Clear The Air News Tobacco Blog Rotating Header Image

Statistics

Global smokers’ study criticised as biased

Download (PDF, 30KB)

The State of Smoking 2018

Download (PDF, 5.78MB)

Tobacco packaging plain from today

https://www.odt.co.nz/news/national/tobacco-packaging-plain-today

From today, cigarettes and other tobacco products can only be sold in generic plain brown and green packaging – brand and product names are now in a standard colour, position, font size and style.

In addition, a new set of 14 health warnings and images have been rolled out, enlarged to cover at least 75% of the front of the packet.

”It’s a long-overdue move which has been discussed for over 30 years,” Action on Smoking and Health (Ash) programme manager Boyd Broughton said.

”It’s not the be-all and end-all – a lot of other strategies have to be put in place in order to get to smoke-free 2025 – but we can achieve that goal.”

Old-style packets of cigarettes will still be seen for a few weeks yet: retailers have a six-week grace period for old stock to be distributed and a further six weeks for that stock to be sold.

From June 6, tobacco can be sold only in the new standardised packets.

Mr Broughton said the change came at the halfway point of the timeframe for a smoke-free New Zealand – smoking rates of less than 5% – to be achieved.

”Plain packaging is one part of a whole suite of strategies recommended to stop young people being addicted to cigarettes,” Mr Broughton said.

”We now need to look at how we can make alternatives to cigarettes far more accessible.”

Smoking rates in the Southern District Health Board region range from 18% of adults in the Invercargill electorate area to 11% in Dunedin North.

Maori are New Zealand’s biggest users of tobacco and that is reflected in Te Tai Tonga – the Maori electorate which takes in the South Island – having the highest number of smokers.

Latest Ministry of Health figures show 15.7% of adult New Zealanders smoke – as do 40% of Maori women.

Ash estimates at the current rate of decline it will take until 2030 for smoking rates to fall below 5%, and for Maori, it will take until 2050.

”It is urgent that action be taken now if we are going to reach smoke-free by 2025,” Mr Broughton said.

”It’s a bit of a sprint finish, and we need the Government to get in behind and ramp up support for people who need support to quit.”

Southern DHB health adviser Joanne Lee said plain packaging aimed to reduce the attractiveness and appeal of tobacco products, increase the noticeability and effectiveness of health warnings, and reduce the ability of retail packaging to mislead consumers about the harms of smoking.

”Tobacco products are unlike any other consumer products. They kill two out of three people who smoke and more than 5000 New Zealanders die of smoking-related illnesses each year,” she said.

”Having all packaging the same will hopefully see a decrease in youth smoking.”

Otago researchers have welcomed standardised packaging for cigarettes as a good move, but say more needs to be done in the fight against tobacco.

The co-director of ASPIRE2025, Prof Janet Hoek from the University of Otago, said today the plain packaging policy represented a major step forward in protecting young people from smoking initiation.

However, she called on the Government to ensure standardised packs maintain their impact on smokers.

“On-pack warnings are very important because they allow us to reach all smokers, but we must recognise that people who have smoked for 30 years differ from young people who are experimenting or who regard themselves as social smokers.”

The warnings needed to resonate with diverse groups of smokers, and be refreshed regularly so smokers are exposed to multiple reasons for quitting, researchers said.

“We are only seven years from the Smokefree 2025 goal so we need to make sure that the policies introduced achieve maximum impact over a sustained period,” Professor Hoek said.

mike.houlahan@odt.co.nz

Smoking rates

Rates by electorate (rank out of 72; electorate; number of regular smokers; percentage of adults who are regular smokers, based on 2013 Census data).

