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October, 2015:

Johan Cruyff ‘diagnosed with lung cancer’ as Holland and Barcelona legend awaits results of further tests

http://www.dailymail.co.uk/sport/football/article-3284226/Johan-Cruyff-diagnosed-lung-cancer-Holland-Barcelona-legend-awaits-results-tests.html

Holland and Barcelona hero Johan Cruyff is suffering from lung cancer

The 68-year-old Dutchman was diagnosed last week in Spain

The severity of his condition will be ascertained by further tests

Cruyff was the star of the great Holland team of 1974, and its Total Football

He remains arguably the best player in history for both Ajax and Barcelona

Johan Cruyff has been diagnosed with lung cancer, his former club Ajax have confirmed.

Spanish media reported the news on Thursday, and Ajax director Edwin van der Sar said on the club website: ‘We have had contact with his manager, Carole Thate, and she confirmed to us that Johan indeed has lung cancer.

‘It has just been discovered, so they could not yet provide much more information. On behalf of the club, I wish Johan and his family a lot of strength and a speedy recovery.’

Cruyff was the star of the Holland team of the 1970s which invented the style of ‘Total Football’

Cruyff was a habitual smoker until 1991, when he underwent heart bypass surgery

The Barcelona, Ajax and Holland legend, regarded as one of the greatest footballers in history and star man of the Dutch team that introduced ‘Total Football’ to the world, was diagnosed with the disease last Tuesday in the Catalan capital.

Cruyff, 68, is now undergoing further tests to understand the extent of the disease, according to El Mundo.

A long-term smoker of around 20 cigarettes a day, Cruyff underwent open-heart surgery in 1991 while managing Barcelona. He quit smoking following the double bypass operation, and returned to his post for a further five years.

Cruyff led Barcelona to their first European Cup triumph in 1992, when Ronald Koeman’s free-kick beat Sampdoria at Wembley.

Despite winning just 48 caps for his country, Cruyff is one of the most influential footballers to have played the game. He developed close control and levels of skill years ahead of his time, pioneering the ‘Cruyff turn’ – dragging the ball back behind his standing leg to turn in the opposite direction – a move much-imitated and still used to bamboozle defenders to this day.

Public smoking may be banned in SA: Health Minister

http://www.sabc.co.za/news/a/8929c4804a4d5983a459ff6d39fe9e0c/Public-smoking-may-be-banned-in-SA:-Health-Minister–20151022

South Africans will not be allowed to smoke in public anywhere in the country if Health Minister Aaron Motsoaledi has his way. The Minister says government will soon introduce a total ban on smoking and advertising of tobacco and alcohol in the country.

Motsoaledi was speaking at the launch of a 24 hour health TV channel in Alexandra, north of Johannesburg. The new channel, The Goodlife Network, goes live on air on December 1 this year.

Motsoaledi says smoking increases diseases and puts the health system under pressure with more patients needing care when they could have prevented it.

“We are going to ban total smoking in public areas. At the moment we have put a corner in restaurants, a corner at the airport, “stupidly” even a corner at the hospital. I’m saying “stupidly” because we are outright stupid to accept that as human beings why should there be a corner for anybody to smoke in the hospital when we know the dangers. So there is going to be no corner anywhere in any public place, that is our space all of us”, says Motsoaledi.

New CASAColumbia® Report Reveals Nicotine Is not A Harmless Drug

http://www.prnewswire.com/news-releases/new-casacolumbia-report-reveals-nicotine-is-not-a-harmless-drug-300163190.html

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NEW YORK, Oct. 22, 2015 /PRNewswire-USNewswire/ — A new report released today by CASAColumbia® reveals that alternative, non-combustible products that contain nicotine, but not tobacco, are not harmless, particularly for young people. Nicotine remains one of the most addictive and potent substances, regardless of whether it is delivered through a combustible cigarette, electronic cigarette, vape pen, hookah pipe or cigar.

The report, Understanding and Addressing Nicotine Addiction: A Science-Based Approach to Policy and Practice, demonstrates that electronic cigarettes and other nicotine products are increasingly being used by young people, many of whom have never smoked traditional cigarettes and who have expressed no interest in doing so. It also shows that there is no evidence of nicotine’s safety in young people, but there is evidence that its use is associated with an increased risk of other substance use and addiction.

“It is alarming that e-cigarette use has seen a three-fold increase over one year among middle and high school students,” said Samuel A. Ball, PhD, President and CEO of CASAColumbia. “This report highlights that these products are not safe for young people. E-cigarettes and other devices that contain nicotine promote dependence on one of the most addictive and easily available drugs. Exotic flavors can attract young people to vaping, and the added chemicals in the flavors may be harmful when inhaled.”

