Japan Tobacco annual profit falls 48%

Japan Tobacco has reported that its net profit dropped 48% for the fiscal year ended in March 2009 compared with a year ago. Japan Tobacco saw a net profit of 123.4 billion yen ($1.3 billion), down from a profit of 238.7 billion yen a year ago.

But revenue climbed to 6.8 trillion yen from 6.41 trillion yen a year earlier. On average, analysts expected a profit of 140 billion yen for the fiscal year just ended, according to data from FactSet Research.

Source: Market Watch, 30 April 2009
Link:  http://tiny.cc/UABDk

Hungary: Record fine for cigarette promo

Budapest Court last Wednesday upheld an earlier decision of the National Consumer Protection Office (NFH) regarding a HUF 300 million (EUR 1 million) fine on tobacco manufacturer BAT Hungary. The charge was Hungary’s biggest consumer protection penalty to date.

The proceedings were initiated by two private individuals after the cigarette maker gave away promotional products on the premises of numerous Tesco and Spar retail stores in the winter of 2007. For allowing the cigarette company to unlawfully promote its brands, Spar and Tesco received fines of HUF 70 million (EUR 234,400) and HUF 40 million (133,800) respectively.

BAT declined to comment on the ruling.

Source: The Budapest Times, 27 April 2009
Link: http://tinyurl.com/cdgh85

Action to achieve smoke-free homes - an exploration of experts' views

Abstract

Background: Smoking in the home is the major cause of exposure to secondhand smoke in children in the UK, particularly those living in low income households which have fewer restrictions on smoking in the home. Reducing children's exposure to secondhand smoke is an important public health and inequalities issue. Drawing on findings from a qualitative Scottish study, this paper identifies key issues and challenges that need to be considered when developing action to promote smoke-free homes at the national and local level.

Methods: Two panels of tobacco control experts (local and national) from Scotland considered the implications of the findings from a qualitative study of smokers and non-smokers (who were interviewed about smoking in the home), for future action on reducing smoking in the home.

Results: Several key themes emerged through the expert panel discussions. These related to: improving knowledge about SHS among carers and professionals, the goal and approach of future interventions (incremental/harm reduction or total restrictions), the complexity of the interventions, and issues around protecting children.

Conclusion: The expert panels were very aware of the sensitivities around the boundary between the 'private' home and public health interventions; but also the lack of evidence on the relative effectiveness of specific individual and community approaches on increasing restrictions on smoking in the home. Future action on smoke-free homes needs to consider and address these complexities. In particular health professionals and other key stakeholders need appropriate training on the issues around smoking in the home and how to address these, as well as for more research to evaluate interventions and develop a more robust evidence base to inform effective action on this issue.

Source: Ritchie, D. et al. BMC Public Health, 22 April 2009
Link: http://tiny.cc/2ueSe

UK signs EU anti smuggling agreement

The United Kingdom has joined the 26 other EU member states and the European Community as a signatory to the 2004 anti-contraband and anti-counterfeit agreement with Philip Morris International (PMI) and the 2007 co-operation agreement with Japan Tobacco International (JTI), the European Commission said on April 21 2009. This means that now all EU states are parties to these agreements.

Every year, the European Community and the member states lose hundreds of millions of euro in unpaid taxes from contraband and counterfeit cigarettes. Counterfeit and other forms of contraband create a parallel illegal supply chain that compromises legitimate distribution channels and competes unfairly with genuine products.

European Commission Vice President Siim Kallas said: "This united front by the Community and all the member states shows how seriously we take the fight against illicit tobacco products. It is a strong signal to other companies that such legally binding arrangements are an essential tool to strengthen our action in this area. As the agreements now cover the entire territory of the EU, implementation will become even more comprehensive and efficient," he said. "It will be more difficult for illegal traders to find loopholes. This is not only to the advantage of the UK, but to the EU as a whole since it protects EU financial interests more effectively," he added.

On July 9 2004, the European Community and 10 EU member states signed an anti-contraband and anti-counterfeit agreement with PMI. Since that date, 16 member states have signed the agreement with PMI. On December 14, 2007 the EC, together with 26 participating member states and JTI signed a similar multi-year co-operation agreement to combat future cigarette smuggling and counterfeiting.

