Imperial Tobacco sales rise but volumes fall

Emerging market demand boosts sales, but volumes fall as developed markets remain weak

--Weak Spanish trading likely to hit full-year operating profit by up to GBP70 million

--Global cigarette brand volumes rise 2%

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LONDON - Imperial Tobacco Group PLC (IMT.LN) said Tuesday emerging market demand boosted tobacco sales, but the maker of Gauloises Blondes and Davidoff cigarettes nonetheless recorded a fall in overall volumes as the slowdown in mature markets continued.

Imperial is focused on building its position in developing economies such as Eastern Europe, Africa, the Middle East and Asia to offset a weaker performance in developed markets where consumers are struggling with tough economic conditions.

Smokers in developed markets are switching to low-cost brands in the face of dented discretionary income as governments impose austerity measures such as tax hikes and public spending cuts to rein in borrowing.

The Bristol, England-based company has offset soft volumes with price rises which have helped maintain and build margins in markets like Western Europe and the U.S., where volumes are either in long-term decline or at best flat.

The world's fourth-largest global tobacco group by revenue said Tuesday it is trading in line with expectations and posted a 2% rise in tobacco sales in the nine months to June 30 on a constant currency basis. Sales were hit by falling tobacco prices in a difficult Spanish market in May and June, but total sales excluding Spain rose 4%. The company said the continued challenging economic environment in Spain is likely to hit full-year operating profit from the country by up to GBP70 million, which is better than previous forecasts of a GBP110 million hit.

Total stick volumes, or cigarette and fine cut tobacco combined, fell 2% in the nine-month period.

Still, Imperial, which sells its products in over 160 countries, said combined volumes of its global strategic cigarette brands grew 2%.

Davidoff volumes rose 6%, boosted by sales in Taiwan, Ukraine, Saudi Arabia and Russia, while Gauloises Blondes volumes were up 1%. However, demand for West cigarettes in Eastern Europe was offset by declines in Poland and Turkey.

JPS cigarette volumes rose 15% boosted by trading in Australia, Germany and U.K.

Fine cut tobacco volumes rose 4%, while Cuban cigar volumes rose 1% and snus -- a smokeless tobacco product popular in Sweden and Norway -- saw volumes increase 26%.

"We are well placed to build on our sales growth momentum in the remainder of the year," said Chief Executive Alison Cooper.

How Cigarettes Calm You Down

ScienceDaily (Apr. 25, 2009) — The calming neurological effects of nicotine have been demonstrated in a group of non-smokers during anger provocation. Researchers writing in BioMed Central's open access journal Behavioral and Brain Functions suggest that nicotine may alter the activity of brain areas that are involved in the inhibition of negative emotions such as anger.

Jean Gehricke led a team of researchers from the University of California who studied the effect of nicotine patches on the subjects' tendency to retaliate in response to anger provocation. The subjects played a computer game and could see a video screen of another player who they believed to be their opponent, although, in fact, they were playing alone. After each round, the victor could give his opponent a burst of unpleasant noise – at a duration and volume set by the winner. In some of the subjects, nicotine was associated with a reduced tendency to retaliate, even after provocation by the 'opponent'.

According to Gehricke, "Participants who showed nicotine-induced changes in anger task performance also showed changes in brain metabolism. Nicotine-induced reductions in length of retaliation were associated with changes in brain metabolism in response to nicotine in brain areas responsible for orienting, planning and processing of emotional stimuli".

The authors say that their findings support the idea that people of an angry disposition are more susceptible to nicotine's effects, and are therefore more likely to become addicted to cigarettes. They conclude, "Novel behavioral treatments that affect the cortical and limbic brain areas, like anger management training, may aid smoking cessation efforts in anger provoking situations that increase withdrawal and tobacco cravings".

Its possible to subdue the desire to smoke a cigarette doing exercises

According to research work, it was established, that a smoker is able to restrain himself from smoking a  cigarettewith the help of some exercises. Studies showed that for example unhurried walking reduced the intensity of smokers' nicotine symptoms.

