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Gangnam Cigarettes to Hit Ontario Tobacco Market

Friday, March 15th, 2013

Gangam Style In a few days all convenience shops throughout Ontario will begin selling cigarettes, Gangnam style. In February Canadian Tobacco and Global an Ontario cigarette retailer composed of 38 Korean-Canadian convenience store proprietors, will launch three cigarette brands, such as Gangnam, which company leader James Kang claims that it is not called after the mega-popular song by South Korean rapper Psy.

Although the popularity of “Gangnam Style” will potentially attract interest to the new smoking product, which is produced by a Canadian company Kang won’t identify, he underlines that even the song name comes from an upscale neighborhood in Seoul.

Amongst people familiarized with Korean culture, he claims, the name Gangnam would speak out loud in any case. But joining his wagon to Psy’s 1.27 billion YouTube page views doesn’t harm. “Gangnam Style by Psy is famous, however Gangnam (the local community) is well-known in Korea, as well,” Kang explained in an interview.

Kang states company representatives have taken into consideration almost 100 names for the three cigarette brands before deciding on “Midas,” “C38” and “Gangnam,” although he affirms the product isn’t focused on the Korean-Canadian community. “We completely focus on all the convenience outlets,” Kang stated, underlining that he plans to spread the innovative cigarette brands to 8,000 convenience shops across the region. Kang states the company was established two years ago, when he and other Korean-Canadian convenience store proprietors, disappointed about the quantity they were paying for tobacco products from Ontario’s tobacco vendors, created a tobacco wholesale company.

A news distribution marketing the introduction of the new cigarettes identifies them as “high quality products” striking the market after approximately 18 months of examining. Using appealing pop-cultural gadgets to sell cigarettes had an opposite effect in the past.

Back in the 1980s, best-selling Camel cigarettes depicted the mascot Joe Camel in all advertisements, however was later sued by anti-smoking supporters who suggested that Camel used a cartoon character to market their cigarettes among people too young to purchase them legally.
Camel ultimately resolved the dispute and completely stopped using the Joe Camel mascot.

More Info:
‘Gangnam Style’ Boosts South Korean Brand
Cigarettes named Psy’s ‘Gangnam’ to be showcased in Canada
Local wholesaler to introduce Gangnam cigarettes

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

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.

Facts about Tobacco Crop

Wednesday, December 26th, 2012

Tobacco Crop
Tobacco is a blooming plant that belongs to the nightshade family. It is the most largely harvested non-food crop and is preferred by farmers from more than 120 countries all over the world as it grows under extensively different climatic and soil factors in order to match the requirements of numerous diverse markets.

Generally the tobacco plant grows from 1 to 3 meters in height and delivers 10 to 20 leaves from its stalk. 90% of the world’s tobacco crop grows between 40º north and 40º south, even though} it can be cultivated at up to 60º north.

A native crop of the Americas, tobacco is grown especially for its leaves. Nevertheless, for industrial increase the flowers are chopped off in order to help the leaves to grow further to the stem. Distinctions in soil and climate provide leaves that have particular features and need diverse techniques of fertilization, disease control, harvesting and curing. All of the tobacco types belong to the Nicotiana genus, even though the main base of industrial tobacco is Nicotiana Tabacum. Nicotiana Rustica is also cultivated, although to a reduced extent, and widely used in Oriental tobaccos.

Farmers have elaborated an extensive variety of morphologically diverse types, including the small-leaved aromatic tobaccos, the large and even the broad-leaved cigar tobaccos. Nevertheless, each sort of tobacco is usually described by the treating approach applied to it.

Curing is the ultimate stage in the tobacco manufacturing. Afterwards, the leaves are sold to be converted into the ultimate tobacco product, namely cigarettes, cigars, small cigars or chewing tobacco. By means of curing, the moisture in the tobacco leaf is decreased from 80% to around 20%, thus guaranteeing the tobacco’s preservability. In addition, the diverse techniques of curing also boost the leaf’s pure aroma. As diverse smoking products need leaves with distinct features, the unique flavor of each sort of tobacco is what establishes its appropriateness for use in distinct smoking products.

In curing barns leaves are dried out for a significant period of time. Right after the curing process is finished and the leaf has dried out completely, fresh air is introduced into the curing barn, considerably moistening the leaves as to permit them to be moved for sale without falling apart.

