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A Central Agency for Public Mobilization and Statistics (CAPMAS) study has proved conclusively that placing graphic health warnings (GHW) on cigarette packs has "zero affect" on smokers. The study revealed that tobacco sales were not affected at all by the imposition of a law last June requiring that 50% of each side of cigarette packaging should contain GHW.

The report also noted that Egyptians smoke 19 billion cigarettes a year and the number of smokers in Egypt increases by 6 to 9% annually, compared to 1% in the West.

"Smokers continue to smoke despite all the warnings you give them because of two things. According to Dr Wael Safwat, a gastroenterologist and smoking cessation specialist.

A renegade network of Russian and Eastern European factories is behind at least US$1 billion worth of contraband Jin Ling cigarettes pouring into Europe, according to a five-month investigation by the International Consortium of Investigative Journalists (ICIJ), a project of the Center for Public Integrity in Washington, D.C.

As delegates from nearly 160 countries met in Geneva to negotiate a global protocol to crackdown on tobacco smuggling, the ICIJ team has pieced together the unique story of the world's first ever cigarette brand designed and manufactured only for smuggling.

The Danish Medicines Agency, the government department in charge of drug approval, has determined that the type of nicotine found in e-cigarettes distributed by U2Lifestyle International is uncertified and therefore the sale of e-cigarettes containing the substance is illegal in Denmark.

"Nonsense," said Jorn Phigalt, the head of U2Lifestyle International. "They're [e-cigarettes] just something that smokers can use in restaurants or after an evening at the theatre." Phigalt does not believe the Danish government can stop him from selling the products.

"We can still legally sell electronic cigarettes, cigars and pipes from other European countries, and Danes aren't forbidden from buying them over the Internet for their own use," he said.

Hitkari Multifilters (Mumbai) has announced that Arjun Hitkari has joined the board of Hitkari Multifilters and all other Hitkari Group of Companies (KKH Group). The KKH Group was founded in 1896 and has successfully grown over the years.

Arjun is the fifth generation Hitkari to be in the management of KKH Group.

KKH Group is continuing to diversify with the help of consultants and is planning acquisitions and JV's outside India with particular emphasis on Europe. Kalpen Shukla with experience in Unilever and British Gas has been appointed as a management consultant and Ajay Kandoth as the engineering head to look into these activities.

Following the sad demise of K.K. Hitkari, Arun K. Hitkari now takes over as chairman and managing director of KKH Group.

Hot on the heels of announcing solid first nine-month financial results, JTI is planning to launch upgraded packaging for Winston, Camel, Mild Seven and Glamour premium cigarette lines in an attempt to capture a greater share of the duty-free market, and of Benson & Hedges for duty paid markets.

The new Winston design incorporates rounded corners and is intended to "convey freedom" while reinforcing the "premium quality, modernity and sophistication" of the product, according to JTI.

"The pack signals a new era of expansion for Winston," said Ming Lee Foo, JTI Worldwide Duty Free vice president Consumer & Trade Marketing. "The famous blend remains the same, yet the pack strengthens the Winston proposition in the travel retail environment by exceeding smokers' expectations. Winston is a leader, and the new packaging will make it the leading cigarette for adult smokers. Winston Super Slims was launched in travel retail early this year and is a huge success - proof of the brand's potential."

France, Greece, Italy and Spain will be the first countries to see the new brand packaging, which is slated for worldwide distribution.

JTI is also preparing to launch Glamour Pinks and Menthol variants of its Super Slims line in early 2009.

"Glamour is the fastest growing 99mm Super Slims cigarette," said Ming Lee Foo, "and it aims to become the category leader for female adult smokers. It is a high performing brand that will further push performance in duty free. Female adult smokers want to enjoy smooth-tasting and feminine cigarettes at a competitive price - and Glamour fulfils their requirements."

The number of small- and large-scale farmers who have applied to grow burley tobacco rose from 24,634 registered in 2007 to 37,078 farmers because eof improved prices, according to Malawi's Tobacco Control Commission. Tobacco brings in around 60% of Malawi's foreign exchange earnings.