1 – Te Tai Tonga; 22074; 26%
17 – Invercargill; 9261; 18%
34 – Clutha-Southland; 7944; 15%
43 – Waitaki; 7005; 13%
44 – Dunedin South; 6816; 14%
56 – Dunedin North; 5796; 11%

Timeline of tobacco advertising in NZ

1948 – First campaign by the Department of Health on the harms of smoking.
1963 – Cigarette advertising banned in television and radio in New Zealand.
1973 – Cigarette advertising on billboards and cinema screens banned.
1974 – Health warnings appear on cigarettes.
1990 – Smokefree Environments Act bans tobacco sponsorship of sporting events; Sponsorship Council established to replace tobacco sponsorship with Smokefree branding.
1995 – Tobacco sponsorship ends; Tobacco branding on shop exteriors banned.
1997 – Size of tobacco advertising in stores in reduced, and retailer incentives to sell cigarettes are banned.
2004 – All workplaces, schools and early childhood centres required to go smokefree.
2008 – All cigarettes and tobacco pack are required to have graphic health warnings covering 90% of the pack.
2012 – All point of sale advertising of tobacco is banned, and cigarettes and tobacco product must not be on display.
2018 – All cigarettes and tobacco must be sold in plain packaging

SOURCE: Action on Smoking and Health.

Every second man in Armenia is a smoker, survey reveals

Download (PDF, 87KB)

State-Specific Prevalence of Tobacco Product Use Among Adults — United States, 2014–2015

Download (PDF, 158KB)

Just one cigarette a day seriously elevates cardiovascular risk

Download (PDF, 1.5MB)

Big tobacco’s push to legalise e-cigarettes needs to be quashed immediately

If Philip Morris truly believed it’s push to legalise e-cigarettes containing nicotine in this country had merit it would be making its case publicly and under its own name.

http://www.canberratimes.com.au/comment/ct-editorial/big-tobaccos-push-to-legalise-ecigarettes-needs-to-be-quashed-immediately-20170713-gxaow8.html

The fact the tobacco giant is using its catspaw smokers’ rights lobby group “I Deserve To Be Heard” to lend the argument the dubious legitimacy of contrived popular support is, in itself, a good reason for the Federal Government to refuse to give this matter any oxygen.

Another is that in the almost 500 years since Spanish merchants introduced tobacco to Europe from the New World big tobacco’s track record of advocating anything in the public interest has been appalling.

It’s a pretty good bet, just on the historical record, that if Philip Morris thinks it would benefit from the legalisation of e-cigarettes there’s likely some sort of downside for the broader society.

Despite the handsome revenues governments rake in from the taxes, levies and charges imposed on what is arguably the most deadly mass consumption product available for public sale, the industry, and its users, always come out ahead.

The costs to other taxpayers from picking up the burden of additional healthcare and lost productivity arising from the chronic illnesses and early deaths caused by consumption on tobacco products far outweigh the revenues that come in.

An estimated 15,000 Australians die of smoking related causes each year at a cost to the community, in terms of health expenditure and economic costs, of $31.5 billion a year. This is almost three times the roughly $12 billion spent on tobacco products in Australia in 2015.

This is not a message big tobacco is keen to spread. Instead, by enlisting proxies from the nicotine-using and “vaping” communities, it is trying to play this as a “free speech” and “freedom of choice” issue.

That is not the case. Public health was, is and must always be, the core issue in the smoking debate. Everything else, as was demonstrated by the industry’s failed bid to overturn plain packaging, is a side show.

Health concerns were behind the many initiatives, including increased prices, that have seen Australian smoking rates fall to less than 13 per cent compared to 1945 when 72 per cent of males and 26 per cent of females smoked.

Today’s battle is not so much to wean the last hard core smokers off the habit as it is to stop young people from taking it up.

This is why e-cigarettes, which could be touted as a “reduced risk” and potentially “cool” way to imbibe must stay banned.

If legalised they would simply serve as yet another gateway towards the use of the traditional product.

How big tobacco has survived death and taxes

The world’s five major tobacco companies are thriving, profitable and increasing sales, despite many predictions of the industry’s decline

https://www.theguardian.com/world/2017/jul/11/how-big-tobacco-has-survived-death-and-taxes

A casual observer could be forgiven for believing that the tobacco industry – for so long a fixture as permanent as its two main by-products, death and taxes – is itself on its last legs.

In the US, health officials have predicted that smoking rates in America could drop to as low as 5% by 2050, well within the lifetime of someone born today.

Last year, shareholders of UK-based Imperial Tobacco approved a decision to change the company’s century-old name to Imperial Brands, hinting at a move away from traditional cigarettes.

Even globe-straddling colossus Philip Morris International (PMI), owner of brands including Marlboro, has set its stall out for a “smoke-free” future, where nicotine addicts get their fix from vaping and other non-tobacco products.