Doctor Adrian Taylor, the professor of exercise and health psychology at the University of Exeter, who is also the lead author of this study, declared that if it's possible to find the same effect in a drug, it would be sold as an aid for people to quit smoking   cigarettes. Dr. Tailor together with his colleagues examined 12 papers, trying to establish the connection between exercise and nicotine deprivation. They concentrated their attention on exercises, which could be done as a day-to-day activity, such as walking, flexing muscles. As a result, they found out that as little as five minutes of exercise was enough for smokers to subdue their desire to smoke their daily cigarette. 

During the studies, people were asked by the researchers to rate their need for a cigarette after different moderate physical exercises. Those ones who had done some exercise during 5 minutes said that their desire to smoke a cigarette was reduced. 

Dr. Robert West, professor of health psychology at University College London said that it was also established that the effectiveness of exercises was as strong as the nicotine patch. He also added that the duration of the effect was unknown. Smokers could do exercise to manage with short-time desire for a cigarette, but it was still a question, if such effect could last for a long period of time. Dr.Talyor also advanced a theory that some exercises could produce the mood-enhancing hormone dopamine, which can reduce nicotine dependence. 

Nevertheless, experts were not convinced about the study's practical application. Dr. Hajek, professor of clinical psychology at Queen University Hospital in London, who was not involved in the study, said if people did simple exercises even during their work at the desk, they could subdue the desire to smoke a   cigarette.

What are Light Cigarettes?

Light Cigarettesare a product of the tobacco industry’s attempt to market what looked like a safer cigarette back in late 1960s. The difference between light cigarettes and regular cigarettes lies not in the tobacco each contains, which is identical, but in the filters. Light cigarettes generally have filters covered in white paper rather than the tan or cork-patterned paper of regular cigarettes. This color difference, however, is not a critical one. The distinction that matters is harder to discern and has to do with ventilation: the paper covering of light smoking filters has many tiny little holes punched in it. Under laboratory conditions, these perforations cause the proportion of air in each draw on a light cigarette to be higher than that in a draw on a regular cigarette. For a person accustomed to regular cigarettes, in fact, these multiple small punctures can make it difficult to draw adequate smoke from a light cigarette. 

More than 80% of the cigarettes sold in the United States are light cigarettes, also called low-yield cigarettes. People may prefer them to regular, or full-flavored, cigarettes because the diluted smoke they produce seems smoother and less dense, and therefore feels less irritating to the throat. The filters of ultra light cigarettes have even more holes than do those of light cigarettes and so create even thinner smoke. Most full-flavored cigarette brands have light cigarette counterparts, while some cigarettes exist only in a light or ultra light version.

A preference for light cigarettes may also derive from the notion that they are less harmful than regular cigarettes. The smoke is diluted, and this results in lower lab readings of tar, nicotine, and other components. The measurement of tar in lab tests of ultra light cigarettes ranges from 1-6 mg; light smoking can have anywhere from 6-15 mg of tar; more than 15 mg of tar qualifies a cigarette as regular. However, because of the way people actually smoke, the lower numbers of lights and ultra lights may not be realized in practice. Fingers and lips may block the perforations left unimpeded by the smoking machine used in the tests so that the proportion of air to smoke is not as high as it would be under ideal conditions. More significantly, people who smoke will do so until their craving for nicotine is sated, and that could mean smoking more light cigarettes to compensate. There are no demonstrable health benefits in smoking light rather than regular Cigarettes. For this reason, Canada and the countries of the European Union have banned cigarette manufacturers from labeling their products as light.

NewScientist article on the Electronic Cigarette

We always enjoy good articles, that are well written and researched. It was a wonderful surprise today to run across an article written by a non-smoker, Helen Thompson for NewScientist Magazine titled Electronic Cigarette: A Safe Subsitute?.

