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Tobacco Reporter for the International Tobacco Industry

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Length: 134 pages

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Box
0546
Named Person
Ainsworth, W. Eugene (RJR VP, Government Relations)
W. Eugene "Gene" Ainsworth Jr. served as the Vice President of Government Relations for R. J. Reynolds Tobacco USA in 1984 and 1987 and as Senior Vice President of Government Relations for RJR Tobacco USA in 1988 & 1989. (Source: R. J. Reynolds Summary - RJR Liability Notebook).
Akins, Gene
Allen, Joseph
Alston, Julian M.
American Brands, Inc.
Defense
Arthur, Hugh M.
Bachmann, Michael, Jr.
Bale, Parker
Bautista, Andres
Beam, James B.
Beck, Van
Beek, Van
Bell, Graham
Bennett, Robert M.
Berger, Rachel
Bergson, Paul C. (RJR Lobbyist, Public Affairs VP, TI Executive Committee)
Defense
Bickers, Chris
Blumberg, Joseph
Boden, Richard M.
Bohren, Richard
Bond, Fred
Bowman, Daryl
Box, Carlton
Brand, Peter
Bray, J. Robert
Brooks, Derrick W.
Brothers, Martin
Brown, Bob
Brown, James
Brown, Jim
Buie, Len
Cane, Ernesto
Clarke, Patrick
Corp, Del Monte
Cristina, Gabriele
Crump, Peter
Cutter, Parker Bale
Deal, Philip A.
Duffy, Mark
Edward, King
Edwards, Bill
Edwards, Thomas
Europe, Dexter
Felton, Eddie
Felts, David
Field, Marshall
Fils, L. Lacroix
Finch, Charlie
Fishburne, Frank
Fletcher, Robert (Regional Public Affairs Manager)
1989 Hong Kong
Folts, John
Ford, Gerald R.
Frear, Ronald H.
George, King
Goin, Bob
Goins, Bob
Gooch, Peggy
Gordon, Edward S.
Gordy, Berry
Gottlieb, Robert A.
Grau, J. Richard
Green, Charles Raymond, Ph.D. (RJR Chemical Div. 1969, Principal Scientist RJR 1989, Sr. Pr)
1993
Greenberg, Frank S.
Greenwood, Ken
Grossi, Carlo
Hammer, Cynthia H.
Harvey, Gordon
Haycock, Steve
Haywood, Keith
Head, Hilton
Henning, Peter
Hertz, Alfred N.
Hinchcliffe, Dennis
Hockett, Robert C.
Home, Barbara
Horn, Gordon
Hotchkiss, Charles
Hume, Robert M., III
Israel, J. Cart
Jacob, John
Jimenes, E. Leon
Jimenes, Leon
John, Trevor
Jones, Douglas
Jones, Wilson
Jordan, Vernon E., Jr.
Defense
Juenger, Rudy
Keller, Kenneth
Keough, Donald R.
Kiger, Hugh
King, Glenn P.
Kirkman, Doug
Knopf, Alfred A.
Kornegay, Horace R. (TI President and Exec. Director)
VP Leaf Ops (RJR), TI Chairman (1985)
Lawson, Nigel
Lawton, Frank
Leaf, Ken
Leaf, Winston
Lee, David L.
Leone, Sierra
Lester, Reginald
Lewis, Ted E.
Liedtke, Kurt
Logan, John
Matlick, Dayton
Mccullagh, Leo
Mclaughlin, Ed
Merlo, Ellen (PM Corp. Affairs VP)
Marketing Services prior to 1986. Understood use of nicotine addiction in selling PM products.
Meyer, Karl Heinz
Minn, Paul
Moelter, Karin
Monte, Del
Morris, Chris P.
Munday, Richard J.
Nixon, Richard M.
Owen, Roy
Pak, Parker
Paulus, Walter
Perkins, Steven
Plackett, Nigel
Platz, Charles
Player, John
Port, Virginia
Pullen, Lester W. (RJR Int'l President & CEO 1981-85)
Defense
Ray, Del
Read, Will
Reed, Samuel F.
Respicio, Santiago
Rogan, Mike
Rogers, David E.
Roper, Robert P, Jr. (PM Marketing VP 1993)
1993 Held this position from June 7, 1993 to October 31, 1993, when he resigned.
Rosen, Sue
Rosenblum, John W.
Sales, Morris
Sanford, David
Schonberger, Hans
Scott, Willard
Seed, King
Shore, Robert G.
Sills, Beverly
Snodgrass, Frank
Solomon, John
Steinberg, Ira
Stewart, Andrew Gordon
Stirlen, Richard L. (PM Brand Manager, Marlboro, Merit, VA Slims)
Defense
Stone, Mark
Sumner, Daniel
Tan, Lucio
Tilley, Jack
Townsend, David E.
Trenkle, Robert W.
Van, Jan
Voges, Ernest
Wahlen, Michael
Want, May
Ward, Ed
Ward, Elias
Weber, John D.
Weissman, George (PM Chairman & CEO '79-84)
Vice President of Philip Morris from 1954 to 1956. Vice President and Assistant to the President in 1957. Vice President of Marketing from 1958-59. Executive Vice President of Marketing in 1960. Exec. VP Overseas in 1961, Exec. VP PM International 1962-66. President from 1967 to 1972. President and Chief Operating Officer in 1973. Vice Chairman from 1974-78. Chair and CEO from '79-84 and on the Board of Directors from 1959-84.
Welch, Gerald A.
West, Peter Wood
Wilson, J. Tylee (RJR President 1979)
Served on Board of Directors 1977-83, President in 1983, Exec. VP of RJR Industries 1977-78; Chair of Board, CEO and President of RJR Tobacco International in 1976 and for RJR Foods, Inc. in 1974
Wilson, Robert
Wilson, Sir James (Chairman, Tobacco Advisory Council (UK) c. 1980)
Wines, Jordan Valley
Witt, Eli
Woessner, Rene
Wolff, Robin K.
Wonder, Golden
Yagi, Michiko
Named Organization
Acme
Agricultural Research Service
Agriculture Department (USDA)
Airco (claims patent infringement)
Filed suit with Philip Morris against Brown & Williamson claiming infringement of patents.