Yet, for all of these predictions, one thing has remained unchanged: Big Tobacco is thriving, profitable and increasing its sales.

Excluding China, where the market is monopolised by the state, five major companies dominate the global tobacco trade – Philip Morris International (PMI), British American Tobacco, Japan Tobacco, Imperial Brands and Altria (the former US assets of PMI).

Between them in 2016, they shipped 2.27tn cigarettes, more than 300 for every man, woman and child on the planet, racking up combined sales of $150bn (£115bn). Their combined profits reached $35bn (£27bn), allowing investors in those companies to receive dividends of $19bn (£14.5bn).

Of these giants, one of the most powerful is British American Tobacco (BAT), the London-based firm that can trace its history back to 1902.

Run from Globe House, its headquarters next to the Thames river, BAT sells its brands in 200 countries and is market leader in 55 of them.

Far from looking to a future beyond tobacco, BAT is doing perfectly well as it stands.

At its annual meeting in March, chairman Richard Burrows toasted a “vintage year”, as profits rose to £5.2bn ($6.7bn) allowing the company’s shareholders to take a dividend worth an additional 10%.

The rewards were so great because BAT’s sales show no signs of the industry’s much-vaunted decline. The company sold 665bn cigarettes in 2016, nearly 100 for every human on earth and 2bn more than it sold the year before.

Cigarette sales among its so-called Global Drive Brands – Dunhill, Kent, Lucky Strike, Pall Mall and Rothmans – jumped 7% to 346bn.

In the section of its accounts that details non-cigarette sales, which the company terms “next generation products”, there is nothing to see.

The numbers are so small that they are considered immaterial to its financial results and do not need to be disclosed under stock market rules.

Yet the company’s traditional business continues to generate big headlines and bigger numbers. By the end of the year, BAT is likely to have completed a landmark $49bn deal to buy the 57.8% of US tobacco giant Reynolds American that it does not already own. A simultaneous shareholder vote next Wednesday by both firms is expected to agree the deal at Reynolds HQ in Winston-Salem, North Carolina, and BAT in London.

If US tobacco sales really are set to fall off a cliff, that would be a monumental strategic misstep.

But while the percentage of Americans who smoke is on the wane, the US remains a market with huge potential.

That’s because the population is rising, meaning that even as smoking rates decline in percentage terms, the actual number of smokers is relatively static at about 45 million people.

US cigarettes are also relatively cheap compared with prices in the UK, leaving some scope for the company to raise prices without losing customers.

Reynolds and BAT will also look to the future by pooling research on smokeless products, hoping to capture that growing market, though that won’t be the big money-spinner any time soon.

And then there is the developing world, where the rate at which governments and public opinion are turning against tobacco differ dramatically from wealthier economies.

tob-increases

A ‘defensive’ stock

BAT increased its revenues in every region bar Asia-Pacific last year, with the developing world doing more than its share of the heavy lifting.

Among the “key markets” listed in its annual report are Indonesia and Egypt – and for good reason.

The World Health Organisation projects smoking rates in Indonesia to increase by 2025, with the number of smokers growing from 73m to 97m based on current trends.

Egypt is another key market where smoking rates are projected to grow, with up to 21m Egyptians forecast to be smokers by 2025, compared to 14m in 2015.

One only has to look at BAT’s roster of investors for evidence of the confidence that well-informed institutions with deep pockets have in the future of cigarettes, even if that future is less bright in the West.

tob-deaths

It’s a list that features nearly every major investment company in the world, testament to the safe bet that tobacco giants such as BAT offer to investors.

Top of the share register is BlackRock, the all-powerful asset manager that has a stake in nearly every major listed company in the world, managing investors’ funds of approximately $5.4tn, more than the economy of Japan.

Some way further down the list is Woodford Investment Management, run by Neil Woodford, a figure held in awe in London for his uncanny ability to make money.

He famously invests a huge chunk of his portfolio in tobacco, explaining that he is not paid to make moral judgments but to make money for clients.

Tobacco is attractive to investors – including councils in the UK – because it is seen as a “defensive” stock, in other words a good place to invest money that you are not prepared to lose.

