Americans drink less when cigarettes cost more

In the U.S., higher cigarette taxes and strict smoke-free policies not only curb smoking but also lower alcohol consumption, a new study shows.

On a national level, the effect is relatively modest. Researchers at Washington University School of Medicine in St. Louis found that a 10 percent increase in the price of cigarettes leads to a 1 percent decrease in per capita alcohol consumption. But states with the highest prices and most restrictive anti-smoking policies, such as New York and Illinois, saw the greatest declines in alcohol consumption.

The study is published online in the October 2014 issue of Alcoholism: Clinical & Experimental Research. Smoking and drinking often go together. Smokers are more likely than nonsmokers to drink alcohol, and heavy smokers are more likely to be heavy drinkers. But while raising cigarette taxes and implementing smoking bans are known to deter smoking, it hasn’t been clear how such policies affect alcohol use. However, cheapest cigarettes are found in online cigarettes shops.

“One of the implications here is that reduced drinking may be yet another health benefit related to tobacco-control policies,” said co-investigator Richard A. Grucza, PhD, associate professor of psychiatry. “It appears that one way to control alcohol consumption is to target tobacco.”

The researchers analyzed changes in cigarette prices and public smoking policies from 1980-2009 and looked at per capita alcohol consumption during that same time period.

“In the last two decades, smoking rates dropped among young people and adults in the U.S., at least partly in response to rising prices and stricter smoke-free air policies,” said first author Melissa J. Krauss, a senior statistical data analyst in the Department of Psychiatry.

Americans consume an average of 2.28 gallons of pure alcohol per person each year. That’s the equivalent of about 486 12-ounce bottles of beer, 5-ounce glasses of wine or 1.5-ounce shots of hard liquor. A standard beer is about 5 percent alcohol, while most wine is about 12 percent and spirits such as bourbon or vodka are about 40 percent alcohol.

Philip Morris Cigarette Shipments Fall 3.5%, Profits Tumble 13%

Inc. (NYSE: PM) reported second-quarter 2014 results before markets opened on Thursday. The tobacco products firm posted quarterly adjusted diluted earnings per share (EPS) of $1.41 on revenue of $7.8 billion. In the same period a year ago, the company reported EPS of $1.30 on $7.92 billion in revenues. Thomson Reuters had consensus estimates for EPS of $1.24 and revenue of $7.52 billion.

Currency translation effects cost the company $1.22 billion in quarterly revenues. Operating income totaled $5.8 billion, down 13.4% year-over-year. The company forecast full year EPS in a range of around $5.72 to $5.83, compared with a full-year 2013 EPS of $5.40. The forecast includes a $0.61 per share reduction due to currency exchange rates and a charge of $0.25 per share related to the closing of Philip Morris plants in Australia and the Netherlands. The consensus estimate had called for full-year EPS of $5.14 on revenues of $29.91 billion.

The company’s CEO noted:

    For the second half of this year, we anticipate more challenging quarterly comparisons, particularly in the fourth quarter — which, in 2013, saw currency-neutral adjusted diluted earnings per share grow by 19.4% — due to known business challenges, particularly in Asia, the timing of investments behind the commercialization of our Reduced-Risk Products and the roll-out of Marlboro Red 2.0, as well as costs related to our manufacturing footprint optimization initiatives.

Philip Morris, the manufacturer of cheap Marlboro cigarettes, pays a quarterly dividend of $0.94 for a dividend yield of 4.1%. The company also repurchased 11.6 million shares of its own stock in the second quarter at a cost of $1 billion. Philip Morris plans to spend $18 billion on share repurchases in a three-year program that began in the third quarter of 2012. So far the company has spent $11.1 billion on share buybacks.

The proposed merger between Lorillard Inc. (NYSE: LO) and Reynolds American Inc. (NYSE: RAI) will create a stronger competitor to Philip Morris internationally, as well as to the domestic seller of Marlboro cigarettes, Altria Inc. (NYSE: MO). The company’s shares traded up about 1.1% at $85.50 in Thursday’s premarket session. The stock’s 52-week range is $75.28 to $91.81. Thomson Reuters had a consensus analyst price target of around $88.70 before this report.

WHO Calls for Tobacco Taxes Increase

On May 31 the world would celebrate No Tobacco Day. In connection with this the WHO calls the countries in the entire world to increase taxes on tobacco in order to encourage smokers to quit and prevent youth from becoming smokers. The WHO estimated that increasing tobacco taxes by 50% in all countries worldwide will

Smoking Proves Hard to Shake Among the Poor

When smoking first swept the United States in the early decades of the 20th century, it took hold among the well-to-do. Filter cigarettes were high-society symbols of elegance and class, puffed by doctors and movie stars. By the 1960s, smoking had exploded, helped by the distribution of cigarettes to soldiers in World War II. Half of all men and a third of women smoked. But as evidence of smoking’s deadly consequences has accumulated, the broad patterns of use by class have shifted: Smoking, the leading cause of preventable death in the country, is now increasingly a habit of the poor and the working class.

