Cigarettes Smoking News & Info

Tobacco-addicted Bulgarians protested on Sunday against the ban on smoking in all enclosed public spaces, due to be enforced as of June 1, with a concert. The initiative, held on Alexander Batenberg square, was spearheaded by popular movie stars Andrey Slabakov and Asen Blatechki among others.

The concert opened at 4 pm and featured a number of popular rock and rap bands. Organizers claim that the initiative aimed to raise awareness of smokers' rights and the difficulties that small and medium-sized enterprises will face once the ban is introduced in cafes, bars and restaurants, regardless of size. Slabakov, a passionate chain-smoker, argues that the ban on smoking was approved not without the assistance and financial support of drug cartels.

"Humans are not angels. Once you uproot one vice, there is more free room for another one to take root. I am absolutely sure that drug cartels are pouring money for this ban to be introduced. Have you noticed that over the last 15 years talk about drugs is not so popular, whole cigarettes have gained the reputation of the biggest scourge of mankind?," Slabakov fumed recently in an interview on TV 7. Meanwhile experts have warned that Bulgaria's organized crime will see their old favorite - illegal cigarette sales - boom after smoking is banned in all enclosed public spaces.

Tihomir Bezlov, an expert from the Center for the Study of Democracy (CSD), pointed out that taxes from tobacco products account for 10% of budget revenues (compared with about 1.4% in many other EU countries), which makes the country's finances highly dependent on that market. A report by CSD presented last month says that when excise taxes went up cigarettes in Bulgaria became, in relative terms, the most expensive in the EU.

The illegal market accounts for 30% to 40% of all cigarettes sold, and is worth probably around EUR 250 M, the report says. It estimates that about 500,000 packs of illegal cigarettes are sold every day in Bulgaria. The full smoking ban in closed public spaces was to be enforced in 2010, but was postponed by the government with the argument that it might harm the country's tourism. According to the latest data, approximately 39% of Bulgarians are smokers. Some 60% are said to be in favor of the introduction of a full smoking ban in closed public spaces.

A Chinese tobacco research program has been left aside in an application for a top science award in the country, following extensive controversy over its studies in manufacturing low-tar, less-harm cigarettes. China Tobacco (China National Tobacco Corporation), which is affiliated to the State Tobacco Monopoly, had applied to have its research into supposedly less harmful cigarettes included on a list of initiatives up for the 2012 National Award for Science and Technology. The application was open to appeals from March 23 to May 2.

During the past 40 days, however, Chinese health officials, scientists, non-governmental organizations, general public and the World Health Organization representative in China have voiced strong opposition to the application. Health experts say China Tobacco's research -- which focuses on "Chinese-style" cigarettes -- misleads the public by claiming that the adding of Chinese herbs into cigarettes reduces their harm. At least 33 letters of objection have been sent to the Ministry of Science and Technology, the organizer of the science reward. The State Tobacco Monopoly then submitted an application to the ministry for quitting the reward application under the pressure.

Officials with the State Tobacco Monopoly have declined to comment, while a statement issued by the Ministry of Science and Technology on Friday only said the research program has met with opposition and the situation is "very complicated." Meanwhile, officials with the Ministry of Health have told reporters that "the current result was the fruit of the joint efforts of everybody." China has more than 300 million smokers, about 1.2 million people die from tobacco-related diseases every year in the country, and another 740 million are exposed to second-hand smoke, health experts say.

They add that China faces a particularly tough battle to prevent the interference in anti-smoking work of China Tobacco, with its lucrative tax contributions and status as a government agency. Tobacco research projects have been honored seven times in the annual National Award for Science and Technology over the past decade, the Beijing News has reported. The list of candidates for the 2012 award will be finalized late this year, and the winner announced in early 2013, after being judged by a panel of experts, according to rules of the Ministry of Science and Technology.

Last month, Fu Wei, a spokeswoman for the Ministry of Health, told a press conference that the recognition of tobacco research would violate the spirit of the award, under which it is clearly stated that research considered should not be against the protection of public health. "We oppose considering the research into so-called 'low-harm' cigarettes for the national science award," she said. The attitude of the Ministry of Health is in line with the WHO Framework Convention on Tobacco Control (FCTC), which makes a stand against all forms of promotion aimed at encouraging tobacco use, Fu added.

Indonesia’s top cigarette makers say that their sales continued to record a significant growth in the first three months of 2012, despite anti-smoking campaigns and growing public health concerns. PT Hanjaya Mandala Sampoerna (HMSP), the conglomerate that owns the nation’s largest cigarette producers, saw net sales rise 31.56 percent in the first quarter to Rp 15.4 trillion, compared to Rp 11.71 trillion in the same quarter last year.