Allen Products (subsidiary of L&M; maker of Alpo)
Amatil Ltd. (Australia) (BAT subsidiary)
Subsidiary of BAT Industries, in Australia
American Tobacco Company
Arjay Equipment Corporation
B.A.T. Industries PLC (BAT)
British American Tobacco Industry, parent company of Brown & Williamson Tobacco Co. in the U.S.
Batig G.m.b.H. (Operates under BAT Ind. PLC London)
Operating group under BAT Industries PLC of London
BATUS Inc. (Parent of B&W)
BATUS Inc. is a subsidiary of B.A.T. Industries P.L.C. It is the parent corporation of Brown & Williamson Tobacco Corporation in Louisville, KY.
Benson & Hedges Canada, Ltd.
Benson and Hedges (Benson & Hedges (elite cigarettes, 1948))
A small, elite cigarette company in NY, NY in 1948.
British-American Tobacco Co Ltd (British-American Tobacco Co. Ltd.)
British-American Tobacco Company Limited was a operating group under B.A.T. Industries P.L.C. in 1985.
Brown & Williamson Tobacco Corporation (B&W)
Subsidiary of BAT U.S., located in Louisville, KY.
Burlington Industries (Textile Manufacturer)
Chamber of Commerce
Cigar Association of America
Civil Aeronautics Board (Ruled on smoking in U.S. airplanes)
Clemson University
CNA Insurance (unit of Loews Corp)
Commodity Credit Corporation (Lender to tobacco farmers, part of U.S. Dept. of Agriculture)
Lends money to tobacco farmers cooperatives, is part of the U.S. Dept. of Agriculture.
Commonwealth Tobacco
Consolidated Cigar
Coresta (Industry-affiliated Int'l scientific/research group)
An international organization whose objective is "to improve cooperation in scientific research and tobacco." Consists of 186 member companies/institute from 54 countries, including tobacco, paper and filter companies, and universities engaged in tobacco research.
Council for Tobacco Research - USA (CTR) (Formerly Tobacco Industry Research Committee (TIRC))
Originally organized as the Tobacco Industry Research Committe(TIRC) in 1954, and renamed Council for Tobacco Research - USA, Inc. (CTR) in 1964.
Department of Justice (DOJ)
Diversified Products (health/fitness subsidiary of Liggett Group)
EEC (European Economic Community)
European Economic Community
European Community
Federal Maritime Commission
Filtrona (Manufacutre Reynold's Filters)
Food and Drug Administration (FDA)
Foreign Agricultural Service
Fortune
Franklin Life Insurance
Free Choice Inc.
Gallaher's (British tobacco company)
General Cigar & Tobacco Co. (Manufacturer of pipe tobacco.)
a manufacturer of pipe tobacco.
H.B. Fuller Co.
Hercules
Hotel Employees and Restaurant Employees International Union (HERE)
Imasco Ltd. (Canada) (Tobacco, fast-food retailing co. in Canada)
A tobacco, fast food and retailing company in Montreal, Canada. The leading Canadian tobaco company in 1994.
Imperial Group Limited (Has a 1982 patent on an alternative nicotine delivery system)
Has a 1982 patent on an alternative nicotine delivery system
Imperial Tobacco Co. (Determined optimum nicotine levels for cigarettes)
Did testing pre-1972? of U.K. smokers and concluded that the optimum nicotine delivery for the cigarette, and that stepwise reductions in delivery caused progressive rejection by consumers (see Project Wheat)
Imperial Tobacco Ltd. (Cigarette manufacturer in United Kingdom)
Cigarette manufacturer in United Kingdom
International Flavors & Fragrances Inc.
Japan Tobacco Inc. (Japanese gov't -owned tobacco company)
Japanese government -owned tobacco company, until 1994.
John Wiley & Sons (Publisher)
Kimberly-Clark Corp. (Specializes in the tobacco reconstitution process)
Specializes in the tobacco reconstitution process and in helping the tobacco companies control their nicotine
Liggett & Myers Inc. (Pioneer in the generic cigarette business)
Cigarette manufacturer; Pioneer in the generic cigarette business; L&M is the manufacturer of Chesterfield, Decade, Dorado, Duke of Durham in 1958, Eagle, Eve, L&M, Lark, Pyramid and Stride cigarettes
Liggett Group Inc. (American cigarette manufacturer)
American cigarette manufacturer, was the first to start selling discount brands (GPC)
LTR Industries (Makes reconstituted Tobacco sheet in France)
A subsidiary in France of Kimberly-Clark Corp., which makes reconstituted Tobacco sheet
Marsh & McLennan
Miller Brewing Co. (Subsidiary of Philip Morris Co.)
Subsidiary of Philip Morris Co.
Mission Viejo
North Carolina State University
Olin
Papeteries de Mauduit (supplier of tobacco papers)
Philip Morris & Co. Ltd. (Cigarette manufacturer, incorporated in U.S. in 1902)
Philip Morris & Co. Ltd.., was incorporated in New York in April of 1902; half the shares were held by the parent company in London, and the balance by its U.S. distributor and his American associate. Its overall sales in 1903, its first full year of U.S. operation, were a modest seven million cigarettes. Among the brand offered, besides Philip Morris, were Blues, Cambridge, Derby, and a ladies favorite name for the London street where the home companies factory was located - Marlborough.
Philip Morris Companies Inc. (Parent company of Philip Morris USA, Kraft, Miller)
America's seventh-largest industrial enterprise in 1993, owns Kraft, Miller Brewing, General Foods, and more.
Philip Morris Incorporated (Philip Morris U.S.A.) (a wholly-owned subsidiary of Philip Morris Co., Inc.)
A wholly-owned subsidiary of Philip Morris Co., Inc.
Philip Morris Industrial (div of PM manufactured gum, razors, etc)
Philip Morris International Inc. (A subsidiary of Philip Morris Cos (1994))
A wholly-owned subsidiary of Philip Morris Companies in 1994
Philip Morris U.S.A. (See Philip Morris Incorporated)
See Philip Morris Incorporated
PMI (See Philip Morris Inc.)
See Philip Morris Inc.
Proctor & Schwartz (Made Dryers for RL Process)
R.J. Reynolds Corporation (second tier subsidiary of RJR Industries)
R.J. Reynolds Industries, Inc.