One of the biggest applauses should go to Thompson for contacting Dr. Murray Laugesen of Health New Zealand, the leading researcher undertaking the questions and concerns that arrise from the use of the Electronic Cigarettes. He has done not only a clinical study on a brand of cartridges, but he has also conducted the only clinical trial of the electronic cigarette to date. As far as we are concerned, any journalist who is not aware or does not attempt to contact Dr. Laugesen has not done their job thoroughly, as he is a certified scientist who has hands on knowledge of the electronic cigarette.

A few highlights from the article are even John Britton, a lung specialist from University of Nottingham, UK, and chair of the Royal College of Physicians TobaccoAdvisory Group, who is skeptical of the electronic cigarette, ends by stating that “If it turns out that they deliver to the bloodstream an amount of nicotine comparable to a cigarette, are acceptable to smokers and are safe, then the potential health benefits to smokers trying to quit are huge”.

Dr. Laugesen also noted in Thompsons article that “All pointers so far show the device is safe. Whether it will be a successful smoking cessation device in the future depends on whether governments wrap it in cotton-wool regulations or allow smokers to buy it with a modicum of reasonable safety checks.”

So props to Ms. Thompson for putting the tobacco harm reduction philosophy down on paper and offering a real journalistic overview of the electronic cigarette. To read her full report, please click on the link above.

The electronic cigarette is perfect for those who wish to continue smoking without the second hand smoke. Is it safer? Dr. Laugesen thinks so. We believe that one thing is for certain, there is no second hand smoke so the effects on those around the smoker are definitely diminished. More testing is still needed to be done on the actual vapor when it is released upon exhalation. The vapor consists of minimal water and propylene glycol, same as that in fog machines used for theatrical performances.

But, as many are finding out, the safety is something you have to weigh for yourself. By reading the many different posts we have offered, we hope you can come to your own conclusion. Weigh what you know, feel and think about tobacco cigarettes and then weigh what is available for the Electronic Cigarettes . What is best for you? What do you feel is your next step as a smoker? Are you willing to change your brand to electronic knowing what you do know as fact against tobacco cigarettes and what is possiblity with the e-cig?

The Benefits of Electronic Cigarettes

Electronic Cigarettes are being marketed as a cigarette substitute, for the smoker who wants to continue to enjoy the act of smoking, but without the risks. The idea is to promote a healthier alternative to tobacco smoking, since most of the harmful material produced by the combustion of tobacco in traditional cigarettes is not present in the atomised liquid of this innovative product. They have also been marketed as a way to keep or curtail an addiction to nicotine. 

The general aim is to assist smokers, and protect young people, by making cigarettes less addictive. Why? Well, for one thing, smoking kills and nicotine is an addictive substance, causing the smoker want to keep inhaling smoke toxicants. Most smokers know they ought to quit for health reasons. Tobacco addiction varies from mild to fierce. A less fierce addiction could make it easier for many adolescents to quit smoking before becoming regular smokers, and make it easier for many older smokers to quit. The nicotine content of cigarettes is excessive and can be reduced by the manufacturer if the law requires it. 

The second point is that addiction to smokeless tobacco can be just as addictive, but no smoke is inhaled and the risks of using smokeless are about 20 times less than the risk of smoking cigarettes. Lastly, addiction to nicotine, as occurs with about six percent of nicotine gum chewers, does not kill the chewer. 

This electronic cigarette mimics the smoking experience more closely than any smokeless product to date and provides a rapid nicotine hit, without causing smokers to cough. Various toxicological studies of the electronic cigarettes have been conducted, with some concluding that electronic cigarettes are less harmful than traditional tobacco cigarettes, because they can deliver nicotine into the lungs without the carcinogens and toxicants. 

So what is an electronic cigarette exactly? Well, it is termed as a mechatronic (mechatronics is the combination of mechanical engineering, electronic engineering and software engineering) version of a cigarette. 

It looks and acts like a cigarettes.      The device takes the form of a tiny rod which is slightly longer than a normal cigarette. The mouthpiece of the device contains a replaceable cartridge filled with liquid. The main substances contained in the liquid are nicotine and propylene glycol. 

