[Intl-tobacco] European News Bulletin - EU0027 - 10 JULY 2000 (fwd)

[Robert Weissman]

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!#  GLOBALink Tobacco - Weekly European News Bulletin
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EUROPEAN BULLETIN     EU0027 =96 10 July 2000

Headlines

EU:  Anti-smoking subsidies not used
CENTRAL EUROPE: Rise in Cancer Deaths
FINLAND: Military offered help in stopping smoking
FRANCE:  Bollore buys stake in African tobacco company
GERMANY:  Poll on attitudes towards smoking

INTERNATIONAL
ARGENTINA: Government to reduce tax on tobacco
MEXICO: Pesticides linked to death and disease
MEXICO: Heart disease rated primary cause of death
USA:  Cigar packs get warnings


Full Text


EU:  Anti-smoking subsidies not used

Only 3mn-4mn Euros, out of a total of 19mn Euros worth of European Union
(EU) subsidies allocated for anti-smoking initiatives, is being invested, i=
t
emerged  on 28 June 2000. EU commissioner, Franz Fischler, noted that since
1997,  the EU has not spent any cash on new projects to encourage smokers t=
o
quit.

Source: Het Financieele Dagblad via The Gale Group,  29 Jun 2000  Online


CENTRAL EUROPE: Rise in Cancer Deaths

The number of deaths from cancers related to alcohol and tobacco use will
rise dramatically in several central European countries over the next ten
years, according to French researchers.

They note that in recent years, life expectancy among men has fallen in
formerly socialist countries. This worrying trend is attributed to a steep
rise in deaths due to heart disease and cancer in middle-aged men.  In
particular, recent increases in cancers related to smoking and alcohol
consumption have been reported in Central and Eastern Europe, according to
the report.

And the worst is not over, according to the researchers' projections of
cancer deaths for these nations. Dr. Paul Brennan and colleagues from the
International Agency for Research on Cancer, Lyon, France, collected and
analysed data from Bulgaria, the Czech Republic, Slovakia, Hungary, Poland
and Romania on cancer deaths from 1965 to 1994. The team looked specificall=
y
at cancers of the oral cavity, pharynx, larynx, oesophagus, bladder, kidney
and pancreas. The group then extrapolated to estimate the mortality rates
for 1995-1999 and 2004-2009.

The team concludes that death rates for these cancers is increasing
dramatically in several Central European countries.  Of the countries
included in the study, Hungary has the highest projected rates for most
cancers, and particularly rapid increases are expected for cancers of the
oral cavity and pharynx and of the larynx in Hungarian men, according to th=
e
report published in the July issue of the International Journal of Cancer.

The team concludes:  =93Our results indicate that further increases may be
expected on top of the already high cancer mortality levels in Central
Europe.  Policies to reduce alcohol consumption and prevent smoking in
younger generations are necessary to reduce mortality as these groups age.=
=94


Study published in: International Journal of Cancer 2000;87:122-128.

Source: Reuters, 5 July 2000



FINLAND: Military offered help in stopping smoking

The  southern  anti-aircraft  regiment in Turku has been engaged in a
non-smoking military service campaign.  Forty per cent of the 66
participants managed
to  stop  smoking or stop snuff usage for the six month period. The
participants were  given free nicotine products. In Finland, approx. every
third draftee
smokes.  The Association of the Pulmonary Diseases in Finland is planning t=
o
expand the campaign nationwide.

Source: Helsingin Sanomat via the Gale Group,  28 Jun 2000



FRANCE:  Bollore buys stake in African tobacco company

The French conglomerate Bollore has announced that it is buying a 40-percen=
t
stake in Coralma, a joint venture company making and selling cigarettes in
Africa,
from the Seita group.

Bollore and French tobacco company Seita created Coralma in 1990. The
venture manufactured 12.5 billion cigarettes in Africa last year and made
net profit of 20 million euros (19 million dollars) on sales of 223 million
euros, Bollore said.

Bollore, which did not disclose the purchase price, invoked a clause which
allowed it to buy out Seita's stake in Coralma following Seita's merger wit=
h
Tabacalera of Spain at the end of last year, to create the Altadis group.

Bollore also said it had sold tobacco paper brands OCB, Job and Zig Zag to
US group Republic Technologies for 150 million euros. The three brands had
total sales of 309 million euros in 1999.

Source: Tocqueville Connection,  3 July 2000


GERMANY:  Poll on attitudes towards smoking

According  to a new representative poll by German market research institute
Infratest, only 24% of non-smokers and 4% of smokers advocate legally valid
smoking  bans.  27%  of  non-smokers and 7% of smokers think that the state
should regulate the co-existence of smokers and non-smokers. 91% of smokers
and  70%  of  non-smokers prefer to arrange the co-existence of both groups
without  any  official  interference. 97% of smokers and 88% of non-smokers
say  that  it  is the individual's decision whether to smoke or not. 57% of
non-smokers  never  try  to influence smokers to give up or reduce smoking,
23%  rarely do so. 71% of non-smokers, 74% of ex-smokers and 70% of smokers
say  they  never experienced any quarrel due to smokers. 58% of smokers and
32%  of  non-smokers  agree  that  smoking  can have a positive effect on a
smoker's well-being.

