Electronic cigarettes are opening a new front in the tobacco wars as state and local lawmakers try to restrict the product, which may allow users to circumvent smoking bans.
The battery-powered device is made up of a cartridge containing nicotine, flavoring and chemicals. It turns nicotine, which is addictive, into a vapor that is inhaled. Users say they're "vaping," not smoking.
E-cigarettes are used by at least a half-million Americans, says Matt Salmon, head of the Electronic Cigarette Association.
"People who smoke ought to have better alternatives, because some can't quit," he says. His father, a longtime smoker, died last week of cancer and emphysema.
Public health officials question the safety of e-cigarettes. The Food and Drug Administration, which regulates tobacco and nicotine replacement devices, says the e-cigarettes it tested had carcinogens. E-cigarette distributors have filed a lawsuit challenging the FDA's authority.
"It's a new frontier. We don't know what the dangers are," says John Banzhaf of Action on Smoking and Health, an anti-smoking group.
"We're actively investigating these companies and their products," says Connecticut Attorney General Richard Blumenthal. Other actions:
• California passed a ban on e-cigarette sales, but Republican Gov. Arnold Schwarzenegger vetoed it this month.
• Oregon Attorney General John Kroger, a Democrat, reached a settlement in August with retailers and distributors not to sell them.
• New Hampshire state Rep. Rich DiPentima, a Democrat, is crafting a bill to ban sales to minors.
• New Jersey state Assemblywoman Connie Wagner, a Democrat, plans a bill to subject e-cigarettes to the same restrictions as cigarettes.
• In Paramus, N.J., the health department's board plans to propose an ordinance today banning e-cigarettes where smoking is not allowed.
• In August, Suffolk County, N.Y., restricted e-cigarettes in public places and banned sales to minors.
To Julie Woessner, 46, a former smoker in Wildwood, Mo., they are "almost a miracle," allowing her to kick her two-packs-a-day cigarette habit.
Nov 10, 2009
Nov 9, 2009
Cigarette demand falling, but profits solid
RICHMOND, Va. — The weak economy and higher prices are snuffing out cigarette demand around the world — most vigorously in the U.S., where a federal tax hike, smoking bans, health concerns and social stigma have cut demand at least 10 percent.
Two of the world's biggest cigarette makers reported Thursday that they emerged from the third quarter in better shape than analysts expected and raised their 2009 profit estimates.
Both Philip Morris International — which makes Marlboro and other top brands for sale abroad — and Reynolds American Inc. — the second-biggest cigarette seller in the U.S., with brands such as Camel and Pall Mall — raised prices even as consumers bought fewer cigarettes. And Reynolds is looking to smokeless alternatives for future growth.
Analysts are closely watching the U.S. industry's third quarter for the first clear sense of cigarette volumes after a 62-cent-per-pack federal tax increase took effect. Cigarette sales fell during the first half of the year before and after the April 1 change.
Reynolds American recorded 72 percent higher profit than in last year's third quarter, when restructuring costs and the falling value of its trademarks dampened its earnings. Based in Winston-Salem, N.C., it earned $362 million for the period that ended Sept. 30, up from $211 million a year earlier.
The company said tax increases and the tough economy cut the volume of cigarettes it shipped by 11 percent, and it pegged the decline industrywide at 12.6 percent. Reynolds said its smokeless tobacco unit, Conwood Co., sold 11.7 percent more moist snuff products by volume during the quarter.
In a conference call with investors, Reynolds CEO Susan M. Ivey said she expects U.S. cigarette demand to fall 8 percent to 9 percent per year and easing back to annual drops of 3 percent to 4 percent over the next few years.
Declines are less stark in the rest of the world.Philip Morris International shipped 219.3 billion cigarettes in the quarter, 2.9 percent less than a year earlier, as declines in Europe and the Middle East were offset by a rising volume in Latin America and Canada from its acquisition of Rothmans Inc. during the third quarter last year.
The company, which sells Marlboros, L&M, Parliament and Virginia Slims abroad, said Thursday its third-quarter profit fell nearly 14 percent as the stronger dollar shrunk profit earned in other currencies.
When the dollar is strong, companies that sell goods abroad and convert that revenue from foreign currencies, they take a hit in the dollar value of those sales. That effect is particularly strong for Philip Morris International, because all its business is overseas.