The agreements require the participating producers to build on their existing review processes for selecting and monitoring customers, to enhance their capacity to track and trace certain packaging, and to provide expanded support to European law enforcement in its battle against the illegal trade in cigarettes. Under the agreements, the producers agree to continue limiting their sales to volumes commensurate with legitimate market demand.

The agreements also incorporate into a comprehensive contractual framework the participating producers' existing compliance programmes. Producers have a responsibility to fight illegal trade in their products, in full cooperation with relevant government authorities. A lawsuit against R.J. Reynolds and its affiliated entities for civil claims arising out of conduct related to contraband cigarettes is currently pending before the United States District Court - Eastern District of New York.

"The European Commission has always made it clear that it would like to see legally binding agreements negotiated with other international tobacco companies and is always prepared to have discussions with producers who are willing to improve ways to combat illegal trade in their product and associated criminal activity, such as money laundering," the EC statement said.

Source: The Sofia Echo, 21 April 2009
Link: http://tinyurl.com/cqtotf

Asia: Smokers unaware shisha smoking covered under NEA's regulations

Some smokers in Singapore are not aware that shisha smoking is covered under the National Environment Agency's (NEA's) smoking regulations. And those who flout the rules can be fined if they are caught smoking shisha in prohibited areas, such as restaurants and hawker centres.

In shisha smoking, flavoured tobacco is smoked through a water pipe. NEA says smoking is not allowed at food and entertainment outlets, and this applies to all types of tobacco products, including shisha.

However, many shisha smokers say they are unaware of this rule and the S$200 fine that comes with it. One shisha smoker said: "I have been smoking shisha for about two years, but so far, I haven't heard anything about being fined for smoking shisha." Another said: "I always smoke shisha with my friends. But I don't know about the fine for smoking shisha."

According to regulations, shisha outlets are allowed to designate up to 20 per cent of outdoor areas as smoking zones. But a check at Arab Street and Haji Lane, a hotspot for shisha lovers, showed that some businesses did not follow the rules. Not only will the operators get into trouble, their customers will be fined as well. That is why some smokers say shisha operators should enforce the rules.

"The owners of the cafe should take the responsibility of maintaining the order," said a shisha smoker. Another said: "I think it is fair because rules are meant to be there, to separate smokers and non-smokers. I think infringing the rules is not right."

So far this year, 523 smokers have been caught for flouting the rules.

Source: channelnewsasia.com, 20 April 2009
Link: http://tiny.cc/gGX2I

The role of public participation in public health initiatives: An analysis of the WHO Framework Convention on Tobacco Control

Abstract

This is a content analysis of 489 written documents and 142 hearing testimonies, submitted to the World Health Organisation (WHO), regarding the Framework Convention on Tobacco Control (FCTC) during the comment period of 2000. Our aim was to consider the benefits and limitations of inviting public participation. We found that, overall, those who offered commentary were in support of the FCTC and any ensuing treaty, especially if it protected children. The minority who opposed the treaty argued that restrictions on tobacco trade would further damage the economies of poor nations that are financially dependent upon tobacco. The FCTC that was adopted at the World Health Assembly in May 2003 addressed many of the concerns raised by the public in written commentary and hearing testimony: children and youth; advertising and sponsorship; tobacco product labelling; second-hand smoke; taxes; smuggling; liability; tobacco product regulation; and the involvement of non-government organisations (NGOs). We conclude that the benefits of public participation in public health policy formation are numerous, including levelling the playing field for public health activists and NGOs, building the expertise of advocates that can be generalised to other public health efforts, giving the political process legitimacy and credibility, as well as coalition building and grassroots momentum.

Source: Montini, T. et al. Global Public Health, 26 March 2009
Link: http://tiny.cc/X4C9U

PQ: E-Cigarettes

John Leech (Manchester, Withington, Liberal Democrat): To ask the Secretary of State for Health what guidance his Department has issued on the legality of the use of e-cigarettes in enclosed public spaces.

Dawn Primarolo (Minister of State (Public Health), Department of Health; Bristol South, Labour): The Department has not issued any guidance on the legality of the use of e-cigarettes in enclosed public spaces.