R.J. Reynolds Tobacco Co. (Cigarette manufacturer (Camel, Winston, Doral))
Cigarette manufacturer (Camel, Winston, Doral)
Ralston Purina
RJR-MacDonald
Rohm and Haas Co.
Standard Commercial (Leaf buyer)
Tobacco Advisory Council (TAC) (International industry advisory council)
Tobacco Advisory Council
Ted Bates & Company (Advertising agency for BW)
Advertising agency for Brown & Williamson and other tobacco companies.
Tobacco Advisory Council (TAC) (Tobacco lobbying group in U.K.)
Association of UK cigarette manufacturers
Tobacco Associates Inc.
Tobacco Chemists Research Conference (Formerly known as the Tobacco Science Research Conference)
Tobacco Exporters
Tobacco Industry Research Committee (TIRC) (Renamed Council for Tobacco Research-USA (CTR))
Organized in 1954 as the Tobacco Industry Research Committee (TIRC), and renamed the Council for Tobacco Research-USA (CTR) in 1964.
Tobacco Institute (Industry Trade Association)
The purpose of the Institute was to defeat legislation unfavorable to the industry, put a positive spin on the tobacco industry, bolster the industry's credibility with legislators and the public, and help maintain the controversy over "the primary issue" (the health issue).
Tobacco International
Tobacco Stabilization Corporation
U.S. Department of Agriculture
University of Virginia
University of Wisconsin
Upjohn
Washington Legal Foundation (Supports industry causes)
Wayne State University

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Page 1: TI56305361
TOBACCO REPORTER FOR THE INTERNATIONAL TOBACCO INDUSTRY us$3/$4.50 TI56305361
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[~~ 16th Edition . I:ntemonneehng Interests of ~.~so_~_~~ Majo,r Tobacco Manufacturers AuMmlIm Belgium El SMvador Clqarreda NTE:REST 5"enselldeled Cl~r Culire 6teadMet ImperlM Group Lerlllard ~ Held]up, Lid. i Carp*ration USA pie Imperiz~ Tobacco Leaf Se~ice Pa~cularas S.A, Philfip Mords (Australia) Ltd, Benson & Fledges (Canada) Inc. E. Leon Jimene~. C. par A. Taba"-,alera de El CINTA S,A. Caritzs S A R.J. Reynolds T0bac¢0 Aust~lia Inc. R.J. Reynolds Tobacco Intemsltd~al B V. Eta. Gasser, S,A. Rothmans of Pall Mall AusS"alla Ltd. Carrerzs of Cypros Umlted U.S. Tobaeoo Independenle
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1 TI56305364
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Yugeslevla Tv~rd~ Tutu~sld RovtnJ Pnlep Leaf Tobacco P~n~z Tlbek M. Hzlm~n R.J. To~r~ Liu~jznz C.A. Tabs. calera Na- cional S.A Ouvzn~kg Indu$~jz Hilmlyer Housl of I ........ • PARENT COMPANIES AND T:HEIR HOLDINGS American Brands, Inc. Amedcan Toba¢~'o Company James B. Beam Distilling Co. The Franklin Life Insurance Co. Gallaher Limited Master Look Company Swlngllna Inc. Sunshine Biscuits, Inc. Acuahnet Co. Wilson Jones Co. Amedcan Cigar Andrew Jargons Company Acme Visible Records, Inc. Dully-Meet Co., Inc. MCM Products, Inc. B.A.T. Industries pie Ardsth Tobacco Co., Ltd. British.American Tobacco Co. Ltd, fiA.T (U.K. and Export) Ltd. Benson & Hedges (Overseas) Ltd. International Stores Led, Argos Distributors Ltd. Gimbals-Sake Retailing Corp. The Kohl Corporation Herren AG The Wiggins Teape Group Ltd. Appleton Papers Inc. Cia industrial de Papal Pirahy Mardon Packaging International Ltd. Marshall Field & Co. British.American Cosmetics Ltd. Mollns PIc .(29oh) Holding Companies: Amatil Ltd. (Australia) BATUS, Inc. (U.S,A.) Imasco Ltd. (Canada) BATIG GmbH (W. Germany) Other tobacco companies in: Barbados, Ch#e, Ghana, Guyana, Kenya, Mauritius, Sierra Leone, Surinam, Trinidad, Zair~ Conwood Corporation American Snuff Conwood Export Corp. Scott Toba~'o Co, Standard Theatre Supply Co. Inc. Taylor Bros. Inc. Blevins Popcorn Co. Inc. Culbro Corporation General Cigar Company Helms Tobacco Company General Cigar & Tobacco Interne. tional, S.A. Culbro Machine Systems Culbro V.L. Tobacco S.A. Metropolitan Oistribution Services, Inc. Flaks The Eli Witt Company Cifuentes y Cia., Ltd. Imperial Nurseries Culbro Land Resources, Inc. HF Inc. Moll Tool & Rastic Corp. Culbro Snack Foods, Inc. GrandMat USA Liggett & Myers Tobacco Co. The Paddington Corp. Carillon Importers Ltd. Allen Products Co., Inc. The PinkertonTobacco.Co. Owensboro Tobacco Storage Co., Inc. Gary Tobacco Co. Liv-A-Snaps, Inc. Atlantic Soft Drink Company Liggett Bottling Co. Diversified Products Corporation Express Foods Company, Inc. Holnar Holding Hofnar Sigarenfabdeken B.V. Senator Sigarenfabrieken B.V. Hofnar ![eland Ltd. Imperial Group plc Tobacco Division Imperial Tobacco Ltd. W.D. & H.O. Wills John Player & Sons Ogden's Imperial Tobacco International Ltd. J. & H. Wilson Limited Player & Wills (Ireland) Ltd, Sinclair &Collis Ltd. Bond's Delivery Service Ltd. Canon's Marsh Tobacco Bonds Ltd. John Player S.A. Imperial Tobacco Leaf Service Imperial Tobacco (Malawi) Ltd. Paper, Plastics Division Robert Fletcher & Son Ltd. Food Division Imperial Foods Ltd. Golden Wonder Ltd. Ross Foods Ltd. SmedlapHP Foods Ltd. Young's Seafoods Ltd. Jno, H. Swisher & Son Boyer Bros., Inc. King Edward Tobacco Co. Martin Brothers Tobacco Company, Inc. Leewa Lorillard CNA Insurance Cos. Philip Morris Incorpnrated Philip Morris USA Philip Morris International Miller Brewing Company The Seven-Up Company Philip Morris Industrial Mission Viejo Company R.J. Reynolds Industries Inc. R.J, Reynolds Tobacco Co. R.J. Reynolds Tobacco International, Inc. Heublein, Inc. Del Monte Corp. Sea.Land Industries, Inc. Aminoil USA, Inc. R.J. Reynolds Development Corp, Rothmane International p.l.o. Rothmans of Pall Mall (UK) American Cigarette Co. (Overseas) Carroll Industries Limited Carreras Rothmans Limited Rothmans of Pall Mall (Australia) Ltd. Rothmans Industries Llm[ted Alfred DunhIII Limited Carling O'Keefe Breweries of Canada Limited La Brasserle O'Keefe Limited Jordan Valley Wines Limited Star 011 & Gas Ltd. 8eamlsh & Crawford Llmltsd Rothmans World Group House of Edgeworth Larus & Brothers Co. Peter Stuyvesant of New York, Inc. United States Tobasan Co. Henry, Leonard & Thomas, Inc. Honduran Cigar Imports Ltd. House of Windsor, Inc. Mastercraft Pipes, Inc. National Pen & Pencil Co. See. Michelle Vinters, Inc. United Scandia international, Inc. April 1984/Compiled by TOBACCO REPORTER © 1984 Specialized Agricultural Publications, inc., 3000 Highwoods Blvd., Suite 300, Raleigh, N.C. ~7625 USA
