[Intl-tobacco] New EU law may stop Japan Tobacco from marketing top brands (fwd)

[Robert Weissman]

New EU law may stop Japan Tobacco from marketing top brands
Source: Japan Times, Thursday, 3/1/01

    BRUSSELS (Kyodo) The European Union will introduce tough new
antitobacco legislation that bans the use of words such as "mild" and
"light" on packaging, the EU presidency said Wednesday.

  The new law, which would take effect at the end of September 2002, may
prevent Japan Tobacco Inc. from selling its most popular brands, Mild
Seven and Mild Seven Lights, in the EU market.

The 15 EU member countries and the European Parliament have reached an
agreement on new EU rules on tobacco products, current EU president Sweden
said in a statement.

  While the draft law must still be formally adopted by EU countries and
the Parliament, the votes will for the most part be "ceremonial" as the
majority of member states and parliamentarians support it, an EU diplomat
said.

  "We have taken a step forward in the fight against tobacco consumption,"
Swedish Health and Social Affairs Minister Lars Engqvist said on behalf of
the EU.

  Once enacted, the new law will prohibit the use of such words as "light"
on tobacco packaging because such terms could mislead consumers into
believing the products are less dangerous, the statement says. Maximum tar
content per cigarette will be reduced from 12 mg to 10 mg, while nicotine
content will be cut to 1 mg. There will also be a 10-mg limit on carbon
monoxide content.

  Warning labels will have to cover 30 percent of the front of cigarette
packages and 40 percent of the back, according to the agreement.

  JT is expected to examine countermeasures, including a possible lawsuit,
before the European Court of Justice in Luxembourg.

  According to the official, JT has been preparing to expand into the EU
market following its acquisition of RJR Nabisco Holdings Corp.'s
international tobacco business in 1999.

  "JT is trying to increase sales of four main brands, including Mild
Seven, in Europe" by making the utmost use of the sales network
established by RJR Nabisco.

 Japan Tobacco ponders options

Japan Tobacco Inc., the world's third-largest tobacco company, said
Thursday it is examining measures to deal with new European Union
antismoking rules.

   JT expressed concern that it may no longer be able to market its Mild
Seven cigarettes in the EU region under new antismoking rules that will
take effect in September 2002.

  "We may not be able to sell the Mild Seven brand in Europe, despite the
fact the name is a registered trademark," JT said in a brief statement.
The company said it could not make further comments on the issue because
it has not obtained accurate information on the legislation yet.

  Representatives of EU governments and the European Parliament agreed
Wednesday on the new rules. If endorsed, the new law would force tobacco
firms to cut tar and nicotine in cigarettes made in the region starting in
September 2002.