The Department has commissioned research through the local authorities’ co-ordinators of regulatory services (LACORS) to test e-cigarettes to see if they comply with the law. This scientific research has found these contain toxic levels of nicotine and that none of the products tested to date comply with product safety regulations. Local Authority Trading Standards Departments have accordingly been informed.

The four products that have been tested so far did not contain tobacco. However, there are many different e-cigarette products on the UK market, which function in different ways and some products may contain tobacco.

Therefore it cannot be assumed that all e-cigarettes can be used legally in smokefree premises. Local authorities enforce the product safety regulations and the Government are working with them to protect the public from the dangers of e-cigarettes that contain toxic levels of nicotine. E-cigarettes should not be sold as an aid to quitting smoking without authorisation from the Medicines and Healthcare products Regulatory Agency.

Source: Hansard, 21 April 2009, Column 575W
Link: http://tiny.cc/e3VUb

Philippines: Demand for tobacco harming Ilocos forests?

For 16 years, Ilocandia has been keeping up with a yearly quota for Virginia tobacco production as a condition for receiving a government subsidy.  The Republic Act 7171 requires the provinces of La Union, Ilocos Sur, Ilocos Norte, and Abra to each produce around one million kilos of Virginia tobacco per crop season, or once a year. In exchange, they get 15 percent of the tobacco excise tax collected by the national government.

Based on available data from government agencies since1996, these provinces had exceeded the minimum average volume required by law. Some sectors are concerned, however, that meeting market demands is taking its toll on the region’s forest cover. Virginia tobacco is the most common, but also the most expensive, variety of tobacco grown in northern Philippines. To cure one million kilos of tobacco leaves, farmers would consume 13,734 cubic meters of fuel wood, based on the National Tobacco Administration (NTA) data on Ilocos Norte in the 2004-2005 season. That volume of fuel wood was equivalent to 170,000 trees.

Producing a total of 109 million kilos of Virginia tobacco from 1996 to 2001, the four Ilocos provinces could have easily consumed 1.5 million cubic meters of fuel wood—the equivalent of around 18.53 million trees felled. If these trees were planted two meters apart, according to estimates by the Forest Management Bureau (FMB), then they covered 7,412 hectares, or almost 3 percent of the four provinces’ total forest cover of 254,234 hectares.

Despite its volume, Ilocos’s production meets less than half of the market demand. Philip Morris Philippines Manufacturing Inc. (PMPMI), for example, bought anywhere from 3 million to 11 million kilos every year from 2003 to 2008. Last year, only 42 percent of these purchases were Virginia tobacco, says PMPMI public and communications officer Dave Gomez.

Imagine then if Virginia tobacco farmers were to cure and produce as much as the market demands - fuel wood consumption would double.
However, the continued cutting of trees for fuel wood can result in floods, drought, and increased temperature, according to Santiago Baconguis, chief and science research specialist of the Ecosystems Research and Development Bureau. The Ilocos region is especially vulnerable to these environmental disturbances given its location. Last year, Ilocos Sur, Ilocos Norte, and La Union were swamped following the rage of typhoon Karen, affecting over 40,000 families. In 2007, the four provinces lost P10 million worth of agricultural crops because of drought.

Neria Andin, assistant director of the FMB, acknowledges that the link between the fuel wood consumption and the decrease in forest cover is not far-fetched. “Even if the trees are taken from private lands, it could still affect the total forest cover of an area,” she says. Still, she’s cautious not to make conclusions. The reason: the FMB wants to be sure about the sources of trees for fuel wood. Unless they are able to identify all the sources, says Andin, they won’t be able to determine the exact volume consumed, and therefore won’t be able to say if tobacco-related tree-cutting is largely behind the region’s deforestation.

The problem is, the FMB doesn’t have a way of finding out. The bureau is mandated to oversee the “effective protection, development, occupancy management, and conservation of forest lands and watersheds,” but it has to depend on the Department for Environment and Natural Resources (DENR) for regional data. The DENR, in turn, issues permits for tree-cutting only when the affected trees belong to species whose cutting is regulated, or are planted in areas classified as public forests or covered by the reforestation projects of local government units.

But most of the trees for fuel wood are planted in private lands, and cutting trees from these areas doesn’t require permits from the DENR. Private lands include tree fallows, which are located at the base of hills or mountains and owned by absentee landlords, and woodlots, which are sometimes owned by tobacco farmers themselves. According to Juan Reyes, provincial environment officer of Ilocos Norte, private landowners are only required to acquire a certificate of ownership. They present this to DENR authorities whenever they transport wood.