The authors of the report call upon policymakers to take action on nicotine product regulation and to fund more research on the health and safety of nicotine products. Although electronic cigarettes may be safer for those with nicotine addiction who have been unsuccessful in quitting cigarette smoking, these products have not been proven safe. Unlike FDA-approved nicotine replacement therapy, which is a safe and potentially effective smoking cessation method in adults, there is no strong evidence that electronic cigarettes and similar products are effective smoking cessation aids. There is some evidence that they might actually perpetuate cigarette smoking. Research shows that these products frequently are used in conjunction with cigarettes, rather than as a substitute for cigarettes, which increases the user’s exposure to nicotine.

“Our findings show that a science-based approach to the regulation of all nicotine-containing products is required,” said Linda Richter, PhD, Director of Policy Research and Analysis at CASAColumbia and the report’s lead author. “It’s time for the FDA, as well as state and local governments, to act to protect young people from the harms of nicotine and other addictive substances. That non-cigarette nicotine products are safer than cigarettes is not in dispute. But if we wait for all the evidence regarding their long-term harms and benefits to come in before we act, countless young people will get hooked on nicotine, a highly addictive drug.”

Highlights of the report include:

· Evidence regarding the prevalence of nicotine use and addiction
· The effects of nicotine on the brain and body
· Risk factors for nicotine addiction and the groups most at risk
· Current prevention and treatment efforts and the implications of this research for policymakers and health care providers
The report is available for download at no cost and can be found on our website at: http://www.casacolumbia.org/addiction-research/reports.

About CASAColumbia
CASAColumbia is a national nonprofit research and policy organization focused on improving the understanding, prevention and treatment of substance use and addiction. Founded in 1992 by former U.S. Secretary of Health, Education, and Welfare, Joseph A. Califano, Jr., our interdisciplinary experts collaborate with others to promote effective policies and practices. We conduct and synthesize research, inform and guide the public, evaluate and improve health care, and analyze and recommend policies on substance use and addiction. For more information, visit www.CASAColumbia.org.

Philip Morris: Reading The Smoke Signals In 2015 – Part 1

http://seekingalpha.com/article/3592586-philip-morris-reading-the-smoke-signals-in-2015-part-1

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More…)I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Summary

Roughly one year after my series on international tobacco, I have decided to write an update.

I will focus primarily on the performance of Philip Morris versus its three largest international competitors.

In the first part of the 2015 series, I will study the competitive dynamics in Western Europe.

Due to popular demand, I have decided to write another installment of my 2014-published series on international tobacco called ‘Reading the Smoke Signals’. As customary, I will focus mostly on the international arena (excluding the U.S. and China), because this is the primary battleground for Philip Morris (NYSE:PM) and its largest competitors: British American Tobacco (NYSEMKT:BTI), Japan Tobacco (OTCPK:JAPAY) and Imperial Tobacco (OTCQX:ITYBY). This article will focus on the relative performances delivered by these four companies in some of the different geographic areas in which they compete. I will also look at some of the important structural developments, including the increased pace of consolidation seen year to date. Since Philip Morris is the international market share leader, this company in particular is the focus of the article. In this first installment, I will take a look at the competitive landscape in Western Europe.

Philip Morris in Western Europe

Western Europe is a mature cigarette market with high average prices as a result of high excise tax levels. It also has an increasingly strict regulatory environment with more regulation in sight, as the new EU tobacco products directive is mandated for adoption by EU member states in the spring of 2016 at the latest. Profitability in this region is above average as a result of high average income levels and high average tobacco prices at retail. Philip Morris is the undisputed share leader in the region, due in important part to Marlboro’s long-time leadership and continued resilience. The new Marlboro 2.0 architecture appears to have benefited the brand’s consumer perception and its market share has continuously showed improvements over the past 4 years or so. Marlboro market share in the region was up to 19.3% for 2014 and has increased further to 19.4% as of September 2015. That is an important indication of PM’s ability to keep the brand relevant despite its reliance in part on an aging demographic.

The pace of volume declines in the EU market overall accelerated during the economic crisis in 2008. Next to economic reasons like pressure on personal incomes and high unemployment rates, other important factors contributing to this pressure have been increasing tax rates, an increased prevalence of illicit trade, e-cigarette consumption and increasing regulation because of health concerns. In 2014, however, the industry saw significant moderation in volume declines as a result of the decreased popularity of e-cigarettes, a decrease in illicit trade and some economic improvements as well.

Market share for Philip Morris in the region was up to 39.8% for 2014 and to 39.9% as of September 2015. Next to Marlboro, PM relies on brands like L&M (up 0.1pp to 7.1% share) and Chesterfield (up 0.3pp to 5.8% share) as its most important volume drivers. In markets like Italy and the Czech Republic, it also has ownership of local brands like Diana and Red & White, respectively, that have generally witnessed declines as consumers gradually move to international brands. Philip Morris’s performance has been strong in recent years, as it continues to gain share in many of the region’s most important markets. Its market shares were up during 2014 in all of the following markets: France (up 0.8pp to 41%), Germany (up 0.4pp to 36.6%), Italy (up 1.8pp to 54.9%), Poland (up 1.9pp to 40.1%) and Spain (up 0.9pp to 32.1%). Marlboro’s performance was strong primarily in France and Spain, while L&M drove performance in Poland and Germany. Improvements in Italy were driven by share gains delivered by Chesterfield, which continued to derive benefits from its price repositioning in this market. Market share improvements were reflected in PM’s overall volume improvement of +0.1% during 2014, while the total cigarette market was lower by -3.1%.

