Showing posts with label entertainment. Show all posts
Showing posts with label entertainment. Show all posts

Wednesday, August 21, 2013

How many sites selling cigarettes are there in the USA?

Tobacco products are a major retail item in the USA. Over 47 million adults and 4 million teenagers smoke cigarettes. Annual sales of tobacco products exceed $40 billion and there are approximately 543 000 tobacco retailers in the country. Smokers have traditionally purchased their cigarettes either by the pack or the carton from local retail outlets. These local retail outlets are now facing new competition from the growing number of e-commerce sites. Internet cigarette vendors (ICVs) include those that sell online exclusively, as well as local “brick and mortar” retail outlets that advertise and sell tobacco products on the internet. More Americans are online than ever, and many of them are purchasing products on the internet. As of August 2000, over 116.5 million Americans were online and 42% of US households had a computer with internet access. Over 47% of American internet users have purchased something online, and consumers report that one of the primary attractions of online shopping is finding low prices.
Increased state taxes on cigarettes have fuelled demand among smokers who seek refuge from escalating retail prices. In the USA, state excise taxes vary considerably. Vendors on Indian reservations sell tax-free cigarettes, and excise taxes are low in tobacco producing states such as Virginia ($.025 per pack of 20 cigarettes), Kentucky ($.03), and North Carolina ($.05). High excise taxes are featured in states such as California ($.87), Alaska ($1.00), Hawaii ($1.00), and New York ($1.11). Given that each carton contains 10 packs, a smoker buying cigarettes in New York will pay over $10.00 more per carton in excise taxes than a smoker in Virginia. In the past, when a state raised its excise tax on cigarettes, smokers who did not quit would either pay the increased price, or travel to Indian reservations or neighbouring states with cheaper prices. However, the internet offers the possibility of purchasing from Indian reservations or from states with lower excise taxes without having to physically drive there. A ready source of cheap cigarettes is now a mouse click away. This may have significant public health implications because tobacco consumption is adversely affected by price. When cigarette prices increase, smokers are likely to smoke less, change to cheaper generic brands, or quit smoking altogether. For instance, in California a 50 cent increase in state excise taxes (proposition 10) was followed by a 29% decrease in cigarette sales. Although the majority of this decrease was probably caused by reduced consumption, media reports speculated that many California smokers were simply avoiding high taxes by buying directly from internet vendors.
To the best of our knowledge, no published peer reviewed studies have examined web sites that sell cigarettes. The present study attempts to fill this void in the literature by using a rigorous internet based searching and sampling methodology to estimate the number of internet cigarette vendors. In addition, a standardised coding system is used to determine their characteristics including geographic location, presence of age and health warnings, and sales and marketing practices.

Tuesday, May 5, 2009

More actual smokers would decide to give up the habit


That fact brings major joy to local health advocates as they state that the higher the cost of cigarettes is the fewer minors would buy them and start smoking and the more actual smokers would decide to give up the habit.

Although the aim of Illinois lawmakers is rather laudable, some opponents like Rep. Frank Mautino stated that taxes should be raised only to collect additional revenue and by no means to force people to do or not to do something.

"May be we would also tax Cheeseburgers, soda or pizza, because we think they are not healthy for Illinois residents? That is simply ridiculous,” declared Mautino.

Another thing that brings fears to the lawmakers is the expected loss of revenue, since smokers would look for options when trying to get a puff. They could either go to neighboring states or order cigarettes online, or even use illegal black market that is blossoming nowadays.

Even if smokers remain in Illinois, they would buy fewer cigarettes, admits Joseph Elfish, manager of Illinois Association of Convenience Stores and Petroleum Marketers.

Although experts predict around 15 percent drop in tobacco products sales, Illinois Association of Convenience Stores’ analysts anticipate almost 25 percent decrease. That would force owners of small shops to get out of business.

