Cigarette sales drop 10.1% in FY 2010, largest fall on record

Sales of cigarettes in Japan in fiscal 2010 plunged 10.1 percent from a year earlier to 210.2 billion cigarettes, marking the largest fall on record, due to a sharp rise in prices, the Tobacco Institute of Japan said Friday.

The decline in sales, the sharpest since comparable date became available in 1990, stemmed from weakening demand as cigarette prices spiked following the imposition of the largest-ever tobacco tax hike on Oct. 1.

The sales value in the business year ended March increased 2.0 percent from the year before to 3,616.3 billion yen, the institute said.

By cigarette brand, Seven Stars topped the ranking for the third straight year, accounting for 4.8 percent of the sales volume.

DRS reminds retailers against cigarette making machines

Hartford, CT - The Connecticut Department of Revenue Services (DRS) today reminded cigarette and tobacco retailers that the use of commercial cigarette-making machines by unlicensed manufacturers is illegal. Commercial cigarette making machines require a Connecticut cigarette manufacturer’s license and compliance with fire-safety, packaging, and other requirements. Retailers that continue to offer the use of such commercial “roll-your-own” cigarette machines may be charged with a misdemeanor and subject to arrest.

DRS Commissioner Kevin Sullivan said, “Connecticut is one of a number of states that have concluded that the use of commercial cigarette-making machines at retail establishments constitutes the illegal manufacture and sale of cigarettes. Issues that range from the proper licensing of the retailer and compliance with the Connecticut Tobacco Directory, to the ingredients in the tobacco and fire safety of the cigarettes, make this a practice that cannot be allowed in Connecticut.”

Commissioner Sullivan said DRS issued Policy Statement 2011(1), “The Use of Commercial Cigarette-Making Machine in a Retail Establishment,” to explain the agency’s position on the matter and outline the penalties for non-compliance. In addition to facing thousands of dollars in fines and potential arrest, retailers that defy the law may also lose their cigarette or tobacco products license and could face federal penalties.

“This is a no win situation for merchants who think they can get around state tax law to sell cheaper cigarettes,” Commissioner Sullivan said. “By manufacturing cigarettes on their premises, these businesses are actually exposing themselves to a host of rules and regulations they never anticipated. It just isn’t worth it.”

Vermont governor, lawmakers at odds over taxing cigarettes, dentists

Still haggling over how to close a $176 million budget gap, Vermont lawmakers and Gov. Peter Shumlin are at odds over whether to boost taxes on cigarettes and a separate plan to extend a provider "assessment" already in place for other health care providers to dentists.

The Senate Finance Committee has passed legislation that would add a $1-per-pack tax to Vermont's cigarette tax, but Shumlin opposes it.

The Democratic governor said Wednesday the state's tax revenues would take a hit because people would go to New York and Massachusetts to buy their cigarettes. Vermont would lose out on tax revenue from both the purchases of cigarettes and anything else smokers might buy in the same transaction, he said.

Currently, Vermont's per-pack cigarette tax is among the region's lowest, at $2.24. If the $1 boost is approved, it would go to $3.24.

New York's tax is $4.35 per pack, and Massachusetts' is $2.51.

"We know that right now, we're getting more sales, more people doing business in Vermont stores, because we're lower than our two big neighbors — New York and Massachusetts," Shumlin said Wednesday. "When we're higher than them, we lose those sales."

Tina Zuk, coordinator of the Coalition for a Tobacco Free Vermont, told lawmakers earlier this month that higher taxes on tobacco discourage its use. She says the annual price tag for smoking-related problems and loss of productivity from it is $425 million in Vermont.

Instead of the cigarette tax boost, Shumlin wants lawmakers to sign off on a 3 percent provider tax on dentists, which would help the state draw down about $4 million in federal funds that would help improve Medicaid and Medicare reimbursement rates.

State Senate President Pro Tem John Campbell says he'd rather not tax those services because they provide a benefit to Vermonters' health.

He says taxing cigarettes makes more sense because it would tax a habit that contributes to rising government health care expenditures.

"Dental health is a key component to our physical health," said state Senate President Pro Tem John Campbell. "I would rather not tax something that is providing a benefit to our physical health and at the same time tax something that we know is harmful and that will end up causing more medical costs, whether it be emphysema or cancers or what have you. To me, it's a no-brainer," said Campbell, D-Windsor.

Judge refuses to certify class in Marlboro medical-monitoring suit

A California federal judge has denied class certification to a pair of smokers who argued that Philip Morris USA should establish a medical-monitoring program for long-term consumers of the company's Marlboro-brand cigarettes.

U.S. District Judge William Alsup of the Northern District of California said it is impossible to ascertain whether class members had 20-pack-year histories of smoking Marlboros.

"There is no good way to identify such individuals," the judge said.

"A smoker's rate of cigarette consumption and cigarette brand of choice are liable to change over time, and we cannot expect smokers to recall the cumulative total of Marlboro packs they have smoked," he explained.

A pack-year is calculated by multiplying the number of packs of cigarettes a person has smoked per day by the number of years the person has smoked.

