MEPs demand ‘secret’ EU cooperation agreements with big tobacco

Members of the European Parliament in the budgetary control committee have written to the European Commission to provide the parliament with all documents and correspondence concerning cooperation agreements the Commission has with the tobacco industry. The request was made on Tuesday, two days before the same MEPs held a "damp squib hearing" with OLAF chief Giovanni Kessler, EUobserver.com reported on Thursday, on the investigation that was conducted on former European commissioner for health John Dalli.

MEPs from the budgetary control committee want access to all documents concerning cooperation agreements between the EC and Imperial Tobacco, Japan Tobacco International, British-American Tobacco, and Philip Morris International, all signed between 2004 and 2010. "All documents and correspondence concerning these agreements are of special importance to evaluate and analyse the possibility of conflicts of interest of the Commission emerging from those agreements," MEPs from all parliamentary groups said in the latter, "especially in the light of Article 12.3 of the JTI-Agreement, 12.4 of the BAT-Agreement, and Article 11 of the ITL Agreement."

"We demand comprehensive information on the relationship to the tobacco industry, in full disclosure," the MEPs write. The same MEPs met OLAF chief Giovanni Kessler on Thursday, who on his part said the resignation of former supervisory committee president Christiaan Timmermans was unrelated to the Dalli investigation. In comments to MaltaToday, German MEP Inge Graessle (EPP) said the allegations that had cost John Dalli his job - that he was aware of an attempt by a Maltese businessman to solicit a bribe to influence tobacco laws that Dalli was reviewing - are not yet clear enough.

"I wonder how the work was done and what the conclusions were that led to the resignation - this for me is relevant: what is the criminal act at the heart of the investigation? We still don't know, and I'm interested in the work that the police will do on the investigation." "I'm sure a commissioner from a bigger member state would not have been dealt with that way," Graessle said referring to the instant resignation of Dalli on the strength of the covering letter accompanying OLAF's report. "We should also care about small member states."

Cigarette Tax Hike Would Save Lives

County Board President Toni Preckwinkle said Tuesday that she’s not simply trying to raise revenue by seeking a $1-per-pack cigarette tax hike, she’s trying to save lives. WBBM Newsradio’s John Cody reports Preckwinkle proposed the cigarette tax hike as part of her plan to close a $268 million shortfall in the county’s nearly $3 billion budget for next year.

The move would raise the tax on a pack of cigarettes in Chicago to $6.67 –second only to the $6.86 tax on cigarettes in New York City. The per-pack Chicago cigarette tax would break down this way: $3 in county taxes, $1.98 in state taxes, $1.01 in federal taxes, and 68 cents in city taxes.

Reynolds' 3Q EPS In Line, Sales Lag

Leading cigarette maker, Reynolds American Inc. ( RAI ) delivered adjusted earnings of 79 cents (excluding a one-time charge of 5 cents) per share in the third quarter of fiscal year 2012, up 6.8% from the prior-year quarter earnings of 74 cents. Benefits from improved pricing and volume gains for moist snuff products offset decline in cigarette volumes and marketing expenses. The results were in-line with the Zacks Consensus Estimate. Revenues and Operating Margin Reynolds' net sales in the reported quarter declined 3.8% year over year to $2.12 billion due to declining cigarette volumes.

Quarterly net sales also missed the Zacks Consensus Estimate of $2.19 billion. Governmental actions that prohibit the use of tobacco products, along with diminishing social acceptance of smoking, are adversely impacting Reynolds' volume. Adjusted operating income increased 1.7% to $764 million while adjusted operating margin increased 2.0 percentage points to 36.1%. Segment Details RJR Tobacco : This is Reynolds' largest operating segment comprising operations of R. J. Reynolds Tobacco Company, a subsidiary of Reynolds American and the second-largest U.S. tobacco company.

It includes popular cigarette brands like Camel, Winston, Kool, Doral, Salem and Pall Mall. Segment revenue declined 6.1% to $1.77 billion in the third quarter. Volumes declined 6.9% in the segment compared to a 2.7% decline for the industry due to losses on shipments and increased promotional activity by competitors. RJR Tobacco's market share declined 1.0% year over year to 26.4% in the third quarter. The premium Camel brand held a market share of 8.5% in the third quarter, almost flat year over year.