The trends seen during 2014 have largely continued during the recently reported 9M period of 2015, with further share improvements seen in France, Germany and Spain. In Italy, the positive performance of 2014 was reversed due to share declines seen in Marlboro as a result of price increases (from €5 to €5.20 a pack), with weakness in brand Philip Morris as well (which includes the morphed local brand Diana), as a result of increased competition in the low-price segment.

British American Tobacco in Western Europe

British American Tobacco has been locked into a battle for the No. 2 share position in Western Europe with Japan Tobacco for a number of years now. BAT appears to be losing this battle when looking at current data. British American’s volume in the Western European segment was down by -5.88% to roughly 112 billion sticks during 2014, while Japan Tobacco’s volume was up slightly by 0.09% to 111.4 billion sticks (for comparison: PM’s was 185.2 billion). In 2014, BAT performed well in markets like France, the Benelux, the U.K., Spain and Poland. Weaker performances were delivered in markets like Italy, Denmark, Switzerland and Germany. Weakness seen in Italy during 2014 appears to have improved notably during the first half of 2015, although the company’s reporting does not really allow for great market share insights.

BAT’s Rothmans brand continues to amaze in terms of volume improvements and added 10 billion sticks during 2014 to its 2013 volume of 26 billion sticks globally (roughly +38.5%). This brand’s strong growth benefits BAT’s European performance in certain markets as well. Italy is one of the markets, where the company is deriving benefits from the performance of this brand, which was up to 4.1% share of market in H1-2015, up from 0.2% in H1-2013 and 2.4% in H1-2014. Rothmans is probably the fastest growing cigarette brand globally (out of those with notable size of course) as a result of its roll-out into new markets and the strong performance of innovations like convertible cigarettes. BAT’s share in Italy stabilized at 20.2% for H1 of 2015 as a result of the performance displayed by Rothmans in this market.

Romania continues to be a BAT stronghold with total share up to roughly 54% in Aug-2015 versus 53.8% during 2013, largely as a result of higher share for Global Drive Brands (GDB) like Kent, Dunhill and Pall Mall. Pressure on BAT’s German share of market during 2014 seems to have been reversed during H1 of 2015, with important brands like Pall Mall and Lucky Strike bouncing back and rising above their shares of last year. This development pushed BAT’s share back up to 19.5% (June 2015) versus 19.4% for the same period last year. In France, BAT’s share has been on the rise thanks to strength displayed by Lucky Strike, with that brand’s share up a full share point to 8.3% in July 2015 and total BAT share up to 17.6% in the same month (17% during 2014).

The most important development in the area of European tobacco M&A was conducted by British American, when it acquired TDR a couple of months ago. The acquisition price totaled €550 million including debt, roughly 12.5x EBITDA of €44 million (2014), which is broadly in line with historic tobacco buy-out multiples. It is not a particularly large acquisition and I am not very familiar with the business in question. TDR apparently has a leading market position in the Balkan country of Croatia (once part of Yugoslavia) and a relevant presence in the neighboring countries Bosnia and Serbia. I expect BAT will use the acquisition, which includes a manufacturing facility in Croatia, as a platform to further develop its business and brands in Central Europe.

Japan Tobacco in Western Europe

Japan Tobacco saw broad-based market share gains in many Western European markets during 2014 with important markets like France up to 20.8% share (+0.8ppt) and Spain to 21.7% (+0.7ppt), largely driven by strengths seen in brands like Winston and Camel. The good performances delivered in these markets were continued during H1-2015 with France up to 21.1% and Spain up to 22%. Market share in Poland improved further as well and was up to 16.4% during H1-2015. Other good performances were delivered in the Czech Republic, Hungary, Germany, the Benelux countries, Greece, Ireland, Poland and Switzerland.

Performance in Italy apparently was less favorable, which continued during H1-2015 because market share dipped to 20% during that period, even though the company’s newly launched Benson & Hedges value offering saw good growth. Austria was a weak performer as well as market share dropped to 32% (down 0.2ppt), with further declines to 31.4% during H1-2015. In the U.K., the company continued to show resilience by widening its leading position, with Amber Leaf further consolidated as the No. 1 fine-cut brand in this market, Sterling is still No.1 in cigarettes and total company share up to 41.6% as of June 2015. I consider the performance of JT in the U.K., especially admirable because it is being achieved largely through the continued strength of local brands, thereby defying the negative growth seen in national brands in most other cigarette markets. In the U.K., the tobacco market is largely divided between Imperial Tobacco and Japan Tobacco, with share gains made by Philip Morris and BAT apparently primarily at the expense of Imperial Tobacco.

In Romania, JT also continues to perform well with its share of market up to 25.2% due to strength in Winston, Sobranie and Benson & Hedges. It has a decent No. 2 position in this market after BAT, which has roughly half the market.