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PEGGY GOOCH, DAYTON MATLICK PubEshnr GEORGE ROUSHXOLB M~,nagedPnnling & Production JOANN LOSUR A~t & Gra~h~c= Supen~sor JOAN WOOOALL Compos=tion Super~or FP,~NCIS ZANKOWSKI Ckeutntion D~rector CORRESPONDING EDITORS Dr. Mumtaz/~tnad AFGHANISTAN Dr. J. Sebastian :;'tmmel AUSTRIA Pa,.do Crania BRAZIL Peter Wood WEST GERMANY S.Y, Nee HONG KONG Ch~ndra~,cnt K~kodkat INDIA Dr. Mumtaz Ahmad IRAN J. Cart ISRAEL S. Amjad Hi PAKISTAN Dr. Mumlaz Abroad PAKISTAN Jt=anito V. J~ PHILIPPINES O~car Villasis PHILIPPINES Peter Pachi THAILAND Mark Stone UNITED KINGDOM Mike Rogan ZIMBABWE ADVERTISING SALES Publisher & General Meneger 0 I.yton Me,lick Account Representetivas USA,CANADA=AFRICA*FAR EAST*FACIFIC Sue Rosen USA*INDIA.PAkISTAN Elias Ward R~i~h. N,C 27625. U,S A Phone~ 919/872-5040 T~ex: ~2-7~ SPEC AG RAL EUROPEAN CONTtN~T Weal Germany T~lex: ~97 CHtLD UN~O ~NG~M Peter E. Hol~y 157 Kim~y A~nue Lo~n SEt5 3XD Phone: 01 EDITORIAL * PRODUCTION * C4RCULATION FOR THE INTERNATIONAL TOBACCO INDUSTRY TOBACCO REPORTER April 1984 Volume 111 Number 4 COVER: Photo by Peggy Gooch FEATURES Spotlight on the Dominican Republic ............. 38 Special Report: The Tobacco Industry Tomorrow The political future of U.S. leaf production ...... 46 Commentary: The dangers of protectionism ...... 52 Cigarette sales and marketing ................. 54 Investigating smoking and health .............. 80 Technology on display: TR previews The Hague .... 58 16th Interconnecting Interests Chart .............. 73 DEPARTMENTS EDITOR'S MEMO ................................ 3 OVERSEAS MEMO ............................... 6 FINANCIAL NOTE ................................ 8 TOPLINE REPORT .............................. 12 INTERNATIONAL NEWS ......................... 14 ASSOCIATION NEWS ............................ 82 BRAND "NEWS .................................. 84 NEW PRODUCTS & EQUIPMENT .................. 90 NEWSMAKERS ................................. 94 FINANCIAL REPORTS .......................... 104 INDUSTRY PATENTS ........................... 106 EVENTS ...................................... 130 ADVERTISERS' INDEX .......................... 132 8PECIALIZED AGRICULTURAL PUBUCATIONS, INC Dayton Mnllicx, Prescient; James P. SwircieW. V~e Prescient. EDITORIAL. ACCOUNTING. ADVERTISING, PRODUCTION. and CIRCULATION OFFICES: ¢~uite 300, 3000 Highwoods Bo~evard, Fl~le~gh. NotCh Carolina 27625 U.S A. F't~me: 91 ~/~72-5640. Telex: 802-73~ SPEC AG PAL C~le: TRSPECAG. TOBACCO REPORTER (ISSN 03~ 1-56~) ~ pubkShed monlhly by Spec=al=zed AgncMItur,,~ Pu~icabon$. Inc.. Sutle 300. 3000 Htohwo~O$ Btvd, R~dmgh, N.C. 27625. S'~t~cr~t~o~ Re.los: ~n th~ United States twO years USS32: th~'ee years, US$40 Ln aJl othe~ ¢=euntne~--A~r Mall rains: one year. US$5~: two yeats. US$68. thr~e y~e,-'~ uS:$110. Sudace M~ rat~: oP~ yeat U,~40, t~o y~cs, US,~64; thtle yea.'1. ~. (S~.~blc~ptioP.~ rm.~'t be pr~.t>a, red ~T~R ~0 F~m ~ ~ T~ RE~TE~ P O ~= 6~ ~. 1984, 1 T!56305367
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Page 9: TI56305369
Anne She/ton Three battles won ~TJCTORY FOR A]~J]O~NE S]~O~RRS leads the list of some recent good news for the U.S, tobacco industry. The U.S. Civil ~Aeronautics Board (CAB) has unanimously rejected proposals to ban smelting on most commercial airline flights in the United States. It did, however, agree that smoking will be forbidden on small airplanes--those with 30 or fewer seats--and it banned all cigar and pipe smoking on all commercial domestic flights, in line with most airlines' policies. The current policy requiring segregation of smoking and non-smoking passengers thus remains in effect. The industry fought long and hard on this issue, arguing, among other things, that the regulation would be unreasonable, unfair and unnecessary. We outlined the nature of the proposal in this space four months ago. As an aside, had this restrictive action been taken, it would have been one of the last actions of a regulatory body which will cease to exist after December of this year--an effect of the deregulation of the U.S. airline industry. And unless Congress acts before then to retain the CAB and its body of regulations, all federal rules regar- ding smoking on airplanes will also cease to exist. With or without Congressional action, the battle for the freedom to light up is still not over, especially not as long as lohn Banzhaf and other ASHers believe their freedom is more important than others' freedom. IN ITS RL]~CTION-YI~AR SHOW of appearing to try to balance the federal budget, the U.S." Congress is working on a $48-billion tax package designed to reduce the federal deficit over the next three years. Naturally, attempts were made to include cigarettes in the list, first by increasing the 16-cent tax, and when that failed, by try- ing to extend the tax beyond its scheduled 1986 expiration. Tobacco supporters prevailed, and there will be no new federal tax on cigarettes this year. But this is an election year; 1985 is not. So this victory is only in one battle, not the war. As Horace Kornegay, chairman of The Tobacco Institute, so graphically told his audience at a recent meeting of the Tobacco Association of the U.S,, "Early in 1985, we will see a tax hill like never seen before; it will be a vacuum cleaner up and down the backs of everyone in the country." Indeed, the prospects of ever growing tax pressures re- main great as state and local governments all around the world look for ways to keep their burdened economies afloat. IT APPEARS THAT THe; U.S. MARITIM]~ RRFORM legislation that has fought such a long, hard battle through Congress--and other various governmental bodies--will have finally become law by the time you read this. Still a focus of controversy, this new Shipping Act of 1984 will make it easier for carriers and terminal operators to engage in collective rate-making and to precede with needed ra- tionalization of services with less stringent anti-trust limitations, while reserving foir the Federal Maritime Commission (FMC} the authority to halt "schemes that go beyond what is necessary to ob- tain [the benefits of developing new and innovative cooperative ven- tures] and cause substantial anti-competitive effects," says the report which accompanies the compromise legislative package. The Depart- ment of Justice is not excluded from the maritime picture by this new legislation, but the FMC is specifically directed to the the "principal and initial authority" in overseeing the maritime industry. TR--April, 1984 3 TI56305369
