European bulletin EU9922 (Monday 7th June 1999)

[Robert Weissman <rob@essential.org>]

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!#  GLOBALink Tobacco - Weekly European News Bulletin
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EUROPEAN BULLETIN – EU9922, 7TH JUNE 1999


HEADLINES

Europe

France: Plan to combat smoking.
France: New tobacco control policy.
Germany: BAT aims to increase market share.
Sweden: Swedish Match sells cigarette operations.


International

Asia: BAT emphasises its links with motorsport.
Australia: Financial review of Rothmans
Australia: Merger of WD & HO and Rothmans.
Hong Kong: Airport fights against ban on tobacco adverts.
Japan: More Japanese companies ban smoking at work.
Malaysia: More female students are smoking.
Montenegro: Cigarettes become expensive.
South Africa: Health minister is awarded Tobacco Free World award by
WHO.
Thailand: Tobacco control to be enforced.


Full Text


Europe


France: Plan to combat smoking.
The French government hopes to decrease total tobacco sales in France
by 5%, through a plan, which was revealed on 26 May 1999. The
government, aided by the National Medical Insurance Fund (CNAM) for
workers and employees, is going to allocate Fr 130mn for combating
tobacco in 1999, compared with Fr  23mn in 1997, and it will step up
this effort in the year 2000. The government’s plan is mainly based on
allowing pharmacies to sell all nicotine substitutes over the counter
as of autumn 1999, in order to help smokers to break the habit. The
plan also intends to protect non-smokers by distributing a circular
pointing out the provisions of the Evin law, which bans smoking in
government offices, public establishments and work places. The plan
includes two national information campaigns targeting children and
pre-adolescents on the one hand, and women on the other, which is to
be broadcast during summer 1999.

Source: Information Access Company 27/05/99


France: New tobacco control policy.

The Health Secretary, Dr Bernard Kouchner announced on World No
Tobacco Day important new features in favour of smoking cessation. NRT
products (except nasal sprays) will be sold in pharmacies by the
beginning of next year. Also, 150 new smoking cessation centres will
be created and special attention will be devoted to pregnant women.

Source: correspondence from Jacques Le Houezec, via Gloablink
03/06/99

Germany: BAT aims to increase market share.

British American Tobacco (Germany) GmbH wants to increase its market
share in Germany in 1999. In the first four months of 1999, the market
share rose to 18.4%. The increase is due to the success of the Lucky
Strike brand, which has a market share of 3.6% and is the fifth most
popular brand in Germany. According to a BAT forecast, the German
cigarette market is likely to remain stagnant in the current business
year.

Source: Information Access Company  26/05/99


Sweden: Swedish Match sells cigarette operations.

Swedish Match announced the sale of its cigarette operations to
Austria Tabak for $560 million and said it will use the proceeds to
expand globally in cigar and pipe tobacco and smokeless tobacco
products.

Source: Financial Times, Wall Street Journal Europe 01/06/99



International

Asia: BAT emphasises its links with motorsport.
British-American Tobacco (BAT) is emphasising its links with
motorsport by putting its Racing logo and the image of a Formula One
racing car on packs of its State Express 555 cigarettes. This is the
company's flagship brand in the Asia-Pacific region. The theme could
be used in other promotions, such as placing a racing car in certain
airport duty-free stores.

Source: Information Access Company 14/05/99


Australia: Financial review of Rothmans
Australia’s Rothmans Holdings Ltd. posted a 18.8% fall in net profit
to AU$ 117.8mn for the year ended 31 March 1999 as a result of a AU$
47mn abnormal gain reported in last year's results. Sales jumped 22.1%
to AU$ 3bn as the firm’s market share grew. The better sales were due
to buoyant economy, which encouraged some smokers to upgrade from low
profit margin brands to high profit margin brands.  The firm’s
distribution and its in-shop marketing had also led to increased sales
of its brands, which include Holiday, Winfield, Peter Stuyvesant and
Dunhill. But, the uncertain regulatory environment, which may include
higher tobacco taxes under a new ‘per stick’ regime, may affect future
sales and earnings.

