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Posts Tagged ‘tobacco industry’

Drum (tobacco)

Wednesday, August 21st, 2013

Drum (tobacco) Drum is a brand of fine-cut handrolling tobacco. It was originally produced and distributed by the Dutch Douwe Egberts corporation. Douwe Egberts was purchased by the Sara Lee Corporation, which sold Drum to Imperial Tobacco, the current British producer. Drum is considered halfzware (Dutch for “half-strength”) type tobacco, although the flavors and cuts are not the same due to different methods of curing. Imperial also produces Drum in gold (blonde) and light (mild) varieties.

Drum (tobacco)

Drum is worldwide the #1 brand for shag tobacco. Before Sara Lee sold their Drum and Van Nelle tobacco section to Imperial the main factories for Drum were Drachten and Joure. The factory in Drachten was closed directly after the move to Imperial in 1989 and IT decided to further integrate the production within Douwe Egberts / Van Nelle (DEVN) which also had production facilities in the nearby Joure (30 km) and Meppel (60 km). IT invested 22 million guilders (€ 10 million) in new machinery for the remaining locations.[2] Drum Tobacco is also produced outside the Netherlands in several factories of the Imperial Tobacco group.

Drum (tobacco)




Smokers Choice is at Risk

Friday, March 2nd, 2012

discount kent cigarette At first glance, the debate about whether cigarette-store.biz/info/cigarette-manufacturers-are-the-most-profitable-investments should be forced to put their products in standardised packaging doesn’t sound like the Greatest Issue of Our Time. There will be no barricades raised, there will be no ‘plain-pack martyrs’. But anyone who believes that we – both individuals and companies – should be free to choose how we go about our business and conduct our lives should be very concerned indeed.

The UK Lib-Con coalition government has announced that it will shortly begin consulting on the idea of introducing ‘plain packaging’. In Australia, where such a policy has already been voted through, to be implemented from the end of 2012, ‘plain’ is a total misnomer. Down Under, 90 per cent of the surface of every pack will be covered in health warnings and gruesome imagery of disease. Just 10 per cent will be left to tell you what brand you are smoking. For smokers, it’s not so much guidance as gorno. Early indications suggest that UK proposals will be similar.

The tobacco industry is very upset, to say the least, about the possible consequences. That’s not because producers think that people will smoke much less. There is little likelihood of that. A raft of measures to try to bully or nag us into smoking less has already come into force with little impact on smoking rates: stiff taxes on cigarettes; bans on smoking in many public and private spaces; prohibitions on advertising and sponsorship; enormous budgets devoted to nagging us to quit for the sake of our health or that of our children; endless junk science about second-hand and even ‘third-hand’ smoking. If that lot hasn’t had the desired affect, packaging is unlikely to persuade us to give up the ‘evil weed’.

What really concerns the cigarette makers is that the new rules would obliterate overnight the brands that the industry has built up over decades. Devoid of brand loyalty, smokers have little incentive to buy an expensive make of cigarettes over a cheaper one. There’s also the problem of counterfeiting: it’s going to be much easier to produce fakes if every cigarette box looks almost identical.

Nor is it just manufacturers who are worried. While health departments instigate one policy after another, each inspired by intense lobbying from tobacco prohibitionists (lobbying paid for by those very health departments), those who hold government purse strings will be fretting about the increasing incentives for tax avoidance (like buying in bulk from abroad) or tax evasion (buying from bootleggers and smugglers).

But even if you’re not a smoker, or don’t care greatly for the welfare of tobacco companies and Treasury bean-counters, you should be worried about the plain-packaging plan.

The Myth of the Dying Tobacco Industry

Tuesday, December 20th, 2011

cheap cigarettes store onlineDespite the passage of smoking laws, anti-smoking campaigns and an increased overall awareness of the danger of smoking, the tobacco industry is still making strong profits.

Stanford’s Robert Proctor recently released his 750 study Golden Holocaust: Origins of the Cigarette Catastrophe and the Case for Abolition. Publishing the book personally cost Proctor $50,000 in legal fees to defend himself against the industry, which subpoenaed his email and unpublished manuscript.

So, what was the tobacco industry trying so hard to hide?

Besides some horrid health-related facts, Proctors’ book accounts for how tobacco makers have repeatedly lied to Congress and the public.

Dispelling myths
Proctor says six trillion cigarettes are smoked every year. “That’s “enough to make a continuous chain from Earth to the sun and back, with enough left over for a couple of round trips to Mars.”

But isn’t smoking on the decline? Not so fast. According to Proctor, “we don’t count the people who don’t count. It’s not the educated or the rich who smoke anymore, it’s the poor.” In addition, the rising popularity of hookahs are “just as addictive, and just as deadly.”

Another myth: “The tobacco industry has turned over a new leaf.” False, says Proctor. Cigarettes are made more deadly today than they were 60 years ago, and tobacco companies still target children, just not in ways so obvious as cartoon Joe Camel.