Tobacco fetched 37% more in 2008 than in 2007, reaching an average of US$2.43 a kilogram on sales of 189 million kg, compared to 111 million kg in 2007.

One of India's largest packaging manufacturers has changed its name. With effect from September 10, 2008, Twenty-First Century Printers Limited is now known as TCPL Packaging.

The company's principal activity is manufacturing and supply of packaging materials. Products include cartons, boxes, shells and hinge lid blanks required by various customers including the cigarette industry.

70 years of expertise to fulfill the Asian market requirements

It has been 70 years since the Champlain Company Inc., based in Bloomfield, New Jersey, USA, integrated a revolutionary new inking system into a rotogravure printing and converting line ) and instantly became the undisputed leader in the technology. Since that time, the print technology developed by Champlain has been developed continuously.

In 1956 when Champlain started to work with Bobst (Champlain is now completely integrated into Bobst and based in Switzerland under the name Bobst Web-Feb Solutions), a collaboration that led to the first Swiss-built line, which left Bobst's factory in Lausanne two years later.

The term "web-fed process" is used to define a complete, uninterrupted process, in a single machine path, from the roll of substrate to the finished folding carton.

The different processes, such as printing (face and reverse), varnishing, 100% quality control, embossing, creasing, cutting and stripping of waste are combined to produce a fully printed and converted carton. The commonly used converting methods are either flat-bed or rotary die cutting. Sheeting is used in combination with off-line finishing for either short run production or integration of various additional production processes. Many value adding processes, such as rotary embossing and/or punching, hot foil stamping, UV-varnishing, tear tape lamination and so on can be integrated into a web-fed machine in order to increase the value of packaging.

Asian market

Since installing the first Champlain press in Japan in 1961, hundreds of lines have been installed in Asia during the last 47 years.
Throughout its 70-year history, Bobst Web-Fed solutions has constantly pushed the technological barriers forward in order to meet the stringent market requirements, in particular those required by world-leading tobacco companies such as Philip Morris, British American Tobacco and Japan Tobacco International.

Service in Asia

Given the large installation base, Bobst Web-Fed Solutions has been forced to set-up an extensive support and service network throughout Asia. Seeking to improve the service to its customers, Bobst Web-Fed Solutions set up its first Competence Centre in 2007, with many bases in Asia and a parts stock in Hong Kong. More than a hundred technicians are dedicated to support the ever-increasing installation base in Asia.
As part of itsservice, Bobst also offers a wide variety of productivity improvements through upgrades and retrofits, as well as thorough maintenance and training programs. The company frequently installs additional printing units, replaces flat-bed cutter-creaser units with rotary die-cutter modules, adds embossing stations and/or upgrades existing lines with the latest register and quality control systems.
The service competence combined with its technological know-how makes Bobst Web-Fed Solutions the preferred supplier for the vast majority of major packaging companies, not only in Asia, but also around the entire globe. Bobst Web-Fed Solutions is committed to service as a basis for highly valued partnerships with its esteemed clients.

The tobacco industry is investing heavily in new filter technologies, new packaging and improved production processes in order to meet increased demands from consumers. To satisfy these expectations and provide a world class offer for the entire secondary handling processes, FlexLink and ITM have decided to cooperate in order to optimize the offer from both companies.

ITM is the world leader in rod handling and FlexLink is the world leader in the handling of packaged tobacco products. By this cooperation the tobacco manufacturers will receive the best combination of products, expertise and service.

Within the cooperation, ITM, using first class FlexLink components within their solutions, intends to lead in the field of 'mass flow' applications for cigarettes and filters. FlexLink will focus on packet, carton and case handling applications, and no longer supply 'mass flow' solutions. FlexLink components will, on a continuing basis be sold to the entire tobacco industry. Both companies will continue to work with the tobacco manufacturers.

"By this agreement we are joining world leading expertise and experience of both companies to offer total solutions for the tobacco industry, supported by our global network," according to Andrzej Stanikowski, director of Product Strategy, ITM Group. "As a result of this cooperation, our customers will benefit from the highest level of delivered products and services already proven on the market."