The shares rarely decline in value even when times are tough and also deliver a steady income from annual dividends.

The huge rewards on offer for investors mean that those who manage the great behemoths of tobacco are also handsomely rewarded.

BAT chief executive Nicandro Durante is no exception. He was handed a package of cash and shares worth $10m (£7.6m) last year, taking his earnings over six years to a cool $44m (£34m).

When fellow directors are included, the 14-strong BAT boardroom enjoyed a combined $18m (£14m) payday in 2016.

There are other perks. Durante gets free tax advice from the company, a personal driver and security for his homes, in London and Brazil.

Both executives and non-executives also have access to a walk-in GP clinic near BAT’s headquarters at Globe House in London, enjoying the benefits of a National Health Service that has been estimated to spend up to $6.5bn (£5bn) a year on smoking-related illnesses.

BAT’s board earn their corn as much for their network of connections as they do for their hard work.

Burrows is a former governor of Bank of Ireland, while senior independent director Kieran Poynter is a managing partner of Big Four accountancy PricewaterhouseCoopers and previously advised the UK’s Treasury.

Its non-executive directors boast a string of similar appointments at multinational companies. Savio Kwan, for instance, was chief operating officer of China’s largest internet business, Alibaba.

tob-deaths-tot

Ann Godbehere ran the finances of Northern Rock after its bailout and also serves on the boards of mining giant Rio Tinto, Swiss bank UBS and insurer Prudential.

Nor does the company’s network of influence end there.

While it does not donate money directly to British political parties, it does funnel cash to influential right-leaning thinktank the Institute of Economic Affairs.

BAT gives the IEA around $52,000 (£40,000) a year, a sum equivalent to about 5% what the organisation pays its staff, some of whom appear frequently in the media to criticise tobacco control legislation such as plain packaging.

Chief among those staff is director-general Mark Littlewood, a former press spokesman for the Liberal Democrats and one-time adviser to David Cameron.

Littlewood has been a vocal critic of tobacco control legislation such as the ban on smoking in pubs, as well as plain packaging.

The IEA has also received funding from Philip Morris International and Japan Tobacco International.

The BAT bosses

Nicandro Durante – chief executive

Nicandro Durante joined Brazilian subsidiary Souza Cruz in 1981, and rose through the ranks over three decades until he was appointed chief executive in 2011.

He had impressed the company’s senior management during a two-year stint as regional director for Africa and the Middle East, key areas of future growth for tobacco companies facing up to declining smoking rates in more developed economies.

Born to Italian parents in 1956 in Sao Paulo, he played football for the city’s Corinthians team in his teens before going into business.

Married with two children, Durante stopped smoking cigarettes in favour of cigars, but has no qualms about tobacco, which he described as a “very ethical” industry in a 2012 interview with the Financial Times.

In 2015, he fielded allegations from a former employee in Kenya that BAT bribed officials for various purposes, including the undermining of tobacco control laws.

BAT denies any wrongdoing. A spokesperson said: “We will not tolerate improper conduct in our business anywhere in the world and take any allegations of misconduct extremely seriously. We are investigating, through external legal advisors, allegations of misconduct and are liaising with the Serious Fraud Office and other relevant authorities.”

In 2016, Durante was handed a package of cash and shares worth $10m (£7.6m), taking his earnings over the past six years to a cool ($44m) £34m.

Richard Burrows – chairman

Addressing BAT’s shareholders earlier in 2017, Burrows toasted a “vintage year”, in which the company shrugged off bribery allegations in late 2015 to record rising profits.

Some investors were less keen on Burrows when he was named chairman in 2009.

Burrows had resigned as governor of Bank of Ireland, leaving the lender in dire straits, with big losses and mounting debt threatening its very survival.

Tens of thousands of the bank’s mortgage customers were plunged into negative equity and the lender eventually needed a state bailout that enraged many Irish people.

As the bosses of rival lenders faced public opprobrium for their stewardship of the country’s banking sector, Burrows got out just in time, landing the chairmanship of BAT in 2010.

But BAT wasn’t concerned by his record in banking, looking instead to his 22 years with Irish Distillers, during which time he was credited with turning Jameson whiskey into an internationally-recognised brand.

The Dubliner, 71, is a non-smoker who is married with four children and enjoys sailing and rugby.

