Daily Archives: November 17, 2010

Global Tobacco Industry: Cigarette Cost

I’ll tell you why I like the cigarette business. It cost a penny to make. Sell it for a dollar. It’s addictive. And there’s a fantastic brand loyalty. - Warren Buffett

Uruguay vs. Philip Morris

On July 23, 2010, Uruguay’s minister of health went on state television to explain the major public health initiatives planned for the smoking in Uruguayfive-year term of new President José Mujica. But the seemingly routine talk came with a twist — two “minor” changes to planned new controls on tobacco sales.

Extraordinary Influence of Big Tobacco inside Russia

Big tobacco’s influence inside Russia dates back to 1992, when the Russian government’s monopoly in tobacco products ended. Multinational tobacco giants Philip Morris and British American Tobacco swiftly moved in, followed by Japan Tobacco, attracted by one of the world’s largest and fastest growing cigarette markets. The attractions for the industry were numerous: a substantial pool of current smokers, large numbers of potential new smokers among women and youths, weak anti-tobacco legislation, and a political climate in which the tobacco companies could exert political influence – both in Russia and among other former Soviet republics.

Big Tobacco’s New Frontier: Developing World

The International Consortium of Investigative Journalists (ICIJ) has issued many excellent reports about the tobacco industry big tobacco industryincluding one released this week. This new report talks at length about the manner in which Big Tobacco is now increasingly lobbying the developing world, where rules are still lax and apparently easier to bend or break (compared to the developed world) and potential for new business is enormous.

Tobacco Lobby Goes Global

Multinational tobacco companies for years have been battered by politicians and lawyers in the United States and other developed nations like Australia and France. The global reputation of tobacco executives ranks near the bottom in public standing surveys. Market growth in the developed world has flattened out or declined. In the United States, the number of men who smoke dropped from 52 percent in 1965 to half that today. It appears to be so bad for the industry that one consulting group said selling tobacco represents “the worst operating environment in the world.”