Philip Morris International — which has offices in Lausanne, Switzerland, and New York — said it earned $1.79 billion during the quarter. It is the world's second-biggest cigarette maker after the state-controlled China National Tobacco Corp. It was spun off in 2008 from Richmond, Va.-based Altria Group Inc., owner of the largest U.S. tobacco company, Philip Morris USA.
Thursday's earnings reports come on the heels of those for Altria Group Inc., parent company of the nation's No. 1 tobacco company, Philip Morris USA.
Altria reported Wednesday that its third-quarter profit to rose 1.7 percent on cost-cutting and improved results from its cigar unit. It said it sold about 12 percent fewer cigarettes versus an industry decline it estimated at 10 percent.
Greensboro, N.C.-based Lorillard Inc., the nation's third-largest tobacco company with the market-leading menthol brand Newport, reports on its third quarter Monday.
Two of the world's biggest cigarette makers reported Thursday that they emerged from the third quarter in better shape than analysts expected and raised their 2009 profit estimates.
Both Philip Morris International — which makes Marlboro and other top brands for sale abroad — and Reynolds American Inc. — the second-biggest cigarette seller in the U.S., with brands such as Camel and Pall Mall — raised prices even as consumers bought fewer cigarettes. And Reynolds is looking to smokeless alternatives for future growth.
Analysts are closely watching the U.S. industry's third quarter for the first clear sense of cigarette volumes after a 62-cent-per-pack federal tax increase took effect. Cigarette sales fell during the first half of the year before and after the April 1 change.
Reynolds American recorded 72 percent higher profit than in last year's third quarter, when restructuring costs and the falling value of its trademarks dampened its earnings. Based in Winston-Salem, N.C., it earned $362 million for the period that ended Sept. 30, up from $211 million a year earlier.
The company said tax increases and the tough economy cut the volume of cigarettes it shipped by 11 percent, and it pegged the decline industrywide at 12.6 percent. Reynolds said its smokeless tobacco unit, Conwood Co., sold 11.7 percent more moist snuff products by volume during the quarter.
In a conference call with investors, Reynolds CEO Susan M. Ivey said she expects U.S. cigarette demand to fall 8 percent to 9 percent per year and easing back to annual drops of 3 percent to 4 percent over the next few years.
Declines are less stark in the rest of the world.Philip Morris International shipped 219.3 billion cigarettes in the quarter, 2.9 percent less than a year earlier, as declines in Europe and the Middle East were offset by a rising volume in Latin America and Canada from its acquisition of Rothmans Inc. during the third quarter last year.
The company, which sells Marlboros, L&M, Parliament and Virginia Slims abroad, said Thursday its third-quarter profit fell nearly 14 percent as the stronger dollar shrunk profit earned in other currencies.
When the dollar is strong, companies that sell goods abroad and convert that revenue from foreign currencies, they take a hit in the dollar value of those sales. That effect is particularly strong for Philip Morris International, because all its business is overseas.
Philip Morris International — which has offices in Lausanne, Switzerland, and New York — said it earned $1.79 billion during the quarter. It is the world's second-biggest cigarette maker after the state-controlled China National Tobacco Corp. It was spun off in 2008 from Richmond, Va.-based Altria Group Inc., owner of the largest U.S. tobacco company, Philip Morris USA.
Thursday's earnings reports come on the heels of those for Altria Group Inc., parent company of the nation's No. 1 tobacco company, Philip Morris USA.
Altria reported Wednesday that its third-quarter profit to rose 1.7 percent on cost-cutting and improved results from its cigar unit. It said it sold about 12 percent fewer cigarettes versus an industry decline it estimated at 10 percent.
Greensboro, N.C.-based Lorillard Inc., the nation's third-largest tobacco company with the market-leading menthol brand Newport, reports on its third quarter Monday.
Nov 5, 2009
West City gets grant to reduce tobacco access by local youths
The village of West City has been chosen by the Illinois Liquor Control Commission to receive a grant in the amount of $1,100 to establish a comprehensive educational and enforcement program addressing minimum-age tobacco laws.
“We are pleased to receive this grant to enhance our efforts to reduce youth access to tobacco products. The health of the children in our community is very important,” Chief of Police Steve Mumbower said.
The commission, the state’s lead agency in developing strategies to reduce the illegal sale of tobacco products to minors, annually awards $1 million in grants to communities that are willing to implement its Tobacco Enforcement Program.
