BAT Converts Korea

In Seoul, shoppers at a 7-ll convenience store stare at packs of Kent Convertible cigarettes which have just been launched exclusively in the city. The packs are apparently equipped with different colored flashing lights that are signalling for attention.
In Busan, on the other side of the country, a Korean businessman places several packets of Kent Convertible that he purchased in Seoul that morning on the table in front of colleagues and associates, dispensing individual sticks or entire packets to his enthralled guests.
In an upstairs bar frequented by American expatriates, a visitor is handing out Kent Convertible sticks around the bar, demonstrating the technique required to release the menthol flavor and then increase its strength to a riveted crowd of smokers.
Within three weeks of its launch, BAT’s new Kent Convertibles cigarette had gained unprecedented market share, exceeding BAT’s expectations and attracting smokers to its new smoking concepts, and marking another significant – and unique - product launch in a country that has been described as a “must win” market for cigarette manufacturers.
The Korean market has become a sort of testing ground for new products and innovative smoke concepts, with brand variants researched, designed and manufactured specifically for the country’s smokers.
The patented flavor capsule technology incorporated in the unique charcoal filter system which lends the filter the ability to “convert” from a regular charcoal filtered light cigarette to a menthol stick, and then to increase the amount of menthol released into the smoke by rolling it between the fingers (“click and roll”) is claimed to represent the most significant innovation in filter technology since filters were invented.
The product has caught on rapidly, with Korean (and ex-pat) consumers buying in to the concept with gusto, proving once again that Korea is a market that embraces change and innovation.
“Korea was chosen as the market in which to launch Kent Convertibles because Koreans love innovation, they are open to new things that add value and functionality in a product,” confirmed Jeremy Flint, BAT Korea’s CORA executive director talking to Tobacco Asia recently. “Koreans love to see high-tech functionality in high-end products. BAT was looking for something to capture the imagination of Korean consumers. While flavor capsules are not new, - they’ve been around for two or three years in other markets – the charcoal filter and convertible technology incorporated in the filter – which should not be confused with boost products, which have also been around for a while,. offers something unique.”
Clearly, the Korean consumer thinks so as well. Initial sales reports indicate Kent Convertibles gained a market share of over 2.3% in Greater Seoul in key accounts within a month of its launch..
The brand was launched nationwide in mid-August, and is expected to continue to show the sort of performance experienced in Greater Seoul as its appeal is clearly in tune with the Korean consumer mindset.

History developments of tobacco

Tobacco had already long been used in the Americas when European settlers arrived and

introduced the practice to Europe, where it became popular. At high doses, tobacco can become hallucinogenic ; accordingly, Native Americans never used the drug recreationally. Instead, it was often consumed as an entheogen; among some tribes, this was done only by experienced shamans or medicine men. Eastern North American tribes would carry large amounts of tobacco in pouches as a readily accepted trade item, and would often smoke it in pipes, either in defined ceremonies that were considered sacred, or to seal a bargain, and they would smoke it at such occasions in all stages of life, even in childhood. It is believed that tobacco is a gift from the Creator and that the exhaled tobacco smoke carries one's thoughts and prayers to heaven.

Popularization
Following the arrival of the Europeans, tobacco became increasingly popular as a trade item. It fostered the economy for the southern United States until it was replaced by cotton. Following the American civil war, a change in demand and a change in labor force allowed inventor James Bonsack to create a machine which automated cigarette sale production.

This increase in production allowed tremendous growth in the tobacco industry until the scientific revelations of the mid-1900s.

Contemporary
Following the scientific revelations of the mid-1900s, tobacco became condemned as a health hazard, and eventually became encompassed as a cause for cancer, as well as other respiratory and circulatory diseases. This led to the Tobacco Master Settlement Agreement (MSA) which settled the lawsuit in exchange for a combination of yearly payments to the states and voluntary restrictions on advertising and marketing of tobacco products.

In the 1970s, Brown & Williamson cross-bred a strain of tobacco to produce Y1. This strain of tobacco contained an unusually high amount of nicotine, nearly doubling its content from 3.2-3.5% to 6.5%. In the 1990s, this prompted the Food and Drug Administration (FDA) to use this strain as evidence that tobacco companies were intentionally manipulating the nicotine content of cigarettes.

In 2003, in response to growth of tobacco use in developing countries, the World Health Organization (WHO) successfully rallied 168 countries to sign the Framework Convention on Tobacco Control. The Convention is designed to push for effective legislation and its enforcement in all countries to reduce the harmful effects of tobacco. This led to the development of tobacco cessation products.

