European Bulletin 4th May 1999 - EU9917 (fwd)

[Robert Weissman <rob@essential.org>]

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!#  GLOBALink Tobacco - Weekly European News Bulletin
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EUROPEAN BULLETIN – EU9917 4TH MAY 1999

Headlines

Europe:

Austria: Austria Tabak expanding abroad.
Eastern Europe: Reemtsma plans for growth.
Spain: Tabacalera in talks with Radio Espana.


International

Kenya: BAT shelves bonus issue.
South Africa: Tobacco control bill becomes law.
USA: American tobacco company plans to export bidis to Europe.

Full Text

Austria: Austria Tabak expanding abroad.

According to Director Heinz Schiendl, Austria Tabak may conclude a
takeover of a European cigarette producer by the end of 1999. The aim
is to expand market share in Europe by means of an additional brand.
In  1999 Austria Tabak plans to introduce or boost the sales of
Memphis Blue in France  (in cooperation with Seita), Greece, Italy and
Sweden.  A license production agreement has been signed with Rovin in
Croatia.  In addition, exports to West and East Africa, China, Japan,
Ukraine and Russia are to be increased.  Altogether exports are to be
raised from 8.9bn to 10bn cigarettes in 1999.

Information Access Company 19/04/99


Eastern Europe: Reemtsma plans for growth.

An article in the trade journal Tobacco Reporter reveals how the
German tobacco company, Reemtsma, is capitalizing on the traditional
brands of Eastern Europe while giving the impression that it is
‘regenerating’ local tobacco business.

Reemtsma advertises itself as the world’s fastest-growing cigarette
manufacturer.  Over the past 10 years, the group’s sales have tripled.
In 1997, the company sold 119.4bn cigarettes compared with 42.5bn in
1989.  The value of 1997 sales totaled DM4.1 billion, an increase of
17 percent over 1996.  This growth is largely due to its international
business, particularly in Eastern Europe.  Now, more than half of the
group’s total sales is made in this region.  Unlike most other western
companies which aggressively market their international brands,
Reemtsma has invested “significant funds and efforts in rejuvenating
local, traditional brands,” according to Dieter Muller, the company’s
vice president.  The company has recognised that many east Europeans
cannot afford to smoke expensive international brands so they have set
about “improving” local brands.  This also complements the “back to
the roots” attitude, common in these countries, claims Muller.

Source: Tobacco Reporter, February 1999


Spain: Tabacalera in talks with Radio Espana.

Spanish tobacco company Tabacalera is in talks with radio station,
Radio Espana, about acquiring the 25% stake in the station owned by
Luis Maria Anson which acquired it from Televisa of Mexico. Radio
Espana has 15 FM stations and a short wave station in Madrid. The
amount of a possible deal has not been disclosed, but sources claim it
would not be under Pta 1,000million.

Source: Information Access Company 21/04/99


INTERNATIONAL


Kenya: BAT shelves bonus issue.

British American Tobacco, Kenya has decided not to go ahead with the
issue of bonus shares and will reinvest the funds in a restructuring
programme. The news emerged at the recent AGM, where shareholders were
told that the recent  merger with Rothmans required spending to be cut
back. 1998 pre-tax profits totalled KSh 1,800million, compared to KSh
937million in 1997.

Source: Information Access Company 21/04/99


South Africa: Tobacco control bill becomes law.

On 22 April, President Nelson Mandela signed the Tobacco Products
Control Amendment Act.  The law will be published shortly and will be
posted on the South African government’s web site:
http://www.parliament.gov.za

Source: Globalink, 23/4/99


USA: American tobacco company plans to export bidis to Europe.

The California based Smoker’s Choice company that sells bidis (small
hand-rolled cigarettes) is planning to export its products to Europe.
The company claims that its bidis are some of the “trendiest and most
popular tobacco products in the world”.  The hand-rolled mini
cigarettes are produced in a variety of flavours including cardamom,
cherry, raspberry and vanilla.

Source: Tobacco Europe, March/April 1999


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16 Fitzhardinge Street
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Tel: +44  (0)171-224 0743
Fax: +44 (0)171-224 0471
Web: http://www.ash.org.uk