ASH Daily News for 31 October 2018



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UK

  • Budget: new tobacco duty for heated tobacco

International

  • Canada considering mandating written health warnings on individual cigarettes
  • Opinion: Why vaping won’t stop the long-term decline of ‘big tobacco’
  • US Study: Teens more likely to use e-cigarette brand Juul than older age groups

Parliamentary Activity

  • Parliamentary Questions

UK

Budget: new tobacco duty for heated tobacco

A new (tobacco) duty for heated tobacco will come into force in July next year, it was announced in the recent Budget. The new tax applies to tobacco use in heat-not-burn products such as Philip Morris’ IQOS device.

The tax will be set at the same level as hand rolling tobacco, which has risen to 3% above inflation, compared to 2% above inflation for manufactured cigarettes.

Source: The Sun, 31 October 2018

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International

Canada considering mandating written health warnings on individual cigarettes

Canada could soon become the first country in the world to require cigarette manufacturers to include warnings about the dangers of tobacco on individual cigarettes. The federal government has launched a consultation process looking at regulations around warnings on tobacco products.

One of the ideas being floated in the consultation is a new requirement for health warnings to be included on individual cigarettes. It is suggested that “smoking causes cancer” could be the phrase included. Currently, Canada only mandates that such warnings be placed on or inside cigarette packaging.

Rob Cunningham, a senior policy analyst for the Canadian Cancer Society, describes the proposal as a “logical next step” for health warning requirements.

“It’s an incredibly cost-effective way to reach every smoker every day with the health message.” he said.

Source: CTV News, 30 October 2018

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Opinion: Why vaping won’t stop the long-term decline of ‘big tobacco’

Shane De La Haye, assistant fund manager at Ashburton Investments, writes about the rise of vaping and what it means for investors in ‘big tobacco’ companies.

“The global cigarette industry has been in decline for the last five years. Cigarette demand peaked in 2012, with around six trillion cigarettes being consumed worldwide. Since then, the volume of consumption has declined by 9.2% to 5.4 trillion cigarettes in 2017. The decline in volume has been driven by a number of factors including rising regulation, higher excise duties, growing consumer health consciousness, as well as the availability of cheaper alternatives.

“Smoking rates in the US and UK are currently at their lowest levels in years, at 15.5% and 15.8% respectively. Vaping has become a popular alternative for smokers seeking to quit the habit – the cost of maintaining a vaping habit is considerably cheaper than traditional smoking.

“The rapid growth of the vaping industry has been a double-edged sword for large tobacco companies. On one hand, the popularity of vaping has provided much needed growth within the industry, but at a cost, given the margin dilution. Rising demand for vaping has also resulted in cannibalisation from the traditional cigarette businesses, exacerbating the size and speed of volume declines within factory made cigarettes. As a result, we do not expect the rising demand for vaping to arrest the long-term decline in the global tobacco industry.”

Source: FE Trustnet, 30 October 2018

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US Study: Teens more likely to use e-cigarette brand Juul than older age groups

A study looking at e-cigarette use among American teenagers and adults has found a relatively higher level of experimentation and use of Juul e-cigarettes amongst younger age groups. The study looked at more than 13,000 people.

Amongst the respondents aged 15-17 years, 10% had previously experimented with Juul and this fell around 3% for those aged 25-34 years.

Source: BMJ Tobacco Control, Prevalence and correlates of JUUL use among a national sample of youth and young adults

Source: Yahoo Finance, 30 October 2018

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International

Parliamentary Questions

Parliamentary Questions 1/2/3: Smoking cessation support

Norman Lamb (North Norfolk)

To ask the Secretary of State for Health and Social Care, if he will make an estimate the number and proportion of people in receipt of nicotine replacement products dispensed via the NHS who have subsequently quit cigarettes for at least 3 months.

To ask the Secretary of State for Health and Social Care, if he will make an assessment of the smoking cessation treatments available through the NHS that are most effective at (a) three months, (b) six months and (c) one year after the patient initially stops smoking.

To ask the Secretary of State for Health and Social Care, what estimate his Department has made of the total cost per patient of smoking cessation in terms of the (a) medication and (b) staff time involved in the dispensing of such products in the last year for which information is available.

Answered by: Steve Brine, The Parliamentary Under-Secretary for Health and Social Care

This information is not available in the format requested.

Source: Hansard, 30 October 2018

Q1 link: https://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2018-10-25/183887/

Q2 link: https://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2018-10-25/183886/

Q3 link: https://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2018-10-25/183883/

Parliamentary Question 4: Smoking cessation treatments

Norman Lamb (North Norfolk)
To ask the Secretary of State for Health and Social Care, if he will make an assessment of the relative cost effectiveness of the smoking cessation treatments available on the NHS; and if he will make a statement.

Answered by: Steve Brine, The Parliamentary Under-Secretary for Health and Social Care
The National Institute for Health and Care Excellence guideline NG92 provides a summary of the relative effectiveness of individual stop smoking medications (when used both with or without behavioural support), compared to effectiveness of no medication. This summary and accompanying guidance is available at the following link:

https://www.nice.org.uk/guidance/ng92/evidence/b-interventions-to-aid-smoking-cessation-behavioural-support-and-pharmacotherapy-pdf-4788920847

Source: Hansard, 30 October 2018

Link: https://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2018-10-25/183885/