European Bulletin 30/11/98

[Robert Weissman <rob@essential.org>]

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!#  GLOBALink Tobacco - Weekly European News Bulletin
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         EUROPEAN NEWS BULLETIN -  EU9845 30TH NOVEMBER 1998
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CONTENTS:

EUROPE: SPECIFIC COUNTRIES

FINLAND: On cigarette smoke and air conditioning.
PORTUGAL: Smoking has to stop.
UK: Tobacco brand extensions face new restraints.

INTERNATIONAL

AUSTRALIA: Retailers oppose tobacco legislation.
HONG KONG: Swedish Match buys tobacco distribution company.
INDIA: Air India introduces a smoking ban on flights.
MALAYSIA: RJR undertakes plant restructuring.
USA: Philip Morris to buy rival company's cigarette brands.
USA: Starting smoking found to be no help in losing weight.
ZIMBABWE: Future of tobacco sector uncertain.



EUROPE: SPECIFIC COUNTRIES

FINLAND: On cigarette smoke and air conditioning.

The Technical Research Centre of Finland has built a model restaurant in its
Tampere laboratory to research how cigarette smoke moves in a restaurant.
The aim is to research, for example, whether the bartender can be isolated
from the smoke by air conditioning.

Source: Information Access Company 17/11/98

PORTUGAL: Smoking has to stop.

According to the president of the Sociedade Portuguesa de Pneumologia (SPP),
Portugal's capacity to treat sufferers of chronic bronchitis is approaching
breaking point.  He has said that 13 percent of Portuguese now suffer from
this disease and that this is directly attributable to the high level of
smoking in the country.

Source: Information Access Company 12/11/98

UK: Tobacco brand extensions face new restraints.

Companies using tobacco brand names for non-tobacco products such as
clothing, may have to apply for a license to trade under new plans being
drawn up by the government to ensure they are not 'covert' cigarette
advertising.. According to the journal 'Marketing' say the government is
toughening its stance on so-called 'brand stretching'. The new stance has
been prompted by last month's revelation that World Investment Company, a
spin-off from BAT, is planning to market coffee under the Benson & Hedges
brand. The UK Government's White Paper is expected in the week beginning
December 7, 1998. It will represent the UK government's interpretation of
the EU Directive voted in earlier this year. The Directive suggests that
tobacco product names used for other product names may continue to be used
"provided the appearance is clearly distinct from the use for the tobacco
product". This had led tobacco firms to assume that brand extensions would
be acceptable.

Source: Marketing 26/11/98

INTERNATIONAL

AUSTRALIA: Retailers oppose tobacco legislation.

Nine retail industry groups of NSW in Australia have made a joint appeal to
the  NSW  Government to prevent the implementation of new state tobacco
legislation. Retailers in NSW account for around AU$ 2 billion in tobacco
sales, of  which supermarkets, grocery and mixed businesses contribute for
around half. The groups believe that the new legislation will incur
substantial costs that may have to be  absorbed by all retail clients, not
just the smokers. The cost will be highest for mixed businesses that depend
on cigarettes for 20 percent of their sales, convenience stores with 9.7
percent of their sales and supermarkets with  6.3 percent. The draft Public
Health (Tobacco) Regulation 1998 disallows tobacco displays of more than 5
packs in each product  line. Not more than 1 carton of cigarettes is allowed
for display. The new legislation also calls for a 1.9 sq. metre display
board with the wording, "SMOKING KILLS", on each tobacco display unit. A
price board cannot be displayed within 2 metres, and a tobacco display unit
within 1 metre, of a window, door or entrance of a retail premise.

Source: Information Access Company 13/11/98

HONG KONG: Swedish Match buys tobacco distribution company.

The Swedish tobacco company Swedish Match has bought the Hong Kong-based
tobacco distribution company, M Beraha. M Beraha operates in Hong Kong and
Macao with the distribution of tobacco products and it also holds the rights
to tax free sales to and from China.

Source: Information Access Company 14/11/98


INDIA: Air India introduces a smoking ban on flights.

Air India, the long distance international airline, has announced that all
its flights to UK, USA and Europe would be smoke-free. It has been stated
that this is in response to the call given by the World Health Organisation
and the International Civil Aviation Authority. This is the first
announcement of no smoking flights from Air India.

Source: Correspondence from Prakash Gupta - India 20/11/98  

MALAYSIA: RJR undertakes plant restructuring.

RJR has announced a restructuring of its Malaysia plant in Shah Alam
(Selangor, Malaysia). The company said the proposals would be undertaken in
order to provide continuous long-term growth to its shareholders and to
improve its position to produce low priced cigarettes. The restructuring
plan will also see the workforce at the plant reduced by 150 workers and the
voluntary separation programme at the plant will cost  RM. 6 million.
Meanwhile, RM. 25 million will be used for enhancing production at the plant
as well as to replace old material and machinery with new ones. The
restructuring programme is expected to be completed by 31 December 1998.

Source: Information Access Company 17/11/98

USA: Philip Morris to buy rival company's cigarette brands.

Philip Morris has reached an agreement to buy three cigarette brands for
$300 million cash - half of which will be paid even if the deal never goes
ahead. It is buying the US rights to the L&M, Chesterfield and Larks brands
from Liggett, a subsidiary of Brooke Group. As a result of the deal, Liggett
would join the $206 billion tobacco settlement, that was unanimously
accepted by state attorneys general on Friday and which is due to be
formally signed today. Philip Morris already owns the rights to L&M,
chesterfield and lark in markets outside the US. It will buy the US rights
for $150m, followed by another $150m if the deal goes ahead.

Source: Financial Times 23/11/98

USA: Starting smoking found to be no help in losing weight.

Smoking does not prompt weight loss, but stopping smoking causes weight
gain, according to research out last week. The findings come after a
seven-year study of 4,000 18 to 30 year old Americans of different races,
who either smoked, never smoked, or stopped during the study. The American
Psychological Association  found no evidence that cigarettes played any part
in helping weight control. Those who started smoking during the study did
not lose weight. But when smokers gave up, they put on weight, with African
Americans putting on an average of 29lb and white participants 20.8lb. The
study offers no explanations for the findings, and confounds recent research
suggesting appetite is suppressed by nicotine. 

Source: The Express, Daily Mail, The Guardian 23/11/98.

ZIMBABWE: Future of tobacco sector uncertain.

The future of Zimbabwe's once highly profitable tobacco industry hangs in
the balance as earnings have dropped by 37 percent over the past three
marketing seasons. The Zimbabwe Tobacco Association has already advised
tobacco farmers to reduce their plantings by 10 percent to 15 percent for
the 1998/99 season to avoid unnecessary expenditure. This dramatic drop in
performance by the tobacco sector, largely blamed on the depressed world
market prices, has impacted negatively on financial institutions and
dependent industries as farmers suffer serious financial losses or
diminished returns. Pat Devenish, tobacco sales floor managing director,
concedes prices were unsatisfactory and had dashed the hopes of marginal
farmers of making it in the industry. "While I may want to remain optimistic
about the future, the outlook is not encouraging." he said.

Source: Panafrican News Agency 03/11/98  

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