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tomorrows being just llke his yeste Back then, for the people in the tobacco ,c_ount op their mmk~.-ts growing.Competition business, time seemed to nmvc more sloxvlv m,m otl~er cc ttiltrtcs '.va.slt t 50 tough.Interest Those who came Ix'fore tts coukt alw'avs rates x~emn't so unpredictabk,. TI56305370
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Each year, wefind and process the type a-nd ,.,.~l,-~ -,~ But today; ours is a world of grade of leaf you need.,Tvherever it is grown. "]_~::iV~,change.The entire industq, faces - So wi~ile it may be difficult to depend on - -"- -j' " a turbulent, markettp.hce, anything_ from one'day to another, those ~iho Even so,you can still depend on Monk to rely on qualit-v tobaccos at a ]~ Jelb,er the choice tobaccos your blends require, Fair price still'rdy on ,\~onk.J_VlOI'lK. md always at a competitive price. TI56305371
Page 12: TI56305372
David Rogers Growing significance MEMO AS BRITAIN'S SHRINK|NG CIGARI~'TE MARKI~T is continually pummelled by taxation hikes and manufacturers' own price increases, the economic pressures imposed on smokers are leading to a relative increase in importance for the largely unsung hand-rolling sector of the trade. As manufactured products increase in price, so does the attraction of making your own cigarettes--at up to a third less cost than the factory-made products. The result is that the hand-rolling sector of the United Kingdom tobacco trade has substantially more appeal to smokers and now accounts for over 10 percent of all cigarettes smoked in Britain. There are estimated to be around two-and-a-half million regular smokers of hand-rolled products in the U.K. They buy over 6,000 tons of tobacco each year, and sustain a market sector valued at well in excess of $500 million at current recommended retail prices. {In addition, of course, there is the substantial extra trade from sales of hand-rolling papers and other accessories.} Cost, of course, is a main attraction for roll-your-own devotees. Typically, a smoker can get z~6 cigarettes from a 25-gram pack costing around $2.25. That offers the smoker a considerable saving over factory-made products. But it's not only a question of cost. As spokesman for accessories manufacturer Rizla says, "Today's hand-roller is now a smoker representing the whole spectrum of society, where not only econo- my, but choice and flavor prevail." Certainly it's true that hand-rolling now seems to appeal to a wider market. The traditional British image of a hand-roller is either a typical working-class factory operative, or a would-be trendy trying too hard to demonstrate his individuality. In fact, though, well over half of hand-rolling smokers are either professional or skilled workers, with many of them living in the more affluent Southeast part of the country. The market is growing in significance in these areas, hut also in the West and North. (Male smokers still dominate the market, however, and--despite the grow- ~ng importance of women smokers as cigarette consumers--the hand- rolling image seems to have relatively little appeal to the fair sex.) One of the advantages of the hand-rolling product, of course, is that it can be prepared to the smoker's own preference--not just for flavor, but also for thickness, type of paper, filter tip {or plain}. In the U.K. market, the most significant sales spect is the amazing dominance of just two brands. Between them, Golden Virginia {from Imperial} and Old Holborn {from Gallaher} account for a staggering 90 percent of all U.K. hand-rolling sales. As the market segment leader', Golden Virginia is important enough that Imperial claim its total sales are sufficient to make it equivalent to the third-largest- selling British brand if it were a manufactured product. Both these major brands are being vigorously supported by strong promotional campaigns, as Britain's two major tobacco manufac- turers compete to maintain their dominance of the increasingly-im- portant roll-your-own sector. But smaller brands--including imports --are also being promoted strongly, in a bid to establish or con- solidate their position. Whatever the overall fortunes of the hard-pressed U.K. trade in the near future, it is a fairly safe bet that the hand-rolling sector will slowly increase in importance. The same dould be true for other European markets, too. It's a trend worth watching. 6 TR--Apa, ~9S4 Ti5630537~
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Unwind and rel ... Increased competition in the cigarette market means With uniform cigarette, plug-wrap and tipping papers more stringent demands on productivity in the cigarette from PDM you can make better use of all your cigarette making department. At Papeteries de Mauduit we have makers - and particularly the high-speed ones. developed unique ways to improve and control the paper And devote more time to other cost savings and characteristics related to runnability so that you get productivity improvements. consistently smooth runs, bobbin after bobbin. Uniformity, mnnability: Papcteries de Mauduit. 7, avenue Ingres, 75016 P~ris, France -'I'SL : (1) 524.43.22 - "lT~|ex 62~)ff/Tabr~c - T~l~r. T~,br~c Paris. T!56305373
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RNANC . NOTg Leo J. Zoutewelle Gloom so soon? Mr. Zoutewelte is publisher and editor of "The Foreign Exchange Bulletin," a weekly newsletter on in- ternational finance and economics. W,E SHOULDN'T COMPLAIN, for it is way past time, but it seems a bit ridiculous how, over the past several weeks it has suddenly become fasldonable to be wor- ried about the great U.S. budget deficits. We mean to say that the practice has been scandalous for the last six years or so, but nobody paid any attention. Up to only a few months ago, many prominent officials and economists foolhardily maintained that the deficits did not mat- ter, but all of a sudden, all that has changed so drastically that even the Liberal leadership in Congress is shaking the knurled forefinger in the air, warning against and condemning the lawmakers' irresistible temptation to spend more than what is there, to appeal to voters who, as a group, just haven't been able to get the