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mercoledì 13 agosto 2014
The smoke is harmful to health
The three big sisters tobacco
Thailand. Tough fight to smoke
Tobacco: no appearance
The conquest of the Est
The Italian cigarettes do not "draw"
routes accomplices
The multinational seriously detrimental to health
Cigarette consumption moves to the South. Between 1990 and '97 increased by 24.3 per cent in the Middle East, 8.6 per cent in Asia-Pacific and 3.6 per cent in Africa, while during the same period has decreased in Western countries: less than 10.9 per cent in Europe, less than 7.6 per cent in North America. It also decreases in Latin and Central America: less than 16.5%. About tobacco control policies, according to the World Health Organization: thanks to the anti-smoking campaigns, consumers of the North know that cigarettes are bad (worse: cigarettes you can die) and try to stop. Merit also of the more restrictive laws. Since 2002 the European Union on cigarette packets will be printed with images of lung cancer and the words "Smoking kills" and from 2006 brands of cigarettes will be banned from sponsoring Formula 1 In the South, this does not happen. And the tobacco companies took advantage with aggressive advertising campaigns or winking to raise consumption. Warning, it is a sea change: today because of the smoke dies 4 million people a year, almost half in the South. By 2030, the dead will be 10 million and 70% will be in the poorest countries.
The South new frontier for tobacco companies, with a big advantage: the tobacco control is weak or non-existent.
The first manufacturer in the world (by quantity) of cigarettes and tobacco products is the China National Tobacco Corporation (Cntc), owned by the State: China produces 2.5 million tons of tobacco every year, a third of the world total. But Cntc is not a multinational. The names that meet more often instead ovunque and therefore also in the South of the world are three: Philip Morris, British American Tobacco, RJ Reynolds. Work through joint ventures with local companies or granting to these the exploitation of their brands.
In the Global South multinationals have hands-free or nearly so. Starting with the packaging. If I buy a pack of cigarettes in Oslo, Norway, I find 10 different directions on the harmfulness (among other things: cancer, addiction, heart disease, dangerous during pregnancy, passive smoking), if I buy it in Montreal, Canada, the reports are 8, 5 in Italy, Denmark or New Zealand 4.
Same pack of cigarettes in the South? General indications of harm or anything. Report no warning about the dangers of smoking cigarettes sold in Uganda, Cambodia, Cameroon, Niger.
Same cigarette package means the same manufacturer. Why, then, two weights and two measures? Because the law allows: only 26% of countries "developing" asks for cigarette manufacturers to print warnings on packets, against 89% in the North of the world.
So for advertising. In Western countries the direct promotion of cigarettes and tobacco products is usually prohibited. The multinationals are trying to circumvent restrictions with several sponsorships: from cultural and sporting events to clothing lines.
Try instead to stroll through the streets of Dakar, the capital of Senegal. Billboards giant umbrellas to shelter from the sun, concert posters: all sponsored by cigarette brands most popular with a lot of package in plain sight. And consumption has gone from 430 cigarettes per capita in 1970 to 1,050 in 1990 an increase of 144% in twenty years. Senegal was one of the first African countries to approve -in 80s - read on Tobacco Control: Smoking bans in public places, banned TV commercials. But the legislation was amended to pressure from manufacturers and today the advertising and promotion of cigarettes is common. The strategy: it is aimed at a young audience by focusing on the mirage called America with slogans such as "Get away with Marlboro" or "America coming!" (L & M).
93% of the Senegalese market is in the hands of the Manufacture du Tabac de l'Ouest Africain (Mtoa), a company controlled almost entirely by the French Coralma International, in turn owned by Bolloré and Seita, always French. Mtoa has also entered into agreements with some foreign multinationals to produce cigarettes with their brands. In particular Marlboro and L & M (Philip Morris) and Camel and Gold Coast (RJ Reynolds). The two American multinationals are in Senegal 80s.
Another example of advertising in India is limitless. Here the war of multinational tobacco is locked, the goal is to conquer the smokers of bidi (hand-rolled Indian cigarettes typical): consumption data speak for bidi 1,220 per capita per year, compared to just 150 cigarettes. It is estimated that 250 million people who make constant use of tobacco.
Every year we spend 2.3 billion rupees (103 billion lire) in advertising for cigarettes and tobacco products. At the head of the Indian Tobacco Company (ITC), the first manufacturer of cigarettes in the country, which in 1999 spent 2 billion rupees (90 billion lire).