Most people begin smoking at the age of 12 or 13, or even younger in some parts of the world, says Proctor. “And how many people know that cigarettes contain radioactive isotopes, or cyanide, or free-basing agents like ammonia, added to juice up the potency of nicotine?”

Industry growth
Perhaps most interesting is Proctor’s note that global tobacco use would be declining were it not for China, where 40% of the world’s cigarettes are made and smoked.

But that, he believes, will change soon once China’s government realizes the fringe costs — paying for diseases caused by smoking and loss of productivity — outweigh the benefits of tobacco taxes.

Investing ideas
Despite the rush of negativity toward the tobacco industry the cigarette companies trading on the U.S. stock exchanges have posted positive performance this year — all above 10%.

We list the seven cigarette companies below. Do you think these names have the momentum to continue on an upward trend?

(Click here to access free, interactive tools to analyze these ideas.)

1. British American Tobacco (NYSE: BTI ) : Engages in the manufacture, distribution, and sale of tobacco products. Market cap of $91.76B. Relatively low correlation to the market (beta = 0.6), which may be appealing to risk averse investors. The stock has gained 28.79% over the last year.

2. Star Scientific (Nasdaq: CIGX ) : Engages in the development, implementation, and licensing of tobacco curing technology that prevents the formation of carcinogenic toxins present in tobacco and tobacco smoke, primarily the tobacco-specific nitrosamines (TSNA). Market cap of $322.79M. The stock is a short squeeze candidate, with a short float at 18.65% (equivalent to 17.1 days of average volume). The stock is currently stuck in a downtrend, trading -7.08% below its SMA20, -12.06% below its SMA50, and -30.9% below its SMA200. The stock has performed poorly over the last month, losing 17.01%.

3. Lorillard (NYSE: LO ) : Engages in the manufacture and sale of cigarettes in the United States. Market cap of $14.80B. Relatively low correlation to the market (beta = 0.39), which may be appealing to risk averse investors. Offers a good dividend, and appears to have good liquidity to back it up–dividend yield at 4.74%, current ratio at 1.92, and quick ratio at 1.7. The stock has gained 39.64% over the last year.

4. Altria Group (NYSE: MO ) : Engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. Market cap of $59.86B. Relatively low correlation to the market (beta = 0.43), which may be appealing to risk averse investors. The stock has gained 23.82% over the last year.

5. Philip Morris International (NYSE: PM ) : Engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Market cap of $131.87B. 0The stock has gained 32.63% over the last year.

6. Reynolds American (NYSE: RAI ) : Through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. Market cap of $23.94B. Relatively low correlation to the market (beta = 0.59), which may be appealing to risk averse investors. The stock has gained 34.88% over the last year.

7. Vector Group (NYSE: VGR ) : Engages in the manufacture and sale of cigarettes in the United States. Market cap of $1.41B. Relatively low correlation to the market (beta = 0.42), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 7.63% (equivalent to 10.24 days of average volume). The stock has gained 10.65% over the last year.

From Smoker to Smokeless

Wednesday, November 2nd, 2011

discount cigarettes onlineThe James Graham Brown Cancer Center and the University of Louisville have brought a “Switch and Quit” campaign to Owensboro, Ky. The program uses print, radio, billboard and other advertising to urge smokers to switch to smokeless tobacco and other products that deliver nicotine without smoke, according to a report from the Associated Press.

The “Switch and Quit” campaign is directed by Brad Rodu, a professor of medicine at the University of Louisville, who analyzed the 2000 National Health Interview Survey—and found male smokers who switched to smokeless tobacco were more likely to quit smoking than those who used traditional nicotine patches or gum.

Dr. Donald Miller, an oncologist and director of the cancer center, said, “This is as reasonable a scientific hypothesis as anybody has come up with and it needs to be tried.”

The program is funded through Rodu’s research money, which includes grants from the tobacco industry, although Rodu said that there is no influence on the research. “I decide, along with my colleagues, how we use the money, for what projects, and this is entirely the case.”

The Owensboro program has raised concerns among public health advocates, however, about claims that smokeless tobacco is a healthier alternative without approval from the U.S. Food and Drug Administration. Matthew Myers, president of the Campaign for Tobacco-Free Kids, called the program “a giant experiment with the people of Owensboro without rules or guidance designed to protect individuals from experimental medicine,” according to the report.

Owensboro and its surrounding area consume about 3 million cigarettes a week, according to the program—well over a pack per person in its population of 115,000.

Big Tobacco Smoking Hot at Advertising Ban

Wednesday, June 22nd, 2011

best kiss cigarettes onlineBig Tobacco claims Worcester, a city of 182,000, enacted an unconstitutional ban on Kiss tobacco advertising that’s so broad it prohibits ads anywhere in the city, indoors or out.

