Move Over Joe Camel -- Plastics Lobby Targets Kids in Textbooks

What do cigarettes and single-use plastics have in common? Most cigarettes have a single-use plastic filter -- so smokers get a dose of petrochemicals along with their tar and nicotine. Also, single-use plastics are becoming recognized as a public health crisis just like cigarettes were decades ago. Finally, both the tobacco and plastics industry have demonstrated a disconcerting lack of ethics in pitching their products to kids.

The current environmental, health and safety battle over the impacts of single use plastics reflects the early days of the anti-smoking movement in many ways. Public awareness about the impacts of single-use plastics on the environment and human health is increasing due to the work of nonprofits, universities and governmental bodies. Single-use plastics are becoming recognized not only as an eyesore that litters our nation, but as threats to public health as they have entered our food chain both directly, through leaching their chemicals into food and drink, and indirectly, as plastic pollution is consumed by marine life in our lakes, rivers and oceans.

But with the plastic bag being the number one consumer item on the planet according to the Guinness Book of World Records, the plastics purveyors won't go down without a real fight. The war is being fought between environmental and public health interests and the petrochemical lobby, headed by The American Chemistry Counsel (ACC) with Dow Chemical at the helm. In pushing its agenda to keep Americans hooked on single-use plastics, the ACC has employed many of the same tactics that were used by the tobacco industry.

Remember Joe Camel? He was the R J Reynolds Cartoon Mascot for Camel cigarettes that was abandoned by that company in 1997 under pressure from public-interest groups and a pending lawsuit alleging that Joe Camel was a marketing ploy to attract children to smoking. In 1991 The Journal of the American Medical Association published a study showing that by age six nearly as many children could associate Joe Camel with cigarettes as could associate Mickey Mouse with the Disney Chanel logo. Also, 32.8% of all cigarettes illegally sold to minors were Camels, up from less than 1% before the cartoon camel campaign. Internal documents from RJ Reynolds that were to be used in the trial showed that underage children were indeed on the minds of the cigarette manufacturers despite their claims to the contrary: RJR's Vice-President of Marketing explained that the "young adult market... represent[s] tomorrow's cigarette business. As this 14-24 age group matures, they will account for a key share of the total cigarette volume -- for at least the next 25 years."

You can rest assured that the purveyors of the lucrative single use plastic bag have done their market research to keep young Americans asking for plastic at the cash register. While municipalities and countries around the world are banning single use plastic bags, the petrochemical lobby is upping their game at marketing them. Plastic bag manufacturers who call themselves "an environmental group" in court papers created "Save the Plastic Bag Coalition" to file lawsuits against jurisdictions who ban or place fees on plastic bags. Three of the largest plastic bag manufacturers have sued a small reusable bag manufacturer ChicoBag for "irreparably harming" their business. The ACC sponsors the plastic recycling section of Earth 911 as a means to promote recycling plastic as the solution to plastic pollution when evidence shows otherwise (see Plastic and the Great Recycling Swindle). And now the ACC is trying to enter the classroom via our children's textbooks.

UN: tobacco tax essential for social development, economic health

Member states of the United Nations have adopted a Political Declaration committing governments to speed up implementation of a tough framework convention on tobacco control as a means to curb diseases.

At the UN High-Level Meeting on Non-Communicable Diseases (NCDs), member states affirmed support for the WHO Framework Convention on Tobacco Control (FCTC) and vowed to encourage countries, which have not yet done so, to consider acceding to the FCTC.

Southeast Asia Tobacco Control Alliance (SEATCA) director Bungon Ritthiphakdee, speaking from the UN General Assembly in New York City, reported that the Declaration acknowledged the special contribution of reducing tobacco consumption in the effort to reduce NCDs. The Declaration also noted the role of price and tax measures in cutting tobacco consumption.

Dr. Margaret Chan, WHO Director-General, said in her address to the UN General Assembly, “Full implementation of the WHO Framework Convention on Tobacco Control would bring the single biggest blow to heart disease, cancer, diabetes, and respiratory disease. In terms of demand reduction, increases in tobacco taxes and prices are the most effective measure. They not only protect health. They bring in considerable revenue.”

