[Intl-tobacco] European News Bulletin - EU0020 - 22 May 2000 (fwd)

[Robert Weissman]

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!#  GLOBALink Tobacco - Weekly European News Bulletin
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EUROPEAN NEWS BULLETIN     EU0020 =96 22 May 2000

Headlines

FINLAND: Tobacco sales worth US$ 975mn in 1999
FINLAND/RUSSIA: Twinned towns to get stop smoking aids
GERMANY:  Tobacco market continues to expand
ITALY: Health minister launches proposal to ban smoking in public places
SPAIN: Canalenos starts production of cigars

INTERNATIONAL
CHINA: Tobacco firm to diversify its business


Full Text


FINLAND: Tobacco sales worth US$ 975mn in 1999

In Finland, legal tobacco sales totalled FIM 6,076.6mn (USD 975mn) in
1999, up by FIM 166mn from 1998. Cigarette sales were valued at FIM
5,212mn, pipe and other tobacco sales FIM 558mn, cigar sales FIM 178mn and
smoking equipment sales FIM 129mn. The number of cigarettes sold totalled
4,798 million and cigars 73 million.  Finnish retailers estimate that
smuggling and private imports of tobacco products are worth approx. FIM
1bn. Finnish Amer Tobacco was the market leader in 1999 with a market
share of 76.2%, up from 74.7% in 1998. Seita's market share declined
slightly and BAT's by over 1 percentage point.  The leading cigarette
brand was Marlboro with a market share of 32%.

Source: Kauppalehti (XFD)  via The Gale Group, 6 Apr 2000


FINLAND/RUSSIA: Twinned towns to get stop smoking aids

The Finnish town of Kuusankoski intends to become smoke-free and hopes to
help break the nicotine habit in its Russian friendship town of Vologda.
Kuusankoski is to take nicotine treatment products to Vologda to help
3,000 residents to stop smoking.  The drugs have been donated by the
pharmaceutical company which markets the products. Finnish experts will
teach the Russians how to implement courses to help smokers to stop. The
results of the project will be published in some scientific publication
both in Finland and in Russia. In Russia, over two thirds of men in the
working age smoke.

Source: Kouvolan Sanomat (XYV)  via the Gale Group, 04 Apr 2000



GERMANY:  Tobacco market continues to expand

Contrary to the trend in most European countries, the tobacco market in
Germany is still growing.  The Federal Statistics Office reported that in
1999, the value of the market was DM41.2 bn (US$20.24 bn), representing a
5.9 per cent rise on the 1998 turnover.  Cigarette sales totalled DM
38.29bn (up 6.8 percent from 1998). In terms of quantity, 145.3 bn
cigarettes were sold (up 5 percent).  Philip Morris=92s Marlboro brand
continued to be the market leader with a 33.4 per cent market share. =20
Marlboro is followed by Reemtsma=92s West brand which has a 10.6 per cent
market share.

While these figures hint at a strong market, there are some signs that an
anti-tobacco sentiment is beginning to develop.  The issue of tobacco
additives has been raised in the media including accusations that the
tobacco companies have added substances that cause or increase addiction.
This prompted the German association of cigarette Manufacturers (VdC) to
dismiss the accusations as =93totally false=94.  According to Tobacco
Reporter, new restrictions on tobacco advertising =93suggest that the
business environment is becoming more challenging for German cigarette
makers=94. However, the Government has not withdrawn its opposition to the
EU tobacco advertising directive and Chancellor Schroeder is quoted as
saying that =93one should be able to advertise products which have been
legally produced.=94

Source: Tobacco Reporter, April 2000


ITALY: Health minister launches proposal to ban smoking in public places

 Italians' habit of having a cigarette with an espresso after lunch could
soon be a thing of the past if Health Minister Umberto Veronesi has his
way. Veronesi, one of the world's leading cancer specialists, has
presented a draft law that if passed would practically ban smoking
everywhere in Italy except for private homes.

The proposal would forbid smoking in all public areas, including
ministries, hospitals and airports. The ban would also include bars,
restaurants and discotheques.  The law, which is due to be discussed at
the next cabinet meeting, would also include fines from 100,000 lire
($46.15) to 500,000 lire if the ban is broken.

 =93I have educated my children to keep themselves away from smoking and I
think that any one who cares about the well-being of their loved ones
should do the same,=94 Veronesi, a staunch anti-smoker, told newspaper La
Repubblica in an interview.  =93As a doctor I've always tried to convince
smokers to quit, because you can stop the damage before it becomes
irreversible.


Veronesi, however, is not the first Italian health minister to try to stub
out the nation's passion for cigarettes. Since 1975, three laws have been
introduced banning smoking in places like hospitals, cinemas, ministries,
offices and restaurants.  The laws have been largely ignored.

Consumer association Codacons, speaking on behalf of Italy's 14 million
smokers, has asked why a new law is needed rather than a directive calling
for the strict implementation of the three that already exist.

Source: Reuters, 18 May 2000



SPAIN: Canalenos starts production of cigars

Spanish tobacco producer Canalenos (Compania de Tabacos de la Canal de
Navarres)  has been awarded the third tobacco licence in Spain, which
enables the firm to produce tobacco products. The firm has invested Pta
100mn in the construction of a factory in Chella (Valencia).  The company
expects to total 400,000 cigars produced during its first year.

Source: Cinco Dias (CDS) via the Gale Group, 6 April 2000




INTERNATIONAL

CHINA: Tobacco firm to diversify its business

China's Yunnan Enterprise Holdings, a tobacco trader, is to diversify its
business by venturing into the fields of information technology and
biomedical science.  The company is in talks with the Yunnan Provincial
government to operate and construct broadband fibre-optic networks in
several cities in Yunnan. Additionally, the company plans to acquire a
drug company which produces an intravenous drug used to replenish white
blood cells lost during cancer treatment. The company will finance the
acquisition by issuing new shares, amounting to 20% of its enlarged share
capital.

South China Morning Post (XKT)  via the Gale Group, 11 Apr 2000


Amanda Sandford Research Manager ASH 102 Clifton Street LONDON EC2A 4HW
tel: 020 7739 5902 fax: 020 7613 0531