Imperial Tobacco in Western Europe

Imperial Tobacco meanwhile relies to an important degree on core markets like France, Germany, Spain and the U.K. for a large part of its European volumes. This company is extremely reluctant with providing data on market share performance, which I attribute to their largely unfavorable track record on this metric. I believe the company lost market share in all four of its core European markets, which is due at least in part to their inferior brand portfolio which contains mostly local brands. Their historic strength in fine-cut tobacco has also been less advantageous than one might expect to be the case in austerity-stricken Europe, because the other companies have leveraged their cigarette brands to launch fine-cut offerings as well.

Imperial Tobacco has been actively trying to gain share of the Italian market with its John Player Special brand, which I believe is the factor primarily responsible for the changed dynamics in the lower-priced segment of this market. Imperial gained share in Italy during 2014 from a modest level. This positive momentum was continued during H1 of 2015 with premium brand Davidoff also doing well. Other gains were delivered in Greece, the Nordics (in snus tobacco), Portugal and the Czech Republic. Share declines were registered in markets like the Benelux and Germany (in fine cut), with share developments apparently stabilizing in Austria. The developments in Imperial’s most important European markets largely continued in the same direction during 2015. The Benelux countries, which are also important fine-cut markets for Imperial, apparently showed more stabilized share performances.

Market share was reportedly down in the U.K. during H1-2015. Interestingly, the company reports having a ‘leading position’ in the U.K., but in my opinion they now trail Japan Tobacco in this market.

The U.K. is one of the most important European markets for Imperial Tobacco, because it has long held a significant market share there, although this position has been eroded somewhat by PM and BAT gaining share with Marlboro and Rothmans, respectively.

IMT does not provide extensive volume numbers either, but its global volume was down strongly during its fiscal year 2014, namely by -7.26% to 294 billion sticks. This was due in part to an inventory realignment program that ended during the year, as could be seen by the moderation in its reported decline to -2.77% for 9M-2015 (the underlying decline was -6% though). I strongly expect this company’s organic growth will continue to underperform its international peers, although it has in the past year benefited from its lower-than-average exposure to emerging market currencies and the brand acquisition in the US.

Conclusion

Philip Morris and Japan Tobacco continued to outperform in the Western Europe region during 2014 and H1-2015, with British American and Imperial showing significant weakness during FY 2015, but apparently showing some improvements during H1-2015. Since PM, BAT and JT have all reported significant gains in important markets like Germany, France, Spain and the U.K. over the past years, I strongly suspect Imperial Tobacco is losing ground rather quickly in these countries.

Imperial Tobacco is a company that has conducted a lot of acquisitions during the past two decades or so; its significant presence in France and Spain is the result of its 2008 acquisition of Altadis (which was created out of those two countries’ former state tobacco monopolies). It, therefore, relies extensively on local brands in these markets, which are very consistently being outcompeted by the international brands owned by PM, BAT and JT. In Germany, Imperial Tobacco also has a strong presence as a result of its 2002 acquisition of Reemtsma, which includes a strong presence in the fine-cut tobacco category. This is a very large segment of the German tobacco market overall, which should have served Imperial well since it is a fine-cut specialist, but the other companies have successfully taken share in this category as well. In my opinion, therefore, Philip Morris and Japan Tobacco have shown themselves to be the best operators in Western Europe.

In the upcoming Part 2 of my ‘Reading the Smoke Signals 2015′ series, I will take a look at the performance of the international tobacco companies in another geographic region, so keep an eye out!

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

Spotless leopards? Decoding hype on e-cigarettes

http://theconversation.com/spotless-leopards-decoding-hype-on-e-cigarettes-49291

This is the full text of a paper I presented to the Oceania Tobacco Control Conference, Perth on October 21, 2015.

E-cigarettes are the latest innovation in nicotine delivery products to fly the harm-reduction flag. They follow the massive failures of cigarette filters. Over decades, filters falsely reassured millions of smokers that they were reducing their exposure to harm and so could keep smoking.

We also had the lights and milds fiasco – which saw 80% of Australian smokers select those misleadingly labelled brands, which the ACCC outlawed from 2005 as a consumer fraud.

Along the way we saw reduced carcinogen brands and even asbestos filtered cigarettes.

There was massive publicity about harm reduction from filters and low tar, and massive consumer uptake, but not a blip in the incidence of tobacco caused disease in those who still smoked.

Thanks to harm-reduction arguments, countless smokers continued smoking who might otherwise have quit. The tobacco industry drove these arguments and was supported by many in public health who innocently thought they were no-brainers. Nigel Gray, a giant of global tobacco control, later admitted that the decades-long, well-intentioned low-tar harm-reduction policy was a disaster.

Meanwhile, we continued with the core policies of trying to prevent uptake, encourage quit attempts and denormalise smoking via smoke-free policies to protect non-smokers. Together, these objectives have delivered Australia the lowest smoking prevalence in the world.