It would leave thousands people jobless and without source of livelihood. People would be especially thankful to the government for their relentless efforts to improve people’s health, when they are fired.

Friday, June 20, 2008

Use tobacco money to balance budget

Lt. Gov. Brian Krolicki says he hopes legislators consider approving his plan that could raise $600 million to $775 million in revenue without increasing taxes to address the budget shortfall.

"These are extraordinary times, and Nevada needs to take extraordinary measures," Krolicki said Thursday by phone from Beijing, where he is heading a state trade mission.

Under his plan, the state would sell bonds and use the revenue to cover current debts. The bonds would be repaid from the annual payments the state receives from tobacco companies.

Nevada receives about $50 million a year from the tobacco industry to compensate for the medical costs to the state of tobacco-related illnesses.

"The situation is so dire now it makes sense to use tobacco securitization to balance the state budget," Krolicki said. "You can't nickel and dime your way out of a $1 billion budget shortfall."

Legislators next week are scheduled to go into a special session to cut $100 million to $200 million more in state spending because of falling tax revenues. Lawmakers and Gov. Jim Gibbons already have approved $914 million in cuts to the two-year budget that ends June 30, 2009.

Krolicki's plan isn't without its critics.

In a letter Wednesday to Gibbons, state Treasurer Kate Marshall said her office has been unable to secure the "working papers" on the assumptions Krolicki used to arrive at the estimated proceeds from his plan. If the Legislature considers the proposal, Marshall said, she wants to work with the attorney general "to determine the extent to which such action would put the state at risk of engaging in fiduciary failure."

Marshall also pointed out that Krolicki in 2003 told the Senate Committee on Government Affairs that a tobacco securitization plan would be a "tremendous fiduciary failure" and should not be used to "balance today's budget."

At the time, Krolicki was state treasurer.

Krolicki said that in earlier sessions he advocated legislators issue bonds against the tobacco money. But at the 2003 session, he said, he opposed the plan because "it is too expensive and the market is not right."

The situation has changed dramatically since 2003, Krolicki said, and the plan is needed because there is no guarantee Nevada will continue to receive money from the tobacco industry at current levels.

The tobacco money now is used to cover some of the expenses of the Millennium Scholarship and SeniorRx programs.

"It is one of the few options that can raise a considerable amount of money without raising taxes or substantially harming a considerable amount of people," Krolicki said.

Legislators and the governor are looking at ways to cut spending without laying off workers.

Krolicki said his plan is available on his Web site and in handouts he has distributed to the media. He said he proposed creation of a working group, which would include the treasurer, to review the plan before any bonds were sold.

"I would be pleased to work with her (Marshall) and show how the model works," he said. "She is making noise now in a nonconstructive way."

Since Marshall assumed his job in January 2007, the two have been at loggerheads.

Krolicki has been investigated by the Nevada Division of Investigation because of concerns Marshall raised over his handling of a college tuition program and office e-mail messages. No charges have been filed against him.

Wednesday, June 4, 2008

Wegmans, DeCicco Markets Ditch Cigarettes

Anti-smoking groups are praising Wegmans Food Markets and DeCicco Markets for discontinuing the sale of tobacco products at their stores.

The American Lung Association of New York State presented Wegmans with the Lung Champion Award to recognize the Rochester, N.Y.-based grocer’s January 2008 decision to stop the sale of such items at all 70 of its locations, which are in New York, Pennsylvania, New Jersey, Virginia, and Maryland.

“The American Lung Association of New York State commends Wegmans for its leadership in removing cigarettes from store shelves and putting the public health of its employees and customers above profits,” said Deborah Carioto, president of the organization. “Smoking is the leading cause of preventable death in this country, and with the single act of halting tobacco sales in its stores, Wegmans has set what I hope will be a trend among major retailers in this country.”

Besides banning the sale of tobacco products, Wegmans now offers a quit-smoking program for its employees. It said 550 are currently enrolled.

