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ASH Daily News

18 October 2001

Headlines

Philip Morris still buoyant
Pubs risk smoking ban

Full Text

Philip Morris still buoyant

The Financial Times reports that despite intense promotional marketing of cheaper brands of cigarettes by rival companies, Philip Morris still reported a 0.4 percent increase in third quarter net earnings to $2.32bn.

Investors in Philip Morris have been concerned that premium cigarette brands of which Philip Morris’s Marlboro is the largest, may face pressure as consumers trade down to cheaper brands in a weak economy.

A company spokesman said that the premium brand market was proving to be very resilient in the current economic climate. He added that “deep discount” brands were however, taking volume from other discount brands.

Growth for Philip Morris has been strongest in Ukraine and Russia, whilst sales dropped in Germany and Turkey.

Martin Feldman Salomon Smith Barney, said large tobacco companies’ margins should improve in 2002, as their litigation expenses under a 1998 settlement with the US attorneys general will peak this year.

Source: Financial Times, 18 October 2001



Pubs risk smoking ban

The Department of Health will be deciding whether to ban smoking in pubs after receiving the result of a trade survey.

The trade’s Charter Group met last week to discuss the outcome of the survey, which looked into how many pubs were complying with the voluntary charter on smoking launched in 1998. The charter recommends the use of signage, with ventilation and no-smoking areas where appropriate.

While the results are being kept under wraps until they have been evaluated and discussed with government officials, it is estimated that compliance is currently standing between 20 and 30 percent. This leaves it short of the 50 percent target set for the end of 2002, as agreed by the Charter Group.

It is thought that many outlets have upgraded ventilation or installed no smoking areas but have yet to become charter compliant by putting up signage of their smoking policy.

Failure to self-regulate could lead ministers to rethink their decision on whether to ban smoking in pubs.

Action on Smoking and Health has warned that despite the trade’s efforts its only a matter of time before a ban on smoking in public places is brought in.

“We’re definitely moving in that direction,” Amanda Sandford of ASH said: “And public surveys show overwhelming support for a ban on smoking in public places. It has worked in other countries like the US and Australia, but research shows it needs to be introduced gradually.”

Source: Publican, 15 October 2001



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