Multinational companies often move through local companies. British American Tobacco has signed agreements with ITC to produce cigarettes Benson & Hedges and State Express 555 Philip Morris instead produces Marlboro and Chesterfield through Godfrey Philips India (Gpi) and sells through its subsidiary Philip Morris India. but
Gpi also markets Rothman's (which since 1999 is a trademark of Bat). RJ Reynolds has an agreement with the group Mk Ways to brands Camel, Winston and Salem.
The advertising of cigarettes and tobacco products in India is everywhere: newspapers, television, cinema. Not to mention the sponsorship of concerts and sporting events.
But the most delicious morsel for multinationals remains China, the giant where smokers are 430 million. Production and marketing of tobacco are in hand the company to the State, the Cntc, but in recent years there have been openings to the multinationals (among other here Philip Morris, RJ Reynolds and Bat). The Chinese law on advertising is very rigid, does not allow ads in newspapers, radio, television and packets of cigarettes must bear a label stating "Smoking is hazardous to your health." But the norm is easy to circumvent: just delete the word "cigarette"-for example-and to promote the "pleasure of the world of Marlboro."
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The three big sisters tobacco
PHILIPS MORRIS COMPANIES INC.
It is the largest tobacco company. It is headquartered in New York, employees around the world are 137,000. In 1999 the revenue was $ 78 billion (166 trillion pounds), 60% comes from the tobacco industry. The best-known brands are Marlboro, Merit, Chesterfield, Muratti.
Philip Morris also controls Kraft Foods (34% of sales, brands like Philadelphia, Milka, Toblerone, Suchard, Sottilette, Coffee Hag and Splendid), Miller Brewing Company (6% of sales, produces among other beers Miller and Foster) and the finance company Philip Morris Capital Corporation. In December 2000, Philip Morris acquired Nabisco Holdings Corp., the giant food from $ 8.4 billion in sales (nearly 18,000 billion lire).
BRITISH AMERICAN TOBACCO PLC
Headquartered in London, 90,000 employees and a turnover of 11 billion dollars (23 thousand and 400 billion lire). His more famous cigarettes: Lucky Strike, Dunhill, Pall Mall. In 1999 it merged with Rothmans and it has acquired marks. Also check for the American Brown & Williamson Tobacco.
The American magazine Multinational Monitor has inserted the Bat among the 10 worst companies of 2000, for his involvement in the smuggling of cigarettes (as is clear from the secret documents of the multinational and the investigation of the newspaper The Guardian: www.guardian.co.uk/ bat).
RJ REYNOLDS TOBACCO PLC
Headquartered in Winston-Salem (USA), 7,800 employees and $ 7.6 billion in sales (16,000 and 600 billion lire). He was part of RJ Reynolds Nabisco until 1999, the year in which the tobacco industry has become independent. Among the best-known brands: Camel, Winston, Salem.
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Thailand. Tough fight to smoke
Thailand has one of the strictest anti-smoking laws in the world. And until 1989 there was also an almost total block on the import of foreign tobacco. The instruments adopted: high taxes, advertising bans, governmental monopoly on cigarette production. The Thailand Tobacco Monopoly (Ttm) is the only legal manufacturer of cigarettes in the country and depends on the Ministry of Finance.
But in 1989 the United States Export Association, which brings together Philip Morris, RJ Reynolds and Brown & Williamson (a subsidiary of the Bat) has lobbied appealing to the Trade Act of 1975 (USA law on trade) and the Gatt to push the Thai government to open the borders: in '91 for the first time foreign cigarettes have entered legally into the country.
But the restrictions remain iron: they are prohibited advertising of any means of communication (except those from abroad) as well as the distribution of free samples and promotional items. The warnings on the harmful effects of tobacco must occupy at least 33% of the cigarette packet, no cigarette vending machines and the sale is prohibited to persons under 18 years of age. Since the 70's has banned smoking in public places. In addition, foreign companies must notify the Ministry of Health the ingredients of each brand of cigarettes marketed.
The rules are not always respected: advertising in newspapers and posters, as well as on hats, shirts and so on, were used already in the 80s, when the import of foreign cigarettes was limited. And then the companies resort to indirect promotion systems: exposure of marks in points of sale of tobacco products and sponsorship of concerts and artistic events, donations of money to charities, clothing sales as "Marlboro Classic" and "Camel Trophy Adventure" .
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Since 1945 in Italy announced publicly pubblictà cigarette and related products
Tobacco: no appearance
In the United States consumption of cigarettes can not be promoted on television, radio or billboards. But advertising is allowed in the newspapers, with the obligation to publish also warnings about the harmfulness of smoking. Are not limited to indirect advertising via the so-called "diversification of marks" (the brand of cigarettes, for example, is also the name of a clothing line). They are but studying more restrictive rules. Similar standards also in Canada and Australia.
