Tobacco Documents Online

DEVELOPING COUNTRY ISSUES OS AND AS S~oking and.Health Does BAT deny that smoking!is harmful to health? The position of BAT on this matter is very clear. BAT belleves that cigarette smoking has not been proven to cause disease. The role, if any, which smoking may play in the initiation or development of any disease is uncertain. There is a statistical association between the incidence of certain diseases and smoking. Statlstical association, however, does not establish causation. Further research is needed on the mechanisms of disease before firm conclusions can be drawn. BAT therefore continues to fund independent scientific research on this complex subject. Do you deny that cigarette smoking is addictive? Whilst the US Surgeon General has claimed that nicotine is addictive, he has also claimed that video games are addictive. This is a prime example of the misuse of the term "addiction". Cigarette smoking bears no resemblance to classlcal drugs of addiction such as heroin and cocaine, and cigarette smokers bear no resemblance to addicts. Mi11ions of smokers around the world have given up smoking voluntarily and without assistance. Smokers smoke because they enjoy smoking. Health Warninus i. Q. Is it true that BAT fights vigorously against the use of health warnings on cigarettes? A. No. We comply with government requirements for health warning labels when asked to do so. 2. Q. Why does BAT not put health warnings on all its cigarettes worldwide and take steps to educate consttmers about the health hazards of tobacco? The claimed effects of tobacco on health are still a matter of scientific controversy, and so it is the responslbillty of the government in any given country to decide how it wishes to deal with health education and whether it requires health warnings on any products. The form and wording of any such warnings are also a matter for government. Worldwide some 80 countries now have health warnings on cigarette packs, including many developlng countries. The form of. these warnings varies wldely from one country to another. BAT complles with government labelling requirements in a11 countries in which it sells cigarettes. 536 02262

- Page 2 - Ao Is it true that BAT objects to the use of health warnings on cigarettes made for export? No. Cigarette packs, when exported, comply with all labelllng requirements of the country of destination. It would be impractlcal and inappropriate for cigarettes to be labelled In accordance with regulatlons of an exporting country since requirements and of course languages vary wldely from one country to another. Hiah dellwerv claarettes Does BAT operate a double standard in selling high tar, high nicotine cigarettes in developing countries which are no longer acceptable in Europe? No. Our International brands, which are available in many countries, will have broadly slmilar tar dellverles wherever they are sold. For local brands tar levels vary because consumers demand a range of cigarette types, but this is true in Europe as well as elsewhere in the world. For example, the sales weighted average tar delivery for Denmark is 19mg, while for Switzerland it is 10mg and for France, 15mg; in Nigeria it is 13mg, while in Kenya it is 16mg; in Australia it is 9mg, while in New Zealand it is 14mg. However, of the hundreds of BAT brands worldwide only a small number would fall into the UKhlgh tar category. Ao Is it true that BAT plans to launch new brands of cheap, high tar and nicotine cigarettes throughout the Third World? No. Our marketing strategy worldwide is to continue to focus our support on our successful key international brands. In all markets we aim to offer consumers a range of products of varying prices to suit varying tastes. In some countries this involves manufacture of low cost brands as a quality alternative to local "raw" tobacco or handmade cigarettes. Such brands would be developed to suit consumer tastes in that partlcular country. ~arketln~ How can you Justify using aggressive marketing techniques in developing countries %,hlch would not be allowed in Europe?