“Wegmans believes that the many young people who work in our stores will be affected by the message the company they work for is willing to give up profits out of concern for their health,” said Wegmans vice president Mary Ellen Burris.

Pelham, N.Y.-based DeCicco Markets, with locations in both Westchester and Rockland counties, stopped selling tobacco products at five of its six grocery stores in February. The sixth location, which opened in Ardsley, N.Y. last year, has never carried tobacco products.

DeCicco was honored at the sixth annual “No Thanks, Big Tobacco” appreciation event sponsored by the Elmsford, N.Y.-based Tobacco Control Partners of the Lower Hudson Valley.

Friday, April 25, 2008

Tobacco market practices

LONDON - Britain's consumer affairs watchdog said on Friday it suspected cigarettes price-fixing involving tobacco companies and retailers, including all big four supermarket chains, between 2000 and 2003.
The Office of Fair Trading (OFT) issued a so-called statement of objections naming two tobacco manufacturers -- Imperial Tobacco and Japan Tobacco-owned Gallaher -- and 11 retailers.
The retailers are Wal-Mart-owned Asda, Co-operative Group, First Quench, Morrisons, Safeway, Sainsbury, Shell, Somerfield, T&S Stores, Tesco and TM Retail.
Imperial Tobacco had no immediate comment. Gallaher, which is owned by Japan Tobacco, could not immediately be reached for comment.
The OFT made two allegations, including that there were arrangements between "each manufacturer and each retailer that restricted the ability of each of these cigarettes retailers to determine its selling prices independently, by linking the retail price of a manufacturer's brand to the retail price of a competing brand of another manufacturer".
The second was more specific, alleging "in the case of Gallaher, Imperial Tobacco, Asda, Sainsbury, Shell, Somerfield and Tesco, the indirect exchange of proposed future retail prices between competitors".
The allegations come two days after the OFT was forced to apologise to supermarket Morrisons and pay 100,000 pounds ($197,700) to settle a defamation action over an incorrect accusation in another antitrust probe.

Tuesday, April 8, 2008

Legislation to give FDA authority over tobacco

Legislation to grant the Federal Drug Administration authority over cigarettes product regulation has moved to the U.S. House of Representatives. The House Energy and Commerce Committee passed the bill, which has bipartisan support.

According to a Wednesday article by the Media General News Service, the legislation would give the FDA control over nicotine levels, cigarette marketing and health-warning labels, proposals that have been in Congress for more than a decade.

The bill would reinstate the FDA's 1996 rule that restricted cigarettes marketing and sales to youth. According to a release by the Energy and Commerce Committee, the legislation would give the FDA the authority and resources to control regulation of tobacco products.

"The legislation provides FDA with resources necessary to fulfill its new responsibilities by requiring manufacturers and importers of tobacco to pay user fees to fund FDA's new regulatory responsibilities under the bill," according to the release.

According to the committee's Web site, the bill has more than 600 organizations supporting it.

Ryan Willcott, president of College Republicans, said there are parts of the legislation he likes, like the push to lower the levels of nicotine to help with addiction. He also said he likes that the government would be able to rid any appeals that cigarettes have to children, and he agrees with increasing the size of the surgeon general's warning on packaging.