He is also chairman of investment company Craven House Capital, whose assets includes beachfront land in Brazil. He is a non-executive director of Rentokil and Carlsberg.

Kieran Poynter – senior independent director

After a near 40-year career with global accounting giant PwC, which put him among the ranks of the UK’s best-paid accountants, Kieran Poynter joined BAT’s board as senior independent director.

He brought with him valuable connections, having served as an adviser to former UK chancellor of the exchequer Alistair Darling.

Poynter, a Chelsea FC season ticket holder, is a former director of the salubrious Royal Automobile Club, the gentleman’s club on London’s Pall Mall.

He also sits on the board of F&C Asset Management and IAG, the parent company of British Airways.

Ben Stevens – finance director

Ben Stevens looks after BAT’s money, and has spoken about how the company is growing market share and looking for acquisitions in Asia and North Africa.

Part of his role is trying to convince governments not to raise excise duty on cigarettes too quickly, according to an interview he gave with financialdirector.co.uk.

In the same interview, he referred to the need to have a “thick skin” because of the number of people “bashing tobacco companies”.

Stevens gave up smoking nearly 30 years ago, two years before joining the company. But said in 2013 that profits would come from “combustible tobacco” for the near future.

WHO China launches smoke-free campaign targeting youth

The World Health Organization (WHO) started a “smoke-free generation” media campaign in Beijing Thursday targeting young Chinese.

http://www.china.org.cn/china/2017-06/03/content_40957899.htm

China is in the grip of a national tobacco epidemic, and children are most susceptible with cigarettes portrayed as fashionable and alluring in popular culture, said Bernhard Schwartlander, WHO Representative in China at the launch event.

According to WHO, over half of Chinese adult men smoke, two thirds of whom started as young adults. By 2014, 72.9 percent Chinese students had been exposed to secondhand smoke.

“There is nothing cool about smoking, but there is something empowering about choosing to live a healthy, smoke-free life,” said Schwartlander.

Since China ratified the WHO Framework Convention on Tobacco Control in 2005, the country has made a number of tobacco control efforts, including banning tobacco advertisements, increasing tobacco taxes and putting forward regional smoking bans.

As of 2016, 18 cities, including Beijing, Shanghai and Shenzhen, had implemented regional smoking bans.

China has set a target to reduce the smoking rate among people aged 15 and older to 20 percent by 2030 from the current 27.7 percent, according to the “Healthy China 2030″ blueprint issued by the central authorities last October.

Cheaper cigarettes, roll-your-own tobacco slows smoking’s downward spiral

Yesterday morning, Australia’s tobacco industry woke to the latest chapter in the book documenting its inexorable decline.

https://theconversation.com/cheaper-cigarettes-roll-your-own-tobacco-slows-smokings-downward-spiral-78745

The Australian Institute of Health and Welfare released data from its 2016 National Drug Strategy Household Survey, which it has conducted every three years since 1985.

While it was always going to be hard to show even further decline in teenage smoking from what was an already very low level, it’s happened again.

The proportion of teenagers (aged 12-17) who have never smoked more than 100 cigarettes significantly increased between 2013 and 2016, from 95% to 98%. Smoking more than 100 cigarettes in a lifetime has long been used in Australia as a benchmark question to sort curious, experimental smokers from more committed and addicted smokers.

Younger people also continued to delay when they first smoked their first full cigarette. This increased in the 14 to 24-year-olds from 14.2 years in 1995 to 16.3 in 2016 (a statistically significant increase from 15.9 years in 2013).

Catch ‘em young

The tobacco industry knows it needs to attract and addict new consumers to replace those who stop smoking through quitting and death. As a 1981 report sent to the then vice-president of research and development at Philip Morris put it:

Younger adult smokers are the only source of replacement smokers … If younger adults turn away from smoking, the industry must decline, just as a population which does not give birth will eventually dwindle.

Australia’s plain packaging legislation, implemented in December 2012, was aimed at reducing teenage Australians taking up smoking. As the health minister who introduced it, Nicola Roxon emphasised in April 2010 when announcing the policy:

We’re targeting people who have not yet started, and that’s the key to this plain packaging announcement – to make sure we make it less attractive for people to experiment with tobacco in the first place.