However, it is pressurized by a weak economy and promotional activity by competitors. Value brand Pall Mall held a market share of 8.7%, up 0.1 percentage point. Compared with the year-ago quarter, the segment's adjusted operating income declined 3.9% to $606 million, with cigarette volume declines and increased promotional costs more than offsetting pricing gains and productivity benefits. Adjusted operating margin expanded 0.7 percentage points to 34.2%. American Snuff: This segment comprises operations of American Snuff Company, a wholly- owned subsidiary of Reynolds American and the nation's second-largest manufacturer of smokeless tobacco products. It sells some of the largest selling moist snuff brands like Grizzly and Kodiak.

Segment revenue increased 6.7% to $174 million in the third quarter. Volumes increased 6.6% in the segment compared to the 5% volume gain for the moist-snuff industry. The moist snuff market share increased 0.9 percentage points year over year to 32.2% in the quarter. Grizzly brand volumes grew 7.8% while market share expanded 1.2 percentage points to 28.8% benefiting from the company's investment in brand building programs. Grizzly is the best selling moist snuff brand in the U.S. Adjusted operating income increased 11.4% to $100 million, driven by volume and market share gains for the popular Grizzly brand.

Adjusted operating margin increased 2.4 percentage points year over year to 57.4%. Profit margins on moist snuff products are generally higher than on cigarette products. Santa Fe: This segment comprises operations of Santa Fe Natural Tobacco Company, a wholly-owned subsidiary of Reynolds American and manufactures Natural American Spirit cigarettes and other additive-free tobacco products. Segment revenue increased 14.7% to $125 million in the third quarter. Volumes increased 13.9% in the segment. Natural American Spirit's market share expanded 0.2 percentage points to 1.2%. Read more: http://community.nasdaq.com/News/2012-10/reynolds-3q-eps-in-line-sales-lag-analyst-blog.aspx?storyid=183864#ixzz2AP8an9Hk

Sutton shopkeeper fined £300 after selling cigarettes to teenage boy

A Sutton shopkeeper has been fined £300 for selling cigarettes to a 15-year-old boy under in July. Nottinghamshire County Council’s Trading Standards carried out a test purchasing operation at the Ashfield Store on Stoney Street, which involved a young volunteer. Tak Kin Lai (49), of the same address, allowed the volunteer to buy a packet of cigarettes without identification. He pleaded guilty to the offence at Mansfield Magistrates Court on Wednesday (24th October). It is against the law for a shop to sell cigarettes and alcohol to anyone under the age of 18.

Shops are encouraged to refuse to sell to people who they believe to be under 18 and who cannot provide photo identification, such as a driving license, passport or Proof of Age Standards Scheme approved card. Retailers are urged to always ask for identification if there is even the slightest doubt about the age of a customer. Trading Standards promotes the use of Challenge 25 schemes for all retailers which allow them to easily check proof of age and they can help shops to set up systems designed to prevent underage sales.

Members of the public are being encouraged to report any retailers they know are selling cigarettes, alcohol or other age restricted products to under-18s. Coun Mick Murphy, chairman of Nottinghamshire County Council’s community safety committee, said, “There is an 18 years-of-age restriction that applies to the sale of tobacco so the shopkeeper should have flatly refused to serve the 15-year-old boy involved in this exercise. “We need to protect young people from the health risks associated with smoking so it was reckless of the shopkeeper to sell cigarettes to someone under 18.”

Government Urged To Pass Tobacco Control Bill

The Programme Director of Vision for Alternative Development, a non-government organisation has noted that the passage of the Tobacco Control Bill is the effective means of preventing the marketing and usage of the product. Mr Labram Musah Massawudu said to minimise the social cost of tobacco use, government must eliminate the activities of the tobacco industry through the passing of the Bill to reduce lung, oral and neck cancers, heart diseases and poverty among smokers.

Mr Massawudu made the observation in an address at a day’s journalists’ briefing and education on tobacco industry interferences, threats to public health and World Health Organisation Framework Convention on Tobacco Control (FCTC) last Monday in Accra. He commended the Ministry of Health for showing enthusiasm and commitment in the fight against the tobacco industry by taking steps in implementing the FCTC through the directives of the ministry while the Tobacco Control Bill passes through the due processes.