knack of understanding that it is they who, with real money, have to pay for what the Congress spends with fun- ny money. But now it is too late. We say too late because we believe all indications are that the damage has been done; most of the deficits have become struc- tural, that is, irreversible. Certainly not reversible in time. What will happen next is that the consensus forecast will now predict a renewed surge in inflation. This will alert foreign investors that the real yield differential between investing in the U.S. and other parts of the world is diminishing or will diminish and, consequently, they will be pulling out. They know that they are not alone in this, so they will be pulling out in a hurry, trying to unload their dollars before that currency will lose too much of its value. Thus, the process will feed on itself, cause a severe dollar slump, and the U.S. will be faced with a weak currency, higher inflation, and worst of all, a drastic reduction in the amount of available credit--which will lead to much higher interest reates, because the government, in its insatiable appetite for credit, to finance its deficits, will get its funds regardless of the rates it has to pay for them. That, of course, leaves the productive sector having to pay the same high rates if it is lucky enough to find the credit it needs for normal operations. And, of course, all that smacks of another recession which nobody knows will be how deep. Cur- rent reports about how the economy is booming may even be true, but they will make no difference when things begin to all apart: the gourmet dinner eaten yesterday has not much taste today. That all this is taking place in an election year is doubly troubling, because most of the authorities who have to deal with the situation don't seem to be themselves at a time like that. Even if the storm doesn't hit until after the election, it would not help any of us in 1985. It would be nice to think that our natural economic flexibility would absorb a good part of the consequences, but it seems that most of that precious commodi- ty has been consumed already by many years of economically irresponsible official behavior. And so, once again, the Piper will demand his pay. s TR--Apdi, 19~4 Ti5630537,
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TOBACCO MACHINERY world-famous brand for modern tobacco handling, processing and rodrying plants Complete plants ready for use. The fitment of single machine into existing production lines. Individual designs to comply with special requirements. Our qualified engineering team is at your disposal at any time. 2930 Varel 1 Germany Tel.: (04451) 51 12-5118 Telex: 251211 Heiva D Teiegr.: HEINEN Varel TI56305375
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Focke t _ge We don't ask whether you want to run standard or laminated blanks! We don't ask whether you want to run cellophane or poly- propylene and other film qualities. We certainly make no difference whether you want to pack 10's, 12's, 14's, 20's or 25's! OUR COMPLEX HANDLES THEM ALL - OUR TRACK RECORD SHOWS IT! MERI Filter KII KE NT TI56305376
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Packer Complex Noise level: below $5 dB (A) at 330 packets/rain. Equipment: Hinge Lid Packer 350, Packet reservoir 800, Film wrapping machine 401 with or without stamper extendible to wrapper/parceller 407. Further equipment: Parcelling machine 010, Boxing machine 361, and ease packers. Please ask for further information. ~~50 Focke & Co. EO. Box 1369 D-2810 Vefden (Alle0 Federal Republic of Germany Phone: 4231-4011, Cable FOPAC TeleX: 24201 fopac d __--I OCKE &CO / I / Divisions of Foeke & Co Verden-Germany FOPAC Enterprises (197117 Ltd. 1470, Graham Bell Bouehervill¢ (Montr6al} Quebec Canada J 4B 6H5 Tel. Bouch.: (514) 641-1850 Tel. Mont.: (514) 522-5541 Telex: 055-61634 fopac ent intl. Foeke & Co, Inc. 20 Industrial Avenue P. O. Box 546 Upper Saddle River, N. J. 07458 U.S.A. Tel: (201) 825 8440 Tx: 0642 380 rodiconine upsr. T15C::~2~537~
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TOPLINE REPORT Crops & markets Brand news Political moves Advertising Labeling restrictions Smoking attitudes Corporate moves Total 1984 leaf output estimate for India--273.6 million pounds-is almost 40 percent below 1983 actual output. Burley production would nearly end, down 86 percent to 1.76 mill/on pounds. The flue-cured crop estimate of 239 million pounds is 28 percent below 1983's level. Higher-than-allowed concentrations of ethylene dibromide [EDB) were found in the wells of 10 families in the Connecticut River Valley (U.S.A.). Tobacco is the only crop grown in the state on which the pesticide is used. Five leaf growers, including Con- solidated Cigar--the world's largest cigarmaker--will pay for studies and provide bottled water to the families. Lucky Strikes' blend is to be standardized worldwide. As a result, they will contain an additive which cannot be used in the United Kingdom. The brand had been distributed in the U.K. by John Solomon Inc. Now Solomon will introduce Kool Kin3 Size [filter- tipped, menthol} to the U.K. market. To be manufactured in Belgium, the Kools will be low-to-middle 'tar'. After years of opposition, France has changed Rs stance and will now support Spain's entry into the European Economic Communi- ty, over the obiection of French farmers. Australia's chief broadcasting regulatory body has apparently decid- ed to leave the issue of "accidental or incidental" cigarette adver- tisements during television coverage of tobacco-sponsored sporting .~vents in the control of voluntary agreements among the tobacco in- dustry, the media, and health ministers. The kingdom of Kuwait has imposed a 3e-percent import duty on cigarettes, up from the country's standard four percent. Further- more, health warnings, in Arabic, must appear on all imported packs, and imported cigarettes may only yield less than I mg aicotine and 11 mg 'tar'. Maximum limits have been set for cigarette smoke content in Saudi Arabia: less than 1 mg nicotine and 15 mg 'tar'. A national poll is to be conducted in China to collect information about the country's smokers and their smoking habits. Questions will concern marital status, education, occupation, smoking frequen- cy and quantity, quality of tobacco, smoking history, length of draw, and attitudes towards smoking generally. Reports say the survey is designed to help anti-smoking campaign leaders determine why 30 percent of Chinese workers, 40 percent of rural residents, 20 per- cent of ths students, and 15 percent of scholars smoke. R.J. Reynolds Industries Inc. has announced plans to purchase the Canada Dry division of Dr Pepper Co. for its Del Monte Corp. Molins t-Lc has won a second USSR contract, this for ~7 million of cigarette making machinery. The equipment ordered can produce about 4,500 cigarettes per minute. TH~$ PitBSSTIMI~ ~EW$ ~EPORT IS IOII#'rLy r~rA~D BY THH TOBACCO ~,~E~CH^NTS ~Sf~OC~ATION OF THE U.~. AXO TORACCO REPOI~'rBB. 12 TR--April, 1984 T156305378
