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Archive for January, 2013

E-Cigarettes are Not Helpful in Fighting Smoking Craving

Wednesday, January 30th, 2013

smoking e-cigaretteNowadays there is no any proof that electronic cigarettes are helpful in fighting smoking craving and they must not be utilized by youngsters as mainly because they are still offering nicotine, a research by the Italian Health Ministry announced a few days ago. E-cigarettes have rising in popularity and U.S.

The Health Ministry survey, cautioned that this “vogue gadget” must not be utilized by teenagers simply because, even if smaller amounts of nicotine are breathe in this manner, there are still significant prospective health risks. The review also brought up the worry that the use of this device could lead teenagers switch from this gadget to regular cigarettes.

A group of electronic cigarette manufacturers claimed that the device is expected to support people who already smoke. The e-cigarette is generaly an electronic inhaler composed of a plastic cartridge, a battery, a tank for a flavored liquid and an “atomizer” that vaporizes the liquid. Some of the flavored solutions possess nicotine. It generates a smoke-like vapor that imitates the act of cigarette smoking and when inhaled produces the nicotine.

Roberta Pacifici, director of Italy Observatory on Smoking, Alcohol and Drug Use, who has been working on the review, stated, “We can state that the e-cigarette is less harmful, but we cannot really claim that it is totally innocent.” “We need to have a smart tactic towards this product as we know hardly anything of how toxic it is,” she stated. She admited that despite the fact that there are diverse strengths of nicotine in the liquids offered the specific volume of nicotine in an e-cigarette is lower than in a regular cigarette.

Legislation regarding e-cigarette and its sales differs all over the world since the e-cigarette was launched on the market about 10 years ago. A reasonably limited range of scientific checks and handled experiments are available as the product is a comparatively new creation. Pacifici also stated, “Should its effectiveness as a method to reduce smoking be confirmed it should still be handled as all the other alternative nicotine products as nicotine gum.” At this point the main notifications are against the sale of e-cigs to under-16 year olds and the suggestion to keep the product away from children.

TESDA Agency to Provide Tobacco Farmers with Priceless Knowledge

Friday, January 25th, 2013

Tobacco farmThe directorrof the state-run Technical Education and Skills Development Authority (TESDA) declared that the agency has educating applications for tobacco growers who could possibly lose their jobs because of the predicted decrease in cigarette use due to increased prices. “Worries have been increased that farmers would lose their jobs in the subsequent few years due to higher cigarette price,” he cautioned. He underlined that TESDA has accreditation in place that is appropriate to farm workers to support them create and learn new things in order to have new jobs or livelihood prospects.

Villanueva explained skills linked to agriculture, horticulture, food production, and others are out there to support tobacco growers chnage gears without always removing them from the work they have known for many years. “The courses will provide them with priceless knowledge and great experience in order to adabt with the changes introduced by the new law,” the TESDA chief explained. Intending to decrease its effect on the growers the agency created a procedure of assistance for tobacco farmers by means of training programs to be sponsored from 2014 to 2017.

President Aquino agreed upon the sin tax bill into law that is perceived increasing government treasury with extra P30 billion in profits.
In his presentation, Aquino guaranteed that tobacco growers would reveal in the profits emerging from the passage of the bill. Farmers and vendors had stood against the bill, declaring it would destroy their industry and take away th elast source of income.

The Senate and the House of Representatives adopted the report on the measure, which lays larger taxes on alcohol and tobacco products.
The adoption of the sin tax bill is a strategy that is anticipated to increase the Philippines’ possibilities of obtaining an investment grade in the coming year as it plans to improve tax collections.

The government, via the Department of Finance, received some of the reforms it was driving for as the bicameral’s release which would produce P34 billion in pregressive profits in the first year of execution is close to the P40 billion the government had focused from sin tax earnings.

Sales of Flavored Smoking Products on the Rise

Monday, January 21st, 2013

flavored smoking productsAnn Marie Bossard, representative of the Anthracite Newstand, has observed that the sales of flavored smoking products increase as the price of cigarettes has jumped and the economy has slowed. So teen and women are the major tobacco customers. As she spoke several days ago about the wide range of flavored cigars currently available, from vanilla to cherry, rum to mango, Avery Bradford came in to purchase a package of Cafe Creme Italian Macchiato cigars. The 18-year-old stated he likes more the flavored cigars than other smoking products and the cost of $4.79 is much lower than on the majority cigarettes. He stated that his peers also indulge in the flavored-smoking products.