According to a recent World Economic Forum and Harvard University study, NCDs will cost the global economy over the next 20 years a staggering US$ 30 trillion, representing 48 percent of global GDP in 2010. NCDs can thus “break the bank” of even the wealthiest nations, said Dr. Chan.

According to Ms. Ritthiphakdee, the High-Level Meeting on NCDs provides an excellent opportunity for public health and tobacco- control advocates in all countries to reiterate the triple benefit of higher tobacco taxes: lives saved, healthcare savings, and higher government revenues.

Smoking prevalence in Indonesia (34 percent) and the Philippines (28.3 percent) are currently among the highest in the world. Not coincidentally, they also have some of the lowest tobacco tax rates and the cheapest tobacco products in the world. But Southeast Asia is also home to some of the most compelling proofs of the effectiveness of raising tobacco taxes.

“In ASEAN countries such as Thailand, which has increased tobacco taxes nine times from 1994-2010 (current excise rate is 85 percent), smoking prevalence among youths and the poor decreased more than 50 percent,” said Ritthiphakdee.

Australia to push for plain tobacco packaging at UN summit

Australia's Health Minister Nicola Roxon will be pushing for other countries to follow Australia and legislate for plain-packaged tobacco at a summit on disease prevention.

The minister is currently in New York for a United Nations summit looking at some of the West's biggest killers such as cancer, heart disease and diabetes - health issues that are also of increasing concern in the developing word.

Warning as £3m tobacco seizure bound for Ulster

THE seizure of almost £3m worth of smuggled cigarettes in Dublin should serve as a reminder that anyone buying them here is “funding the murder of their neighbours”, it has been claimed.

Former PSNI assistant chief constable Alan McQuillan – now an international crime consultant – gave the warning after Irish customs officers seized eight million cigarettes in Dublin which “were destined for the Northern Ireland market”.

A report by the International Monitoring Commission (IMC) in March strongly linked cigarette smuggling to dissident republican groups CIRA and the RIRA. One month after the IMC report a dissident republican bomb claimed the life of PSNI constable Ronan Kerr in Omagh.

The Dublin contraband was seized on Monday at the city’s port and is estimated to have a retail value of £2.7m and a loss to the Irish exchequer of £2.2m. The illegal consignment arrived in Dublin from Spain in a 40ft maritime container declared as “paper products” and contained “Regal”, “Richman” and “Hoop” brand cigarettes.

A Northern Ireland-registered commercial vehicle and trailer were seized as part of the operation.

Investigations are ongoing both nationally and internationally into the haul.

A spokeswoman for the Irish customs office said this latest seizure brings the total number of cigarettes it has seized to date in 2011 to around 87 million, with a total retail value of about £28.9m.

Former Assets Recovery Agency chief Mr McQuillan said the seizure of cigarettes in Dublin would cause “serious damage” to dissidents.

“It seems quite clear that dissident republicans are inextricably linked to organised crime and they are probably using this money to fund paramilitary operations,” he said.

“But really what you have here is organised crime gangs. It has to be priority for the community to get behind the police in order to stop these economic and terrorist crimes.

“I am delighted to see this seizure in Dublin but what we really need is for people to stop buying illegal cigarettes.

“They need to know that their money is going to kill their neighbours through dissident republican terrorism.”

On Monday the News Letter reported that Northern Ireland customs officers have quadrupled raids against fuel laundering plants here since 2008/09, which the IMC also strongly linked to dissident republicans.

WV Anti-Tobacco Campaign to Feature Students' Personal Stories

West Virginia's youth-led tobacco prevention movement, Raze, will feature teens from around the state telling their personal stories about how tobacco has affected their lives.

The campaign is an extension of last year's "I did it" campaign, which encouraged teens to submit their stories about how tobacco has affected them personally.

The "I did it" campaign was launched in August 2010 and included
television commercials, print ads, mall displays, movie theater advertising and sponsored local events.

Following the campaign, Raze received more than 600 stories from teens all over the state, sharing their personal stories about tobacco.

These stories were used as the foundation of the latest campaign, entitled "Raze for Real."