The lawsuit is nearly identical to others being litigated in different states by the same group of attorneys.

It was brought by named plaintiffs Burt Xavier and James Franklin on behalf of asymptomatic individuals with 20-pack year histories of smoking Marlboro cigarettes, as well as recent quitters.

They sought medical monitoring through low-dose CT chest scans that would be provided by Philip Morris through a court-supervised screening program. CT scans can detect lung cancer earlier than X-rays.

They said the tobacco giant should fund such a program because its cigarettes deliver excessive levels of carcinogens and it had the ability to design and manufacture a safer cigarette.

Judge Alsup refused to grant class certification where the class definition fails "to describe a group of people whose membership can be ascertained in a reliable manner." He said the requirement that class members must have smoked Marlboro cigarettes for a minimum of 20-pack-years "nullifies" their bid for class certification.

Such a determination would require each class member to subjectively estimate his or her smoking history, the judge said.

"The question thus would come down to the state of mind of the putative class member, and it would be easy to fade in or out of the class depending on the outcome," he added.

Judge Alsup rejected the plaintiffs' argument that class membership could be determined by other methods such as through records for Philip Morris' customer loyalty program or class member affidavits.

He said Xavier and Burt can proceed with their claims for strict liability design defect and negligent design and testing on an individual basis.

The plaintiffs’ counsel is David Bricker of Waters Kraus Paul in El Segundo, Calif.

Defense attorneys are Tammy Beth Webb, Ina Doung-May Chang and Michael Kevin Underhill of Shook Hardy & Bacon in San Francisco.

Hookah bar lighting up downtown Kirksville

The Jinn Lounge is now open in downtown Kirksville and it's causing a bit of stir around the Heartland, but what is the big question on everyone's mind?

Will it last?

It all started as a facebook question.

What does Kirksville lack?

On March 25, Andrew Wu and Daniel Nixon brought to Kirksville what the youth were asking for, a hookah bar.

"I went around the dorm halls asking what Kirksville needed and they said a hookah bar, so we opened a hookah bar," said co-owner Andrew Wu.

The empty building at 106 South Elson has been transformed into a state of the art hookah lounge. It will feature hookah, coffee, drinks, and free wi-fi.

Co-owner Daniel Nixon said business is picking up.

"With the cash we have been getting so far, I think there is not alot to question that we will have a problem staying afloat whether or not we hire or expand could still be up for debate. We will just see what traffic we get during the week," said Nixon.

So what exactly is hookah? What separates it from smoking?

"I guess one of the essential differences is the social nature of hookah. You have a group of people sitting around a pipe and smoking together. It's relaxing and a cigarette is more of an individual type thing," Nixon said.

"We don't have marijuana here. It's illegal! We have flavored tobacco dipped in molasses and the flavor is added to it," Wu said.

However, the speculation continues.

What separates hookah from the city smoking ban?

"Actually there's a lot of misconceptions about the Kirksville smoking ban. It's not an all out smoking ban. It deals with restaurants, bars, banquet halls and a couple of other specific stores and coffee shops. It doesn't really cover what we are which is a tobacco retailer," Nixon said.

The question remains, will it last in Kirksville?

"Alot of kids can go there and it's not illegal for kids under 21. I just feel like people will go there because it gives them something to do," said a local student.

"It will probably die. There was one hookah bar. People don't usually didn't go there," said a Truman State student.

Now that their bar is open, the journey continues. It will depend on the citizens of Kirksville as to how far the journey actually takes them.

"It's a great place. If you like smoking, we got music and drinks. It's the same appeal to everyone. It is just a nice place to relax and have some fun," Nixon said.

Anti-tobacco group’s poll says Iowa voters support funding for quit-smoking programs

The poll commissioned by the Iowa Tobacco Prevention Alliance found:
• 85% of Iowa voters feel that it is a proper role of state government to encourage children and teenagers not to start smoking.
• 68% of those surveyed indicate they also view it as an appropriate function of state government to help Iowans stop smoking.
• 68% of those surveyed indicated they believe the state should continue all funding for addiction related services.
• After hearing throughout the survey the benefits of youth prevention services offered by the state, 65% of Iowans say they oppose abolishing funding for youth prevention services.
• After hearing throughout the survey the benefits of tobacco cessation services offered by the state, 63% of Iowans say they oppose eliminating funding for services that help Iowans quit smoking.
• 54% of Republicans in the survey oppose cutting funding for cessation services.
• 52% of Republicans surveyed oppose cutting funding for youth prevention services.

Cathy Callaway with the Iowa Tobacco Prevention Alliance stated, “Iowa voters understand the critical role prevention and cessation services play in reducing the death and disease caused by tobacco use as well as the health care costs associated with it.” She added, “Iowans view these services as a proper undertaking for State government, they are pleased with the success of the services that have been funded, and strong support exists for continued funding.”

Callaway added, “The perception among Iowa voters is clear: these services work, and we want them continued. Iowans have seen youth smoking drop from 33% in 2000 to 20% in 2008. Iowans have seen adult smoking decrease from 23% in 2000 to 14% in 2008. These services have worked, their success is undisputable.”