As Australian young people have turned away from smoking, the tobacco industry is left scrambling for new ways to addict young customers to nicotine.

Total smoking levels remain level

The proportion of people of all ages who smoke was also not good news for the tobacco industry.

The percentage of people aged 14 and over who smoke daily is down from 12.8% in 2013 to 12.2% in 2016. While any decline is welcome, this was less than it should have been, and the first time in two decades that a statistically significant fall was not recorded.

There are several factors likely to be responsible for the previously brake-less downward slide in smoking.

Long-time campaigners Mike Daube and Todd Harper have set out nine strategies the Australian tobacco industry has used so it can keep earning from the deaths of two in three Australian smokers likely to die from using their products.

Two critical factors here are price discounting and the dramatic rise of roll-your-own tobacco.

How price discounting works

Plain packaging means brand differentiation is gone as all packs look the same, except for the written brand name. So, the ability of branding to convince gullible smokers that premium (expensive) brands are somehow “better” and worth spending more on than cheaper, budget brands goes out the window.

After plain packaging was introduced, there was an industry-wide decision to cut prices to compete with lower priced brands for market share. There were large tobacco tax rises in the run-up to plain packs being introduced (25% in 2010) and a further 12.5% each year from 2013 to 2016.

Again, the tobacco companies cut their margins by desperately trying to keep some brands below A$20 a pack, a price known to trigger quitting.

These practices may see renewed interest in floor pricing of tobacco products, when a price is set below which a product cannot be sold.

Rise in roll-your-own tobacco

Tobacco companies have also aggressively pushed cheaper roll-your-own tobacco by introducing loose tobacco with cigarette brand names. The tax in roll-your-own tobacco will rise from September 2017, which may see a further round of price discounting to try and stop people quitting.

The use of roll-your-own cigarettes has gone from 26% of smokers in 2007, to 33% in 2013 and to 36% in 2016. Lower price is one factor driving this, but so too are the quite erroneous beliefs that roll-your-own tobacco somehow contains fewer additives and is less harmful, an issue I will explore in my next column.

The increase in roll-your-own cigarettes since 2007 has been largest among smokers aged under 40 (increase of 82% for young adults and 70% for smokers in their 30s between 2007 and 2016). Between 2013 and 2016 roll-your-own use in smokers in their 30s jumped from 29% to 37%.

National campaign wheels fallen off

Sustained and adequately funded mass media campaigns are a vital component of strategies health authorities recommended to change health behaviours, like smoking.

And with smoking, one of the most obvious pieces of evidence comes from ex-smokers about why they stopped smoking. There are light-years between the answer that has always been given (concern about health) and everything else (cost, social unacceptability, pregnancy etc).

In this study of smokers in 20 US communities, 91.6% of ex-smokers nominated “concern for your own current or future health” as why they quit compared with 46.5% who nominated “pressure from family, friends or co-workers”.

Without large scale, on-going campaigns that reach large proportions of the population with unforgettable, motivating information about why smoking is so harmful, the core driver of quitting and not starting smoking may wane.

Regrettably, Australia’s world famous national tobacco campaign that started in 1997 and has been used by many other countries, has been mothballed since 2013 when the Coalition government took office.

Smokers still get sporadic small bursts of quit smoking ads on television in some states from state health departments. But they are not getting a fraction of the highly motivating exposures that were a big part of our earlier rapid declines. This absence is almost certainly a major factor explaining the slow down in people quitting smoking.

E-cigarettes

The latest stats show that while around 31% of smokers (ie 3.8% of the 14+ population) had ever tried e-cigarettes, 20% seemed to have done so out of curiosity (once or twice) with only 4.4% currently using them (the remaining 6.8% no longer use them). Just 1.5% of smokers were using e-cigarettes daily (0.8% of ex-smokers and 0.2% of never smokers).

There’s no evidence from these very small numbers that e-cigarette use is contributing to falling smoking in Australia.

Many are concerned that the tobacco industry (which has bought into vapourisers big time) has a business plan to have smokers vape and smoke, not vape instead of smoking. If that plays out, increases in vaping may in fact act to further slow people from quitting smoking. The next few years will provide important information on this important issue.