For 35 years since the early 1980s, we have seen continually falling incidence rates of tobacco-caused disease. Female lung cancer seems likely to never reach even half the peak we saw in males. Awkwardly for some, Australia has become a world leader in reducing smoking without any mass cessation clinic network or major embrace of e-cigarettes.

Today, demands are being made to rush in soft-touch regulation to allow e-cigarettes to be manufactured, flavoured, promoted and used virtually without restriction.

This is all being done on the shoulders of an argument that insists that after 50 years of tobacco control, there remain many smokers who can’t or don’t want to give up their nicotine dependence, and that in just a few years, sufficient evidence has already accumulated to show that e-cigarettes are both benign and great for cessation.

But the “can’t quit” argument has received remarkably little critical interrogation. We know that hundreds of millions of often heavily dependent smokers have quit since the early 1960s, most without any assistance at all.

We know that today’s smokers smoke fewer cigarettes per day than at any time in the past, exactly the opposite of what the hardening hypothesis would predict.

The demands of the “we don’t want to quit/we love nicotine” vaping activists for unregulated access to e-cigarettes and to use them without restrictions must be balanced against the risks of what these demands might mean for population-wide progress toward the goal of keeping smoking heading south.

Comprehensive tobacco control is not just about the preferences of vapers. It is most importantly about continuing to starve the tobacco industry of new recruits and ensure that smoking is made history.

If we think of e-cigarettes as a transformative genie in a bottle, we need to think very carefully before letting it out, because putting genies back in their bottles is much more difficult than impulsively letting them out. If they prove to be benevolent, all’s good. But if they bring false hopes and keep many people smoking, we may be looking at the early days of a third major false god of tobacco harm reduction.

That genie is well out of the bottle in England and the United States, and other countries need to watch what is happening there very closely.

Today, I want to examine four cornerstones of the public health case being megaphoned for e-cigarettes.

1. E-cigarettes are benign and the risks of nicotine are “like drinking coffee or something …”

No one sensible makes the argument that e-cigarettes are likely be even remotely as harmful as smoking.

The 2015 Public Health England report endorsed the “95% less harmful” than smoking estimate. They took this from a consensus report authored by 12 people. Six of these were subsequent signatories to the 53 signature letter to Dr Margaret Chan at the WHO calling for minimal regulation. Six had no research track record or experience in tobacco control whatsoever. Two had financial ties to the tobacco or e-cigarette industries (see here and here).

There is no transparency about how this group was selected. But this was plainly not a group which was ever likely produce a consensus that was anything but glowing about e-cigarettes.

But let’s assume they may have been in the risk comparison ballpark. If e-cigarettes are 5% as harmful, then we would only see 300,000 deaths a year globally from e-cigarettes, instead of six million if every smoker switched.

On present trends, (England’s Robert West suggests e-cigarette growth may have already plateaued in England) that scenario is as likely as pigs flying.

A far more likely scenario – as I will argue – is one that sees a continuing stream of smokers quitting mostly unaided as they always have; significant numbers attributing their quitting to e-cigarettes; but a slowing in overall quit attempts as many dual-using vaping smokers keep smoking at reduced rates, in the erroneous belief that they are reducing harm.

The quality of evidence we have for declaring e-cigarettes to be benign has been described in another review as very poor. A 2014 review concluded:

Due to many methodological problems, severe conflicts of interest, the relatively few and often small studies, the inconsistencies and contradictions in results, and the lack of long-term follow-up, no firm conclusions can be drawn on the safety of ECs [e-cigarettes]. However, they can hardly be considered harmless.

This review was not even referenced in the Public Health England review.

The health problems caused by tobacco develop over decades. Every year will bring us more and more information about what the consequences of the typical daily vaper inhaling nicotine, propylene glycol, and an unregulated cocktail of fine and ultra fine particles like flavouring agents approved for ingestion in foods but not for inhalation an average 120 times a day (43,800 times a year).

We will also see what the International Agency for Research in Cancer has to say about whether nicotine is carcinogenic, having declared in 2014 its assessment to be one of its priorities.

2. How good are e-cigarettes for smoking cessation?

Earlier this year, a paper co-authored by five of England’s best tobacco control researchers, including Robert West and Ann McNeill, reported the world’s first prospective cohort data on the question of quitting via vaping versus other methods.

Their data are of great importance because by distinguishing daily from non-daily vapers, they allow the differentiation of casual and experimental users from daily users. Their study also provides data on outcomes 12 months later.

The paper commenced by noting that:

Smoking prevalence in England has been declining from 20% in 2012 to 18.4% in 2014, and in 2014 smoking cessation rates were the highest since at least 2008. This simultaneous increase in e-cigarette use and cessation may be coincidental, and it is therefore vitally important for longitudinal studies to be conducted to assess the impact of e-cigarette usage on quitting behaviour.

So what did the study find?

Daily use of e-cigarettes while smoking appears to be associated with subsequent increases in rates of attempting to stop smoking and reducing smoking, but not with smoking cessation. Non-daily use of e-cigarettes while smoking does not appear to be associated with cessation attempts, cessation or reduced smoking.