Specific teens' stories were chosen to spotlight as part of the campaign and these teens were showcased in television commercials, print ads, billboards, social media initiatives and more.

The campaign is set to launch in early fall 2011.

As part of the campaign, Raze created its own Facebook and Twitter pages, as well as its own YouTube channel, where teens can go and find out more information about the program and the teens featured in the campaign.

The "Raze for Real" campaign will continue to the strong messaging against tobacco use amongst West Virginia youth.

While smoking prevalence is declining among West Virginia's youth, according to a recent state Youth Tobacco Survey, 22 percent of West Virginia's high school students continue to smoke.

7 Reasons To Buy Altria In Current Turbulent Markets

In a turbulent market, MO is one stock which operates independent of the economic landscape. Cigarettes are a legal U.S. product. Some people choose to smoke. Key rationale for buying this stock include:

MO has a .45 beta compared to the overall stock market. When other equities are volatile, MO's stock price trades within a narrow range. MO has traded between $22.75 - $28.13 for the past 52-weeks.
MO's dividend has been raised 45 times in the past 42 years. Management is clear on rewarding shareholders with sharing profits and sound financial decisions.
MO continued to show investors that dividend increases are a key focus. On August 26th, 2011, MO increased their quarterly dividend 7.9% from 38 cents per quarter to 41 cents per quarter. The annual dividend yield is 6.1% based upon a $26.72 MO stock price.
MO continues to aggressively buy back shares. On January 27th, the company committed to buying back $1 billion in MO shares during 2011.
MO continues to see progress in smokeless tobacco sales and wine sales. These product lines will provide growth markets for the upcoming years.
MO, on July 20th, confirmed that earnings per share (not counting one-time adjustments) will increase between 6-9% for the year. EPS figures should arrive at $2.01 - $2.07 per share. This represents a reasonable 13x price-to-earnings multiple for a sound company.
In 2011, Fortune magazine ranked MO number one in the tobacco industry for financial soundness and long-term investment.


Reynolds American Inc. (RAI)

Reynolds American is the second leading cigarette producer in the United States, behind Altria. Core brands include: Winston, Doral, Camel, Salem, Pall Mall, Kool, and Vantage. Winston and Camel are the key brand names in terms of revenues. BTI owns 42% of RAI common stock. RAI sold their international business to Japan Tobacco in 1999. RAI management has been more aggressive in dividend increases than stock buybacks. This is due to BTI's significant RAI-ownership.

5 Big Tobacco Stocks Providing Solid Yields In A Downturn

It seems to be the positon of the majority that we are either heading for another recession or a prolonged period of slow growth.

Based on public sentiment and the degrading economic indicators, I am of the opinion that there is between a 25 and 40 percent chance of recession. So it would seem prudent to look at one of the most recession resistant industries: Big Tobacco.

A negative economic outlook seems to do little to inhibit consumers from lighting up. So with the threat of a double dip recession looming and the Fed pledging to keep interest rates low until at least 2013, I feel that the tabacco industry is a great place to look for possible investments.+

Reynolds American (RAI)
Description: Reynolds American Inc. (RAI), through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. It offers cigarettes under the brand names of CAMEL, PALL MALL, WINSTON, KOOL, DORAL, SALEM, MISTY, and CAPR. The company also provides smokeless tobacco products, including moist snuff under GRIZZLY and KODIAK brand names. The company was founded in 1875 and is headquartered in Winston-Salem, North Carolina.

Valuation: RAI is currently trading $36.91 which gives it a market cap of 21.52 billion. It places at number four on the list based on its size. It currently has a trailing multiple of 16.05 and a forward multiple of 13.04.

Financial Metrics: Reynolds American has the smallest operating margin at 29.69%. Also at 20.57% it has the lowest return on equity of the five stocks. However, on a positive not it has the lowest debt to equity ratio out of the five companies.

Dividend Analysis: RAI provides a solid $0.53 quarterly dividend which gives it a yield 5.80%. It has the second highest payout ratio on the list at 87%. RAI has been paying out dividends for twelve years and increasing them for the last three.