, Mohammad faces up to five years in prison and a $250,000 fine.

It was not immediately apparent if Mohammad had an attorney.

Colombia Imposes Ban on Advertisement of Cigarettes

Advertisement of Cigarettes

Come Thursday and chain smokers would see a health warning on the pack of a loose cigarette, as part of ruling of health ministry of Columbia.

As part of the ban approved by Congress in June 2009, cigarettes can now only be sold in packets of 10 or more and tobacco companies would not be allowed to advertise at all, even on foreign TV channels broadcasting in the country.

If reports are to be believed, out of the population of about 46 million, at least five million adults were found to have been in habit of enjoying smoke.

As per anti-tobacco law supporter Senator Dilian Francisca Toro, some 25,000 people lose their life after getting affected with one of the other type of cancers linked to smoking and a large number of people suffer from long-term consequences of smoking.

Though a ban on smoking in enclosed public places was imposed in May 2008, people seem to have found one or the other way to get hold of a smoke. Despite being recommended to stay away from smoke for serious health concerns, a large number of adults struggle to get rid of the habit.

Phillip Morris Sues Veppo E-Cigarettes

giant Phillip Morris

The tobacco giant Phillip Morris has been targeting Veppo E-Cigarettes for potential trademark infringement of the Marlboro mark.
The websites VeppoCig.com and E-CigaretteDirect.com have been contacted by attorneys for Phillip Morris (PM USA) via email and certified letter.

The letter claimed that E-CigaretteDirect.com is infringing on PM USA's trademark of the Marlboro logo and word mark. The item in question is their M'boro like flavored e-liquid. PM USA would like E-CigaretteDirect.com and VeppoCig.com to stop using the letter "M" in that particular font, claiming that it is 'confusingly similar to the font PM USA uses on its MARLBORO cigarette packaging.".

"The font that is used for the M'boro like flavored e-liquid is a Times New Roman Font. The only similarity it may have to the marlboro font is that it is a serif font. However, Times New Roman is a widely used font and in no way infringes on PM USA Trademark" stated Gina King, brand manager for VeppoCig.com
The letter from PM USA also requested that the websites remove the word "M'boro" from their description of the e-liquid, stating that "M'Boro is confusingly similar" and the sites "merely removed the letters “a”, “r”, and “l” and inserted an apostrophe".
Ms. King responded by stating "We are not aware at this point that PM USA has a trademark on the word M'boro nor on the letter M".

E-Cigarettes have become a popular option to smoking regular cigarettes. They claim to not have the thousands of chemicals and hundreds of carcinogens that are added to cigarettes. The e-liquid nicotine that is in question is the solution that is used to refill the e-cigarette. It provides the smokers with the taste, nicotine and sensations of smoking, but without the tar nor carcinogens.

Altria Group CEO Michael Szymanczyk

Altria Group

Altria Group Inc., the owner of biggest U.S. cigarette maker, Marlboro maker Philip Morris USA, has been under pressure from its competitors as consumers face economic challenges and unemployment remains high.

That's on top of the tax hikes, smoking bans, health concerns and social stigma that have made the cigarette business tougher.

In the second quarter, Altria said its top-selling Marlboro brand lost 0.2 points of market share to end up with 42.6 percent of the U.S. market, but it sold about 1 percent more of the brand. It sold for an average of $5.63 per pack in the quarter, compared with an average of $4.20 per pack for the cheapest brand.

The Richmond, Va., company has introduced several new products with the Marlboro brand, often at lower prices. They include special blends of both menthol and non-menthol cigarettes to help keep the brand growing and steal smokers from its competitors.

Less-expensive brands such as Pall Mall from Reynolds American Inc. and Maverick from Lorillard Inc. attracted more smokers looking to save money.

In a conference call with analysts Wednesday regarding second-quarter earnings for Altria CEO Michael E. Szymanczyk discussed the company's Marlboro brand and the overall premium segment.

QUESTION: In terms of the cigarette category, the premium segment has been pretty resilient in this difficult economic environment. Can you foresee that changing in any way, and is there a risk that the price gap between the premium and the discount segment needs to get even narrower to sustain the premium segment momentum?

RESPONSE: The stability between premium and discount, if you go back and look at it, is pretty consistent for about a 15-year period now. ... What you see is that Marlboro's consolidating share of the premium segment, so its business comes from people who are more inclined to smoke a high-quality, premium product and I don't see anything changing that. I do think that particularly in tough economic times, you have to be thoughtful about how you manage your value equation. ... The premium segment looks pretty healthy and Marlboro is very healthy within it.