A companion paper broke down the data further by type of e-cigarette product. Daily tank system users were the only group which showed a significant improvement in smoking cessation.

But of 1,643 smokers followed up at 12 months, only 69 – just 4.2% – were daily tank vapers at 12 months. And just over one in four of these – only nineteen or 1.2% of the total sample – had quit. This is hardly the stuff of revolutionary dreams for population-wide cessation!

In addition to the Ann McNeill-led studies I just mentioned, Robert West’s group’s Smoking Toolkit study has been monitoring tobacco use in England every month since 2007, including e-cigarettes since 2011.

While the McNeill group has reported that 2014 smoking cessation rates were the highest since at least 2008, the latest data from August in the Smoking Toolkit study show the lowest percentage of English smokers trying to quit since 2007 (31.6% down from a high of 42.5% in 2007).

These two data sets thus appear to show quite different, perhaps incompatible results about the proportion of smokers making cessation attempts and actual cessation. Greater clarity on this key issue is badly needed.

In August, the English Smoking Toolkit study reported that the large majority (over 80%) of e-cigarette users are dual users: they also continue to smoke.

Many vaping advocates downplay this gigantic elephant in the room with fingers-crossed optimism that dual use should always be seen as just a transitory phase that smokers go through before they quit smoking. As I will argue soon, the tobacco industry has other ideas about this.

So putting these studies together for England – “e-cigarette central” – where, in plain language, are we today?
• Non-daily vaping has no impact on cutting down or quitting.
• Daily vapers make more quit attempts than non-vaping smokers.
• But they don’t succeed any better than those who don’t vape.
• Daily tank vapers do better at quitting, but the numbers involved are very small.
• 80-90% of vapers are dual users.

And while this has been happening, the English Toolkit study reports that:
• Quit attempts among English smokers at large are at the lowest level since 2007.

3. Do vaping smokers cut back more than non-vaping smokers?

The Brose et al paper from England reported that at 12 months, 13.9% of daily e-cigarette users reduced cigarette smoking substantially.

But let’s turn the last figure around.

Even among those smokers who vaped daily, 86.1% did not even cut back smoking substantially. That’s how good e-cigarettes are at just reducing smoking. They are far less successful, for example, than workplace smoking bans, where we see 20% reductionsfrom reduced smoking opportunities.

I’m sure you’ll agree that all the Big Tobacco companies now selling both cigarettes and e-cigarettes must be simply mortified by this news.

But does reducing daily smoking substantially (>50%) reduce deaths from smoking caused disease?

Let’s suppose that most daily, sustained vapers did cut back substantially (which they don’t), would this be harm reducing?

We’ve known for decades that three synergistic variables (age of smoking onset, amount smoked and duration of smoking) are critical in predicting mortality from smoking. There is a dose-response relationship that no one disputes here: those who smoke more are more likely to die from their smoking than those who smoke less.

From this, it’s understandable that many smokers believe that, just as they know water to be wet, cutting down the number of cigarettes they smoke will reduce their harm.

But this is quite a different claim. The epidemiological data on lifetime risk is about total pack years and does not consider the question of whether the cumulative risks of smoking can be “reverse engineered” by reducing.

But there is large-scale research on this and it is not good news for the “cutting down obviously reduces risk” dogma. Four cohort studies published since 2006 have reported on whether reducing smoking, as opposed to stopping smoking altogether, confers any mortality benefit.

A Norwegian cohort of 51,210 people followed from the 1970s until 2003 found:

no evidence that smokers who cut down their daily cigarette consumption by >50% reduce their risk of premature death significantly.

A Scottish study of two cohorts followed from the 1970s to 2010 also found no evidence of reduced mortality in reducers, but clear evidence in quitters. It concluded that:

reducing cigarette consumption should not be promoted as a means of reducing mortality.

The largest study, from Korea involving nearly half a million men followed for 11 years, found no association between smoking reduction and all cancer risk but a significant decrease in risk of lung cancer, but with the size of risk reduction being “disproportionately smaller than expected”.

Vapers who keep on smoking – which is most of them – are fooling themselves if they think they are seriously reducing risk.

I now turn to the future of vaping. “Think of the children!” is a common sarcastic slur made daily by vaping activists across social media. These self-absorbed misanthropes, today’s WC Fields clones in their disdain for children, could not care less about the implications of e-cigarettes for teenagers.

All they care about is their unhindered access to unregulated vape gear and their rights to vape anywhere: in workplaces, next to you on planes, and presumably while driving the school bus, inside child care centres and hospitals.

They want access to flavours like Gummy Bear and Bubble Gum that would cause a riot at a three-year-old’s birthday party.

Vape is apparently so close to pure air that any restrictions are totally unwarranted.

In England, vaping by non-smoking kids is very uncommon. Nearly everyone thinks that is self-evidently a good thing.