Ideally, the DENR should issue the certificates only upon inspection of the lands, but this is not what happens on the ground. Rustico de Guzman, chief of the forest management division of the Community Environment and Natural Resources Office of Laoag City, says the local DENR issues the certificate as long as landowners can submit land titles as proof of ownership.

De Guzman admits that they do not monitor fuel wood consumption and trading. With 17 foresters assigned to cover 90,000 hectares of forests, this is close to impossible, he said.

Source: ABS CBN News, 29 April 2009
Link: http://tinyurl.com/dcxw2w

Second hand smoke exposure in cars and respiratory health effects in children

Abstract

We examined potential associations of "ever" asthma, and symptoms of wheeze (past 12 months), hay fever, eczema and bronchitis (cough with phlegm) among school children exposed to second-hand-smoke (SHS) in cars, using a modified Irish International Study of Asthma and Allergies in Childhood (ISAAC) protocol.

2,809 children aged 13–14 years completed the 2007 ISAAC self-administered questionnaire selected randomly from post-primary schools throughout Ireland. Adjusted odds ratios [AOR] (adjusted for gender, active smoking status of children interviewed and their SHS exposure at home) were estimated for the associations studied, using multivariable logistic regression techniques.

Overall 14.8% (13.9% in boys, 15.4% in girls) of Irish children aged 13–14 years were exposed to SHS in cars. Although there was a tendency towards increased likelihood of both respiratory and allergic symptoms with SHS exposure in cars, wheeze and hay fever symptoms were significantly higher (AOR with 95% CI: 1.35 [1.08–1.70] and 1.30 [1.01–1.67]), respectively, while bronchitis symptoms and asthma were not significant (1.33 [0.92–1.95] and 1.07 [0.81–1.42]), respectively.

Approximately one in seven Irish school children are exposed to SHS in cars and could have adverse respiratory health effects. Further studies are imperative to explore such associations across different population settings.

Source: Kabir, Z. et al. European Respiratory Journal, 8 April 2009
Link: http://tiny.cc/hZ5BS

PQ: Smuggling

Cheryl Gillan (Shadow Secretary of State for Wales, Wales; Chesham & Amersham, Conservative): To ask the Chancellor of the Exchequer what estimate he has made of the changes which have resulted in the volume of (a) tobacco products and (b) alcohol entering the UK by mail since the repeal of the Excise Duties (Small Non-Commercial Assignments) Relief Regulations 1986.

Angela Eagle (Parliamentary Secretary, HM Treasury; Wallasey, Labour): Since July 2007, UK excise duty has been due on all alcohol and tobacco products sent by mail from abroad. This includes gifts from one individual to another and goods that are ordered online.

It is not possible to provide an estimate of the changes in volumes of alcohol and tobacco products, seized on entry to the UK by mail since the regulations were repealed. HMRC seizes a large quantity of alcohol and particularly tobacco products arriving in the UK by mail illegally each year. However, it is not possible to distinguish between those goods which would have qualified for the relief under the regulations and those that would not.

Source: Hansard, 23 April 2009
Link: http://tiny.cc/d2IIq

US: Outlook hazy for smoking rates

The economic downturn has caused US smoking rates to increase for the first time in the past decade. Can a recent hike in cigarette taxes counteract the effect?

On April 1, the federal cigarette tax in the USA increased by the largest amount in history from US$0·39 to $1·01 per pack to help pay for the expansion of a federal health insurance programme. Public health advocates (and pharmaceutical companies that manufacture quitting aids) are hoping that the price increase combined with the recession will deliver a deep blow to smoking habits as more people are forced to quit or reduce consumption.

In most states, the new price for one pack hovers around $6, while New York City residents pay around $10. Anita Santos is a 38-year-old hairdresser in New York City who now pays $10·50 a pack for her favourite brand. Although she continues to smoke, she says that hard economic times have forced her to cut back from a pack a day to a pack every 10 days. “About a year ago, when the recession started, I began to cut down”, said Santos. Although Santos says she isn't quite ready to quit, local public health officials say they have seen an increase in people calling in to telephone “quit lines”.