Monday, July 11, 2011

The Prevalence of Waterpipe Tobacco Smoking Among the General and Specific Populations

Background: The objective of this study was to systematically review the medical literature for the prevalence of waterpipe tobacco use among the general and specific populations.
Methods: We electronically searched MEDLINE, EMBASE, and the ISI the Web of Science. We selected studies using a two-stage duplicate and independent screening process. We included cohort studies and cross sectional studies assessing the prevalence of use of waterpipe in either the general population or a specific population of interest. Two reviewers used a standardized and pilot tested form to collect data from each eligible study using a duplicate and independent screening process. We stratified the data analysis by country and by age group. The study was not restricted to a specific context.
Results: Of a total of 38 studies, only 4 were national surveys; the rest assessed specific populations. The highest prevalence of current waterpipe smoking was among school students across countries: the United States, especially among Arab Americans (12%-15%) the Arabic Gulf region (9%-16%), Estonia (21%), and Lebanon (25%). Similarly, the prevalence of current waterpipe smoking among university students was high in the Arabic Gulf region (6%), the United Kingdom (8%), the United States (10%), Syria (15%), Lebanon (28%), and Pakistan (33%). The prevalence of current waterpipe smoking among adults was the following: Pakistan (6%), Arabic Gulf region (4%-12%), Australia (11% in Arab speaking adults), Syria (9%-12%), and Lebanon (15%). Group waterpipe smoking was high in Lebanon (5%), and Egypt (11%-15%). In Lebanon, 5%-6% pregnant women reported smoking waterpipe during pregnancy. The studies were all cross-sectional and varied by how they reported waterpipe smoking.
Conclusion: While very few national surveys have been conducted, the prevalence of waterpipe smoking appears to be alarmingly high among school students and university students in Middle Eastern countries and among groups of Middle Eastern descent in Western countries.

Government to present tobacco enforcement contract to Maine

tobacco enforcement

The federal Food and Drug Administration will present a $2.1 million, three-year tobacco compliance and enforcement contract to the state of Maine.

The contract, which will be announced Monday at the Calumet Club in Augusta, supplements compliance efforts to prevent the sale and distribution of tobacco to minors.

Speakers at a news conference include Lawrence Deyton of the FDA, Maine Attorney General William Schneider and Maine Department of Health and Human Services Commissioner Mary Mayhew.

Southampton dock workers sentenced for cigarette crime

Christopher Gregory, 41, from Romsey, and Stephen Le Carpentier, 43, from Southampton, pleaded guilty to evading £27,000 of duty.

They were arrested on 17 November 2010 after port security staff saw them loading the cigarettes, thrown from a berthed container ship, into a van.

Both men have since been sacked.

The pair were also given 250 hours of community service each.

John Cooper, HM Revenue and Customs, said: "Their actions would have undercut honest retailers and deprived the UK of vital public funds.

"We will continue to work closely with the port authorities and police to root out this kind of illegal activity and disrupt criminal operations wherever possible."

Will Graphic Cigarette Labels Work? FDA Study Casts Doubt

When the Food and Drug Administration unveiled graphic new health warnings for cigarette packs last week, an agency statement said the "bold measure" would "help prevent children from smoking [and] encourage adults who do to quit." But the agency's own research concluded that the impact of the warnings might actually be negligible.

The required new warnings are an outgrowth of the Family Smoking Prevention and Tobacco Control Act of 2009. When the label requirement is fully implemented in September 2012, all cigarettes made for U.S. sale or distribution will need to include one of nine graphic new warning labels on their packages. The FDA selected the nine from 36 images that were originally proposed, after reviewing scientific literature, considering 1,700 public comments and analyzing results from a survey of almost 19,000 people. Among the warnings are images of decaying teeth and lungs, children surrounded by smoke, and a photograph of a man wearing a shirt that reads, "I quit."

But a close look at that survey's conclusions casts doubt on the initiative's potential for impact. "The graphic cigarette warning labels did not elicit strong responses in terms of intentions related to cessation or initiation [of smoking]," wrote the survey authors at RTI International, a North Carolina research institute, in their December 2010 report for the FDA's Center for Tobacco Products.

The FDA paid RTI $1.3 million to conduct the survey on reactions to the labels, which included a specific attempt to gauge the impact on African Americans, according to procurement orders iWatch News obtained through the Freedom of Information Act. The money did not come from taxpayer dollars, but from user fees cigarette companies are required to pay the federal government to regulate tobacco products.

The FDA collects user fees from the tobacco industry each year to pay for the Center for Tobacco Products. The budget totaled $235 million last year, a figure that -- though substantial -- is dwarfed by industry spending on marketing. A 2009 Federal Trade Commission report shows the industry spent $12.5 billion on marketing in 2006.

An FDA spokesman noted that the 2009 law required creation of the labels, and said the agency used portions of the survey that were helpful in making their determinations. "Whether to do or not to do the labels was not up for grabs," FDA spokesman Jeffrey Ventura told iWatch News. "There was never a time that people were deciding whether or not to do this. It was, 'what is the best way to do what is required under the law?'"

