Daily Archives: April 17, 2009

The Higher Prices and Lower Sales of Cigarettes – the Biggest States Problem

This year in Croatia is expected to be doubled the fall in cigs4us.biz/marlboro-cigarette, due to higher excise duties on local tobacco products.
On this month the government decided to end the preferential treatment of local tobacco manufacturers and tax local and foreign cigarettes equally.
“From April 1, we will increase prices of almost all of our products by 2 kuna to offset higher excise taxes. Without that our revenues this year would fall some 450 million kuna ($81.73 million), or 30 percent down from 2008,” said Davor Tomaskovic, TDR’s Chief Executive.
TDR is one of the most profitable Croatia’s firms, is a part of Adris Grupa which is also involved in tourism. The share of TDR’s market in Croatia is 85 percent, while it takes some 27 percent of the market in former Yugoslavia.
Mr. Tomaskovic complained that, unlike the EU newcomers who fought for adjustment periods, Croatia had decided to harmonize its legislation with the EU several years before it is to become a member, which may have a negative impact on the local market.
The higher prices and lower sales of cigarettes will increase the illegal trade and citizens will buy cigarettes across the border where cigs are not so expensive. Local tobacco growers will also be worse-off because until now they were buying tobacco in Croatia although its prices were 30 percent higher than abroad.
The price of the most popular TDR’s product, Ronhill, in Croatia will cost from April 18 kuna. In other former Yugoslav republics, it costs at between 7.50 and 7.80 kuna. ($1=5.506 Croatian Kuna)
Raising the price of tobacco is one of the simplest and most effective methods for rapidly and significantly reducing tobacco use, especially in developing countries and among young people. Because children are more sensitive to changes in cigarette prices because they have less disposable income than adults and are less addicted to nicotine.

The Impact of Smoking Bans on Youth-Substance Abuse

Cigarettes smoking is proven to be a gateway activity for substance abuse among youth. That’s why the Coalition for a Drug-Free Nevada County supported Nevada County tobacco use prevention and also they accepted the proposed ordinance for a smoke-free Western Gateway Park as a means to prevent substance abuse among the youth of Nevada County.

Tobacco Might Be Healthy

The cigarettes quality depends of tobacco which is contained in each cigarette. European scientists in a study said that they have used genetically modified tobacco plants for to grow medicine.
In general growing medicines in specific plants is called molecular farming and may offer a cheaper way of making biotech drugs and vaccines than the traditional cell cultures in manufacturing processes. Agrochemical companies including Bayer (the world’s biggest agrochemical company is also the world’s seventh biggest seed company) and Syngenta (the world’s second largest agrochemical company is also the world’s third largest seed company), have been looking at ways to make drugs in plants, but little progress has been made.

Tobacco Control Legislation Passed by Issue

Smoking Restrictions
Smokefree Air Laws:

• 15 states—Colorado, Idaho, Illinois, Maine, Maryland, Minnesota, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Tennessee, Utah and Virginia—enacted laws or promulgated regulations
strengthening their smoking restrictions and/or repealing preemption.
• Colorado amended its smokefree law regarding smoking in nursing homes and assisted-living facilities. Utah passed legislation temporarily weakening its restrictions on smoking in bars and private clubs. Mississippi amended its law to allow smoking again in state veterans’ homes.
• California passed legislation prohibiting smoking
in vehicles when children under 18 are present
in the vehicle.
Tobacco Taxes:
• Thirteen states—Connecticut, Delaware, Hawaii, Indiana, Iowa, Maryland, Nebraska, New Hampshire, North Carolina, South Dakota, Tennessee, Vermont and Wisconsin—passed legislation increasing taxes on tobacco products and/or changed the way their tobacco tax revenue
was distributed.
• Delaware, Iowa and Wisconsin changed their taxes on snuff to a weight-based tax.
Settlement/Securitization:
• Four states—Colorado, Nevada, New Hampshire and Oregon—changed its state laws allocating Master Settlement Agreement (MSA) payments. Pennsylvania changed its law for FY2008 only.
• Mississippi had a court decision uphold a lower court ruling taking money away from the non-profit that previously ran its state tobacco
control program.
• Three states—Ohio, Virginia and West Virginia securitized all or a portion of their future MSA payments. Michigan and Rhode Island added to and/or amended their law governing securitization
of MSA payments.
Smoking Cessation Coverage:
• Kentucky passed legislation allowing Medicaid to cover smoking cessation products/services. Maine required the state Department of Health to devise a plan for covering cessation products/services under Medicaid and private insurance.
Fire-Safe Cigarettes:
• Sixteen states—Alaska, Connecticut, Delaware, Iowa, Kentucky, Louisiana, Maine, Maryland, Minnesota, Montana, New Jersey, North Carolina, Oregon, Rhode Island, Texas and Utah—enacted legislation setting fire-safety standards
for cigarettes.
Flavored Tobacco Products:
• Maine passed legislation prohibiting the sale of certain flavored cigarettes/tobacco products.
Youth Access/Tobacco Product Licensing:
• Three states—Maine, Rhode Island and South Dakota—amended or enacted new laws governing
licensing or registration of entities that deal in tobacco products.
• Fourteen states—Alaska, Arkansas, California, Connecticut, Georgia, Indiana, Iowa, Maryland, Nevada, North Dakota, Rhode Island, South Dakota, Texas and Wyoming—amended or enacted new laws restricting youth access to tobacco
products.
Tobacco Liability:
• New Mexico limited the appeal bond required of MSA signatories to appeal a lawsuit judgment against them.

Tobacco Liability

Thirty-four states have enacted legislation that caps the appeal bond required for the damages portion of a lawsuit judgment. Fourteen states apply these caps on appeal bonds to all damages.
Fourteen states apply the caps only to Master Settlement Agreement/separate tobacco settlement signatories. Two states—Florida and Hawaii—have separate statutes applying the cap to both settlement signatories and all other parties. Four states—Georgia, Idaho, Kentucky and Mississippi—apply these caps to punitive damages only. Almost all of these laws include an exception for intentional dissipation of assets by the appellant. No appeal bond is required to appeal a lawsuit judgment in Connecticut, Maine, Massachusetts, New Hampshire and Vermont. California, Hawaii, Minnesota and Oregon have capped the appeal bond required at $150 million;
Alabama has set the limit at $125 million;
Florida, Iowa, Kentucky, Mississippi, New Mexico, Pennsylvania, Washington and Wisconsin have set the limit at $100 million; Tennessee has set the limit at $75 million; Louisiana, Missouri, Nebraska, Nevada, New Jersey and Ohio have set the limit at $50 million, while Arkansas, Colorado, Georgia, Indiana, Kansas, Michigan, North Carolina, Oklahoma, South Dakota, Texas and Virginia have imposed a limit of $25 million. West Virginia has set the limit at $100 million each for compensatory and punitive damages. Idaho has set the level at $1 million, while a judgment
in South Carolina is automatically appealed. Kentucky also makes it extremely difficult for plaintiffs to pursue a civil action against a tobacco grower or a “warehouseman.”

Demise of Tobacco Agency Closes Chapter in History

The close of this year’s General Assembly brought an end to another chapter in Maryland’s rich tobacco-growing history.

Tobacco taxes rise: Smoking decline is likely to continue

Retailers who sell cigarettes, cigars and other tobacco products say it’s too early to tell how much a hefty federal tax increase on tobacco products will have on sales.Altria Group, which includes Philip Morris USA, one of the nation’s largest manufacturers of tobacco products, expects the tax increase to accelerate the decline in cigarette sales seen nationwide in the past 10 years.

3rd Smoking Cessation Conference

“During the period from 2009 to 2024, smoking will be a continuing public health threat. The number of smokers is increasing steadily, despite widespread knowledge of tobacco’s dangerous effects. This increasing prevalence of smoking is most marked amongst teenagers and amongst populations in developing countries.” - According to a Visiongain report, published in Feb 2009.

RJR still disputes MSA obligation

R.J. Reynolds Tobacco Co. continued yesterday its dispute over annual payment obligations to the Master Settlement Agreement by withholding 19 percent of the amount due from 2008.