- Page 3 - Advertising practices and regulatlons for tobacco products vary wldely from one country to another, even within Europe. It is for governments to decide on. regulatlon of advertising and promotion and BAT always complles with all such requirements. In addition we also, in a number of countries, enter intoagreements with other members of the tobacco industry, to restrict the content and placement of advertising, on a voluntary basis. Ao Is it not true that BAT uses sponsorship, especlally of sporting events to get around restrictions on advertising? No. BAT companies have been giving flnanclal support to a wide range of sporting and arts activities for many years; in many cases, long before advertising restrictions were even thought of. This is generally much appreciated by the recipients and the general publlc. All such recipients have a free choice and accept tobacco company sponsorship only if they wish to do so. It is for governments to decide whether they wish to allow such sponsorships to continue. Children smoklnm i. BAT advertising and sports sponsorship is dellberately designed to encourage children to take up smoking. How can you.justlfy this? Let us be quite clear on this point. BAT bell.yes that smoking is an adult choice and we have a specific policy worldwlde that we do not direct advertising to children or in any way encourage them to smoke. In fact we have been involved in financing a number of campaigns speclflcally to help enforce laws banning the sale of cigarettes to minors. There is also no evidence that advertising encourages people to take up smoking; children are primarily Influenced by their family and friends. Politlca~ ~nfluence i. Is it true that BAT uses polltlcal and economic leverage to support its marketing activities? We reject any implicatlon of unfair or illegal practices. BAT companies have a longstandlng policy of co-operatlng with governments and respecting national laws. Indeed it would not be posslble for us to operate in many countries without support from governments and the local community which recognlse BAT as a major commercial enterprise and significant generator of employment.

- Page 4 - ~obacc9 ~u~in~ i. Is it true that high tar tobacco grown in Europe with the benefit of EC subsidies is dumped in Africa because there is no longer a market, for it in Europe? No. Most of the tobacco produced in Europe, primarily in Italy and Greece, is used within the European Community or exported to Eastern Europe and North America. Only a limlted amount is exported to North Africa where a large percentage of manufacture is in Government hands. In any case, the tobacco is not the major factor which determines whether a cigarette is high or low tar, but the overall design of the product. The range of tar potentlal from different tobaccos is also fairly limited. Different types of tobacco from many world sources are blended together to achieve a range of varlatlons, in taste in order to meet consumer preferences and leglslative strictures. Does BAT buy any cheap tobacco from the EC "tobacco mountain"? Almost never. In order to maintain product quality BAT, when it requires EC tobaccos, purchases through traditional suppliers who can supply the desired forms and packings. EC stocks are put up to different specifications, are generally of a quallty which is unacceptable to us and with taste characteristics which are not compatible with our product requirements. Prospects for crrowth 1. Qo Is it not true that the only way to achieve increased profits in a declining industry such as tobacco is to seek new smokers in the developing world? Ae Our profits are not declining in the industriallsed world. We propose to carry on increasing our profits in all our markets. There are indications that sales in a number of industrlalised worlds are stabilising or even increasing. Markets such as Europe, with the opening up of the old tobacco monopolies, offer us tremendous growth opportunities. BAT was established as an international company and has been operating abroad since the early years of the century, for example in India since 1902, Trinidad

- 5 - since 1904, Kenya and Nigeria since 1910. It is therefore ridiculous to suggest that we have only recently turned our attention to the developing world. Furthermore, tobacco has been grown in developing countries for centuries, and people were choosing to smoke long before the introduction of the machine made cigarette. Environmental Concerns I. Does tobacco cause widespread deforestation due to its dependence on woodfuel in the developing world? No. A study carried out by the International Forest Science Consultancy has shown that the tobacco industry consumes less than 1% of all wood used in the developing world each year. The main causes of deforestation are population growth, non-sustainable agricultural practices and a lack of affordable alternative fuels. Indeed, many BATCo companies worldwide have made a significant contribution to afforestation schemes. In Kenya, some 12,000 tobacco farmers have raised over 20 million surviving trees in the past fifteen years. 2. Q. Does tobacco take away land from food production? No. Tobacco occupies on average only 0.3% of agricultural land. BATCo buys its tobacco from 500,000 small farmers in developing countries every year. They receive technical assistance from the company's agrlcultural extension workers to the benefit of all their crops, not just tobacco. Most small farmers grow a variety of food and other cash crops in addition to tobacco. BATCO 3 December 1990 536 02266