"By both companies concentrating upon their core expertise, our customers in the tobacco industry are assured of receiving more focused offer development, and the very best solutions and support," added Paul McEllin, director Tobacco Industry, FlexLink. "We expect our business to grow this way."

If the country fails to implement graphic health warnings on cigarette labels, its tobacco farmers may be given least priority status for foreign aid for displaced tobacco farmers, according to a statement by the Framework Alliance on Tobacco Control-Philippines (FATC). Manila has yet to pass passing graphic health warning bills which, according to FATC, it was required to mplement by September 4 as an FCTC signatory.

"Framework Convention Alliance is crafting guidelines on giving aid to member countries," said Maricar B. Limpin FATC executive director. "One of the possible guidelines is to give least priority to noncompliant countries, which includes the Philippines,"

The Philippines joins Vietnam, Mongolia, Qatar and Myanmar in the list of noncompliant countries.

The Indonesian government is planning to raise revenues from cigarette taxes in line with projected inflation rates and to meet the government's revenue target from excise duties in 2009 increased Rp3 trillion (US$270 million) to Rp49.49 trillion from Rp45.72 trillion in 2008, according to Anwar Suprijadi, director general for Customs and Excise Affairs. He said the rise of 6-7%, which is slated for early 2009, is intended to increase state revenue and reduce cigarette consumption.

"The increase in cigarette tax will not be high. It will be adjusted to the assumed inflation rate in the 2009 state budget," according to Suprijadi, quoted by ANTARA news agency. "We also have the mission to maintain public health in connection with the plan to increase cigarette taxes and to reduce cigarettes consumption. We already have the policy in hand we are going to popularize, after which we would take the next steps," he said.

Commenting on the issue of specific tariffs that the government is planning to impose, Suprijadi said: "we need to create harmony so that it would not cause a gap between small-medium enterprises and big companies. The increase of the cigarettes tax alone is about Rp2 trillion to Rp48 trillion," he said, adding that the government would continue to enforce the law, simplify administrative procedures and introduce a specific tax duty tariff.

KT&G saw its third-quarter earnings rise 15.3% year-on-year thanks to increased sales, according to a statement released by the company.

It earned a net profit of KRW228.8 billion (US$173.43 million) in the July-September period, compared with KRW198.5 billion in the same period in 2007 on increased year-on-year sales of 3.7% totaling KRW658.1 billion. At the same time operating profit fell 1.1% to KRW230.4 billion, according to KT&G.

A study published in the British Medical Journal suggests that four times more people die from the effects of smuggled tobacco than from illicit drugs. The report, compiled by Cancer Research UK, said that 4,000 deaths could be prevented annually in the UK if tobacco smuggling was eradicated.

"Smuggled tobacco is more dangerous than duty-paid tobacco because it brings tobacco onto the market cheaply, making cigarettes more affordable," according to Robert West of Cancer Research. "Cost is a major deterrent to smoking and the availability of cheap cigarettes, often for sale at half to a third of their official price, removes or greatly weakens the price incentive to quit. If we are to lower smoking rates and reduce health inequalities in this country, the government needs to treat tobacco smuggling as a national emergency and act now to stop the trade."

HM Customs and Revenue (HMRC) statistics show that 22% of all the tobacco smoked in the UK, or 18 billion cigarettes out of the total 82 billion, is smuggled into the country.

Thailand's public health minister Chaiya Sasomsab doesn't like the idea of e-cigarettes entering the kingdom and has ordered a study be conducted to find ways to prevent their importation.

"Although e-cigarettes don't emit smoke, they pose harm to smokers with the level of nicotine higher than found in conventional cigarettes," said Sasomsab, adding that he believed the product was aimed at young smokers as they are "keen to try new things."

He ordered the Food and Drug Administration to conduct a study and to discuss possible preventive measures with the relevant government agencies.

