tocacco plant Native American Tobaccoo flower, leaves, and buds

tocacco Tobacco is an annual or bi-annual growing 1-3 meters tall with large sticky leaves that contain nicotine. Native to the Americas, tobacco has a long history of use as a shamanic inebriant and stimulant. It is extremely popular and well-known for its addictive potential.

tocacco nicotina Nicotiana tabacum

tocacco Nicotiana rustica leaves. Nicotiana rustica leaves have a nicotine content as high as 9%, whereas Nicotiana tabacum (common tobacco) leaves contain about 1 to 3%

tocacco cigar A cigar is a tightly rolled bundle of dried and fermented tobacco which is ignited so that its smoke may be drawn into the mouth. Cigar tobacco is grown in significant quantities in Brazil, Cameroon, Cuba, Dominican Republic, Honduras, Indonesia, Mexico, Nicaragua, Sumatra, Philippines, and the Eastern United States.

tocacco Tobacco is an agricultural product processed from the fresh leaves of plants in the genus Nicotiana. It can be consumed, used as an organic pesticide, and in the form of nicotine tartrate it is used in some medicines. In consumption it may be in the form of cigarettes smoking, snuffing, chewing, dipping tobacco, or snus.

tocacco Cigarettes are smoking products consumed by people and made out of cut tobacco leaves. Cigars are typically composed completely of whole-leaf tobacco. A cigarette has smaller size, composed of processed leaf, and white paper wrapping. The term cigarette refers to a tobacco cigarette too but it can apply to similar devices containing other herbs, such as cannabis.
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Big tobacco will run rings around advertising ban

We can expect smoke signals from parliament in the next couple of weeks. The long-awaited, much-debated government plan to ban cigarette displays and advertisements in shops and newsagents and turf out vending machines from pubs is due to be revealed soon.

It’s been a thorn in the side of giants British American Tobacco and Imperial Tobacco.

Both launched judicial reviews earlier this year after MPs supported the Health Bill, which is now going through the House of Lords and will take effect in England, Wales and Northern Ireland from October next year for larger shops and from 2013 for small shops.

Although opposed by the Tories when it was tabled by the last Labour government, it still looks likely to be passed by the coalition. But it was reported that the original cabinet discussion about the ban provoked hot debate and was not supported by then business secretary Peter Mandelson.

The plans have also come under fire from more than 70,000 UK newsagents that are engaged in a last-ditch battle to prevent the ban, saying it will cause fresh shop closures as tobacco makes up 30 per cent of sales in small shops.

However, Deborah Arnott of anti-smoking campaign Ash said claims that businesses would fail because of the move were not borne out by the experience of other countries where such measures had been ‘popular and effective, without putting shops out of business’.

Michael Prideaux, a director at BAT which makes Dunhill, Kent and Pall Mall cigarettes, says: ‘I think it is a completely disproportionate reaction. Vending machines are mostly in places where entry is restricted by age.’ He added that the ban would boost the illegal market for tobacco.

The smokers’ lobby group Forest accused the government of ‘gesture politics’ saying it was easier to buy pornographic magazines than cigarettes in newsagents.

A statement from Imperial says: ‘We support tobacco regulation that is reasonable, proportionate and evidence based. The display of tobacco products is an important aspect of the consumer purchasing process. It provides consumers with the information to make a genuine selection from the wide range of tobacco products, brands and prices that are available in retail outlets, whilst contributing to fair and undistorted competition between tobacco manufacturers and retailers.’

The firm’s vending machine subsidiary, Sinclair Collis, launched legal action against the bill in February saying it was ‘seeking judicial review of the relevant sections of the Health Act 2009′.

But whether you are smoker or non-smoker the question here is whether the ban will affect business at BAT and Imperial. The answer, almost certainly, is no.

BAT, as the world’s second-largest quoted tobacco group by global market share, has brands sold in more than 180 markets. In July, it reported a 7.3 per cent rise in first-half profit as sales in some of its key markets stabilised with the recovery in the world economy. The company’s pre-tax profit rose from £2.12 billion to £2.28 billion and revenue after duty and taxes was 8 per cent higher at £7.3 billion, with the weakness of sterling boosting revenue by four percentage points.

The company sold 348 billion cigarettes in the half, down only one billion on last year, helped by the acquisition of Indonesian tobacco company PT Bentoel. Like-for-like volumes fell 3 per cent, hit by steep excise increases in Romania and Turkey.

BAT’s five biggest markets - Brazil, Russia, South Africa, Australia and Canada - are all picking up because they are commodity-based economies, said Paul Adams, chief executive. BAT gets a double benefit because the local currencies strengthen as well as the economy when commodity prices pick up. The company also succeeded in raising its prices during the half.

Over at Imperial Tobacco, July’s figures showed sales volumes fell 4.3 per cent for the nine months to June, worse than a 3.7 per cent decline in its first half. This was probably down to a dip in custom in Russia, Spain and the US.

BGC Partners sage David Buik says: ‘Though it is dispiriting at the thought of an intrusion into human liberties, I am not that sure that the value of IMPS or BATS would fall that much as a result of it. These companies make all their money in Asia, Eastern Europe, emerging nations and South America. If the UK regulators want to make access to smoking difficult, so be it. Binge drinking is going to be stamped on.

‘However I doubt the share prices of Diageo, SABMiller, Heineken and InBev will be more than temporarily inconvenienced.’

Meanwhile, we can expect the disappearance of one marketing channel to be replaced by others, notably via social networking sites such as Facebook and at major music events.

Several of the UK’s biggest festivals have allowed tobacco firms to sell their products on site. East London’s Lovebox festival was co-sponsored by Imperial Tobacco’s Rizla rolling paper, which is exempt from the ban on tobacco advertising.

An Imperial spokesman said the brand had sponsored a number of festivals. ‘It’s all part of creating brand awareness and it’s entirely legitimate.’
By Sarah Modlock
Moneyobserver

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