But the same cannot be said about the United States where data from the US National Youth Tobacco Survey show that while cigarette smoking continues to fall ammong US teenagers, e-cigarette use has been dramatically increasing since 2011. It is now way ahead of cigarette smoking: there are now some 67% more middle and high school kids vaping than are smoking.

Apologists for teenage vaping actually try to argue that this is a good development! You see, all those teenage vapers would have been smoking were it not for e-cigarettes.

The small problem here is that this rise was not associated with a rise in dual or multiple tobacco or nicotine product use, and the decline in cigarette smoking had been falling before e-cigarettes arrived.

Some argue there is no problem in having tobacco- and nicotine-naïve youth taking up e-cigarettes and becoming addicted to nicotine.

Others would prefer authorities, such as the US Surgeon General and the International Agency for Research in Cancer, not vape shop owners and industry spin merchants, to assure us there’s nothing to worry about with such uptake. But as yet they have not.

Nearly all businesses survive and flourish by retaining existing customers and critically, stimulating new customers to start. If you sell tractors or sheep dip chemicals, you will have little expectation of finding new customers who don’t own sheep or land where a tractor might be needed.

But if you are selling products which have potential to be used by more than those already using them, you are vitally interested in non-users. Cigarette and e-cigarettes fit that description perfectly.

Leopards don’t change their spots. For decades the tobacco industry told us – and still does – that it is not the least bit interested in teenage smoking. If BAT succeeds in getting its hands on the Cancer Council Victoria’s teen smoking data, we all can be assured that it will keep the contents strictly within its opposition to plain packs division and never show the data to its salivating “capturing new smokers and vapers” divisions.

The global e-cigarette market today is a mixture of big tobacco-owned brands and those owned by start-up incumbents. The tobacco industry is rapidly acquiring those minnows it regards as likely to be most profitable and strategic.

Wide-eyed vaping advocates would have us seriously believe that the tobacco industry, with its billions of dollars in assets and long history of acquisitions, will not somehow soon swallow up most of these just as it did small tobacco companies all over the world.

No tobacco company currently acquiring e-cigarette brands is desisting in any way from attacking effective tobacco control. Plain packs are being attacked. Every day BAT bleats on Twitter about how high tobacco tax – the most important plank in comprehensive tobacco control – is causing more illicit trade.

The message is clear: taxes should be lowered, to make smoking more affordable and to arrest brutal falls in smoking.

Quite obviously, this is not an industry which wants smokers to stop smoking. It’s an industry with a business plan to have smokers keep smoking and to also vape when they can’t smoke.

It is an industry that understands how to erode the nicotine consumption “downtime” caused by smoke-free policies that have badly reduced sales. And guess what? This is exactly what most smokers who vape are doing.

The concept of e-cigarettes being a “gateway” into smoking has been rightly criticised as being an imprecise and vague, often being little more than crude “after therefore because of” reasoning.

But glib dismissals of the rapid rise of teenage use in “kids just try stuff” throw-away lines ignores the many appeals of vaping to teenagers and the fact that youth smoking is the lowest on record. Increasingly, most kids don’t “just try” smoking.

A very useful model of how e-cigarettes may work as a catalyst for smoking has recently been published. The authors provide a causal hypotheses for the initiation of e-cigarette use and for the potential transition to tobacco smoking that highlights the combined factors of:

• perceived negligible risk
• attractive taste options
• lower price
• inconspicuous use
• higher level of peer acceptance.

This model could stimulate important research into understanding e-cigarette uptake and any apparent transition to smoking.

We are well on track to see the end of the tobacco epidemic in this country. E-cigarettes may have a role in that. Time will tell. But there are major concerns about the core claims being made for e-cigarettes.

Australia should consider any policy changes in harm reduction very carefully. We should all be open to quality evidence that might suggest that this time we have something different. But equally, we do not want to repeat mistakes of the past.

Keep vaping China, don’t listen to the World Health Organization on e-cigarettes

When it comes to smoking and vaping, the world of public health seems more like Oceania, 1984, every day. In that Orwellian realm, Big Brother issued nonsense statements such as “war is peace, slavery is freedom, ignorance is strength.”

In the U.S., the CDC and the California Department of Health have assumed the role of Big Brother, effectively telling smokers they might as well keep puffing because ecigarettes are hardly any safer. Talk about an Orwellian inversion statement!

In truth, vaping is far less risky than smoking. E-cigarettes and other devices heat a nicotine solution to produce an inhalable vapor. They release none of the carcinogenic tar of cigarette smoke, making them the ideal nicotine-delivery system for smokers seeking to reduce or halt their intake of combusted tobacco products.

On a global scale, the World Health Organization is Big Brother. Dr. Margaret Chan, the WHO’s director-general, is a confirmed skeptic. As she told China Daily last week– “I recommend that national governments ban, or at least regulate, them,” she said. (Elsewhere, Dr. Chan has opined that e-cigarettes should be regulated the same way cigarettes are regulated– even though they are not remotely equivalent in terms of harm.)

Dr. Chan’s comments were contained in a news story on Beijing’s crackdown on indoor smoking which began on June 1st. The ban has reportedly boosted the public profile of ecigarettes.