Bradford is a perfect illustration of why Pennsylvania and other states are faltering when it comes to combating Big Tobacco and stopping manufacturers from advertising tobacco products to a young generation of potential smokers. At $1.60, Pennsylvania is below the figures in nearby regions which includes Maryland with $2; New Jersey -$2.70 and New York, which at $4.35, has the greatest excise tax in the country. Nevertheless it wasn’t the tobacco tax rate that raised the anger of the association. In fact it was its shortage of taxes on tobacco products such as cigars, smokeless tobacco and hookah tobacco.

Pennsylvania is the one state that never taxes these tobacco products, though it thinks to make small cigars regarded as cigarettes for taxation reasons. “By not obtaining a level playing field with tobacco taxes, we are viewing market changes from cigarettes to lower taxed and consequently more lower-priced smoking products. This signifies that candy-flavored cigars are alluring future generation to become hooked on nicotine,” stated Paul G. Billings representative of the American Lung Association.

Even though flavored cigars were available practically at the same price range as particular cigarette brands, a lot of them were less than $2, so people see difference and choose those products determined by that difference. It is evident that the inexpensive flavored tobacco products led to more sales. “We are confronted with a powerful, ever-evolving tobacco industry that’s decided to keep its market share at the cost of our children and present smokers,” stated Billings.

Bossard mentioned she didn’t consider instituting a tax on cigars and other smoking products would demonstrate to a decrease in sales. “It wouldn’t change anything,” she concluded.

Philip Morris International – The Best Dividend Growth Company

Monday, January 14th, 2013

Marlboro logo
Philip Morris International (PMI) within the last years has executed diverse shareholder useful policies. The giant cigarette manufacturer has been involved in a significant share repurchase program and has been growing its dividend since its spin off from Altria in March 28, 2008. PMI has also raised its revenue at a stable tempo while also taking benefits of historically poor interest rates to decrease its interest expenditure. Nowadays Philip Morris is trading for $88.72 as of November 23, 2012. With its present quarterly dividend of about $0.85, the yield totals to $3.40 per year, or 3.5%

PMI has been increasing its dividend at a mean rate of approximately 15% since its spin off from in 2008. Its 2008 dividend constituted $1.84 in comparison to present day’s dividend of $3.40; this is similar to an 85% boost in the dividend in only 5 years.

The manufacturer has also been employed in a hostile repurchase program since 2008. The company has repurchased approximately $26 billion to date. This is approximately 25% of the whole shares outstanding since it was spun off.

Marlboro producer has been raising its revenue at a steady pace if you leave out the effect of foreign currencies. For the third quarter of 2012 the company announced $1.32 in earnings per share (EPS), lower 2.5% versus the $1.35 claimed in the third quarter 2011. Not including currency, reported EPS came in at about $1.39, up 3.0%. For timeframe before to 2012 EPS increase has averaged over 18% per year except currencies. Year to date (YTD) altered EPS ex currency is higher by 10.9 in comparison to previous year. The company has forecasted middle to long run currency neutral EPS advancement rate of between 10% to 12%. YTD net profits increased up 5.5% except currency compared to previous year. PMI has averaged a 65% dividend payout rate within the last eight quarters. Within the third quarter of the 2012 the payout ratio constituted 60% in comparison to the 55% payout ratio within the third quarter of 2011.

The leading cigarette producer has demonstrated an amazing job supporting its balance sheet since its spin off in 2008. The mean coupon yield for its long lasting debt has decreased 25% from 5.5% in 2008 to a predicted 4.5% in 2012. The regular time to maturity for its long run debt has boosted 3 years from 7.3 years in 2008 to about 10.5 years in 2012. For those who are looking for a profitable dividend growth PMI is the best variant.

More about PMI:

http://www.pmi.com/
http://investors.pmi.com/
http://en.wikipedia.org/wiki/Philip_Morris_International
http://finance.yahoo.com/q?s=PM
http://www.marketwatch.com/investing/stock/pm

Cigarette Manufacturers Aim at Teen Girls with Super Slim Cigarettes

Wednesday, January 9th, 2013

women cigaretteswomen cigarettes
Cigarette manufacturers have been charged of using cynical advertising tricks to aim at girls and young women. In the latest effort to appeal to smokers, Silk Cut is introducing a collection of super slim cigarettes in packages that looks like perfume boxes. This action comes after identical strategies in America where women are attracted with female-friendly packaging, often displaying pink colours and floral images.

