Tobacco Industry News


Cigarettes, cigars, and smoking tobacco analyzed in the German tobacco market
The Tobacco in Germany market report offers a guide to the size and shape of the market at a national level. The report gives the latest retail sales data, the leading companies and brands, and offers strategic analysis of key factors influencing the market. Market sizes, company shares, and brand shares and distribution data are available for cigarettes, cigars, and smoking tobacco. Click here for more information or to order the report.

Imperial Tobacco completes purchase of Commonwealth
Imperial Tobacco Group has completed its $1.9 billion purchase of Commonwealth Brands of Bowling Green, Kentucky. Analysts report that the takeover could have implications for Reynolds American Inc. Commonwealth, best known for its USA Gold and Montclair discount brands, has gained 3.7 percent in market share in the US in just 16 years. Click here to read more.

Business Tobacco Alliance
R.J. Reynolds is building a new group called the Business Tobacco Alliance. Their website recruits business owners to fight tobacco taxes and smokefree laws. Click here to access the website.

Altadis spurns revised Imperial Tobacco offer
French-Spanish tobacco group Altadis rejected a revised takeover bid of 12 billion euros ($16 billion) from Imperial Tobacco, saying that the offer is still too low. The offer was raised from the March 16th offer of 45 euros to 47 euros a share in cash. Neither the old or new offer was solicited or negotiated by Altadis. Click here to read more.

General Tobacco makes their largest payment to the Master Settlement Agreement
General Tobacco announced its largest payment to date of $100 million to the Master Settlement Agreement as well as the finance of a $1.5 billion anti-smoking education campaign. General Tobacco voluntarily joined the MSA in 2004 to support its mission of improving public health and reducing youth smoking. The company is the 6th largest tobacco company in the nation with approximately $300 million in annual sales. Click here to read more.

R.J. Reynolds makes settlement payment
R.J. Reynolds made its $2.01 billion annual payment for 2007 under the 1998 Master Settlement Agreement. A portion of the payment, about $561.2 million, was deposited into a “Disputed Payments” account, due to an ongoing fight with the states. R.J. Reynolds claims that it is owed a credit against its annual payment under the terms of the agreement due to loss in market share. That portion will remain in the account pending final resolution of the company’s disputes with the states. Click here to read more.

Marlboro explains tobacco liveries
Despite the fact that tobacco advertising is supposed to have disappeared from Formula 1 racing by the end of 2006, Ferraris racing in Bahrain continues to feature Marlboro branding. The agreement to eliminate such advertising, known as the “International Tobacco Products Marketing Standards,” was signed by Philip Morris, British American Tobacco, and Japan Tobacco in 2001 and stipulated that the companies would withdraw advertising in the sport within a year. According to the Vice-President of Marlboro Motorsport Marketing, the agreement was “not successful” because the standards were not broadly adopted. Click here for the press release.

Japan Tobacco acquires Gallaher Group
Japan Tobacco has taken over Britain’s Gallaher Group for $15 billion in the biggest Japanese overseas acquisition ever. The move will allow Japan Tobacco to expand outside of Japan, which has seen declining smoking rates, and into Western Europe. Tokyo-based Japan Tobacco is the world’s third largest cigarette company and will obtain an extra 3 percent market share from the takeover. The acquisition is the largest takeover of a foreign company by a Japanese one. Click here to read more.


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