Throughout their federal complaint, R.J. Reynolds, Philip Morris and Lorillard Tobacco Company cite the U.S. Supreme Court ruling in Lorillard Tobacco Co. v. Reilly, that “‘so long as the sale and use of tobacco is lawful for adults, the tobacco industry has a protected interest in communicating information about its products and adult customers have an interest in receiving that information.'” Id. at 571. It thus struck down a Massachusetts regulation that prohibited outdoor advertising of tobacco products within 1,000 feet of a school or playground.”

But in May, Worcester amended its tobacco ad law to make it even stricter than the law prohibited by the Lorillard ruling, according to the complaint.

Worcester already had banned outdoor tobacco ads within 1,000 feet of a school or playground. The new law banned even indoor tobacco ads that could be seen from a city street.

“The Ordinance provides: ‘No person shall display any advertising that promotes or encourages the sale or use of cigarettes, blunt wrap or other tobacco products in any location where any such advertising can be viewed from any street or park shown on the Official Map of the city or from any property containing a public or private school or property containing an educational institution,'” according to the complaint.

The tobacco companies say the new code is so broad it essentially bans tobacco ads anywhere in town.
The law, which takes effect June 24, allows smoking bars and 18-and-over tobacco stores to hang generic “tobacco products sold here” signs. But ads that display a tobacco manufacturer’s brand name, company name, logo or trademark are barred.

Joined as lead plaintiff by the National Association of Tobacco Outlets, Big Smoke argues that one of the last permissible ways they can grab smokers’ attention is through point-of-sale advertising. Banning tobacco ads placed near checkout lines closes off this channel of communication, and violates the First Amendment, according to the complaint.

The tobacco companies say Worcester “seeks to outlaw all outdoor (and some indoor) tobacco advertising not merely to prevent youth tobacco use, but to prevent adults from making decisions of which the city disapproves.”
They want Worcester enjoined from enforcing its law, as a violation of the First and 14th Amendments. They are represented by Traci Lovitt with Jones Day of Boston.

ASH Determined to Implement Plain Packaging of Cigarettes

Wednesday, June 8th, 2011

best classic cigarettes onlineA 42 member’s Anti-Smoking group had smashed the threats of tobacco companies opposing to the plain packaging policy to be implied on cigarettes. As per David Crow, Chief Executive of British American Tobacco (BAT) Australia, objected to the policy saying that the policy could encourage duplicate Classic cigarette brands would have a better business in future.

The ASH group also comprised of people from SIDS and Kids, NSW Council of Churches, Australian Council of Social Service, and the Cancer Council Australia. As per Stafford Sanders, spokesman of the Protecting Children of tobacco lobby group said that the policy had made tobacco industries in a serious fix.

As per the ASH tobacco, the tobacco industry’s target the youth by introducing music, fashion and sport in their promotional activities, the group wanted to save children from being addicted to tobacco.

Dr Wayne Cooper, chair of the St George Division of General Practice, had brought into notice that by selling cigarettes at a low price, the commodity became easily available to children and may encourage smoking at a higher rate with people who already had a habit to smoke therefore, he suggested that plain packaging was an effective measure, to encourage people to quit smoking.

Tobacco Firm Operations Stopped

Monday, June 6th, 2011

cheap camel cigarettes onlineA new tobacco company that has been registering farmers which smoke Camel to establish its operations in Kanungu, has been ordered to halt its operations. Kanungu District officials and tobacco regulators last week declared operations of Continental Tobacco Uganda (CTU) Ltd illegal.

The company has been advised to first align its operations with the law and seek relevant permission from the tobacco regulator before operating in the area.

The pronouncement came last week during a meeting between Kanungu district leaders, farmers and tobacco industry players. The meeting heard that CTU has since the beginning of this year been illegally contacting tobacco farmers as well as opening up sites for the new season starting this month, without clearance from the Trade ministry.

Mr Fred Tiwangye, the tobacco inspector for North Kigezi area, told the meeting that tobacco production is highly regulated because the crop is a drug. Individuals and companies with intentions to join this business have to first seek and get clearance from relevant authorities, said the official.

Earlier problems

“This very company has been having problems with farmers in Bunyoro and Arua and now they are rushing to this district without clearance from the Ministry.” He was referring to a number of media stories that CTU owes tobacco farmers hundreds of millions shillings after taking their crop on credit and failing to pay for it for over a year.

CTU official, Mr Francis Karuiki, had it rough as he attempted to convince the meeting that his company was not yet operating. “We were invited here by some farmers and we are simply trying to do a survey. If we are not cleared to operate here, we are not willing to come to such a small region to start a fight,” he said.

Not against CTU

Kanungu District’s Assistant Chief Administrative Officer, Mr Silver Turyahikayo, and the district Vice Chairperson, John Muhima, told the farmers at the Thursday meeting, that the district was not necessarily against CTU or having competition in the area. He said they needed peaceful business.

The tobacco inspector warned the district officials not to be misled into granting permission to tobacco growers or traders, saying that mandate is solely the preserve of the Ministry of Trade because of the sensitivities attached to the tobacco product.