Manufacturing, marketing, promotion and health consequences

The two injunctions at issue sufficiently specify the activities enjoined as to provide Defendants with fair notice of the prohibited conduct. The district court did not abstractly enjoin Defendants from violating RICO or making false statements, but instead specified the matters about which Defendants are to avoid making false statements or committing racketeering acts: the manufacturing, marketing, promotion, health consequences, and sale of cigarettes, along with related issues that Defendants have reason to know are of concern to cigarette consumers.
This is not a generalized injunction to obey the law, especially when read in the context of the district court’s legal conclusions and 4,088 findings of fact about fraud in the manufacture, promotion, and sale of cigarettes. These injunctions may be broad, but breadth is warranted “to prevent further violations where a proclivity for unlawful 68 conduct has been shown.”
Defendants complain that the volume of findings in this case actually make understanding the injunctions more difficult and chill speech because some of the district court’s findings present “express prohibitions” whereas others, like the use of white filter paper for cigarettes, “simply reflect the district court’s disapproval” of aspects of Defendants’ business practices without finding the conduct fraudulent.
This objection answers itself, as the plain terms of the injunctions prohibit only conduct that would constitute a racketeering act or a “material false, misleading, or deceptive statement or representation,” not all activities the court mentioned in its findings.

Regal Cigarettes

You don't need to be a rocket scientist to appreciate that the cigarette ads on the posters illustrated below were not penned with mature individuals in mind. But, admittedly, there is nothing definitive that would lead one to conclude they were intended for children. On occasions the words or phrases are somewhat trendy - the word squillions did make it into the terminology of trendy late teens and young adults in the late 1990's. However, even although it could be argued that most of these lines were written with adults in mind, it is much more likely that they originated in brainstorming sessions among 'creative' advertising personnel only too aware that their client tobacco companies need to catch their customers young.
Most cheap brands make use of similar devices, focussing on adolescent humour or unusually unsophisticated use of language and visuals. These are sufficient to circumvent the ASA guidelines on advertising to minors. This technique developed because the tobacco company message to ad agencies is simple. " Pitch the campaign as if it were directed towards adults. It will therefore get past the Advertising Standards Authority when they evaluate the ad campaign at the concept stage. But, as our target audience falls into a younger age group, ensure that the message will also appeal to under age kids. "
Cartoon type characters such as Regal's Reg were banned in the UK some years ago because of their obvious appeal to underage and unsophisticated smokers. There would be extreme concern if UK companies made any overt attempts to 'import' characters such as the cute Camels featured in Camel ads (see Viva España and Camel pages). For the same reasons beware imported magazines. The Yanks page considers the extent to which British audiences are now exposed to American ads for cigarettes. British ads for cigarettes have clear cut guidelines as to what is and is not permissible. Ads thus have to be carefully tailored to appeal to underage smokers whilst appeaing to be directed towards adults with a preference for the cheaper branded cigarettes.

Menthol Cigarettes

“Opposition to Menthol Cigarettes Grows” (Business Day, June 5) misses the point that the effort to prohibit menthol as a flavoring in cigarettes is but the first leap toward a national ban on all cigarettes.

Almost 30 percent of adult smokers prefer menthol products, meaning millions of Americans would suddenly and arbitrarily be denied their preference of cigarette. They would almost assuredly turn to the black market to obtain the product they want.

History makes clear that prohibitions like this do more harm than good. The failed social experiment of alcohol prohibition is a good lesson. There is ample evidence that criminal enterprises and terrorist organizations already find the profit from black market cigarettes easy to generate and conceal. And that’s when the product is legal everywhere, and the only differences in availability are the taxes from one jurisdiction to another.

It is inevitable that this problem will be worsened if an outright ban were put in place.

Depriving thousands of hard-working Americans — mom-and-pop convenience stores, tobacco farmers and everyone else in small companies that support the manufacture of menthol cigarettes — of 30 percent of their business would be disastrous.

Coupled with the fact that the scientific research to date is inconclusive as to whether menthol products are any better or worse than nonmenthol products, it is clear that the advocated ban on menthol cigarettes is misguided and has the very real potential to harm our national and economic security.

New York smokers buying cigarettes in Pennsylvania

PENNSYLVANIA -- New York smokers are buying lots of cigarettes in Pennsylvania.
"I actually make trips down here once a week or so," said Savona resident Tim Soporowski.
"I always buy my cigarettes in Pennsylvania. Simply because it is a little cheaper," said Big Flats resident Dave Kenyon.
Now it's a lot cheaper, since a new tax raised the price of a pack in New York by $1.25 to some $5, $6 and even $7 a pack.
"It's crazy," Soporowski said.
"We don't like it," said Phyllis Gurnsey, a Campbell resident.
"Taxes on gas and cigarettes are already to the point where they're really affecting the economy. It's too much," Kenyon said.
Cigarettes typically are cheaper in Pennsylvania than in New York. But the new additional tax has more people leaving stores in New York and going into ones in Pennsylvania.
"I am buying mine strictly in Pennsylvania because New York's prices are outrageous," Elkland resident Holly Allen said.
New York State health officials expect the tax will get some smokers to quit. People on the border have other plans.
"Everything is going to kill you someday or another. The air can kill you. People do what they want to do," Soporowski said.
One smoker says the tax actually may deter him from lighting up.
"No, it'll probably force me to quit," said Elmira resident Charles White.
White said the drive to Pennsylvania saps the savings.
It's not worth it with the gas and all. It'll be inefficient," White said.
Others disagree.
"We enjoy the ride down to Pennsylvania. It's nice down here," Gurnsey said.

And at least for now, it's cheaper, too.

One gas station owner in Pennsylvania says more customers have been coming in over the past couple of days. A New York gas station owner says business is down and he expects it'll stay that way.