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INTERNATIONAL Malawi looks forward to better 1984 season The major tobacco growing areas of Malawi finally received adequate rainfall, and now good quality leaf is anticipated, although the crop will be approximately a month later than usual. Total production is estimated at 60 to 62 million kilograms. Approximately 21 mil- lion kilograms of flue-cured and 28 million kilograms of hurley are projected. Most of the central region of the country was blessed with ideal growing conditions during the season. The late rains promoted growth of an excellent root struc- ture and consequently the plant developed well. Rainfall was widespread and evenly distributed throughout the season. Good quality, ripe open-grained primings and lugs of flue-cured have been seen from the area. Most of the lower reapings are lemon to light orange with quite abit of ripe spot showing. Leaf quality has also been good, with most of the styles being medium bodied orange to light mahogany and showing a fair amount of ripe spot. A well established burley crop ex- ists within the central region. The last reports were still too early to make an assessment of the crop. The southern region also receiv- ed favorable amounts of rainfall after an early dry period. Hail damaged tobacco in the extreme east, but there have heen no out- breaks of any diseases. Fluffy lemon to light orange primings have been reported, although there are some droughty styles in the lower stalk positions. The leaf is said to be cur- ing out well, and styles of medium bodied light orange to orange mid- stalk have been seen. Further south, the drought period was not as severe, and subsequent rainfall was very good. A few farmers have deep orange styles which have been cured from mid- stalk position and are expecting good quality mahogany styles from the upper-stalk. Generally the area should produce more of a lemon to orange medium bodied style. In the Thyolo district rainfall was patchy--January was very dry, while widespread rains were ex- perienced in February, Good quali- ty lemon to light orange primings were produced in the area, although there are some growers with droughty styles in the lower reapings. The flue-cured varieties from the United States, Coker 347, NC 95 and Speight 928, which were in- troduced last year to control to black shank, fusarium wilt and hollow stalk, have done particular- ly well this year. Most of the leaf styles are lemon in color, although it is expected that mere light orange medium to heavier bodied styles will be seen as the season pro- gresses. Ample rainfall in the northern region during late February offset the initial dry weather that slowed the progress of both the flue-cured and hurley crops. Reports indicate that the crop has grown out well, but yields are said to be low primarily because of under fertiliz- ing. A light natured, thin to medium bodied crop of flue-cured and burley is expected. Ripe lemon to light orange lower reapings have been seen in the flue-cured crop. An increase in grower prices for dark-fired and sun-cured tobaccos in all regions had the desired effect of creating more incentive this season. Reports indicate that the crops are well established, and that the growing areas have received adequate rain. The estimated yield of northern dark-fired is nine to 10 million kilograms, including lower leaves. Southern dark-fired production is expected to be one million kilo- grams, and sun-cured production is estimated between 1.5 and two million kilograms. ARGENTINA: Flue-cured quality good, while export prices drop The 1984 flue-cured crop is current- ly estimated to yield 40 to 41 million kilograms. An estimated crop of 20 to 21 million kilograms is expected from Jujuy, and 19 to 20 million kilograms from Salta. Despite droughts at the beginning of the growing season, the crop seems to be better than last year, with more uniform and more orange leaves. Export prices are below a year ago, primarily as a result oft.he con- timzed absence of a certain segment of previous foreign participation in the market because of political con- siderations, says one buyer. Total burley yield in 1984 is pro- iected to 14 million kilograms. An estimated eight million kilograms are expected to be produced in Tucuman. Mediocre quality is ex- pected; however, there is strong competition due to low stocks. The Misiones region is estimated to yield six million kilograms of burley this year. Due to favorable weather and better farming, better quality than last year is expected. AUSTRALIA: Trend to smaller tobacco marketing quotas continues Alternative~ to the reduction of tobacco marketing quotas was discussed recently by the Minister of Primary Industry. The tobacco marketing quota was reduced 7.9 percent from 15,200 tons in 1983 to 14,000 tons in 1984. The reasons for reducing the quota--the first under the new 1984188 Tobacco Stabiliza- tion Plan {TSP}--were: declining domestic consumption; a reduction in the levels of stocks manufac- turers are required to hold; and the fact that the mixing requirement is bound at 50 percent under the GATT. Alternatives that would reverse the trend to smaller quotas are limited, according to the Minister. It is doubtful that domestic con- sumption will expand, given the current" level of t~xation and anti- smelting act/vity. The Minister of Primary Industry indicated that the Ti5630538C