Despite the survey's conclusions, the FDA estimates that the labels will "reduce the smoking population" by 213,000 within the first year. This widely reported number was cited in the FDA's final rule published last week; the number was based on an FDA analysis of statistics from Canada, which began to require labels a decade ago.

According to Robert Cunningham, senior policy analyst at the Canadian Cancer Society, smoking rates have declined from 24 percent to 18 percent from 2000 to 2009. Canadian youths showed an even sharper decline in smoking from 25 percent to 13 percent over the same time span. Cunningham noted that other factors besides images on cigarette packs -- such as tax increases and restrictions on smoking in certain places -- likely played roles as well.

The FDA said it had accounted for "relevant differences" between the policies of the United States and its northern neighbor, enabling the agency to "isolate the effect of graphic warnings on smoking rates" and come up with the 213,000 figure. Cunningham said the estimate sounded reasonable, but others aren't so sure.

Jeff Stier, senior fellow at the conservative National Center for Public Policy Research, said the labels are an example of what he calls "Why not?" policy-making: The requirements pose no opportunity cost for the government, monetary or otherwise, so they might as well do it even if the labels' effects aren't proven, he said. "They say it's science-based, but the number is nothing more than speculation," he said.

Dr. Gil Ross, medical director of the American Council on Science and Health, a New York-based consumer education group, also was skeptical, arguing that it was impossible to isolate the effects of the labels. "Their estimate is bogus and is designed to prop up their urge to impose these lurid, large warning labels," he said.

"Exposure tends to have a diminished effect. The labels may cause a startle reaction but they tend to be taken in stride."

In the FDA study, researchers inquired about participants' emotional responses to the images, their recollection of them, their beliefs about the health risks of smoking -- and their intentions to quit.

Though most of the study showed desired results -- namely, that users had strong emotional reactions to the images, remembered them and understood the health risks of smoking -- the survey did not show any intention to change smoking habits. Nor did it indicate that the images would discourage people from beginning to smoke.

Anti-tobacco groups, including the Campaign for Tobacco-Free Kids, dismissed the survey's conclusion about respondents' intentions, however, arguing that the survey was meant to compare the reaction to each of the images as a way of weighing which would elicit the strongest emotional response.

Reaching conclusions about whether people might start smoking or quit smoking is virtually impossible from a survey involving such brief exposure to the labels, asserted Danny McGoldrick, the campaign's vice president of research. "The exposure was so brief," he said "If you see a Nike ad one time -- are you going to go out and buy a pair of their shoes?"

McGoldrick predicted a big impact over time. "This is going to be a dramatic change in terms of what smokers encounter every time they grab a pack of cigarettes."

The United States' move toward graphic labels is representative of a larger international trend. Forty-three other nations have already passed legislation for putting labels on cigarette packs.

Canada led the way. "The international consensus is that picture warning works," Cunningham told iWatch News. "A picture is worth a thousand words and can have more emotional impact. They are harder to ignore. That's why companies use pictures in advertising -- because they work."

Information compiled by the Center for Tobacco-Free Kids showed that in Brazil, 54 percent of smokers had changed their opinions about the health consequences of smoking as a result of the labels, while 67 percent said the warnings made them want to quit. Surveys conducted in Singapore, Thailand, Australia and China showed similar outcomes.

Tobacco manufacturers oppose the new labels, arguing they are not realistic and are designed to elicit extreme reactions.

"The proposed graphic images include non-factual cartoon images, controversial photographs that appear to have been technologically enhanced to maximize an emotional response from viewers," wrote Reynolds American Inc., one of the country's leading producers of tobacco products, during a period for public comment on the FDA rules requiring the labels.

Reynolds American also challenged the FDA's conclusions on the labels prospective impacts, alluding to the RTI survey showing little change in smokers' intentions.

"In assessing the potential benefits of the proposed warnings, the rule relies on studies that not only are methodologically flawed, but also fail to demonstrate, even on their own terms, that the warnings will have any impact on smoking prevalence," the firm wrote.

But the survey may simply have measured effects over too short a duration. A 2009 study published in the Journal of Consumer Affairs suggested that the images might take time to be effective tools.

Approximately 46.6 million Americans smoke, and one in five deaths are caused by smoking-related illnesses each year, according to 2008 Centers for Disease Control and Prevention (CDC) data. In addition, the CDC estimates the U.S. health cost at $193 billion annually.

To Cunningham of the Canada Cancer Society, opposition by the tobacco industry tells the whole story: its resistance suggests the labels have an effect. "If it didn't work," said Cunningham, "the industry wouldn't oppose it."