The European Union prohibits advertising in radio and TV since 1989 Some countries have stricter laws than others: in Portugal, Italy and France banned any kind of advertising of tobacco products. Other countries are more permissive, but not for long: the European Directive 98/43 gives time until 2006 to the United States for the introduction of a total ban on the advertising of smoking.
In Italy the advertising of cigarettes and tobacco products is prohibited since 1965 Penalties for violation of the law can reach 50 million lire. But here too there are many ways to get around the law: the brands of cigarettes have become "brand" of fashion, sponsor of the Formula One Grand Prix races or other sporting events, sponsor of cultural events.
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The conquest of the
New economic objective with the South of the world it is Eastern Europe. Fall of the Iron Curtain, privatization of state enterprises, low labor costs. But especially new markets to conquer. Here are the magic words that have attracted even here the tobacco multinationals.
Emblematic case of the former Soviet Union. The multinational giants have arrived in all the republics with plants for the production of cigarettes, through participation in local companies or with new realizations. Starting from Russia. With 40 million smokers (110 million throughout the Russian Federation), including 60% of the male population, and per capita consumption of 1,757 cigarettes a year, Russia is the largest market in Europe and the fourth largest in the world .
In 1995, 61 million cigarettes (44% of the Russian total) was produced in 8 plants in which Philip Morris, RJ Reynolds, Bat and other companies they had between 49% and 92% of the shares, and total control.
Between 1992 and 1998, multinational companies have invested more than $ 1 billion dollars (2,100 billion lire) in the Russian tobacco. And business seem to be going at full speed if the "big three" have decided to increase investment. RJ Reynolds in the next two years will spend 120 million dollars (255 billion pounds) to transform the factory in St. Petersburg in its largest manufacturing plant outside the United States. Philip Morris will pay out 200 million dollars (425 billion pounds) for a plant near St. Petersburg, which is expected to produce 50 million cigarettes a year.
"The situation is typical of all the countries of the former USSR," he notes Iuf, the international union of unions Food and tobacco.
The former Soviet Union is a delicious morsel, not only for the size of the market, but also "for the low wages and weak unions."
The expansion of multinational tobacco is accompanied by a massive advertising campaign. The import cigarettes account for 40% of all advertising in Russia. The law has forbidden the television commercials that relate to cigarettes, but allows them to print and posters as long as they bring back warnings on safety of the product. The tactics of multinational companies to promote products ranging then from the distribution of free samples, sponsorship of sporting events, the creation of local brands and slogans that refer to the Russian nationalist sentiment. This is the case of cigarettes "Peter the Great" by RJ Reynolds.
Even the big tobacco in Ukraine have arrived since 1990 acquiring the factories in the process of privatization: 30% is in the hands of foreign companies. The first, with a third of the local market, is the Reemstma German whom he won success with the creation of local brands. The first company in the stars and stripes to set foot on the soil of Ukraine was the RJ Reynolds in 1992 Before independence the advertising of cigarettes were banned, are now allowed to the announcements in newspapers and posters, but also the advertising printed on T-shirts and gadgets. In Ukraine 60% of advertising is relative to alcohol and cigarettes abroad. The slogans are the usual and focus on the desire to escape: "enjoy the freedom" or "tastes the West."
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Reorganization plan for the Agency tobaccos
The Italian cigarettes do not "draw"
In Italy cigarettes-but also cigars, tobacco, salt and paper is produced from tobacco (Eti). Former state monopoly, joint-stock company since last year, is being privatized. What rhymes with "restructuring" or "restructuring", if you want: to become attractive the Eti must unburden of 3,584 employees and 28 facilities including manufacturing and warehouses. The reorganization began in 2000 and will end in 2002 Also the social order has to be leaner and focus on production and distribution. Just like the main European competitors. That, removed the large multinationals, they call Austria Tabak and then Seita (France) and Tabacalera (Spain): These two were merged in 1999 giving birth to Altadis, a new company that placed fourth in the ranking of the world's largest producers of tobacco products. But the problems Eti do not end here: that tobacco is a "mature" market-emphasizes the plan that is stable rearrangement. This is how the Italian market: stable, with an increase in "the proportion of imported products and products under license in respect of a substantial decrease of Italian products." In other words: Philip Morris cigarettes imported or prepared under license by the Agency tobaccos always sell more, coming to occupy 59% of the Italian market for quantity. Branded cigarettes Eti (MS, Alpha, National, so to speak, but also the Tuscan cigars) do not have a great success: in 1989 the market share was 56% in 1998 had fallen to 35%. The reason? The quality of products is not high and is positioned in a lower-middle price range. From here the recipe for the rearrangement.