Mr Massawudu said Ghanaians stand to gain in poverty reduction and health improvement if government domesticates the FCTC through the Public Health Bill which was passed by Parliament on July 11, this year and awaiting presidential assent. In November 29, 2004 Ghana became the 39th country to ratify the FCTC to “adopt and implement effective legislative, executive, administrative and/or other measures and cooperate, as appropriate, with other parties in developing appropriate policies for preventing and reducing tobacco consumption, nicotine addiction and exposure to tobacco smoke”.

Mr Massawudu said the tobacco industry has filed lawsuits challenging various public health measures in a number of countries in a clear attempt to undermine the pursuit of effective policies. The Programme Director said the tobacco industry is expanding its war against public health, beyond national courts and into the international arena and therefore governments must understand these new threats, and stand together to defend their sovereignty.

“As tobacco control takes hold, the industry continues to adjust its bullying tactics so that it can advance its ultimate aim, to hook a future generation of smokers. “After attacking public health policies in national courts and via bilateral agreements, they are now enticing governments into doing their dirty work at the World Trade Organisation,” Mr Massawudu said.

He said the effective means of minimising tobacco use is to eliminate the activities of the tobacco industry by imposing tax increment on tobacco products, introduction of pictorial health warnings on packs and comprehensive ban on tobacco advertising, promotion and sponsorship. According to the WHO, tobacco smoking related deaths worldwide has increased from five million in 2005 to 8.5 million this year while the global cigarette market has also expanded by 23 per cent in 2012 reaching 464.4 billion dollars. Some of the topics discussed were tobacco industry efforts to undermine Public Health and industry combining revenues to infiltrate and undermine treaty’s success and intimidation through lawsuits by tobacco companies. Mr Massawudu asked the media to show interest and create awareness on key provisions of the Public Health Bill especially on the tobacco control measures.

Smoking ups death risk in stroke survivors

Those who quit smoking before their stroke also had less risk of poorer outcomes than current smokers, researchers found. Researchers in Melbourne, Australia, tracked 1,589 patients who experienced a first or recurrent stroke in 1996-99. They followed them for 10 years, using medical records and in-person and telephone interviews, and tracked demographics, deaths, recurrent strokes and heart attacks.

They found that compared to those who never smoked, those who smoked when they had a stroke were 30 per cent more likely to have a poor outcome. Among those who survived the first 28 days after stroke, current smokers had a 42 per cent higher risk of poorer outcomes. Ex-smokers had an 18 per cent higher risk of poorer outcomes.

"This research provides fresh incentive to quit smoking now or never start because it shows smokers fare far worse after strokes than non-smokers," said Amanda Thrift, Ph.D., the study's lead researcher and professor of epidemiology for the Department of Medicine in the Southern Clinical School at Monash University in Clayton, Victoria, Australia. In the study, those living in disadvantaged areas were much more likely to smoke, with 52 per cent of current smokers belonging to the most disadvantaged group, compared to 31 per cent of those who never smoked. The results were published in the American Heart Association's journal Stroke.

Voltaggio to Provide 'Small Plates' to Cigar Lounge

Fan's of celebrity chef Bryan Voltaggio's cooking soon will have two places to go in Chevy Chase to sample his creations: Range and Civil Lounge—scheduled to open later this fall or this winter at the Chevy Chase Pavilion, which is undergoing a $32-million renovation. Range is slated to open in mid-November in a 14,000-square-foot space in the upscale shopping center, Patch reported earlier this year.

Next to Range will be Civil Lounge, a "105-seat lounge [that] will offer beer, wine and a large selection of spirits," in addition to cigars. And, once Range has been "...open and into its first few months, Civil will be opening its dining options and Range will be included in providing small plates for the menu," a representative for Voltaggio confirmed with Washingtonian.

The menu "could include a Cuban sandwich, salads, soups and charcuterie made at Range," Civil Lounge co-owner John Anderson told Washingtonian. The cigar lounge, which plans to be open by the new year, will have "130 lockers that cigar fans can rent on an annual basis," as well as "a special smoke removal system to keep clean air flowing in and smoke out," Washingtonian added.