Iceland debates prescription-only cigarettes

prescription-only cigarettes

Icelandic lawmakers were Monday considering a proposal to ban the retail sale of cigarettes and make them a prescription-only product. Under the proposal, smokers would need a valid medical certificate to buy tobacco products, which would only be available from pharmacies, The Guardian reported. Smoking "patients" would also need to submit to regular health checks.

The private members' bill was brought by Siv Fridleifsdottir, Iceland's former health minister, who told local media that the country needed to "wake up" to the dangers of smoking. A spokeswoman from the ministry of welfare praised the proposal Monday but raised doubts about its chances of success. "Siv Frideleifsdottir is a very serious politician and this is a very serious proposal," Anna Baldursdottir said. "Whether it not it eventually becomes law, I do not know. I seriously doubt it."

Iceland already has one of the lowest smoking rates in the world, with just 15 percent of people aged 15 and older lighting up regularly.
The proposal will formally be debated by the Icelandic parliament when it returns from summer recess.

Safe Cigarette Finally Developed?

Cigarette smoking is dangerous, nasty and one of the most difficult addictions to kick. But is using a "safe" cigarette better than the real thing?

A British inventor thinks so, and he's found support from several wealthy investors, and a licensing deal with British American Tobacco , the company that makes Lucky Strike, Pall Mall and Kent cigarettes.

Alex Hearn has designed a nicotine inhaler that will provide a consistent dose of nicotine, and look and taste like a regular cigarette. The product is expected to be available in England in two years.

Electronic cigarettes, or e-cigarettes, first reached the market four years ago manufactured by a Chinese company. The e-cigarettes are battery powered cylinders that look like cigarettes, but contain a vaporizer that delivers a puff of nicotine when the user sucks on it. The tip even lights up to look like a cigarette.

But smokers find that the e-cigarettes do not consistently deliver enough nicotine to satisfy their cravings. They are also not marketed as an aid to quitting, a lucrative market.

Tuesday, July 5, 2011

Re-inventing cigarette warning labels is becoming a nasty habit

The Food and Drug Administration has come a long way, baby, when it comes to upgrading warning labels for cigarettes.

First, the agency mandated the placement of printed warning labels on cigarette pack side panels.

Next, it banned ad campaigns portraying cowboys as Marlboro smokers, healthy young couples picnicking in pastures as Salem smokers, and young, fiesty "I'd rather fight than switch" pugilists as Lucky Strike smokers.

Starting next year, the FDA will require cigarette packs to carry graphic health risk photos, ranging from a photo of a guy taking a smoke break through his trachea hole, to a sewn-up cadaver and a photo of a sooty lung covered lobe-to-lobe with lima bean-sized tumors.

The pictures are so graphic and gruesome, comedian Bill Maher has called on the government to provide warning labels for the warning labels.

While I'm all in favor of people giving up tobacco, I'm not convinced that the new warning labels are going to do much to achieve that goal -- although it may get people to temporarily give up overeating -- another popular public health issue.

First of all, it's hard to imagine that anyone in the United States isn't already keenly aware that smoking is a health hazard that can cause irreparable harm to some very useful parts of the human body.

Newport ads target black youth: Stanford study

Marlboro prices

Stanford School of Medicine researchers compared pricing and advertisements for Lorillard's Newport, the top menthol brand, and Marlboro, the top non-menthol brand, at 407 stores within walking distance of 91 schools in California in a 2006 survey.

A recent analysis of the data found school neighborhoods were increasingly likely to have lower prices and more advertising for Newport cigarettes as the proportion of African-American students rose. The same was true of neighborhoods with higher proportions of children aged 10 to 17.

Marlboro prices and advertisements did not show similar trends. Marlboro is made by Altria Group Inc unit Philip Morris USA.

The study "shows the predatory marketing in school neighborhoods with higher concentrations of youth and African-American students," by the menthol cigarette maker, researcher Lisa Henriksen said in a statement.

An advisory committee to the U.S. Food and Drug Administration is considering rules for menthol cigarettes but is not expected to ban menthol.

Researchers who had looked at advertising in school neighborhoods analyzed the pricing data in light of the looming FDA decision. The results will be published online in Nicotine & Tobacco Research on Friday.

Lorillard did not immediately comment on the study.

British American Tobacco Buys Back 225,000 Own Shares To Hold

British American Tobacco PLC (BATS.LN), said Monday that it purchased 225,000 of its Ordinary shares of 25 pence each, and said it intends to hold these shares in Treasury.
MAIN FACTS:
-The average price was 2,782.7399 per share.
-The highest price paid was 2,793 pence per share and the lowest price paid was 2,756.5 pence per share.
-Following the purchase of these shares, the Company holds 42,392,554 of its shares in Treasury.
-The Company has 1,983,569,831 ordinary shares in issue excluding Treasury shares.