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Follow the money: How the billions of dollars that flow from smokers in poor nations to companies in rich nations greatly exceed funding for global tobacco control and what might be done about it : Tob Control 2010;19:285-290 doi:10.1136/tc.2009.035071 * Research paper

The business of selling cigarettes is increasingly concentrated in the hands of five tobacco companies that collectively control almost 90% of the world’s cigarette market, four of which are publicly traded corporations. The economic activities of these cigarette manufacturers can be monitored through their reports to shareholders and other public documents. Reports for 2008 show that the revenues of these five companies exceeded 0 billion, of which more than 0 billion was provided to governments as taxes, and that corporate earnings of the four publicly traded companies were over billion, of which billion was retained after corporate income taxes were paid. By contrast, funding for domestic and international tobacco control is not reliably reported. Estimated funding for global tobacco control in 2008, at 0 million, is significantly lower than resources provided to address other high-mortality global health challenges. Tobacco control has not yet benefited from the innovative finance mechanisms that are in place for HIV/AIDS, tuberculosis and malaria. The Framework Convention On Tobacco Control (FCTC) process could be used to redirect some of the earnings from transnational tobacco sales to fund FCTC implementation or other global health efforts.

Tobacco Control Blog

  • Bringing lessons from Indonesia to the world

    15 Jul, 10 | by bfreeman

    Ruth Malone, Editor in Chief

    Indonesia is one of the world’s most difficult places to do tobacco control, with a strong tobacco industry presence and a lot of political resistance from tobacco growers and their allies. Huge tobacco billboards are everywhere in the city of Jakarta. Yet, as we discovered on a recent visit, tobacco control advocates and researchers there are doing great work of global importance. . . .


  • Kent Convertible

    Ruth Malone and Becky Freeman

    Tobacco Control has now joined the BMJ Group Blogs – welcome to our inaugural post! Ok, ok, so maybe we’re a tad late to the party – but we’re here now and we promise to make it worth the wait.

    Our master plan for this blog is that it will be topical, engaging, and most important of all include participation from TC readers, authors, reviewers, and editors. The tone and character will be collegial, but we warmly welcome the cheeky and irreverent. In keeping with the spirit of blogging, the style will be conversational and entries short for easy and enjoyable reading.

    So to kick things off in that vein…

    Seems there is no limit to the creativity of tobacco industry when it comes to inventing new ways to recruit addicts.

    BAT Korea is this week launching the KENT Convertible – a cigarette which contains a liquid capsule in the filter that can be clicked to release a burst of flavour.

    Commissioning editor for Low and Middle Income Countries Simon Chapman and I conducted a workshop in Jakarta aimed at encouraging more publications from low and middle income countries and enthusiasm ran high. . . .

  • EDITORIAL: Word wars and tobacco control: saying what needs saying that we don’t yet know how to say, or saying it better: Volume 19, Issue 4 Tob Control 2010;19:261-262 doi:10.1136/tc.2010.038588

    To help officially launch the Tobacco Control Blog, this month’s Editorial has also been posted to the blog and is ready for your comments. The aim of this blog is to stimulate debate, generate ideas and explore new and, at times, controversial ideas. Increasing the opportunities for interaction between readers, authors, and editors is essential to ensuring that the journal remains on the leading edge in today’s world of instant and constant digital communication. In keeping with this theme, editor Ruth Malone raises the issue of how important language is in defining and framing the tobacco pandemic and challenges readers to share their own creative ideas for “language weapons.” To entice you to join the conversation and make a suggestion, the best idea will win a one-year online subscription to Tobacco Control.

    The TC blog can be found here: http://blogs.bmj.com/tc/ We look forward to meeting you there.

    Briefings: Monthly Newsletter: August 2010

    July 27, 2010 Letter from Diane Canova

    Dear Partners,

    Partnership for Prevention and ActionToQuit were very pleased with the announcement in mid-July of new regulations under the Affordable Health Care Act requiring private health plans to cover evidence-based preventive services and to eliminate cost-sharing for preventive care. Among the services to be covered are tobacco cessation interventions to for tobacco users.

