Tag Archives: Philip Morris International
Malaysia is set to adopt a law, which will successfully ban all promotional prices and discounts on cigarettes, trying to discourage tobacco use, Richard James, director of corporate affairs at Philip Morris Malaysia revealed.
At present, tobacco companies operating in Malaysia, are allowed to provide 5% discounts during one month, not more than 3 times a year. Such offers are usually carried out during the launch of new products.
According to Mr. James, Philip Morris International Malaysia, which manufactures Marlboro, Parliament and L&M cigarettes, is not opposing the new initiative by Malaysian Ministry of Health, since tobacco companies were notified about the measure.
A downturn in global business activity is hurting U.S.-based companies, which are reporting the worst business results throughout the last decade. Many leading companies have recently announced lower profits and reduced revenue expectations, and the slowdown in European Union is cited as a key reason for these forecasts. Among the business giants to issue warning estimates are FedEx, PMI and Pepsi.
This demonstrates that it might be wiser for analysts to underweight multinational companies, inclined to business activity in Europe. The stocks of the largest tobacco companies have also being hit by the latter scenario, which is prompting more experts to lower expectations from Philip Morris International, while raising Altria Group instead.
–The latest buyback strategy of Philip Morris is intended to return more funds to the company’s shareholders.
–Solid Performance in Asian markets has led to the sales growth for the tobacco company, contributing to revenues boost in the last quarters.
–Investors have showed increasing interest in tobacco stocks thanks to beneficial share repurchase programs and dividend yields.
Last week, Philip Morris International announced its newest three-year share buyback strategy, equaling $18 billion, as the world’s leading tobacco group intends to provide more return funds to its shareholders.
If you are a fan of Marlboro, Camel, or any other famous cigarette brands, imported to India, you should better start stocking up, as Indian government is currently debating over possible restrictions on the importations of tobacco products and a total ban on foreign presence in wholesale sales of cigarettes and other tobacco products.
The measure is considered two years after India’s authorities prohibited direct investment of foreign companies into cigarette production industry.
Local Department of Finance has sent a letter to the Ministry of Commerce asking it to consider implementing restrictions on imports of cigarettes in the latest foreign trade legislation.
The tobacco companies are more and more looking on cinema for promoting their products across India and neighboring countries, after tobacco advertisements were banned, according to the World Health Organization.
Lately, the cigarette makers have also been stripped of the sponsorships of social events, like music festivals and athletic meetings, what forced their shift to movie industry, the WHO declared in its report “Smokefree movies: From evidence to action”.
A study of popular movies has demonstrated that tobacco products displays boomed in Bollywood after tobacco ads were prohibited in 2004. According to the study, 76 percent of 395 top-grossing movies depicted smoking. The percentage of smoking scenes involving lead characters grew from 22 reported in 1991 up to 54 in 2002, whereas out of the 110 Hindi films shown in cinemas in 2004-2005, 89 percent contained scenes with tobacco use. The main characters were depicted smoking in 75 percent of these films.
The brand displays were equally used to promote premium cigarette brands owned by British American Tobacco and its main rival, Philip Morris International , which entered the Indian cigarette market when tobacco advertising ban took place.
Resorting to movies to promote tobacco use is a worldwide phenomenon. In the United Kingdom, where most types of tobacco ads are prohibited, Hollywood youth-rated movies contained more than 80 percent of all tobacco scenes in 2001-2006. In Australia, a 2008 survey showed that 70 percent of all films depicted smoking scenes, with 75 percent shown in top-rated movies. In Canada, a study published in 2009, showed that 75 percent of smoking scenes were contained in youth-rated films.
The smoking images contained in movies – depicting particular brand or otherwise – are usually consistent with tobacco usage adverts rather than with the images of the severe health complications related to tobacco consumption, the WHO said. Smoking in movies benefit tobacco companies and lure teenagers into smoking, the report highlights.
Hamish Maxwell, the former chairman of Philip Morris International, had admitted this fact in 1983, according to the WHO report, citing him as recognizing that it was vital to continue to use new opportunities to show tobacco on screen in order to promote smoking and keep it a socially-acceptable habit.
The World Health Organization proposed to give adult rating to all films which contain smoking scenes to reduce their possibility to be seen by minors and influence on them. An exception could be given to movies showing hazardous effects of tobacco consumption, it notes.
Some other facts mentioned in the report:
– Films have been associated with underage smoking in India, Hong Kong, China, Thailand, England, Poland, Germany, Scotland, The Netherlands, Mexico, Italy, and Iceland;
– Scenes depicting main characters consuming tobacco rose from 22 percent reported in 1991 up to 54 percent in 2002.