[Intl-tobacco] European News Bulletin 2001 - 10 January 2000 (fwd)

[Robert Weissman]

EUROPEAN BULLETIN EU20 01 =96 10 January 2000

Headlines

GERMANY: BAT increases market share in Germany
NETHERLANDS: Government says it might sue tobacco industry=20

TURKMENISTAN: President Bans Public Smoking
UK: Court rejects challenge against smoking report
UK: Campaign urges smokers to quit for Millennium


INTERNATIONAL
AUSTRALIA: Children may sue smoking parents
GUATEMALA: Court dismisses Guatemala=92s tobacco lawsuit but State will app=
eal

Full Text


GERMANY: BAT increases market share in Germany

The German cigarette market is still slowly expanding, according to
figures released by British-American Tobacco (Germany) GmbH. In 1999, 173
billion cigarettes were smoked in Germany, an increase of 1% on 1998. The
market volume at the end of the 1990s thus corresponds roughly to that
from the beginning if the decade. Sales in Germany of factory-finished
cigarettes rose to 141.2 billion, a total increase of 1.9% in 1999.

BAT=92s leading brand was Lucky Strike, which increased its market share
from 3.1% to 3.8% and now is ranked fifth. Gauloises, also a BAT brand,
jumped two places to seventh place on the market. It now has a 3.2% share.
BAT=92s overall market share in Germany for 1999 rose 5.5% to 18.6%, or by
1.4 billion cigarettes to 26.3 billion.

In addition, BAT (Germany) produced 15.9 billion cigarettes under licence
abroad, which count as exports. Thus worldwide sales for the firm totalled
42.2 billion cigarettes. Total revenue, including tobacco taxes but
excluding indirect taxes, was DM6.1bn. BAT forecasts that this figure will
reach DM8bn in 2000.

The merger of Rothmans and parent group BAT, effective from January 1,
will add the Dunhill, Winfield and Lord brands to BAT=92s portfolio. The
adjusted German market share thus stands at 24%, with sales increasing to
33.9 billion cigarettes. But as a consequence of its merger with Rothmans,
BAT must give up its Benson & Hedges brand to Reemtsma and therefore
remains in third place behind Philip Morris (40.4% market share in 1999)
and Reemtsma (23.6% share including Benson & Hedges).


Source: Handelsblatt Interaktiv, Friday, 7/1/00



NETHERLANDS: Government says it might sue tobacco industry

The Netherlands is considering suing for damages from the country=92s
tobacco industry for smoking-related health costs, the Health Ministry has
announced.  "We have asked the government prosecutor to look into the
matter and see if there=92s any real chance of being successful," spokesman
Benno Bruggink told Reuters. The government spends an estimated 6.5
billion guilders ($2.99 billion) per year on health costs linked to
smoking, but it was unclear what the size of any government claim would
be, he added. The review by the prosecutor would be completed sometime
next year.

About a third of the Dutch adult population smokes, a proportion that has
remained stable in recent years. Dutch Health Minister Els Borst told the
daily newspaper Trouw that in environmental matters it had been
established that polluters pay for damages they caused. "In health, we
should also be able to do that," she said.

The Netherlands currently spends about seven million guilders per year on
anti-smoking campaigns, which Borst termed "a pittance". To make a serious
impact in that area, much more money was needed, a major portion of which
should come from the industry, she said.

Earlier in 1999 a Dutch smoker sued the tobacco industry for damages after
contracting lung disease and then extended his claim to include the Dutch
state for not taking sufficient steps to inform the public about the
health hazards of smoking.


Source: Reuters, Saturday, 18/12/99


TURKMENISTAN: President Bans Public Smoking

Smoking will be banned in public places of Turkmenistan, said President
Saparmurad Niyazov at a government session on December 27. Niyazov, who
wants to raise the life expectancy in his country, signed the decree "in
the name of the health of the nation", the Interfax news agency reported.
Violators will be fined the equivalent of a month=92s salary.

Source: Associated Press, 27/12/99



UK: Court rejects challenge against smoking report

Britain=92s High Court has dismissed a challenge by the tobacco industry
against a government report on the dangers of passive smoking. The Tobacco
Manufacturers Association (TMA) said they were not consulted by the
report=92s authors as promised and argued that it should not be used by the
government when framing anti-smoking legislation.

But judge Anthony Hidden rejected the groups=92 claims that the report=92s
findings were unlawful. He said the report, by the Scientific Committee on
Tobacco and Health (SCOTH), had been part of an on-going consultative
process and contained a number of recommendations already in the public
domain. "The report should not be...susceptible to judicial review,"
Hidden said.

The report By SCOTH, which was set up as an advisory group in 1994, found
that passive smoking caused numerous medical problems including childhood
respiratory disease, mouth and pharynx cancer and heart problems.

The TMA, which represents all the major tobacco manufacturers operating in
the UK, argued that in light of such claims they should have been
consulted before its conclusions were accepted by the Health Secretary. In
dismissing the charge, Justice Hidden said he considered the function of
the SCOTH had been to advise, not to decide, and its report was only a
stage in an ongoing decision-making process.