    July 28, 2010 Views on Unassisted Cessation: An Interview with Steve Schroeder

    Simon Chapman has written about the neglect of “unassisted cessation.” . . .

    July 28, 2010 “Celebrating Smokefree Voices” YouTube Contest Winner

    The Smokefree Women web site www.smokefreewomen.gov has just celebrated its 1-year anniversary with a video contest on YouTube. People were asked to submit videos explaining why women should stay smokefree or why they want the women they love to be or stay smokefree. More than 14,000 people voted for their favorite of the many videos that were submitted.

    July 28, 2010 State and City News

    -University of Arizona Providing Cessation Training for Complementary and Alternative Medicine Professionals

    -South Dakota Smoking Down to 17.5 Percent

    -Los Angeles County Report Shows Smoking Rates by Local Community
    . . .

    Key Dates

    September 13 - 17, 2010 Tobacco Treatment Specialist Certification

    http://www.regonline.com/builder/site/Default.aspx?eventid=854142

    Columbus, OH

    September 30 - 1, 2010 Online Social Networks and Smoking Cessation: Strategic Research Opportunities

    http://www.legacyforhealth.org/PDF/SNCC_Final_Program.pdf

    August 2010, Volume 19, Number 4 - TOC

  • Editorial: Word wars and tobacco control: saying what needs saying that we don’t yet know how to say, or saying it better

  • Relation between newspaper coverage of “light” cigarette litigation and beliefs about “lights” among American adolescents and young adults: the impact on risk perceptions and quitting intentions

  • Attitudes, practices and beliefs towards worksite smoking among administrators of private and public enterprises in Armenia

  • Tobacco point-of-sale displays in England: a snapshot survey of current practices

  • Follow the money: How the billions of dollars that flow from smokers in poor nations to companies in rich nations greatly exceed funding for global tobacco control and what might be done about it

  • Associations between adolescent socioeducational status and use of snus and smoking

  • Quantifying the effects of promoting smokeless tobacco as a harm reduction strategy in the USA

  • FCTC guidelines on tobacco industry foreign investment would strengthen controls on tobacco supply and close loopholes in the tobacco treaty

  • Statewide diffusion of 100% tobacco-free college and university policies

  • Hair nicotine levels in non-smoking pregnant women whose spouses smoke outside of the home

  • Targeting the affordability of cigarettes: a new benchmark for taxation policy in low-income and-middle-income countries

  • Public support in England for raising the price of cigarettes to fund tobacco control activities

  • How do tobacco retail displays affect cessation attempts? Findings from a qualitative study

  • Tobacco point-of-sale advertising in Guatemala City, Guatemala and Buenos Aires, Argentina

  • The alchemy of Marlboro: transforming “light” into “gold” in Mexico

  • Letter: Who is exposed to smoke at home? A population-based cross-sectional survey in central Vietnam

  • Letter: Newspaper coverage about smoking in leading Chinese newspapers in past nine years

  • Letter: Misuse of the Official Information Act by the tobacco industry in New Zealand

  • Letter: Third-hand smoking: indoor measurements of concentration and sizes of cigarette smoke particles after resuspension

  • Tobacco control haiku

  • Uruguay bows to pressure over anti-smoking law amendments : Tobacco giant Philip Morris accused of corporate bullying following government’s decision to water down legislation

    Uruguay has promised to water down anti-smoking laws after pressure from the tobacco giant Philip Morris, prompting accusations of corporate bullying.

    The government said it would amend legislation which slaps large health warnings on cigarette packets and bans the sale of those branded as “light”.

    The laws, among the toughest in the world, were introduced four years ago by the then president, Tabaré Vázquez, who as an oncologist had seen the ravages of smoking-related cancer. Tobacco advertising and smoking in public buildings were also banned.