As a result, the article said, vaping is becoming increasingly popular, particularly with young urbanites, according to Gan Quan, China director of the International Union against Tuberculosis and Lung Disease.

This is good news. As a just-published report in Lancet about the toll of smoking in China makes clear, switching from smoking to vaping for people who can’t quit on their own or via traditional means is a public health imperative. Researchers reported that two in three men there smoke (under four percent of women do). They estimate that smoking will cause about 20% of all adult male deaths in China during the 2010s. In raw numbers, the annual deaths in China caused by tobacco will rise from about 1 million in 2010 to 2 million in 2030 and 3 million in 2050, unless there is widespread cessation.

Beijing’s vaping trend is promising but country-wide, rapid transition from smoking to vaping is unlikely because smoking is deeply embedded in the culture. As a commenter in China Daily wrote: “Serving a cigarette is good manners. When we meet our boss, we serve a cigarette to him to show our respect. When we talk to somebody, we offer a cigarette as a peace offering, which will build trust observably. We thank our plumber with his fee and a cigarette, we serve a cigarette to a guest, suggesting ‘You are very welcome.’ A cigarette (a nice cigarette is better) is an external, material expression of a compliment. To our shy, not-good-with-words Chinese, cigarettes helps us talk.”

These facts show how nonsensical it is to consider a ban on e-cigarettes while failing to call for one on cigarettes. After all, cigarettes are 20-100 times more dangerous than
vaping.

In fact, if China truly wants to be smoke-free, it is not clear why the government, which is not known to be shy about imposing paternalistic policies in other areas, does not simply ban cigarette production and let e-cigarette use bloom.

After all, e-cigarettes are a homegrown product, invented in China in 2003. Shenzhen province housed 900 manufacturers of the devices in 2013, up 200% from the previous year, and accounted for over 95% of global e-cigarette production. Yet, despite considerable progress in e-cigarette industry, China’s traditional cigarettes still dominate the Chinese market.

As Yanzhong Huang of the Council on Foreign Relations recently pointed out, “If only 1% of China’s smoking population turned to e-cigarettes, it would mean a market of about 3.5 million e-cigarette users.” The state-owned China National Tobacco Corporation, which sells almost all of the cigarettes consumed in the country, could become the world’s largest e-cigarette maker.

Right now, however, the Corporation is a massive income source for the nation. It generates CN¥816 billion (7-10% of GDP) in revenue. Indeed, tobacco receipts finance as much as half of some provincial governments’ budgets. The loss of so much income would make prohibition a huge challenge.

Another barrier is low public awareness. Only 25 percent of Chinese adults have a comprehensive understanding of the health risks of smoking, and less than a third are aware of the dangers of second-hand smoking, according to World Health Organization.

Less than 10 percent of Chinese smokers quit by choice and Chinese people are beginning to smoke at younger ages.

As for those Chinese smokers who do turn to vaping, China’s e-cigarette industry is currently very poorly regulated and the quality of vaping products is uneven. If ecigarettes are to replace traditional cigarettes and offset lost tobacco revenues, the government must regulate the industry more carefully to ensure safety and quality.

In the end, China is unlikely to ban cigarettes. At the very least, then, the environment should be made as friendly as possible for moving smokers to quality-made e-cigarettes.

Is there any hope for WHO on this issue? Dr. Chan has already received important information about the promise of electronic cigarettes. In spring 2014, 53 international health experts wrote a joint letter encouraging her to “resist the urge” to “control and suppress” electronic cigarettes by classifying them as equivalent to cigarettes for purposes of regulation. The letter was issued in the run up to the sixth Conference of the Parties, COP6, under the Framework Convention on Tobacco Control. The signatories advocated for tobacco harm reduction, or safer nicotine use in the form of vaping, to be considered by the parties.

In the fall of 2014, COP6 culminated in a decision to “prepare an expert report, with independent scientists and concerned regulators, for the seventh session of the Conference of the Parties. The report will include an update on the evidence of the health impacts of [electronic nicotine delivery systems], [their] potential role in quitting tobacco usage, [and their] impact on tobacco control efforts.”

This sounds promising – if the scientists involved are truly independent of a pre-existing animus against harm reduction. Geneva insiders, such as Dr. Delon Human of Switzerland-based Health Diplomats, anticipate that such an analysis won’t be available until the next COP meeting, probably slated for fall 2016.

One wants to be optimistic about COP7, but just in case, I hope many of the experts who penned the earlier letter to Dr. Chan, will write her again with a detailed, data-rich assessment of the virtues of tobacco harm reduction. If WHO is a responsible, evidence driven agency, it will quit the doublespeak on e-cigarettes.

All Party Parliamentary Group on Smoking and Health

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WHO REPORT On THE glObal TObaCCO EPidEmiC, 2015 – Raising taxes on tobacco

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THE TOBACCO ATLAS 5th Edition

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WHO website downloadable reports on ‘tobacco taxation’

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