Friday, April 4, 2008

Fire-Safe Cigarettes Now Sold In Kentucky


FRANKFORT, Ky. - All cigarettes now sold in Kentucky must be "fire safe," according to a law that went into effect April 1.
The law, passed a year ago by the 2007 General Assembly, is expected to save lives and property by reducing fires caused by careless smoking, said Richard Moloney, executive director of the Kentucky Office of Housing, Building and Construction, the agency that includes the State Fire Marshal's staff.
"We're confident that this legislation will pay immediate dividends," Moloney said. "Unfortunately, Kentucky ranks ninth in the nation in fire-related deaths. We believe this law will reduce the number of such deaths."
A fire-safe cigarettes is less likely to burn when left unattended. Typically, the cigarette has several bands of thicker paper that act as "speed bumps" to slow down the burning of the cigarette. If the cigarette is not puffed, it will extinguish itself when it burns down to one of the bands.
Kentucky is now one of 24 states that mandates fire-safe cigarettes, according to the National Fire Protection Association.
The State Fire Marshal is certifying fire-safe brands sold in Kentucky. A pack containing fire-safe cigarettes can be identified with the letters "FSC" or "FC," signifying fire standards compliance.
While there are penalties for failing to comply, Moloney said many cigarette manufacturers have already submitted their brands for certification. It may take a while before current inventory leaves store shelves and the fire-safe cigarettes appear.
Smokers should not rely solely on fire-safe cigarettes to avert a fire, Moloney said.
"First and foremost, a smoker should always properly extinguish his or her cigarette," he said. "A moment of carelessness can lead to tragedy."

Wednesday, April 2, 2008

Why people smoke cigarettes?


What is the nature of this psychological pleasure? It can be traced to the universal desire for self-expression. None of us ever completely outgrows his childhood. We are constantly hunting for the carefree enjoyment we knew as children. As we grew older, we had to subordinate our pleasures to work and to the necessity for unceasing effort. Smoking, for many of us, then, became a substitute for our early habit of following the whims of the moment; it becomes a legitimate excuse for interrupting work and snatching a moment of pleasure. "You sometimes get tired of working intensely," said an accountant whom we interviewed, "and if you sit back for the length of a cigarette, you feel much fresher afterwards. It's a peculiar thing, but I wouldn't think of just sitting back without cigarettes. I guess a cigarette somehow gives me a good excuse."
Most of us are hungry for rewards. We want to be patted on the back. A cigarette is a reward that we can give ourselves as often as we wish. When we have done anything well, for instance, we can congratulate ourselves with a cigarette, which certifies, in effect, that we have been "good boys." We can promise ourselves: "When I have finished this piece of work, when I have written the last page of my report, I'll deserve a little fun. I'll have a cigarette."
As we have said, to explain the pleasure derived from smoking as taste experience alone, is not sufficient. For one thing, such an explanation leaves out the powerful erotic sensitivity of the oral zone. Oral pleasure is just as fundamental as sexuality and hunger. It functions with full strength from earliest childhood.
A cigarettes not only measures time, but also seems to make time pass more rapidly. That is why waiting periods almost autuomatically stimulate the desire to smoke. But a deeper explanation of this function of smoking is based on the fact that smoking is ersatz activity. Impatience is a common feature of our times, but there are many situations which compel us to be patient. When we are in a hurry, and yet have to wait, a cigarette gives us something to do during that trying interval. The experience of wanting to act, but being unable to do so, is very unpleasant and may even, in extreme cases, cause attacks of nervous anxiety. Cigarettes may then have a psychotherapeutic effect. This helps to explain why soldiers, waiting for the signal to attack, sometimes value a cigarette more than food.
The companionable character of cigarettes is also reflected in the fact that they help us make friends. In many ways, smoking has the same effect drinking has. It helps to break down social barriers.
The mind can concentrate best when all outside stimuli have been excluded. Smoking literally provides a sort of "smoke screen" that helps to shut out distractions. This explains why many people who were interviewed reported that they cannot think or write without a cigarette. They argued that moderate smoking may even stimulate mental alertness. It gives us a focal point for our attention. It also gives our hands something to do; otherwise they might make us self-conscious and interfere with mental activity. On the other hand, our respondents admit that smoking too much may reduce their efficiency.
One shortcoming of our modern culture is the universal lack of adequate relaxation. Many of us not only do not know how to relax, but do not take time to learn. cigarettes helps us to relax because, like music, it is rhythmic. Smoking gives us a legitimate excuse to linger a little longer after meals, to stop work for a few minutes, to sit at home without doing anything that requires effort.
Smoking brings relief. Worry, anxiety, depress us not only psychologically but also physiologically. When a person feels depressed, the rhythm of his breathing becomes upset. A short and shallow breath creates a heavy feeling in the chest. Smoking may relieve mental depression by forcing a rhythmic expansion of the breast and thus restoring the normal pace of breathing. The "weight on the chest" is removed.
This connection between smoking and respiration accounts for the common expression, smoking makes us breath more steadily, and thus calms us down.