While previous data established that pattern, a new analysis of federal smoking data released on Monday shows that the disparity is increasing. The national smoking rate has declined steadily, but there is a deep geographic divide. In the affluent suburbs of Washington, only about one in 10 people smoke, according to the analysis, by the Institute for Health Metrics and Evaluation. But in impoverished places like this — Clay County, in eastern Kentucky — nearly four in 10 do.

“It’s just what we do here,” said Ed Smith Jr., 51, holding up his cigarette in a hand callused from his job clearing trees away from power lines. Several of his friends have died of lung cancer, and he has tried to quit, but so far has not succeeded.

“I want to see my grandson grow up,” he said.

The new study, which evaluated federal survey data from 1996 to 2012 to produce smoking rates by county, offered a rare glimpse beneath the surface of state-level data. It found that affluent counties across the nation have experienced the biggest, and fastest, declines in smoking rates, while progress in the poorest ones has stagnated. The findings are particularly stark for women: About half of all high-income counties showed significant declines in the smoking rate for women, but only 4 percent of poor counties did, the analysis found.

This growing gap in smoking rates between rich and poor is helping drive inequality in health outcomes, experts say, with, for example, white women on the lowest rungs of the economic ladder now living shorter lives.“Smoking is leaving these fancy places, these big urban areas,” said Ali H. Mokdad, a researcher at the Institute for Health Metrics and Evaluation and an author of the study. “But it has remained in these poor and rural areas. They are getting left behind.”

Americans with a high school education or less make up 40 percent of the population, but they account for 55 percent of the nation’s 42 million smokers, according to a New York Times analysis of health survey data obtained from the Minnesota Population Center, at the University of Minnesota. Since 1997, the smoking rate for adults has fallen 27 percent, but among the poor it has declined just 15 percent, according to the analysis. And among adults living in deep poverty in the South and Midwest, the smoking rate has not changed at all.

Hong Kong can go further to quit smoking, says WHO official

Meeting the recommended international standard for tobacco tax is not enough for Hong Kong - it can and should go further, a World Health Organisation official said ahead of an expected increase in the cost of smoking in Wednesday's budget.

Dr Carmen Audera-Lopez, acting team leader of the WHO's tobacco-free initiative in the Western Pacific region, said an expected increase in tobacco tax would only make up for inflation since the last rise in 2011.

Financial Secretary John Tsang Chun-wah is expected to increase the flat HK$34 duty on a pack of 20 cigarettes by between HK$4 and HK$8, meaning that the tax rate would be above the WHO recommended rate of 70 per cent on all brands, an increase of between 11 and 24 per cent. Mainland brands like Double Happiness sell for about HK$43 per pack, with international brands such as Camel costing HK$50 to HK$52.

"The Hong Kong government has the capacity to go higher." Audera-Lopez said. "The suggested tax increase is only a moderate one and considering that it has not been increased since 2011, it is probably just compensating for inflation."

For tax rises to work, she said, they must be regular and make the habit less affordable. Encouraging governments to increase tobacco taxes will be the theme of World No Tobacco Day on May 31.

Anti-smoking campaigners had pressed the government to go much further, with some suggesting the duty be doubled.

Lam Tai-hing, chair professor of community medicine at the University of Hong Kong, said experiences from other regions showed that drastic tax measures were needed to make an impact. Doubling tax could lead to a fall of one percentage point in the proportion of the population who smoked, he said.

Cigarettes and Stress

People who think that smoking relieves them from stress are mistaken. A new research was made on the subject. It found that quitting smoking has same effects on the depression and anxiety as antidepressants do. Experts say that effects on quitting are even greater than from using medicines. The researchers from the universities of Birmingham,

Retailers in Ireland Worried About Introduction of Plain Packs

In Ireland the representatives of Convenience Stores and Newsagents Association ( CSNA) told that Australia adopted too strict measures in order to improve their legislation on tobacco packaging. According to Vincent Jennings, who is CSNA chief executive, the introduction of plain cigarettes packaging in Ireland should be delayed. The initiative should be discussed first in

Philip Morris International, Leading Maker of Cigarettes

Coca-Cola is a perfect model of a wonderful business. Altria Group and Philip Morris International are two tobacco companies that have so many important features with Coca-Cola that long-term investors ought to hold all three in the same regard Coca-Cola, Altria and Philip Morris International are leading companies in their respective markets. Coca-Cola has a

