European Bulletin 17th May 1999 (fwd)

[Robert Weissman <rob@essential.org>]

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!#  GLOBALink Tobacco - Weekly European News Bulletin
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EUROPEAN BULLETIN – EU9919 MAY 17TH 1999

Headlines

Europe:

Austria: Austria Tabak looking for partner.
Denmark: More women smoke ‘light’ cigarettes.
Finland: Result of smoke-free class competition.
Portugal:Tabaqueira sell-off continues.
Norway: Smoking allowed at schools.
Sweden: Swedish Match to finalise deal.

International:

China: Outdoor cigarette advertisements to be removed in Guangzhou.
Israel: Legislation to reduce smoking proposed.
Korea: KT & G in joint tobacco projects.
USA: California launches hard hitting anti-tobacco ads.
USA: US Tobacco Co. admits smokeless tobacco causes oral cancer


Full Text

Europe:


Austria: Austria Tabak looking for partner.

Austria Tabak (AT) wants to become one of the leading European tobacco
groups by a strategic alliance or joint ventures. AT confirmed
concrete negotiations with potential partners but did not disclose
further details.  It is speculated that the future partner might be
French Seita or Spanish Tabacalera.  Also German Reemtsma and the two
British firms, Imperial and Gallaher are mentioned as possible
partners. In addition, AT is planning acquisitions of small and
medium-sized tobacco traders. Closer cooperation with the German
wholesaler Lekkerland is to strengthen AT’s position on international
markets.  In  1998, AT increased turnover by 10% to Sc. 71.567
billion. Net profit climbed by 31.7% to Sc. 1.965 billion.

Source: Information Access Company 30/04/99


Denmark: More women smoke ‘light’ cigarettes.

According to a report by the European Network for Smoking Prevention,
more women than men decide to shift to light and ultra-light
cigarettes instead of giving up smoking. In Denmark, over two thirds
of female smokers choose light brands compared with 43% for men. The
report accuses the tobacco industry of targeting women in their
campaigns for light and ultra-light cigarettes by associating them
with other “light products”.
Note: The report is entitled “Some like it light” and it is available
from ENSP, e-mail ensp@globalink.org

Source: Information Access Company 03/05/99


Finland: Result of smoke-free class competition.

In Finland, the Smokefree Class competition has ended. For the period
of the competition, from October 1998 to March 1999, 36% of the 7th
grade classes remained smokefree while on the 8th grade the figure was
26%.  Nearly 50,000 pupils promised to refrain from smoking while over
16,000 kept the promise.  The Ministry of Social Affairs and Health
funded the competition.

Source: Information Access Company 01/05/99


Portugal: Tabaqueira sell-off continues.

The Portuguese Government is to press ahead with an ambitious
programme of company privatisation in 1999 in spite of a fall of more
than 5 percent in shares since the beginning of the year. A further 35
percent of Tabaqueira, Portugal’s dominant tobacco company, is also to
be sold this year. Philip Morris bought 65 percent in 1996.

Source: Financial Times 17/05/99


Norway: Smoking allowed at schools.

Smoking is allowed at 90% of upper secondary schools in Norway, even
though the age limit for purchasing tobacco is 18 years, according to
a recent study by a Norwegian cancer organisation and Statens
Tobakksskadered, the Government’s anti-smoking council.  Arly Hauge at
Statens Tobaksskadered says preventive measures are weakened when
schools permit smoking.

Source: Information Access Company 05/05/99


Sweden: Swedish Match to finalise deal.

Swedish tobacco company, Swedish Match, has now finalised its
acquisition of US General Cigar’s mass market operations including the
brands Garcia y Vega, White Owl, Tiparillo and Tijuana Smalls.
Included in the acquisition will be production units in Dothan
Alabama, Santiago, Dominican Republic, and US. Thanks to this
acquisition, Swedish Match will become the leading cigar producer in
the world. Swedish Match and General Cigar have signed a deal
regarding long-term strategic co-operation regarding tobacco supplies
and distribution deals.

Source: Information Access Company 03/05/99

International:


China: Outdoor cigarette advertisements to be removed in Guangzhou.

The Guangzhou City government plans to remove all outdoor cigarette
advertisements in the city before the National Day in October. It is
the second city that has started the move in China, following Beijing.
In addition, the Guangzhou City will not accept any applications for
new cigarette advertisements.  In contrast, Dalian in Liaoning
province has decided to develop an outdoor advertising business.
Starting from 1999, the city will open several streets a year for
local and foreign enterprises and individuals to bid for outdoor
advertisements.

Source: Information Access Company 04/05/99


Israel: Legislation to reduce smoking proposed.

Legislation has been suggested by the Israeli Deputy Health Minister
which, if enforced, would outlaw tobacco advertising and stop
cigarette manufacturers from putting addictive substances in their
products. The proposal revealed on 29 April 1999 by Shlomo Benizri is
intended to cut the number of people who smoke from 28 percent at
present to 20 percent by 2003. Mr. Benizri, who is looking to become
the next government’s health minister, says that tobacco results in
6,000 people dying per year in Israel.

Source: Information Access Company 30/04/99


Korea: KT & G in joint tobacco projects.

South Korea’s state-owned Korea Tobacco and Ginseng Corp (KT&G)
intends to provide its North Korean counterpart with tobacco leaf
processing equipment.  KT&G became the first to forge joint business
with North Korea in the public sector when it signed an agreement to
buy 694 tons of tobacco from the North Korean State firm for US$ 1.12
million.  KT&G and the North Korean State firm have also agreed to
build a joint venture cigarette plant, cultivate leaf tobacco in North
Korea on a contractual basis and to develop joint cigarette brands.
The proposed plant will produce about 2.4 billion cigarettes for South
and North Korea, as well as for exports to neighbouring countries such
as Japan, China and Russia.

Source: Information Access Company 04/05/99

ASH Comment: While it’s good to see initiatives bringing North and
South Korea closer together, it’s a great pity that economic
development should be based on such a destructive product.


USA: California launches hard hitting anti-tobacco ads.

California began airing hard-hitting anti-tobacco ads last weekend
aimed at preventing teenage smoking. One of the ads shows footage of
an April 1994 Congressional hearing where tobacco company executives
testified that nicotine is not addictive. The ads ends with the
question, “Do they think we’re stupid?”  California’s Governor, Gray
Davis said in a statement: “I believe the time has come to tell the
truth… and to stand up for our children against the Joe Camels and
Marlboro Men and other seductive messages of addiction.” The new
campaign will cost about $23 million. In comparison, the tobacco
industry spends $1.3 million per day on advertising in California,
some 20 times what the state pays to counteract their messages.

Source: Reuters 13/05/99, cited in the Scarc Daily Bulletin 14/05/99


USA: US Tobacco Co. admits smokeless tobacco causes oral cancer

US Tobacco Co. (UST) has admitted that smokeless tobacco can cause
oral cancer, a fact the smokeless tobacco company previously denied.
The admission came as part of an agreement with Rhode Island Attorney
General, Sheldon Whitehouse, who filed a legal action against the
company for violating the terms of the multi-state settlement. UST is
required to pay the attorney general’s office $15,000 to prevent teen
tobacco use. In addition, UST has to retract the comments made by its
spokesperson claiming that smokeless tobacco has not been
scientifically established to be a cause of oral cancer. The company
also agrees not to make any statements “to any news media… to the
effect that any of its tobacco products do not cause or have not been
proven to cause adverse health consequences or are not addictive or
have not been proven to be addictive.”

Source: Providence Journal 11/05/99, cited in Scarc Daily News
Bulletin 12/05/99
































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