Earnings from Indian tobacco exports may increase by around 40% this year, thanks to increases in prices paid. Export volumes are expected to remain at around those of 2007-2008 though, from which the country earned around US$503 million.

"We feel the value of tobacco exports may increase to US$700 million this year as prices in global markets have shot up significantly," said J Suresh Babu, chairman, Tobacco Board of India.

Prices of tobacco reached a record average of Rs84.85 (US$1.723) per kg during auctions in Andhra Pradesh this year against Rs47.47 last year, due to a global shortage of tobacco. The highest-quality Andhra Pradesh tobacco brought in a record high of Rs141 a kg this year, compared to Rs65 in 2007.

"Even the ongoing Karnataka auctions, which started in September and will continue till February, are fetching high returns as prices have shot up even higher than the Andhra auctions to an average of Rs104.80 per kg," Babu said.

The price of Karnataka flue-cured Virginia tobacco sold during the first month of auctions in 2008 averaged Rs102.69 (US$2.15) per kg, almost double the Rs 59.23 per kg earned last season, on sales of 19.10 million kg. Karnataka, which was awarded an authorized crop of 96.62 million kg, actually harvested around 101.29 million kg.

According to Babu, favorable global market conditions and continuing crop shortages in Zimbabwe, Europe and China were likely to see demand for Indian tobacco remain strong for the next 2-3 years, resulting in higher prices.

Tobacco exports increased by 25.30%, from 81,110 tons to over 100,000 tons, during the 2008-09 fiscal year to August, according to the Tobacco Board of India. Income from tobacco exports totaled exports also rose by 64%.

"The country's exports shot up by 25% in volumes and 64% in value terms due to lower inventory in some cigarette firms across the world and shortage of supply in Brazil and Zimbabwe," said a tobacco board official quoted by PTI. "Among tobacco leaf, export of flue-cured virginia (FCV) variety improved by 19% to 70,365 tons during the review period, he said.

Tobacco product exports also increased by 12.69% to 12,189 tons, according to figures released by the Tobacco Board.

E-cigarettes are not regarded by the World Health Organizarion (WHO) as safe smoking cessation devices, according to Douglas Bettcher, acting director of the WHO's Tobacco Free Initiative.

"The World Health Organization knows of absolutely no scientific evidence whatsoever that would confirm that the electronic cigarette is a safe and effective smoking cessation device,' Bettcher told reporters. "There are a number of chemical additives in the product which could be very toxic."

Bettcher claimed that some (unnamed) E-cigarette manufacturers had implied WHO approved of their products as a replacement therapy.

"Manufacturers of this electronic cigarette around the world have included WHO's name or logo, for example, on their website, on package inserts or on advertisements," he said.

India has banned smoking in public places, including all offices and restaurants, citing economic costs and the need to stem the loss of human lives. Smokers caught in violation of the ban face a fine of Rs200 (US$4).

While the ban continues to rankle India's tobacco industry, which claims the ban infringes on individual rights, observers point out that actually enforcing it is likely to be problematic. This has certainly been the case with past efforts to eradicate public spitting and urination.

Nonetheless, ITC, India's largest cigarette manufacturer, has mounted a legal challenge against the ban. The case came before the Supreme Court last November 18.

In a related move, the health ministry is urging a complete ban on foreign direct investment (FDI) in the domestic tobacco industry and is seeking to impose greater taxes on tobacco products.

"The health ministry is totally opposed to fresh overseas funds infusion in spite there being 100% FDI in the tobacco sector," Said health secretary Naresh Dayal. "We have also asked the finance ministry to impose more taxes on cigarettes and other tobacco products such as gutkha and pan masala."

The proposed ban on FDI is apparently not supported by the department of industrial policy & promotion (Dipp), government department tasked with approving foreign investment.

"When 100% FDI in the tobacco sector is allowed, banning it would be considered an investor-unfriendly policy and send negative signals to the investor world," according to an unnamed Dipp source.

The Tobacco Board of India inaugurated India's first wireless tobacco auction on November 9 in a joint project with Bangalore-based Cranes Software International Limited. The new e-auction system is envisioned to replace the current manual auctions. Using wireless Handheld Terminals (HHT), the transactions are recorded and processed at a speed unimaginable using a manual system.