Warnings on Every Cigarette Encourage More Smokers to Quit

A research showed that health warnings on every cigarette would encourage more people to quit smoking. The talk is about timelines that demonstrate smokers that every cigarette shortens their life by 11 minutes and a list of toxic substances found in cigarettes that affect health negatively.The results of the study were published in Tobacco Control

Ban on smoking lighting the way

IN what's believed to be the first for a Queensland Surf Life Saving Club, Mooloolaba will ban smoking before the year's out. To them, I say "thank you" It's a bold move, but definitely the right one. In case you missed it, from December 1, the club's smoking area will become a designated tobacco-free zone.

This is fantastic. Finally, a real community, grassroots approach to dealing with a problem as big as smoking. It's a disgusting habit. I don't understand the thrill of it or why you'd want to put those toxins in your body. Then again, it's your body. I can only hope those who choose to light up are fully aware of what they're doing and most importantly, prepared to deal with the consequences of their actions.

I don't see anyone quitting just because they can't light up when they're having a beer at the club - but it's a start. The feedback from the ban has been overwhelming positive from what I can tell. We ran a poll on the Daily's website asking if all surf clubs should follow suit and the majority, 62%, said yes.

This was followed by 29% who believed the individual clubs should choose for themselves leaving the rest, 9%, who said they didn't care what they did. Sad. They should care. This is their health and the health of the general community we're talking about. Coincidentally, December 1 is also the date that the tax on smokes will rise by 12.5% each year for four years, raising $5.3 billion over the forward estimates.

Kevin Rudd raised tobacco prices by 25% back in 2010, a move attributed to an 11% drop in smoking rates. Of course back then, the money made off the increase was directed in to the health budget - to treat those who don't mind forking out a little bit extra to slowly kill themselves. Not all money raised will go towards treating tobacco-related diseases.

Honestly, I'd rather see a significant chunk of that money go to fund our firefighters who have to battle these life threatening blazes started by a cigarette butt flicked out the window. How about a bit more money for the environment? An estimated 4.5 trillion (Yes, with a t) cigarette butts are littered worldwide every year.

If you smoke you know the risk you're taking. Good on the Mooloolaba SLSC for banning the butt. I hope others follow in your footsteps.

These days perfect way to save money on cigarettes is to buy them online at http://cigarette-deals.com/

New York City to Ban Display of Cigarettes

New York plans to raise legal smoking age to 21 and besides this to ban dispay of cigarettes in the stores. These anti-tobacco measures to be adopted soon as Michael R. Bloomberg intends to make New York a smoke-free city. However, authorities of the New York city say that e-cigarettes escape display ban in their

Smoke-Free Homes Help Curb Habit

 Low-income smokers light up less often when cigarettes come with a high price tag and homes have a smoke-free policy, according to a new study. Tobacco use among low-income people remains high, the researchers said, but their findings could help shape public policies aimed at smoking cessation.

"What is important is that clinicians need to emphasize social norms concerning tobacco use and should encourage and discuss strategies for adopting smoke-free homes among all smokers," said the study's first author, Dr. Maya Vijayaraghavan, assistant clinical professor in the department of family and preventive medicine at the University of California, San Diego, School of Medicine.

"Additionally, there is a lot of interest in raising cigarette prices to reduce smoking," Vijayaraghavan said in a university news release. "While we have evidence that moderate increases reduce smoking behavior in all income groups, it is important to match such a policy with support to help lower-income smokers to quit successfully."

The study of U.S. Census Bureau data, which was published in the Oct. 17 issue of the American Journal of Public Health, suggested that people of all income levels smoke less when a pack of cigarettes costs $4.50 or more, said principal investigator John Pierce, professor and director of population sciences at the university.

"Living in a state where the average price paid for cigarettes is low ($3.20 or less per pack) means that all smokers, regardless of income, will smoke a lot more than those who live in a state with higher prices," Pierce said. The researchers also found that having a smoke-free home not only curbs tobacco use, but also helps prevent a relapse among those trying to quit.

"Price is a deterrent to smoking, but successful quitting -- 90 or more days -- was associated in this study only with a smoke-free home," Pierce said. The researchers said low-income smokers are less likely to have smoke-free policies at home since it's often the case that more than one person in the home smokes.

They noted, however, that anyone serious about quitting should consider a smoke-free rule in their home. Vijayaraghavan added that another way to deter smoking would be to boost regulation of secondhand smoke in public housing. "This may change norms around smoking among low-income populations living in public housing," she said.