First: "to value the business smoking products and distribution." According to "rationalize and divest the" non-strategic, ie, paper, salt, filters, premanufacture. And the salt in particular, that in '98 scored 12 billion in losses. Will therefore changed the current corporate structure. Today on the other four societies depend: Ati (premanufacture tobacco), AtiSale, AtiCarta, Filters Spa.
Another strategy: the internationalization. Today the Agency tobaccos exports in France and Germany, but plans to reach Spain, Greece, Belgium and Luxembourg. And they are being studied joint venture for the production of cigarettes in South America and Asia.
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routes accomplices
and tobacco companies are complicit in the smuggling of cigarettes. He is convinced the European Union, which on November 6 denounced two of the world's largest manufacturers of cigarettes Philip Morris and RJ Reynolds near the New York court, demanding compensation for the economic loss incurred. The sale of smuggled cigarettes is tantamount to taxes that the EU can not cash: about 2 billion pounds per container. American judges will determine the amount of compensation; the losses of the EU member states have been 20 trillion lire in 1998 and '99.
And the complaint of the European Union also joined the Italian Government, a few weeks later. You might as well get to an absurdity: Italy complaint Philip Morris and RJ Reynolds but in the meantime continues to produce on their own license of Philip Morris cigarettes.
But what enters the tobacco companies with the smugglers? According to the EU traffickers of cigarettes they buy the goods directly from the multinationals, who are aware but do nothing to prevent it. Indeed, according to the journal Tobacco Control smuggling is advantageous for the same companies because it allows greater sales and is a system to go into closed markets (such as China, for example, where every year 40 million smuggled cigarettes).
The most popular brands are those Americans, like Marlboro and Camel. The smuggled cigarettes are purchased legally by manufacturers in the United States and arriving at the port of Antwerp in Belgium as a commodity "in transit".
Officially it comes to cigarettes destined to non-European countries, such as North Africa. For this shall be exempt from tax. But once they leave Antwerp, if they lose track.
The three main routes. The first door from Belgium to Switzerland. Here the cigarettes are no longer under the European legislation and receive a new destination, which is usually in Eastern Europe or the former Soviet Union.
The second route from the port of Antwerp arriving at the airports of Belgium and the Netherlands, and from there reach back in Eastern Europe. From countries of the former Iron Curtain fall then in the European Union, especially Germany and Italy direct (here come mainly from Albania and Montenegro, a country that is becoming the new hub of smuggling).
Third route: from Beglio arrive directly in Spain, Andorra in Portugal.
In 1996, Europe entered 100 million cigarettes "duty-free" for a value of $ 14 billion (almost 30,000 billion lire).
The text of the complaint of the European Union can be downloaded from the website by clicking on the file http://www.nyed.uscourts.gov/pub/ruling/CV/2000 00cv6617cmp.pdf
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A growing number of lawsuits lost by cigarette manufacturers
The multinational seriously detrimental to health
The recent history of the tobacco multinationals is written on stamped paper. The first court case in 1954 when a smoker gets cancer and the complaint: on the cigarette package was not signaled the dangers of smoking. Have but to wait for 1965 because the first anti-tobacco advertisements appear on the packages. Multinational companies have always denied the existence of a link between cigarette smoking and cancer. But many medical studies prove exactly the opposite. In '94 the Mississippi is the first American state to seek compensation for health care costs for diseases from smoking. In 24 follow his example. From that year onwards, the American cigarette manufacturers were the focus of the regular courts. And in 1998 they admit that smoking could cause cancer. In 1999, Philip Morris lost two lawsuits against private citizens: the judges decide compensation for 131 million dollars (280 billion lire). But the record is last year. The court in Miami, Florida, states that the multinationals are guilty of the damage caused to smokers. And they must pay: Philip Morris, RJ Reynolds, Brown & Williamson (property of the Bat), Lorillard, Ligget will have to shell out $ 145 billion, ie more than 300 thousand billion lire. Obviously the condemned companies resort in appeal. Meanwhile, strong judgment of the American, Codacons, an association for the protection of consumers, provides a phone line for those who wish to bring a lawsuit for damages by active smoking (info: www.codacons.it, tel. 06-37.25.809 ). The first complaint is itaiana game last year: it is one of two private citizens against the Agency tobaccos Italian (Eti). The lawsuits against the tobacco companies have also made public many unknown business documents. To get an idea you can visit the following websites: http://tobacco.who.int/en/industry/index.html, http://www.pmdocs.com, http://www.bw.aalatg.com, http://www.rjrtdocs.com
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