Monday, March 31, 2008

Pay cuts for Japan Tobacco chiefs over tainted dumplings


TOKYO— Japan Tobacco said Friday its entire board of directors will take pay cuts after the company became embroiled in a scandal over poisoned dumplings imported from China.
JT president Hiroshi Kimura and four other JT executives will take a cut of 30 percent for three months, while others will see their salaries reduced by 10 percent over the food scare which erupted in January, a company statement said.
Japanese authorities have confirmed that 10 people suffered pesticide poisoning after eating tainted dumplings that a JT subsidiary imported from China.
Thousands more people complained of illness although the exact circumstances of how the cigarettes products were contaminated has not yet been established.
"We take this incident seriously and have decided at a board meeting today to penalise relevant members," JT said in a statement.
The poisoning scare has alarmed cigarettes consumers in Japan, which relies on imports for 60 percent of its food, with China the top provider after the United States.

Saturday, March 29, 2008

Big Tobacco Faces Further Cigarette Market Declines In The U.S.


NEW YORK -The future of Big Tobacco in the U.S. is looking hazy.
Tobacco companies have been steadily selling fewer cigarettes in the U.S., but that rate of decline is likely to accelerate over the next few years. Those declines will mean the biggest cigarette companies could be in for a much tougher fight for their survival and growth in the U.S.
Altria Group Inc. (MO) - which at the end of this week will spin off its Philip Morris International business and transform itself into a domestic tobacco company - expects unit volumes of the overall U.S. cigarettes industry to decline by 2.5% to 3% a year for the next few years. That decline is steeper than the historical rate of about 2%. Altria estimates industry volumes, or the number of cigarettes sold, fell about 4% in 2007.
"We have highlighted accelerated volume declines as one of the bigger risks the industry faces," said Janice Hofferber, a vice president at Moody's Investors Service who follows tobacco and consumer products. Historically, tobacco companies have been able to raise prices fairly easily, but "there is a limit to the pricing flexibility these companies have."
The weaker volumes will mean that cigarette companies will need to focus more on cost cuts, and to dabble in new kinds of tobacco products. One thing, however, is unlikely to change: Altria is likely to continue to have the upperhand in U.S. tobacco market for some years due to the power of its Malboro brand.
In general, volumes have declined as cigarettes sellers have been pushed to boost prices to offset higher federal and state taxes and to make annual payments under a 1998 settlement agreement with states. Bans on smoking in public places and more health-conscious consumers have also contributed to the cigarette volume declines.
The U.S. tobacco companies have been trying to grow in the smaller, growing market for smokeless tobacco products. Altria - or the Big MO as the company is often called for its trading symbol - has a relatively small presence so far in smokeless tobacco. But its Marlboro brand still has 41% share of the retail market, larger than the combined share of the next 10 largest cigarette brands. Marlboro also continues to gain market share. Last year, Altria's U.S. tobacco segment saw revenue net of excise taxes rise 1.2% to $15 billion.
"I think Altria is better positioned to withstand price increases because of their brand position," said Hofferber.
Lorillard is in the next best position after Altria, she said, due to its dominance in menthol cigarettes. At the end of last year, Loews Corp. (LTR) announced plans to spin off Lorillard, its tobacco unit. Lorillard's Newport cigarettes are the top selling brand in the menthol market.
Rival Reynolds American Inc. (RAI) made an astute and quick move through its acquisition of smokeless tobacco maker Conwood in 2006 but Conwood by itself isn't sufficient to offset the challenges of weaker cigarette demand. The smokeless tobacco market is still far smaller than the market for cigarettes. A spokesman for Reynolds, which sells brands like Camel and Kool, said the company is making concerted efforts to get adult smokers to switch to its brands by introducing product and packaging innovation.
Cigarettes accounted for more than 90% of expenditures on all tobacco products in the U.S. in 2006, according data compiled by the Center for Disease Control and Prevention. Total spending on tobacco was $88.8 billion in 2005, of which $ 82 billion was spent on cigarettes, according to the agency.
Altria, Reynolds American, and the soon-to-be-independent Lorillard will not be able to rely on international growth to offset U.S. declines. Altria will be a U.S. tobacco company after the March 28 spinoff of Philip Morris International. Reynolds does business mainly in the U.S., while Lorillard sold the international rights to substantially all of its brands, including Newport, in 1977.
That said, some investors are still hoping to see steady returns from U.S. tobacco businesses.
"There is still a lot to like," about cigarette stocks, said Charles Norton, portfolio manager of the $183 million Vice Fund, which owns tobacco industry shares. "The story for the U.S. cigarette makers is not one of volume growth."
Norton likes these companies' strong pricing power, emphasis on cost reduction, their expansion into alternative tobacco products, their willingness to distribute cash to shareholders through dividends or buybacks, and an improved legal environment. In the last couple years, cigarette companies have had several important legal victories in tobacco lawsuits in the U.S.
"Tobacco in general offers earnings stability and dividend security that are vital in uncertain times like we are experiencing right now," Norton said. Norton's fund holds shares of Altria and Carolina Group (CG), currently the tracking stock for Lorillard. He has short positions in smokeless tobacco company UST Inc. (UST) and Reynolds American.
So far, no one is predicting the death of the U.S cigarette industry. Standard & Poor's tobacco debt analyst Ken Shea said, "You are going to have a universe of consumers" for cigarettes.

