Monday, May 12, 2008

Imperial Tobacco's Altadis reaches 96.92 pct of Logista in buyout

MADRID - Imperial Tobacco Group Plc. unit Altadis SA. has obtained an additional 37.30 percent of Cia de Distribucion Integral Logista SA., raising its stake in the unit to 96.92 percent, bourse regulator CNMV said.
In January, Imperial Tobacco presented a full cash bid for the outstanding shares in Logista at 52.5 euros per share, following its acquisition of Altadis.
The acceptance period for the takeover bid ended May 6.
The UK tobacco Marlboro cigarettes manufacturer has said it plans to keep Logista listed on the Spanish stock market.
Posted by cigarea at 14:23:20 | Permanent Link | Comments (0) |

Tuesday, April 29, 2008

Uganda: URA Burns Cigarettes

THE Uganda Revenue Authority (URA) has burned Supermatch cigarettes worth sh422m, the assistant commissioner for customs enforcement, Enock Walugembe, has said.

"The Customs Enforcement Department over the last year impounded 19,670,000 cigarettes worth sh422m that were being smuggled into the country," Walugembe said.

 

"We want to give accountability to the public in the area of tax compliance on imports," he said at Kigo Prison where the cigarettes were put in an incinerator.

Walugembe said if the cigarettes were not impounded, the Government would have lost sh511m.

"We cannot sell them to the public," he said.

Posted by cigarea at 11:02:16 | Permanent Link | Comments (0) |

Wednesday, April 23, 2008

Appeals Court Panel Throws Out Class Action Over Light Cigarettes

In a victory for the tobacco industry, a federal appeals court threw out on Thursday an $800 billion class-action lawsuit on behalf of smokers who said they had been misled that light cigarettes were safer than regular ones.
Plaintiffs’ lawyers wanted to represent millions of people across the country who had smoked light cigarettes. But the court, saying it was impossible to generalize about why smokers chose light cigarettes, ruled that the group could not be treated as a class. Instead, smokers wanting to sue over the issue would have to do so individually.
There might be various reasons for a smoker to choose a light brand other than “the belief that lights were a healthier alternative,” the ruling said. Other possibilities are that a lights smoker “was unaware of that representation, preferred the taste of lights, or chose lights as an expression of personal style.”
Even though the ruling had been generally expected, and tobacco company stocks were little affected by the decision, analysts still viewed it as positive for the industry.
Several experts said the ruling, the latest in a string of industry victories in cases involving light cigarettes, relieved the tobacco industry of potentially billions in damages and could also deter other similar class-action lawsuits around the country. “It may be persuasive to judges around the country who might well be watching it,” said Carl W. Tobias, a law professor at the University of Richmond.
The decision by a three-judge panel of the United States Court of Appeals for the Second Circuit overturned a ruling in September 2006 by a federal district judge, Jack B. Weinstein in Brooklyn, that certified the suit as a class action. Judge Weinstein’s ruling represented the first time that a so-called lights case received class-action certification in federal court. At the time, the ruling was viewed as potentially opening the door to a major legal threat against the industry, exposing cigarette companies to large damages for their marketing of light cigarettes. Yet, as a number of such lawsuits have been filed in state courts around the country, plaintiffs so far have had little success. One Illinois case, in which plaintiffs initially won a $10 billion judgment, was overturned by the Illinois Supreme Court.
More than a half-dozen such state cases are currently in legal limbo, awaiting a United States Supreme Court decision in a Maine case involving light cigarettes. The issue in those cases involves federal pre-emption, whether the fact that the Federal Trade Commission allowed marketing of cigarettes as light would bar legal action against tobacco companies on that count.
Clifford E. Douglas, the executive director of the University of Michigan Tobacco Research Network, said there was generally a high “win rate” in cases against the tobacco industry, but not when it came to class actions. “Some courts have been very sympathetic, but many have had problems with the individualized nature of smoking and smoking-related injuries,” Mr. Douglas said.
Posted by cigarea at 10:12:25 | Permanent Link | Comments (0) |

Friday, April 18, 2008

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Posted by cigarea at 09:54:09 | Permanent Link | Comments (0) |

Wednesday, April 16, 2008

New tax raises cigarette prices 36%

Smokers will now pay just over 36 per cent more for a pack of cigarettes, according to Carreras Limited, the primary marketer and distributor of cigarettes and tobacco products in Jamaica.
The price increase comes as a result of a new tax package announced by Finance Minister Audley Shaw in his Budget presentation last week.
Last week in his budget presentation, Shaw announced that it is proposed to reform the tax structure on tobacco-related products and increase the special consumption tax rate, effective yesterday. The government increased the tax from $2,300 to $6,000 per thousand sticks and will remit 20 per cent of the tax revenues from this source directly to the National Health Fund.
The government expects to earn an additional $2.88 million in revenue made from taxes on tobacco products. Carreras, in a press release Monday, said that the suggested retail price for the two most popular cigarette brands, Craven A and Matterhorn, has moved from $280 per pack to $380 per pack -a 36 per cent increase. The company said it expects the most popular price of a stick of cigarette - more than 70 per cent of cigarettes sales are made by the stick - to move from $15 to $20, although checks done by the Business Observer yesterday placed the price per stick as high as $30.
"Based on the over 100 per cent increase in taxes on cigarettes as announced by the minister of finance and the public service in last week's Budget presentation, will be implementing a price increase on Craven A, Matterhorn and Dunhill. This increase will take effect from Monday April 14, 2008," disclosed the company in the release.
Corporate and regulatory affairs manager at Carreras, Rhys Campbell, told the Business Observer yesterday that the wholesale prices of the Craven A and Matterhorn brands were being increased from $2,300 with GCT per carton to $3,180 with GCT per carton, a 38 per cent increase. Campbell noted, however, that the price of Pall Mall cigarettes will remain unchanged, due to what he said is a "brand strategy" being implemented by the company.
Posted by cigarea at 15:17:00 | Permanent Link | Comments (0) |

Friday, April 04, 2008

Fire-Safe Cigarettes Now Sold In Kentucky

FRANKFORT, Ky. - All cigarettes now sold in Kentucky must be "fire safe," according to a law that went into effect April 1.
The law, passed a year ago by the 2007 General Assembly, is expected to save lives and property by reducing fires caused by careless smoking, said Richard Moloney, executive director of the Kentucky Office of Housing, Building and Construction, the agency that includes the State Fire Marshal's staff.
"We're confident that this legislation will pay immediate dividends," Moloney said. "Unfortunately, Kentucky ranks ninth in the nation in fire-related deaths. We believe this law will reduce the number of such deaths."
A fire-safe cigarettes is less likely to burn when left unattended. Typically, the cigarette has several bands of thicker paper that act as "speed bumps" to slow down the burning of the cigarette. If the cigarette is not puffed, it will extinguish itself when it burns down to one of the bands. Kentucky is now one of 24 states that mandates fire-safe cigarettes, according to the National Fire Protection Association.
The State Fire Marshal is certifying fire-safe brands sold in Kentucky. A pack containing fire-safe cigarettes can be identified with the letters "FSC" or "FC," signifying fire standards compliance. While there are penalties for failing to comply, Moloney said many cigarette manufacturers have already submitted their brands for certification. It may take a while before current inventory leaves store shelves and the fire-safe cigarettes appear.
Smokers should not rely solely on fire-safe cigarettes to avert a fire, Moloney said. "First and foremost, a smoker should always properly extinguish his or her cigarette," he said. "A moment of carelessness can lead to tragedy."
Posted by cigarea at 12:15:47 | Permanent Link | Comments (0) |