“For the many New Yorkers looking to save money during these tough times, [quitting] is a great way to do it”, said Thomas Frieden, New York City health commissioner, in a statement. Studies by economists and the Centers for Disease Control and Prevention (CDC) have shown that a 10% increase in price leads to about a 4% reduction in consumption by adult smokers and a 7% reduction among young people.
Cigarette consumption has been levelling off and on the decline in recent years in many developed countries in western Europe and North America, according to WHO. But the epidemic is now shifting to developing nations and global smoking prevalence is expected to increase at a steady rate over the next three decades.

Stanton Glantz, professor of medicine and director of the Center for Tobacco Control Research and Education at the University of California, San Francisco, CA, says education and other policies and a changing social environment have helped many Americans avoid smoking and quit. “Smoking is increasingly socially unacceptable, and smoke free policies make it harder to find places to smoke”, Glantz says. During a recession, Glantz notes that, if people have less disposable income, higher prices are likely to force them to cut back. But other researchers are arguing that the economic recession may actually lead to an increase in smoking, at least in the USA.

Michael Eriksen, director of the Institute of Public Health at Georgia State University in Atlanta and a co-author of WHO's biannual Tobacco Atlas, says two indicators suggest that the economic downturn may not lead to a decrease in smoking. One factor is the most recent prevalence data from the CDC's National Health Interview Survey, which shows that when the recession began in early 2008, people began to smoke more. From January to September, 2008, 20·9% of adults said they were current smokers, up from the 2007 estimate of 19·7%. According to Eriksen, smoking rates have been declining gradually and this is the first time there has been an increase in the past decade. “We're probably seeing relapse: people who quit are relapsing back to previous smoking behaviour, as the recession puts them under a lot of stress”, he says.

Eriksen also points to the relative stability of the credit outlook for tobacco companies. According to a March report by Moody's Investors Service, although the economic downturn has put pressure on sales and new taxes were recently levied, the companies' profitability should continue to be strong. “You can still buy cigarettes anywhere you turn, so you have affordability, accessibility, and addictiveness, which combine to allow tobacco companies to manage this economic storm”, said Eriksen. “It's a paradoxical phenomenon: even though people have less money to spend, they still buy cigarettes.”

But some economists question whether tobacco companies will remain as profitable with the introduction of the new tax and the economic downturn. Frank Chaloupka, a professor of economics and health policy at the University of Illinois at Chicago says that the tobacco companies prepared for the tax hike by increasing prices on their own by $0·80 3 weeks earlier. “But the tax should mean that the tobacco companies eventually lose sales”, says Chaloupka.

Source: The Lancet, 25 April 2009
Link: http://tinyurl.com/cm6sbo

Home-based sourcing of tobacco among adolescents

Abstract

Objective: To study home-based sources of tobacco and associated family factors among Finnish adolescents.

Methods: Nationwide surveys (1999, 2003, 2007) of 14–16-year-old daily (n = 2355), occasional (n = 708), and experimental (n = 2763) smokers. The main outcome measure was home-based sourcing of tobacco (parents, siblings, taking from home) during the past month. Logistic regression was used for statistical analysis.

Results: Home-based sources were used by 44% of daily, 11% of occasional, and 9% of experimental smokers; other social sources by 93%, 65%, and 51%; and commercial sources by 70%, 28%, and 10% respectively. Among daily smokers, home sources meant siblings (24%), parents (19%), and taking from home (19%). Parental smoking and absence of a home-smoking ban increased home-based sourcing. The odds ratio (OR) for obtaining tobacco from any home-based source was 6.96 (95% CI: 3.75–12.91) and from parents 7.44 (2.68–20.65) when both parents smoked versus nonsmoking parents. In the absence of a home-smoking ban, corresponding ORs were 2.21 (1.28–3.81) and 21.33 (2.84–60.30) versus those reporting having a ban. Obtaining tobacco from parents was more common in single-parent/reconstituted families than in families with two biological parents.

Conclusions: Parents should be provided with guidance about the consequences of home-based sourcing in the persistence of children's smoking habit.

Source: Rainio, S. et al. Preventative Medicine, Vol. 48, Issue 4, April 2009
Link: http://tiny.cc/v6zoC