Monday, February 11, 2008

Tobacco Origins and History

Tobacco and cigarettes has a long history dating. The tobacco plant is believed to be widely spread in America since the 1st Century.






The written history of cigarettes dates back to the early 16th century when Spaniards conquerors witnessed the Aztec Indians smoking an ancient cigarette, it was a cane or reed tube stuffed with tobacco.



It was the Spaniards who introduced the cigar in the old world. Early in the 16th century, beggars of Seville picked up discarded cigar butts, shredded the contexts rolled them back in paper and termed those as cigarillos.
Cigarettes spread through Europe in the wake of the Napoleonic wars and became common towards the middle of the century.



A cigarette factory was established in 1853 but it was after the Crimean war where British got the first taste of cigarettes, which was the outset of cigarette’s immense upcoming popularity. The French were the people who gave cigarettes their present name, which meant ‘little cigar’.



In 1882, the cigarette was a specialty item made by hand, sold for a penny apiece, and very much the stepchild of other tobacco products. However, that was about to change.


An automated cigarette rolling machine, developed by 18-year-old James Bonsack, was put into use in 1883 and revolutionized cigarette production. The retail price was cut in half, and volume, which in premachine days had never exceeded 500 million, leaped to 10 billion by 1910. American Tobacco was able to take advantage of this new technology and, like Standard Oil, was such a success that it, too, and was broken up by the feds in 1911.


In the 1840s the cigarette industry was born, although cigarettes were still rolled by hand, mainly by women. In 1881 the cigarette-rolling machine was invented, increasing production exponentially. Offering a cigarette and a light became a ritual of sociability. The two World Wars helped spread the habit widely.


During the 1920s women took up smoking as a sign of modernity. The development of mass media and advertising in the late 19th and 20th Century played a decisive role in securing the popularity of cigarettes . Today 93 percent of the world's tobacco is consumed as cigarettes .