Die Tabak Zeitung (TZ) via the Gale Group,  19 May 2000

Comment: This brief report does not state who was behind the poll, but
judging by the way the questions have been phrased, it seems likely to be a=
n
industry-funded report.



INTERNATIONAL

ARGENTINA: Government to reduce tax on tobacco

Smokers in Argentina will soon pay more to buy a pack of cigarettes, but it
won't be because the government is raising taxes on tobacco products.
Instead, the Economy Ministry is actually reducing tax levies on cigarette
manufacturers in exchange for a guarantee from producers to provide the
government with $1.8 billion annually in tax revenue.

This would be $400 million more than the reportedly $1.4 billion that the
industry normally generates in federal taxes each year.

Beginning this week, the government will cut indirect taxes on cigarettes t=
o
16% from a current 21%. It will then lower them to 12% in October, and
eventually to 7% in February 2001, according to a decree published Monday i=
n
the Official Register.
In return, tobacco producers will raise cigarette prices by between 10-15%
to help boost corporate revenue. The additional income would go in part
toward meeting the $1.8 billion guaranteed to the federal government.

Prior to this year, the indirect tax on cigarettes was 7%. However, the
government in January raised it to 21% as part of a larger plan to boost
federal revenue, and help reduce the country's fiscal deficit.  In total,
the government raised taxes by $1.9 billion.

The cigarette industry was one the areas hardest hit by the tax increase,
but it wasn't necessarily a slowdown in sales that hurt tobacco
manufacturers. In most cases, they did not transfer the tax increase on to
consumers.

"Tobacco companies are going raise the price of cigarettes, but according t=
o
the agreement they'll actually be paying a smaller percentage of earnings i=
n
taxes," said economist Federico Munoz.  This will help the industry boost
profits, he said.
Argentina's two primary cigarette manufacturers are Massalin Particulares, =
a
unit of Philip Morris, and Nobleza Piccardo, which is controlled by British
American Tobacco.

The tobacco industry also agreed to stop exporting locally sold products to
neighboring countries. The government hopes this will help it clamp down on
contraband.   "What happens is that locally made products are exported to
bordering countries and then brought back into Argentina and sold in the
black market," said Munoz.

The Economy Ministry estimates this costs the government about $200 million
per year in lost revenue.  Munoz said he thought it was unlikely that the
government would reduce taxes in the near-term on other sectors.  "This is =
a
very industry-specific accord," he stated. "A similar reduction in any othe=
r
sector is practically impossible to imagine."


Source: BridgeNews, 4 July 2000


MEXICO: Pesticides linked to death and disease

In  the  tobacco growing areas of Nayarit in Mexico, farm workers are being
exposed to pesticides that are said to cause intoxication, illness and even
death, with small children said to be the most affected. During the last 15
years  a  group of researchers have been studying the effects of pesticides
used  in  tobacco crops with alarming results. Some deaths have been linked
directly with cancer caused by the use of pesticides and also intoxications
due  to nicotine absorption through the skin.

The  study, which includes a video in 12 dialects warning farmers  about
the  dangers  of  certain  substances,  will  be  ready for publication
within  the  next two weeks. Moreover, researcher believe that some measure=
s
must be taken by the health authorities.

Source: El Financiero (Mexico)  via the Gale Group,  28 Jun 2000  Online


MEXICO: Heart disease rated primary cause of death

During the last 20 years, there has been an increase of 300% in the number
of  deaths  related  to  heart  disease  in  Mexico. Although the number of
cardiac  illnesses  has augmented, resources in the health sector have only
increased  by  10%.  Meanwhile, the most common causes of heart disease are
mostly  related  to obesity, high blood pressure, stress, lack of exercise,
smoking,  etc.  At the same time, there is an alarming number of high blood
pressure cases among people between 25 and 44 years old.

Source: El Financiero (Mexico) via the Gale Group,  19 Jun 2000


USA:  Cigar packs get warnings

In  what  is said to be the first step towards curbing cigar smoking in the
US,  seven  major  cigar  companies  and  government regulators have joined
force  to  place  health  warnings on all cigar packaging and advertising.
Cigarette  packaging  has  been  required  to include health warnings since
1966,  and  since  1986  smokeless  tobacco  has  been  subject to the same
scrutiny.  However  cigars have escaped this regulation until now, possibly
sending  the wrong signal to consumers that cigars are safe. Recently there
has  been an increase in the number of teenagers and women smoking
cigars.

Source: Wall Street Journal Europe via the Gale Group,  28 Jun 2000  p.31


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