When the user inhales through the device, the air flow is detected by a sensor. A microprocessor then activates an atomizer or nebulizer which injects tiny droplets of the liquid into the flowing air and vaporises the nicotine. This produces a vapour mist which is inhaled by the user. The addition of propylene glycol to the liquid makes the mist better resemble normal cigarette smoke. 

The microprocessor also activates an orange LED at the tip to simulate real smoking. Electronic cigarettes generally use a rechargeable battery as a power source, with battery life varying between devices, with some lasting a day between charges and others lasting a week. The technology is patent pending worldwide, and the electronic cigarette comes in a variety of colours nowadays, with some even mimicking cigars in a wood finish!

Smoking Cigarettes

The main health risks smoking cigarettes pertain to diseases of the cardiovascular system, in particular heart attack, cardiovascular disease, diseases of the respiratory tract such as Chronic Obstructive Pulmonary Disease (COPD), asthma, emphysema, and cancer, particularly lung cancer and cancers of the larynx and tongue.

A person's increased risk of contracting disease is directly proportional to the length of time that a person continues to smoke as well as the amount smoked. However, if someone stops smoking, then these chances gradually decrease as the damage to their body is repaired. A year after quitting, the risk of contracting heart disease is half that of a continuing smoker. The health risks of smoking are not uniform across all smokers. Risks vary according to amount of tobacco smoked, with those who smoke more at greater risk. Light smoking cigarettes is still a health risk. Likewise, it does not reduce the risks.

Another problem with people is alcoholism. The term "alcoholism" refers to a disease known as alcohol dependence syndrome, the most severe stage of a group of drinking problems which begins with splurge drinking and alcohol abuse. Alcohol tribulations occur at different levels of severity, from meek and annoying to life-threatening. Although alcohol dependence (alcoholism) is the most severe stage, less relentless drinking problems can also be dangerous. 

The problem of alcohol and smoking of cigarettes is treatable but for someone to be treated has to have a sincere desire to get help. Alcoholics and those who are into smoking of cigarettes, if are pressured into treatment by social pressure or forced to quit by circumstances rarely succeed in the long run. Even most alcoholics who seek help on their own volition have at least one relapse before they obtain long-term sobriety.

Stability for cigarettes sales in 2009

Higher federal taxes and more regulations are not predicted to damage the ratings of U.S. cigarettes manufacturers next year, Fitch Ratings analysts told investors on Tuesday.
Higher taxes would further lower demand for cigarettes, though. Sales volume has been falling by about 3 percent to 4 percent a year in the U.S.
But the Fitch analysts believe U.S. cigarette manufacturers such as Philiip Morris USA, Reynolds American Inc., and Lorillard would be relatively stable regardless.
“This outlook is supported by the companies’ significant liquidity positions and by their ability to continue to generate sizeable free cash flow as a result of their high operating margins,” analyst Wesley Moultrie II wrote in a note.
Moultrie claimed anlaysts predict an growth of the State Children’s Health Insurance Program, which could lead to a hike in the federal taxes.
Another hurdle for some cigarette manufacturers is the probable success of a bill to give the Food and Drug Administration the authority to regulate tobacco. Analysts say a bigger Democratic majority in both houses of Congress make the passage of such a bill more likely.
Still, tobacco companies are seen as a defensive holding in a tumultuous market since consumers tend to buy cigarettes even when they cut back on other purchases.
Lorillard Chief Executive Martin Orlowsky on Tuesday reiterated the company’s predictation for revenue growth based on price rises. He claimed the company would report 5 percent to 7 percent growth of earnings per share.
Further, Orlowsky claimed he didn’t see any evidence that Lorillard was losing any of its cigarette busine $1.22, or 3.2ss to smokeless tobacco products such as moist snuff, chewing tobacco and teabag-like snus pouches. Lorillard’s bigger rivals, Altria Group-owned Philip Morris USA, and Reynolds American Inc. are aggressively pursuing smokeless products in the hope of finding new revenue streams as cigarettes decline.