At present there are four curing techniques used for curing tobacco cultivated for commercial reasons: Flue-curing, fire-curing, air-curing and sun-curing

Smoke-Free Students Lifestyle, Bakersfield College

Friday, November 16th, 2012

disocunt kent cigsBakersfield College’s Mentoring and Peer Services, and the Student Health and Wellness Center will host the 37th annual Great American Smokeout on Nov. 15, argued Richard Heath, the Student Government Association treasurer and lead MAPS mentor. This is Heath’s second year participating in the Smokeout. “When we did it last year it was pretty very successful,” he said. “We brought out the tombstone and the coffin, and we had people donating cigarettes.” This year donating your cigarettes may win you a NOOK tablet reader.

You can get raffle tickets to win the NOOK by donating your cigarettes, or watching some of the cig educational screenings during the Smokeout. B-COUGH is also part of the Smokeout according to Nick Acosta, SGA general counsel and B-COUGH’s student chair. B-COUGH is coordinating with MAPS to help organize the event. “We want to see just how we’re going to reach people and encourage them to stop smoking tobacco,” Acosta argued.

“I think it’s going to be a great event. There will also be students filling out pledges to quit smoking. “We’re going to encourage people to stop smoking in a bunch of different ways as possible, and hopefully we’ll bring awareness to the smoking issue and help them stop smoking.” Tobacco Free Coalition of Kern County will have events in the Levan Center from 10 a.m. to 4 p.m. discussing various topics including cigarette-butt littering, second-hand smoke and other smoking control issues affecting Kern County residents. Heath said Kern County Mental Health and the Student Health and Wellness Center will conduct depression screenings in the three tents that will be on the grassy area in front of the library. He is encouraging students to take advantage of it.

Tawntannisha Thompson, BC’s liaison to the dean of students and coordinator for MAPS and BC Be Fit, said that November is fight depression month. She said that last month the students were given suicide literature and some had an initial screening, and that this is just a follow up to that. “Everything’s going to be under the tent,” Thompson said. “There will be popcorn and cotton candy.” BC Be Fit will be in one of the tents having a Zumba dance session to get people’s hearts pumping. Thompson wouldn’t let on about the surprises and other things happening in the tents. “They have to show up to find out what’s going on under the tent,” said Thompson. The coffin, the raffle, the screenings, “It’s all taking place under the tent.” Heath said that every time MAPS set up the tables on the campus they see between 200 to 300 students. Usually two or three students take his advice.

Tobacco Growers Profit Dropped, Low Tobacco Prices

Wednesday, November 14th, 2012

cheap al fakher tobaccoTobacco growers in Lombok, West Nusa Tenggara (NTB), declared that low demand and a dropping sales price for Virginia-variety Al Fakher tobacco are threatening their livelihoods. The farmers, who are expecting big losses for this year’s harvest, are asking the provincial administration to intervene in the tobacco market. This year’s harvest has brought little but trouble to Lombok’s independent tobacco farmers. The sale price of Virginia tobacco recently ranges between Rp 3,000 (US 31 cents) and Rp 5,000 per kilogram, decreased dramatically from between Rp 30,000 (US$3.30) and Rp 35,000 a kilogram in 2011.

“Last year, we could sell of tobacco for Rp 3 million per kilogram, but the price has decreased to Rp 3,500 per kilogram,” Lalu Musdar, a farmer from Janapria, Central Lombok, argued. “The tobacco companies are manipulating the costs as they wish. We wish the governor to urge them to purchase tobacco from us at a fair price.”

Musdar, who had planted Virginia tobacco on more than 1.3 hectares of his farm in Janapria, explained he would suffer big losses of up to Rp 70 million if he fails to sell his harvest.

Operational costs for growing tobacco this year have increased as sale prices have dropped. Musdar declared that he rented 1.3 hectares for to cultivate the tobacco for Rp 8 million, while his other costs have also raised.

The price of fertilizer, for example, has increased from Rp 200,000 to Rp 300,000 per quintal. Musdar reported that he paid for 8 quintals to raise his tobacco crop.

Labor wages have also risen sharply, from Rp 15,000 last year to Rp 35,000 this year.

“If the price of tobacco is Rp 30,000 per kilogram, we might gain a less profit, but the price has dropped. For our production expenses, we borrowed from the cooperative and loan sharks at a high interest rate,” Musdar added.

Tobacco growing is centered on three regencies on Lombok Island: Central, East and West Lombok. More than 16,373 hectares were dedicated to tobacco cultivation for 2012.

The farmers set a production target of 32,464 tons, which they had planned to sell to 21 partner tobacco companies.

However, five firms backed out of purchasing from the farmers, while several others reduced the size of their procurement citing a declined in cigarette production. Another tobacco farmer, Fatahillah, urged the provincial administration to avoid the operational licenses of companies that failed to increase their prices for tobacco crop.