    Earlier this year Philip Morris, which sells Marlboro and other brands in more than 160 countries, filed for arbitration at the World Bank’s international centre for settlement of investment disputes, claiming the restrictions hurt its business and violated Uruguay’s trade deal with Switzerland. The corporation is based in Lausanne.

    Black Market Tobacco Trade Could Be Stubbed Out

    The clamour for higher tobacco duty from global governments in the last year should therefore have been a boon to spivs hawking cheap cigarettes the world over. Except of course on a global scale, this simply isn’t the case. In a year when governments across the world have been raising their excise rates on tobacco in an effort to trim their budget deficits, we should be seeing a huge rise in the illicit tobacco market. Right?

    Well no. British American Tobacco’s Chief Executive Paul Adams said Wednesday there had been only a “slight rise” in the illicit market in the last year despite all the “significant” and “swingeing” excise increases mentioned in the company’s first-half results. . . .

    So perhaps the link between high excise duty and the illicit tobacco trade is not quite as strong as we’re led to believe. Besides which, tobacco firms appear less concerned about fueling the illicit market when it comes to raising their own prices. The fact that BAT managed to raise is first half sales by 4%, despite flat volumes, suggests it had no qualms about raising the price of its Dunhills, Lucky Strikes or Pall Malls.

    That’s not to suggest that illicit trade isn’t an issue of course. It accounts for about 12% of the world’s cigarette volumes. That means 12% of tobacco sales are effectively unregulated, with none of the strict controls on underage smoking the rest of the market faces. As the Canadian example and the recent experience in Romania have shown however, it is perhaps stricter border controls, and more stringent law enforcement rather than more modest duty increases that is best used to combat the problem.

    List of groups that received funding from FCA in 2009 (seed grants)

    The Norwegian Cancer Society has provided financial support for FCA activities in including seed grants. The budget below amounts to .500

    In 2009 a total of 10 organizations have received seed grants for various projects as listed below.

    1 People’s Health Movement (PHM), Gabon 2009 ,000

    2 Vision for Alternative Development Ghana 2009 $ 5,000

    3 Campaign For Tobacco-free Youths Nigeria 2009 $ 5,000

    4 Association Life Cameroon 2009 $ 5,000

    Japan Tobacco’s Quarterly Profit Drops 47% on Domestic Sales, Stronger Yen

    Japan Tobacco Inc., the world’s third-largest publicly traded cigarette maker, said first- quarter profit fell 47 percent after domestic sales dropped and a stronger yen reduced the value of overseas earnings.

    Net income dropped to 22.8 billion yen (1 million) for the three months ended June, compared with 42.9 billion yen a year earlier, the Tokyo-based company said in a statement today. Last year’s profit was inflated by a one-time gain of 9.1 billion yen from the sale of corporate housing. Total sales rose 0.3 percent to 1.47 trillion yen.

    Japan Tobacco said its cigarette sales in Japan may decline 16 percent this fiscal year as the government plans to raise taxes by 70 yen per pack in October. . . .

    Japan Tobacco was also hammered by a stronger yen, which has risen against all the world’s major currencies in 2010

    Emerging markets light up BAT sales

    BAT said early signs of growth in emerging markets were slowing the rate of underlying sales decline at the group.

    Reporting first-half results, Paul Adams, chief executive, said the second-quarter contraction in volumes was lower than that in the first quarter, and that “for the balance of the year, volume will not be down more than 2 per cent”.

    While western markets for cigarettes have been shrinking due to greater health awareness and tighter regulation, in recent years the recession has depressed volumes in emerging markets, too.

    But Mr Adams said BAT had benefited in the first half of the year by its presence in commodities-led economies, which are seeing early signs of growth. BAT’s top five markets are Brazil, South Africa, Canada, Australia and Russia.

    Random Quote

    A nonsmoker is forced to find food, but for a smoker breakfast can be a cigarette and a cup of bad coffee. — Brock Fiant

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