Responding to the Court ruling, Yvette Cooper, Public Health Minister,
said:  "We are delighted with the outcome of this judgement. The role of
bodies such as SCOTH is to provide scientific advice on tobacco and health
issues. The tobacco companies were suggesting that SCOTH should have
consulted the industry before presenting the Government with advice. This
assertion, which the High Court has now dismissed, is both inappropriate
and inconsistent with the nature of the function of this advisory body.
The Government will not allow this type of action to deflect us from our
goal of saving lives by reducing tobacco use."


Source: Reuters, Tuesday, 12/21/99; NewsEdge, Thursday, 12/23/99



UK: Campaign urges smokers to quit for Millennium

Government Ministers are hoping record numbers of smokers will mark the
Millennium by stubbing out their last cigarette, prompted by a major
advertising campaign. A series of television adverts, running under the
slogan "Don't Give Up Giving Up" will feature video diaries by smokers and
tips on kicking the habit.

Support messages will also be screened between programmes showing a
regularly updated ticker tape of viewers names who are pledging to give up
and also offering details of the anti-smoking campaign=92s telephone
helpline and website.

The package, which began earlier this month with a poster campaign, has
been designed to get the message across that the start of the millennium
is the ideal opportunity to give up tobacco.

Launching the initiative earlier this month, health minister Yvette Cooper
said more than a million smokers already planned to try stopping in the
New Year, and that the campaign was intended to get the message across to
everyone.

Some estimates claim that up to one quarter of the nation=92s 11 million
smokers could give up, and pharmacies reportedly have been stocking up on
nicotine patches and gum in anticipation of a New Year=92s rush.

The adverts are part of the three year Government campaign to tackle the
causes of cancer, heart disease and stroke, the nation=92s major killer
diseases. Billed as part of "the biggest ever tobacco education campaign
run in England", it includes a telephone helpline - 0800 169 0169 - to
provide information and support for people wanting to quit.

Source: ITN, Sunday, 12/26/99


INTERNATIONAL

AUSTRALIA: Children may sue smoking parents

Children exposed to their parents=92 smoking may soon begin suing them, a
prominent public-liability lawyer has predicted. Parents who smoke could
also find that it counts against them in custody battles.

In a report released this month, Mr Eugene Arocca, a partner at Maurice
Blackburn Cashman, says the Australian focus in tobacco litigation is
about to shift from exposure in the workplace to family law and the
hospitality industry.

He argues that children whose parents smoke, regular patrons of hotels,
restaurants and nightclubs, and prisoners exposed to smoke in the prison
system could all make future legal claims.

"The medical and legal issues raised by such cases will expand to the
extent that ultimately actions will be contemplated against relatives who
smoke, occupiers of residential premises and even expectant mothers," Mr
Arocca says.

In his report, Mr Arocca says cases in the United States show that parents
who refuse to stop smoking while in the company of their children may lose
custody rights. "If parents contesting the custody of a child have equal
attributes other than one being a smoker, then one would presume that this
would be a most persuasive factor in determining the issue of custody."

Mr Arocca said children, young or grown-up, who contracted cancer, asthma
or related diseases could sue their parents, relatives or other caregivers
for passive smoking. Children would be reluctant to bring such claims, he
conceded, but not if the parents=92 home and contents insurers were the
opponents.


Source: The Age, Monday, 12/27/99



            GUATEMALA: Court dismisses Guatemala=92s tobacco lawsuit but
State will appeal


            Guatemala plans to appeal a US federal judge=92s decision to
throw out its $800 million lawsuit against US tobacco companies, Attorney
General Carlos Garcia announced. "Our arguments are similar to those in
complaints filed by other (US) states, and they were allowed to proceed,"
he said. If the appeals court upholds the dismissal, Garcia said he was
prepared to take the case to the US Supreme Court.

            The US federal judge=92s decision on Dec 30 to dismiss
Guatemala=92s lawsuit was the first to rule on the legality of tobacco
lawsuits introduced by foreign governments, according to tobacco lawyers.

            Guatemala filed suit against Philip Morris, the Liggett Group
and other tobacco firms, claiming it incurred more than $800 million in
unnecessary health care costs between 1973 and 1997 from smokers.

            The opinion by Judge Paul Friedman said Guatemala=92s claimed
"injury is too remote" to allow the case to continue.

            Bolivia, Nicaragua, Panama, Venezuela and the Brazilian states
of Rio de Janeiro and Goias have filed similar suits against tobacco
companies in US courts. Similar lawsuits filed by 46 US states resulted in
a $246 billion settlement with the tobacco industry, to be paid over a
period of years. Tobacco companies still face a suit by the US federal
government and smuggling charges brought by Canada.
              =20
   =20
Source: Agence France-Presse, January 6, 2000



Amanda Sandford
Research Manager
ASH
102 Clifton Street
LONDON  EC2A 4HW
tel: 0171 739 5902
fax: 0171 613 0531 =20