For the study, the researchers examined information on 150,000 adults from a national survey on tobacco use conducted by the U.S. Census Bureau between 2006 and 2007. The participants provided information on their income and smoking habits.

Russia Introduces Fines for Smoking in Public Places

Lower house of parliament in Russia on Tuesday, October 15, approved the final reading of a bill which tightens anti-smoking legislation in the country by introducing fines for smoking in public places. The initiators of the bill say that it would help to prevent teens and kids from smoking. The bill is part of a

Is Hookah Less Harmful Than Cigarettes?

Smoking a "hookah" may be less harmful than a cigarette as it contains lower levels of four toxic metals, claims a new international study released here Monday.

A team of scientists, headed by Joseph Caruso of American Chemical Society and Fellow of the Royal Society of Chemistry, conducted the study on 12 different varieties of hookah tobacco manufactured in the US and Middle East and broke it down to liquid form.

"The test results revealed that hookah tobacco contained fewer toxic metals like arsenic, lead, cadmium and chromium as compared to cigarette tobacco," a spokesperson said.

The outcome of the research was presented to the American Chemical Society (ACS) at its recent meeting, the spokesperson added.

Unlike popular belief that the difference could be due to filtering smoke through water, the research team's finding points to the composition of the hookah shisha itself.

The tobacco for hookah contains molasses, honey and flavouring agents which have lower levels of toxic metals.

The researchers did not detect excess amounts of the toxic metals even in the hookah water.

A growing fad among urban youth, hookah parlours have been banned in several Indian states, including Maharashtra.

Hookah comprises a narghile, shisha and goza which is a water pipe with a smoke chamber, a bowl, a pipe and a hose.

Specially made hookah tobacco is heated in the bowl and smoke passes through water and is then drawn through a rubber by the smoker.

"The new study reiterates that hookah smoke is a less harmful option compared to cigarette smoking. But I would emphasise more on herbal hookahs which are free of tobacco or nicotine as the best alternative," said Shireen Parker, vice-president of Arabian Nights, a leading exotic lifestyle store in Mumbai.

She said that Arabian Nights has launched a range of herbal hookahs which have become very popular among the youth and health conscious young professionals.

Scotland Plans to Introduce Plain Packs for Cigarettes

A new study suggests that hundreds of shops in Scotland will be forced to close and thousands jobs will be lost if the Scottish Government will introduce plain box packaging for cigarettes. A paper by the Centre for Economics and Business Research (CEBR), supported by tobacco giant Philip Morris which produces Marlboro cigarettes, states that

Camel maker plans big e-cigarette push

Reynolds American Inc., the maker of Camel cigarettes, is launching a revamped version of its Vuse-brand electronic cigarette in Colorado, with its sights set on expanding nationally.
The move being announced today at an event in New York City is the latest in an industrywide push to diversify beyond the traditional cigarette business.
Electronic cigarettes are battery-powered devices that heat a liquid nicotine solution, creating vapor that users inhale.
The nation's second-biggest tobacco company says that while many smokers know about e-cigarettes and are trying them, few switch entirely.
Reynolds says its rechargeable Vuse e-cigarette has technology that monitors and adjusts heat and power to deliver the "perfect puff."
The Winston-Salem, N.C., company did not disclose the exact size of the Colorado retail distribution or a timeline for a national rollout.

Pack of cigarettes in Russia to bite smokers by 2020

Cigarettes can turn into even more expensive product in Russia and it will be more difficult to buy tobacco products, the Russian Ministry of Health alerts. The World Health Organization (WHO) suggests Russia to increase the excise tax on tobacco products more than 5 times, precisely seven times. As outlined by the WHO demands, the

Cigarette Marketing Increases as Tobacco Use Drops

Cigarette volumes have been dropping for many years, but that has not prevented cigarette makers from launching their wallets for advertising and promotion dollars. As outlined by the Federal Trade Commission, the biggest tobacco firms invested $8.37 billion in 2011 on advertising and special offers in comparison to $8.05 billion in 2010. The boost primarily

Aberdeen airport opens pre-flight smoking zone

The chief at Aberdeen International Airport has decided to establish a special airside smoking zone at the busy airport to enable smokers to use a cigarette before boarding their planes. The smoking zone was opened to the travellers on May 9, along with the major departure area, for customers who have been processed through security

Supermarkets launch ban to display cigarettes

Supermarkets were banned from displaying cigarettes and other tobacco products after new rule became effective on April, 29. Public Health Minister Michael Matheson states that this step is the “right step” to discourage the younger generation from start smoking. The open display ban was implemented as part of the Tobacco and Primary Medical Services (Scotland)