Source: Information Access Company 20/05/99


Australia: Merger of WD & HO and Rothmans.
Minority shareholders in Australia’s WD & HO Wills Holdings Ltd. will
get AU$ 270mn in cash as part of the AU$ 1.2bn merger with Rothmans
Holdings Ltd.  The merger is the last phase of the global merger of
the two tobacco giants’ parents - British American Tobacco (BAT) and
Rothmans International PLC.  Under the terms of the merger, WD & HO
Wills will pay all its shareholders a special fully-franked dividend
of AU$ 0.50 a share before buying back the 67% shareholding of BAT
Australia, the new merged firm, for AU$ 342mn. BAT Australia will use
the amount raised to acquire 28.6mn new shares in Rothmans for AU$
386mn or AU$ 13.50 apiece, ending up with a 59.5% controlling stake in
the group. Rothmans will acquire all the shares held by WD & HO Wills'
minority shareholders for AU$ 5.75 cash. To satisfy Australian
competition regulators, the two firms will sell AU$ 325mn of cigarette
and tobacco assets to England's Imperial Tobacco, which will be the
first new player in the AU$ 5bn Australian tobacco market in around 40
years.  The new merged firm will control about 45% of the local
tobacco market, Philip Morris will have about 40% of the market and
Imperial Tobacco Australia will begin with a 17% market share. BAT
Australia will acquire BAT’s New Zealand business for AU$ 188mn in
cash and will sell its Indonesian business, PT Rothmans of Pall Mall
Indonesia, to BAT for AU$ 38mn.

Source: Information Access Company 20/05/99


Hong Kong: Airport fights against ban on tobacco adverts.
Hong Kong Airport Authority says that it is responding to travellers'
requirements through its support of airport retailer Sky Connection in
the fight against a ban on tobacco advertising. Hong Kong will ban
tobacco advertising at point of sale, on television, in magazines and
on hoarding from May 1999. Sky Connection is the only tobacco and
alcohol retailer at the international airport.

Source: Information Access Company 01-14/05/99


Japan: More Japanese companies ban smoking at work.

Japanese companies are increasingly taking measures to reduce smoking
in the workplace, including introducing bans and creating smoking and
non-smoking areas to protect non-smokers. The steps come amid slow
progress in government anti-smoking policies.

Source: Tobacco News Online 31/05/99

Malaysia: More female students are smoking.
A study undertaken by the Health Ministry in Malaysia in March 1999
among secondary school students in the state of Slinger, Malaysia
showed a rise in the number of female. The study showed that 18.2% of
those surveyed in Slinger, smoked. Compared to the National Morbidity
Study in 1966, the percentage is higher than the rate for rural areas,
which was 17.9% and 16.7% for town areas.

Source: Information Access Company  26/05/99


Montenegro: Cigarettes becomes expensive.
The Tobacco Company of Podgorica, Montenegro increased the prices of
cigarettes by Din 2 on average on 13 May 1999. Prices of foreign
cigarettes have also increased. Street vendors sell Pall Mall for Din
155 a pack, Winston for Din 170 and Marlboro for Din 230.

Source: Information Access Company 20/05/99


South Africa: Health minister is awarded Tobacco Free World award by
WHO.
WHO honoured the South African Health Minister, Nkosazana Zuma, on May
17 in recognition of “groundbreaking work” in controlling tobacco
consumption. In accepting the Tobacco Free World Award in Geneva, Zuma
said it would encourage her ministry “to continue with… efforts to
protect the people and especially the children of South Africa against
the hazards posed by tobacco consumption”. WHO director general, Dr
Gro Harlem Brundtland, said South African efforts to curb the tobacco
industry and control the tobacco pandemic would send a clear message
to the rest of the world that tobacco deaths were an unnecessary
burden on individuals and countries.

Source: The Lancet Vol. 353, May 29, 1999

Thailand: Tobacco control to be enforced.
The Public Health Ministry of Thailand has set up a special task force
to control the sales of tobacco to children. Outline of the control
measures will be unveiled in June 1999. Under the measure, sales
permits of shops that sell cigarettes to children below 18 will be
confiscated. So far, the law which imposes a fine of B 2,000 and/or a
month' imprisonment for selling cigarettes to children in Thailand has
not been enforced effectively.  A daily fine of B 200,000 is imposed
on any form of indirect tobacco advertising in Thailand. As such,
vehicles with stickers of tobacco product logos will face action.

Source: Information Access Company 25/05/99









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