Speaking at the same conference, Philip Morris International Chief Executive Louis Camilleri expressed confidence in the company’s earning potential going forward. He claimed earnings per share would grow by 10 percent to 12 percent next year as consumption held up in emerging markets outside the U.S.
“We are very confident we can meet our long-term targets next year and beyond, in terms of growth,” Camilleri claimed. “We are not witnessing any undue shift in consumer behavior. In one or two places, uptrading may have slowed down a bit.”
Shares of Lorillard fell 18 cents to $61 in afternoon trading while Altria shares rose 14 cents to $16.33.

Discarded cigarette caused £6m damage to Moreton Hall

A discarded cigarette has caused a £6 million blaze which gutted an historic college.
A smouldering fag-end casually flicked away by a worker, led to the inferno which wrecked Moreton Hall - Warwickshire College’s flagship building - last March. 
Plumbers contracted by the college to carry out regular maintenance checks were working in the Grade II listed mansion’s roof space. 
The college, which takes further education students from all over Coventry and Warwickshire, is near the village of Moreton Morrell in south Warwickshire. 
Ian Tonner, the fire service’s area risk manager for Rugby, said: “We’re not blaming anyone or putting anyone in the frame - it was an accident. 
“Though it was a non-smoking site, a worker had gone on to the roof for a sneaky cigarette. 
“He then dropped it down a hole that he thought was a drain pipe. It wasn’t, it was a hole in the roof’s lining. 
“A few seconds of thoughtlessness has cost millions of pounds, and just highlights the dangers of discarding cigarettes.” 
He refused to reveal the identity of the firm involved. 
As the blaze took hold staff were evacuated and smoke could be seen for miles around. 
More than 80 firefighters with 15 engines from two counties battled for three days to save the Edwardian gem, which is the campus’s HQ for agricultural and equine courses. 
The inquiry into the cause, which has just been completed by insurance experts, had been hampered by severe weather and the extent of the damage. 
A short while later Warwickshire Police ruled out foul-play. 
The blaze ripped out the roof, while the interior, including marble bathrooms and oak panelled walls, were severely damaged by smoke, fire and water. 
Insurers and builders are still working with conservation experts to restore the exterior to the property, which was built in 1906. 
The painstaking project should be completed by March 2010. 
The college’s principal, Ioan Morgan, said: “The investigators have said it was due to a discarded cigarette. 
“I think at the time plumbing was being looked at in the roof. 
“I can’t say too much about the investigation. All I can say is that we’re fully funded for the works that are needed, as we’re covered by our insurance. 
“Work is well underway so that the building can be restored to its former glory. 
“Our insurers, NFU Mutual, have been outstanding.”

Source: Coventry Telegraph

Cowboy Marlboro

Leo Burnett specialized in creation of advertising personages such as Yolly Green Giant, Morris the Cat, the Keebler Elves, Charilie the Tune. Having proceeded to defeminization of Marlboro cigarettes, he decided to use the series of testosterone injections, which is the image of captain, sportsman, adventurer, military reporter, house builder and others. The first person in this row was a cowboy. Not more than 3000 professional cowboys remain in USA.

Burnett said much and he was doing it very clearly. Advertising campaign got on well. For one year Marlboro brand moved forward from the last place to the fourth one, being at the list of cigarettes champions. The campaign decided to forget about the captain and to hold back the cowboy to be on the safe side. The first invitees for shooting were professional models among whom nobody was aware from what side to approach the horse. Gabbers replaced them. Just imagine a person in blue, faded jeans, cowboy boots with headlong spurs! It was incredibly funny! Finally advertising agency had to look for real cowboys in Texas and Montana.

In 1955 the agency decided to add tattoo in the form of trade mark on the cowboy hand. One of the sitters remembered that before shootings, he was made up during three minutes and the tattoo applied for three hours. In 1962 advertising agency of Burnett purchased all rights for the screenplay of The Magnificent Seven and added the following phrase into it for TV advertisement: Come to where the flavor is. Marlboro Country. Since that time, Marlboro man occupied the firm position among most successful advertising images and Marlboro is at the top of the most popular cigarettes all over the world.