Participating communities are required to provide retail education to their retailers prior to implementing the enforcement component.
All tobacco retailers will receive the commission’s Tobacco Retailer Kit, which includes a review of state minimum-age tobacco laws, required signage and training guides for their personnel.
In addition, each tobacco retailer will receive three compliance checks.
Tobacco retailers within the entire program currently average over 90-percent compliance, and Illinois is ranked seventh nationwide in Synar tobacco retailer compliance rates.
“We are pleased to receive this grant to enhance our efforts to reduce youth access to tobacco products. The health of the children in our community is very important,” Chief of Police Steve Mumbower said.
The commission, the state’s lead agency in developing strategies to reduce the illegal sale of tobacco products to minors, annually awards $1 million in grants to communities that are willing to implement its Tobacco Enforcement Program.
Participating communities are required to provide retail education to their retailers prior to implementing the enforcement component.
All tobacco retailers will receive the commission’s Tobacco Retailer Kit, which includes a review of state minimum-age tobacco laws, required signage and training guides for their personnel.
In addition, each tobacco retailer will receive three compliance checks.
Tobacco retailers within the entire program currently average over 90-percent compliance, and Illinois is ranked seventh nationwide in Synar tobacco retailer compliance rates.
Nov 2, 2009
A call to arms for tobacco store owners
Let us consider the case of a cigar store owner. No food is served. No alcohol is available. The only products are cigars, tobacco products and accessories. Because no alcohol is served, it doesn't qualify for status as "Specialty Tobacco Bar."
Let us also assume that this establishment is owned by a retiree, the sole employee. He started this store because of his love of cigars. He has become something of an expert and customers often seek out his advice, much in the way a wine enthusiast may seek the opinion of a sommelier.
Under the expanded ban he will not be allowed to sample a new cigar in his own store in order to provide advice for his customers.
Who is being harmed and needs to be protected by the expanded ban? Does he not have the right to run his business to the best of his ability?
I would urge all tobacco store owners to call their City-County Council member and urge him or her to vote against Proposal 371.
Let us also assume that this establishment is owned by a retiree, the sole employee. He started this store because of his love of cigars. He has become something of an expert and customers often seek out his advice, much in the way a wine enthusiast may seek the opinion of a sommelier.
Under the expanded ban he will not be allowed to sample a new cigar in his own store in order to provide advice for his customers.
Who is being harmed and needs to be protected by the expanded ban? Does he not have the right to run his business to the best of his ability?
I would urge all tobacco store owners to call their City-County Council member and urge him or her to vote against Proposal 371.
Oct 30, 2009
Suspected heroin just tobacco at Columbia Point Marina
A specially packaged bundle of suspected heroin found in a bathroom at Columbia Point Marina turned out to be a block of chewing tobacco.
The package was found Tuesday when a maintenance worker bumped into the ventilation screen inside the bathroom, Richland police Capt. Mike Cobb said.
Officers initially thought the package had six, 1-ounce bindles of heroin and speculated it was left there for someone on a state Department of Corrections work crew to pick up, he said.
About 90 seconds after it was found, a van of inmates from Coyote Ridge Corrections Center pulled into the marina for a break, Cobb said. The inmates had been picking up litter along Highway 240.
Further testing showed the package contained a block of chewing tobacco that has the same consistency and appearance of black tar heroin, Cobb said.
Investigators still have no proof the package was left for a Coyote Ridge work crew inmate, but Cobb suspects it was.
"Who else would treat that as contraband other than someone in the penal system?" Cobb said. "It's the only reasonable explanation I can think of."
The package was found Tuesday when a maintenance worker bumped into the ventilation screen inside the bathroom, Richland police Capt. Mike Cobb said.
Officers initially thought the package had six, 1-ounce bindles of heroin and speculated it was left there for someone on a state Department of Corrections work crew to pick up, he said.
About 90 seconds after it was found, a van of inmates from Coyote Ridge Corrections Center pulled into the marina for a break, Cobb said. The inmates had been picking up litter along Highway 240.
Further testing showed the package contained a block of chewing tobacco that has the same consistency and appearance of black tar heroin, Cobb said.
Investigators still have no proof the package was left for a Coyote Ridge work crew inmate, but Cobb suspects it was.
"Who else would treat that as contraband other than someone in the penal system?" Cobb said. "It's the only reasonable explanation I can think of."
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