Peggy Huppert, Iowa Director of Government Relations for the American Cancer Society added, “Iowans want funding continued for both prevention and cessation services. The health effects of smoking and tobacco use cut across party lines and so does the support to continue funding. Over three in four current smokers indicate a desire to see prevention services for Iowa’s youth funded. We will be working closely with legislators from both parties during the final weeks of the State budgeting process. Our funding request of $7.8 million is well below the $12 million the program received just four years ago, and the $36.7 million recommended by the Centers for Disease Control and Prevention (CDC). But as the last ten years have shown, we have made every penny count, and we’re proud of our successes.”

The poll was conducted by Selzer & Co. in February. It surveyed 500 Iowa registered voters on their attitudes toward the Smoke-Free Air Act and proposals pending in the Iowa Legislature that address smoking issues. The full sample has a margin of error of plus or minus 4.4 percentage points.

Illegal tobacco factory - gang of four jailed

The gang were in the process of setting up an illegal counterfeit tobacco factory which would have netted them many millions of pounds in unpaid duty when they were raided by HM Revenue & Customs.

John Kay, HM Revenue & Customs (HMRC) Assistant Director of Criminal Investigation said:

"This was a planned fraud on a huge scale. If it had not been stopped the UK market would have been flooded with massive quantities of illegal counterfeit tobacco products. Criminals do not care who they sell to, they are only out to make a profit and line their own pockets. If you suspect or know about any illegal activities please call our 24 hour hotline on 0800 59 5000."

The plot was uncovered when over 100 HMRC officers, supported by Police and the Serious Organised Crimes Agency (SOCA) raided premises in Suffolk, Leicestershire, Nottinghamshire and Essex in July 2008. At a farm in Leicestershire, officers discovered over sixteen tonnes of raw leaf tobacco which would have been manufactured into hand rolling tobacco. The duty evaded on this amount of tobacco alone is estimated as £1.9 million. The scam was linked to Bulgaria and in a joint operation, officers from the Bulgarian National Counter Organised Crime Agency simultaneously searched premises in Bulgaria.

Robert John Minshall made arrangements to purchase a tobacco manufacturing machine from a company in Bulgaria. Although he made several visits to the country and contractually agreed to the importation of the machinery the delivery never took place. The day to day operation of the shredding machine and manufacture of the illicit tobacco products was to be controlled by David Vincent Scott and Nigel James Barton. William Keith Sartin also met with the trio to set up the factory.

Menthol Cigarettes Pose No Added Lung Cancer Risk: Study

The risk of lung cancer for people who smoke menthol cigarettes is no greater than that of those who prefer regular cigarettes, researchers report.

The findings echo those of a U.S. Food and Drug Administration advisory panel that made headlines Friday when it said a ban on mentholated cigarettes might benefit the public health. While the panel concluded that menthols' minty flavor seems to help people take up smoking more readily, it added that there was no evidence menthols were any more dangerous than regular cigarettes in terms of risks for lung cancer or other respiratory ailments.

The new study, published online March 23 in the Journal of the National Cancer Institute, seems to agree with that notion. In fact, the researchers found that people who smoke menthol cigarettes might even have a somewhat lower risk of developing and dying from lung cancer than other smokers.

But one expert said that no one should be misled by the findings into thinking menthols can keep lung cancer, emphysema and other respiratory diseases at bay.

"While this study finds no difference in lung cancer rates in smokers of menthol cigarettes versus non-menthol cigarettes, it is still inconveniently true that all cigarettes can cause lung cancer, as well as other cancers, heart disease, COPD [chronic obstructive pulmonary disease] and circulatory problems," said Dr. Len Horovitz, a pulmonary specialist at Lenox Hill Hospital in New York City. "There is simply no safe smoking."

The U.S. team analyzed data from almost 86,000 people taking part in an ongoing multiracial study in 12 southern states. They identified 440 lung cancer patients and compared them with more than 2,200 healthy people.

Menthol cigarettes were associated with lower lung cancer incidence and fewer lung cancer deaths than regular cigarettes, according to the study. For example, among people who smoked 20 or more cigarettes a day, menthol cigarette smokers were about 12 times more likely to develop lung cancer than never-smokers while the risk was about 21 times higher for smokers of regular cigarettes.

Menthol cigarettes are no more, and perhaps less, harmful than regular cigarettes, concluded study author William J. Blot, of the Vanderbilt-Ingram Cancer Center in Nashville, Tenn., and the International Epidemiology Institute in Rockville, Md., and colleagues.

The study authors agreed with Horovitz, however, that there is no safe cigarette.

"Cigarette smoking remains the leading cause of premature death in the United States, but undue emphasis on reduction of menthol relative to other cigarettes may distract from the ultimate health prevention message that smoking of any cigarettes is injurious to health," Blot's team noted.

After looking over its advisory panel's report, the FDA will consider whether to ban or regulate menthol cigarettes. According to officials, the first response to the report is due from the agency within three months.