Giant cigarette companies in the U.S. have been blamed for presumably appealing women by means of movies. For instance, in 2006, the actress Scarlett Johansson was charged of advertising smoking with her role in Hollywood thriller The Black Dahlia.

The organization on Smoking and Health declared Silk Cut’s use of the words ‘super-slim‘ was an endeavor to produce a link between cigarettes and weight loss in the minds of young girls trying to stay slim.
Martin Dockerell, of Action on Smoking and Health, declared: ‘This has been realized effectively in the States for many years and it’s a comparatively fresh development in the UK.

‘In the States there has been a rather extended tradition of products advertised at women, especially young women, with packages that are in some way more female-friendly. ‘In the UK, the unique legal advertisement left is on the package, so producers are eager to obtain new smokers by means of attractive designs of the cigarette packages.’ He declared: ‘Packaging is really essential marketing tool and by modifying the pack up can boost your market share. They also know that smokers are extremely vulnerable to the packaging and the brand identity.’

Silk Cut’s new super slim cigarettes are slimmer than regular ones and come in a more compact package.
Gallaher, the Japanese cigarette company that produces Silk Cut, identifies its new brand, as delivering luxury and quality to the super-slim cigarette segment. Recently, a representative for the company rejected that it was |concentrating on teenage girls. “It is unlawful to sell cigarettes to anyone under the age of 18 and do not forget about this fact,” he stated.

Researches have demonstrated that teenage girls who are worried about their weight are more inclined to start smoking. Under the age of 15 girls are more likely to light up than boys of the same age.

Cigarette manufacturers have tried to link smoking with slimness and glamour for many years. For inst6ance, in the 1920s, diverse cigarettes advertisements advised women to “Reach for a Lucky instead of a sweet”. In America, the famous Virginia brand plans to introduce a sleek pink purse pack targeted at women.

More Info:

http://www.tobaccofreekids.org/research/factsheets/pdf/0138.pdf
http://whqlibdoc.who.int/whf/1990/vol11-no4/WHF_1990_11%284%29_p416-422.pdf
http://www.cdc.gov/tobacco/data_statistics/sgr/2001/highlights/marketing/index.htm
http://www.ncbi.nlm.nih.gov/pubmed/21739895

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Indonesian Cigarettes are Less Expensive than Candy

Wednesday, January 2nd, 2013

Indonesian CigarettesIndonesian CigarettesThe prepared boost in cigarette excise by approximately 8% this week would neither increase the price of cigarettes considerably nor decrease the number of cigarette aficionados in the country, experts have stated. Abdillah Ahsan, a specialist at the University of Indonesia demographic center, reported that the number of smokers in Indonesia would proceed to increase due to the surprisingly low price of cigarettes. The reduced price set on cigarettes both draws people to primarily start smoking and guarantees the return of tobacco businesses. “Cigarettes have to be taxed greatly in order to drop the cigarette consumption,” he advised at recent press conference. Abdillah also stated that the government should demand significant taxes especially on both dominant cigarette products markets, the machine made and the hand-made.

The Finance Ministry announced that the raise in tobacco excise by 8% will be passed already this week. “Even with the fresh tax, people are still able to purchase cigarettes; thus, we assess that this tax boost will certainly have minor effect on smoking rate,” stated Abdillah.

The government needs US$9.14 billion from cigarette tax profits in 2012. The sale of cigarettes is estimated to achieve 268 billion cigarettes this year. This surpasses the sales goals established by the cigarette industry’s guide.

Tobacco products in Indonesia have got tax values varying from Rp 80 to Rp 380 for a cigarette stick. The tax price for the hand-made cigarettes stands at 35% per cigarette. For instance the greatest tobacco product tax rate in Indonesia is about 55% per cigarette, regardless of the World Health Organization suggesting that the levy charged on tobacco products should be not less than 2/3 or 70% of the sale price of each cigarette.

According to a recent survey, the mean price of a pack of cigarettes smokers would consider as inexpensive was less than Rp 25,000. At the moment, a package of cigarettes costs between Rp 5,000 and Rp 15,000 per package. Smokers can even purchase a single cigarette for just Rp 250 even less costly than candy. Not too long ago conducted Tobacco Report, demonstrated that Indonesia has one of the highest smoking rate. Approximately 61.4 million people in the country are heavy smokers, it said.