[GLOBALink EuroNews] European News Bulletin EU9926 - 26 July 1999(fwd)

[Robert Weissman <rob@essential.org>]

EUROPEAN BULLETIN – EU9926 26 July 1999

Headlines:

Europe

Denmark: Anti-smoking consultants work with big firms

Denmark: High percentage of young smokers

Finland: New tobacco legislation watered down?

France: Tobacco sponsorship and Evin law

France: Writ issued against 4 tobacco firms

Germany: Reemtsma to focus on east Europe

Portugal: smuggled tobacco seized

Sweden: Consumption of tobacco products in 1998

International

Japan: Japan Tobacco confident about its overseas operations

Morocco: Increase in tobacco prices

Thailand: Police act to halt sales to children

US: Swedish Match acquires El Credito cigars



Full Text:

Denmark: Anti-smoking consultants work with big firms

Tobaksskaderadet, the Danish anti-smoking organisation, is co-operating

with the Danish county councils in an anti-smoking consultancy project. The

target group is major businesses where there are many heavy smokers,

usually with minimum education. Each county council will appoint one big company to

participate in the project. One of the first companies is the steelworks

Det Danske StVlvalsevaerk in the county of Frederiksborg.

Source: The Gale Group, 16 Jun 1999 



Denmark: High percentage of young smokers

45% of Danes between 15 and 34 years of age are smokers, according to

figures by Eurostat. Only in France is the percentage higher, about 48%.

Sweden and Finland have the smallest shares of young smokers in the EU,

about 25% and 18% respectively.

Source: The Gale Group, 03 Jul 1999 



Finland: New tobacco legislation watered down?

The National Public Health Institute has expressed concern that the amendment

to the Tobacco Act will be watered down. The Institute, together with

several Finnish cancer and heart disease organizations, have lobbied 

the Minister of Basic Services, Eva Biaudet, on the matter.

Source: The Gale Group, 9 Jul 1999



France: Tobacco sponsorship and Evin law

Following several years of court procedures, the Supreme Court of Appeal

has judged that Philip Morris' sponsorship of the 'Philip Morris Scientific

Prize' could be classed as indirect advertising, and thus could fall under

the Evin law which bans the advertising of tobacco products. In the first

instance, the Association du Prix Scientifique Philip Morris (ASPS), the

Philip Morris Scientific Prize association, was condemned for indirect

advertising, due to the fact that the invitation to candidates mentioned

the Philip Morris name. This judgement was set aside by the Appeal Court

which judged that Philip Morris' actions concerned sponsorship rather than

advertising. Following the latest decision, the matter will once again be

put before a civil court.

Source: The Gale Group, 6 Jul 1999 



France: Writ issued against 4 tobacco firms

A writ has been issued against four tobacco firms (Reynolds Tobacco,

Rothmans, Philip Morris and Seita) by the Saint-Nazaire CPAM (Primary

Medical Insurance Funds). The CPAM is claiming FFr 51mn in damages to help

cover spending on illnesses linked to smoking.

Source: The Gale Group, 23 Jun 1999 



Germany: Reemtsma to focus on east Europe

German cigarette producer Reemtsma, which recently laid off two executive

directors, reported an increase in turnover of 9.1% to DM 4.466bn, excluding

tax, for the business year 1998. Domestic turnover rose by 2.4%

while foreign turnover climbed by 13.4%. Reemtsma plans to focus on central and eastern Europe, which will receive two thirds of the investment volume of DM 250mn

in 1999. In the current financial year, Reemtsma is expecting both turnover

and profits to grow by 6%. 

Source: The Gale Group, 01 Jul 1999 



Portugal: smuggled tobacco seized

The Portuguese authorities have announced the seizure of 45mn smuggled

cigarettes at the port of Viana do Castelo, the largest ever haul of

illegal tobacco in the country. The cigarettes, mainly of the Winston

brand, were in containers which had been loaded onto a vessel in Dakar, Senegal.

Source: The Gale Group, 01 Jul 1999 



Sweden: Consumption of tobacco products in 1998

In 1998, tobacco purchases totaled SEK 16,140mn (US$ 1,908mn), a

5% decline compared with 1997. Cigarette consumption also decreased by 5%. 

In all, cigarette sales totaled SEK 11,603mn. Snuff consumption increased by 2% to on average 0.6 kilo per person. Total value of snuff sales was SEK 2,709mn. Chewing tobacco and rolling tobacco sales totaled SEK 1,655mn. Average consumption was 0.1

kilo per person, the same as in 1997. Sales of cigarillos and cigars

totaled SEK 193mn in 1998. Average consumption decreased by 4% to 7.9

cigarillos/cigars per person. 

Source: The Gale Group, 6 Jul 1999



INTERNATIONAL 

Japan: Japan Tobacco confident about its overseas operations

Japan Tobacco Inc (JT) expressed confidence about future profitability following the purchase of RJR Nabisco Holdings Corp's international tobacco

business for Yen 950 bn. The Japanese firm should gain from the reduction in cost

of machinery and tobacco leaves via overseas purchases. In five years

time, it should see an after-tax profit of US$ 300 mn. It is projected that

JT's overseas profit will grow by a yearly average of 10%. Imports continue to take a toll

on JT's market share and it is not known if the firm can compete with

British American Tobacco and Philip Morris squarely in this issue.

Source: The Gale Group, 07 Jul 1999



Morocco: Increase in tobacco prices

Regie des Tabacs, the state-controlled tobacco company, announced a sharp rise in tobacco prices as of 1 July 1999. All tobacco products were affected by the increase especially dark tobacco, which is targeted at the population with the lowest purchasing power, up 6% on average. For Virginia tobacco, the increase in the price of local brands has not reached the

level reached by some foreign brands, such as Marlboro (up 5.6%). As in

other market segments, cigars were affected by different increase rates

depending on the brands. Quinteros Panelas reports a 16% rise in its price

when Monte Cristo went up 7.7%.

Source: The Gale Group, 02 Jul 1999 



Thailand: Police act to halt sales to children

The sale of tobacco and cigarettes to those under 18 is banned in Thailand.

Violators can face a fine of up to B 2,000 and/ or a one-month jail term.

The juvenile affairs division of Thailand’s police has been told to tighten the

enforcement of the ban and take serious action against those who violate

the ban. There are now 800,000 smokers in Thailand who are age under 18 and

two millions who are under 25 years old.

Source: The Gale Group, 03 Jul 1999 



US: Swedish Match acquires El Credito cigars

Swedish Match is to acquire El Credito Cigars, the American producer of

premium cigars. El Credito Cigars produces the up-market cigar La Gloria

Cubana, which is one of the leading brands on the North American market,

plus several other brands. It has production units in the Dominican Republic

and Miami, Florida. 1998 turnover totalled US$ 11mn.

Source: The Gale Group, 02 Jul 1999 






Amanda Sandford
Research Manager
ASH
102 Clifton Street
LONDON  EC2A 4HW
tel: 0171 739 5902
fax: 0171 613 0531