No. 2 cigarette maker PT Gudang Garam (GGRM) also booked higher revenues, up 21.07 percent from Rp 9.48 trillion to Rp 11.48 trillion, as consumer purchasing power remains strong with manageable inflation and an overall 6.5 percent growth rate. Indonesia, the world’s fourth most populous nation, is home to its highest numbers of smokers, yet public health concerns have prompted the government to make a road map to cut cigarette consumption by 2020. “Psychologically, the urge to pay attention to health is still small,” Edwin Sebayang, head of research at MNC Securities said. “Cigarette prices remain cheap, while, on the other hand, people’s purchasing power has increased.”

The most popular brand of cigarettes in Indonesia is currently sold for around Rp 11,000 (US$1.19) per pack; in Singapore, a similar brand sells for about Rp 50,000. Domestic consumption comprises 50 percent of Indonesia’s gross domestic product (GDP), with cigarettes coming in second as the nation’s staple “food” after rice, boosting the bottom line for tobacco conglomerates, government officials have said. Net profits at Sampoerna rose 35.74 percent to Rp 2.49 trillion, while Gudang Garam’s profits rose 10.08 percent to Rp 1.22 trillion in the first quarter of this year, compared to Rp 1.84 trillion booked by Sampoerna and Rp 1.11 trillion by Gudang Garam in the first three months of 2011.

Sampoerna’s net profit growth was faster than that of Gudang Garam because it managed flat growth in its cost of goods sold (COGS), which are spent on production, at 2.04 percent in the first quarter of this year to Rp 761.22 billion, up from Rp 745.98 billion in the same period last year. “Cigarette companies’ profit margins are maintained because every time there’s an increase in tobacco excises, they can pass the increase to the consumers,” Edwin said. The government has raised tobacco excise by an average of 16 percent this year. “Due to the addictive nature of cigarettes, people will continue to look for them despite higher sales prices,” Edwin added.

But the swing in clove prices might be a challenge for the cigarette makers, reflected by the first quarter performance of one of the nation’s leading clove cigarette producers, PT Bentoel Internasional Investama (RMBA), which saw its net revenue dropping 0.04 percent to Rp 2.23 trillion to the first quarter of this year, from the same period last year. Its costs of goods sold rose 8.86 percent to Rp 1.87 trillion, leading Bentoel to suffer a net loss of Rp 35.58 billion in the first three months of this year, versus Rp 111.67 billion in comprehensive income for the first quarter of 2011. Shares in Gudang Garam rose 0.84 percent on Tuesday’s close to Rp 59,700 apiece, becoming the stock index’s No. 5 daily mover, the company is among one of the stock market’s top ten biggest listed firms with a market value of about Rp 115 trillion.

Conway City Council heard from people Monday night on both sides of the controversial possible public non-smoking ordinance. Supporters of the ordinance spoke about the health problems that second-hand smoke can cause. But more opponents sat in council chambers to show council they do not want government making the decision to snuff out cigarettes in their businesses. Most smokers admit that the result of their habit can have a harmful effect.

"Second hand smoke causes so many problems, young children can get asthma from it," Justin Wisman, a smoker from Conway, said. Wisman tries to be courteous and does not smoke around non-smokers. It won't really bother him if the city passes a smoking ordinance, he'll just go outside. But he wonders if there's a better approach to all of this. "I think it's the owner of the bar's decision really," Wisman said. Gloria Sawyer agrees. She owns Mr. Waffles restaurant and she said restricting public smoking will turn her customers away.

"It would kill our business, 95 percent of our customers are smokers," Sawyer said. She also points to Conway's history. She grew up in a family that relied on growing tobacco. "Our ancestors rooted us on something that made a good honest living, and we're just trying to continue that," Sawyer said. Some supporters did speak up to council Monday. Herbert Brown says it won't cost people business, he actually expects the opposite. "There are a lot more people that don't smoke, and don't go out because of the people that do smoke," Brown said. Brown had a heart attack two years ago and isn't taking any chances being around clouds of smoke.

"Once you're around somebody that's a chain smoker, it messes you up," Brown said. But the other side wonders if you put in place smoking restrictions, what else will the government try to eliminate in public places. "If you're going to control one thing, you must control everything. We don't want to be controlled," Sawyer said. Monday's council action was only a public input.

If council decides to move forward with an ordinance it needs to pass two readings before becoming law.