"The complete auction process happens on a handheld terminal in a wireless networking environment," said Asif Mohamed, of Cranes Software. "Besides buyers and auction officials, these handhelds can be used by classifiers - the board officials in charge of inspecting and evaluating the quality of tobacco bales."

The tobacco being presented for auction is first graded, and the results are made available on the HHT. In the auction room buyers are invited to bid for bales. Bids are input in the HHT. The maximum bid wins the bale. If no bid is made for a lot, the auction server automatically reduces the asking price by a pre-determined amount. If, afdter a specified time, there is no higher bid received, the system awards the sale to the highest bidder. All the processes, including price discovery, are displayed on a large LCD screen in real time.

"The system can accommodate five to six board officials and about 700 buyers, recording transaction volumes of 1,200-1500 100kg bales per platform each day," Mohamed said.

Farmers can reject an offered price, and this is recorded on the HHT by a board official. Once recorded, the farmer can remove the lot from the auction. A buyer can also reject a lot after inspecting the bale through coordination with a board official. The reasons for rejection are noted. If, for example, the bale is found to be underweight, the revised weight is entered into the HHT.

The letters SDPC (Singapore duty paid cigarettes) will be printed near the filter of all cigarettes sold legally in this island nation starting from January 1, 2009 as part of continuing efforts to eradicate contraband sales.

"All unmarked cigarettes will be deemed to be duty-unpaid and illegal," according to a statement issued by the Singapore Customs. Persons found in possession of unmarked cigarettes face fines of S$500 (US$352) for every pack of unmarked cigarettes in their possession. Visitors and returning residents bringing cigarettes in from overseas are advised to keep hold of their receipts, according to the Customs department's website.

"The availability of cheap duty-unpaid cigarettes will hamper our national effort to discourage smoking," said Fong Yong Kian, director-general of Singapore Customs. "The marking will serve as deterrence against the peddling and buying of contraband cigarettes and help our officers in the enforcement efforts." Singapore Cigs to be marked The letters SDPC (Singapore duty paid cigarettes) will be printed near the filter of all cigarettes sold legally in this island nation starting from January 1, 2009 as part of continuing efforts to eradicate contraband sales. "All unmarked cigarettes will be deemed to be duty-unpaid and illegal," according to a statement issued by the Singapore Customs. Persons found in possession of unmarked cigarettes face fines of S$500 (US$352) for every pack of unmarked cigarettes in their possession. Visitors and returning residents bringing cigarettes in from overseas are advised to keep hold of their receipts, according to the Customs department's website. "The availability of cheap duty-unpaid cigarettes will hamper our national effort to discourage smoking," said Fong Yong Kian, director-general of Singapore Customs. "The marking will serve as deterrence against the peddling and buying of contraband cigarettes and help our officers in the enforcement efforts."

Russia's State Duma, the lower house of parliament, has approved legislation to lower tar and nicotine content in cigarettes and to place large health warnings on the packs. The proposed regulations require the maximum permissible levels of tar and nicotine in cigarettes to be reduced by 15-20% and for health warnings to be no smaller than 30% of the pack's surface. But manufacturers will still be allowed to label brands with the words 'light' or low-tar', which some critics claim contravenes FCTC guidelines. Russia became a signatory of FCTC in 2008. The legislation must be approved by the upper house and signed by the president before becoming law.

While FCTC urges terms such as 'light' and low-tar' be banned, there are in fact no mandatory guidelines on their use or otherwise. Japan also allows these terms to be used on cigarette packaging.

Some critics are nonetheless vociferous. Gennady Onishchenko, Russia's outspoken chief epidemiologist who recently accused international tobacco manufacturers of carrying out "nicotine genocide" called the legislation "a compromise between doctors who want to make Russia a civilized country ... and the international tobacco mafia."

Smoking in government offices and some public places is already banned and large restaurants are required to establish non-smoking sections.