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mTERNATtON~L NEWS ~ GATT binding is the most "com- plicating" of the reasons for the declining domest/c quotas. He also said that the Minister of Trade had explored the possibility of lifting the binding, but concluded that the action would require lengthy multilateral negotiations. Foreign suppliers could be be expected to resist any effort to light the binding. Another alternative would be to reverse the government's decision to allow manufacturers to reduce their stock levels from the former 18-month level to the proposed to 13-month level. Th/s would require manufacturers to purchase tobacco to maintain the current level which translates to increased domestic leaf purchases. This may be a short term solution, however, because the declining domestic consump- "INTRODUCING BENSEN INTERNATIONAL" WE AT BENSEN INTERNATIONAL CHOSE "THE WORLD TOBACCO SYMPOSIUM" MEETING, HELD AT THE HAGUE, NETHERLANDS, AS THE RIGHT PLACE AND THE RIGHT TIME TO ANNOUNCE OURSELVES TO YOU. ALL OF YOU BELONG TO MULTI-NATIONAL TOBACCO MANUFACTURERS AND ARE A PROGRESSIVE FRATERNI- TY. WE CAN ASSIST YOU TO DEVELOP AND ACHIEVE SUS- TAINED SALES OF YOUR TOBACCO PRODUCTS IN THE MOST SOPHISTICATED MARKET OF THE WORLD 16 TR--Apnl, 1984 t/on will eventually result in smaller domestic purchases. The current TSP also limits the price increases for domestic leaf in an attempt to bring Australian price more in line with world prices of similar tobaccos. If this is done, the demand for domestic leaf may in- crease at the expense of some of the suppliers of filler quality tobacco--a more permanent solution to the problem. BRAZIL: Growers and industry agree on prices as market opens Tobacco producers and the in- dustry have finally agreed on prices for south Brazil's 1984 crop. Prices were increased by 180 percent for Virginia, Amarelinho and hurley, and 185 percent for Galpoa Comum over 1983 levels. This is below the expected inflation rate of 210 per- cent for the year and less than the producers requested. However, if the average quality of the crop is better than the 1983 crop, returns to producers may be somewhat bet- ter than the agreed prices. Forecasts for production by leaf type are: amarelinho, 32,000 tons: Virginia, 215,000 to 225,000 tons; burley, 40,000 to 45,000 tons; and galpao, 18,000 tons. The crop was delayed by about two weeks, because of excessive rains last May through August which prevented land preparation and transplanting. After August growing conditions were nearly perfect. Lugs and cutters that have been received from Santa Cruz and Ararangua were generally of better quality than last year, although the leaf is somewhat thin and light in color. Nicotine content is higher than ]ast year. EGYPT: U.S. credit guarantee package includes tobacco A recently approved us$112.1 million credit package included vs$40 m/li/on for tobacco under the United State's GSM 102 credit guarantee program. To be eligible T156305382
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flOUt to packaging.
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INTERNATIONAL NEWS for the coverage, U.S. exporters must submit a guarantee fee along with an application to the Com- modity Credit Corporation before export is completed, according to the Foreign Agricultural Service. The guarantee rates include a fee to provide for a yearly interest rate coverage of up to eight percent on the guarantee value, not to exceed 98 percent of the port value reported under GSM 102. The to- bacco must be shipped by Sep- tember 30, 1984. GERMANY: Sales of tobacco products increase over 1982 Tobacco products sold subject to tax in West Germany in the third quarter of 1983 reached a value of us$2.3 billion, a 2.8 percent drop from the second quarter of 19133, but 15.6 percent more than the third quarter of 1982. The trend was determined by cigarette sales, which increased 19.1 percent over the third quarter of 1982 and accounted for 90.7 per- cent of total retail sales value, accor- ding to the Federal Statistical Of- rice. Pipe tobacco sales climbed even more sharply, up 24.4 percent to us$22.8 million, while sales of cigarillos increased by 7.8 percent. Sales of both fine-cut tobacco and cigars fell--fine-cut by 18.4 percent to a value of us$133 million and ci- gars by 1.9 percent to 0s$35.5 mil- lion. A total of 30.8 billion cigarettes were sold subiect to tax in the third quarter of 1983, a 25.5 percent in- crease over the third quarter of 1982. Volume sales of other tobac- co products were: cigarillos, up one percent to 225.2 million pieces; cigars, down 8.3 percent to 214.13 million; fine-cut tobacco, down 19.9 percent to 4,129 metric tons; and pipe tobacco, up 17.6 percent to 491 tons. KING EDWARD ~" : SO GOOD THAT,.. +~,.. ~.. ~,~ it's the ~ """I~ largest selling . • .... brand in the world! Jno. H. Swisher & Son, Inc. Quality Cigars since 1861 Jacksonville, Florida 32203, U.S.A. Export Agent--M=rtm B¢olhers Tobacco Co. Inc. 60E 42n<ISt. NY NY 100tT. U.SA 18 TR--.ApPH, 1984 GREECE: Protective import measures adopted by industry Greece has been authorized by the European Economic Commission to adopt certain measures regar- ding imported cigarettes to help protect the Greek industry. The decision is largely an extension of one taken in February 1983 to limit and/or monitor imports of cigaret- tes and other items for one year. The action was taken because of the shift in demand toward American-blend cigarettes for which Greek production has not been geared. As a result, until Oc- tober 31, 1984, imports under category 24.02 originating in or coming from the member states are to be limited to 1,100 tons. Imports of cigarettes from non-member states are to be monitored. INDIA: Planted area restricted to control excess supplies Production of all types of tobacco in 1982/83 is now estimated at an all time high of 594,200 metric tons (fsw}, 14.2 percent above the previous best production of 520,100MT in 1981/82, according to the Foreign Agricultural Service (FAS). Production of flue-cured tobacco, estimated at 184,000MV, was 35.8 percent higher theft the 1981/82 yield because of better per- hectare yields in Andre Pradesh and Karnataka. Production of other tobacco types, including bidi and burley, recorded a rise of 6.7 per- cent to 410,200~v. Flue-cured tobacco growers in Andhra Pradesh faced considerable difficulties in selling their leaf in 1983 because of severe buyer re- sistance brought on by a domestic supply that far exceeded internal requirements and external demand. The quality of the 1983 crop was also generally inferior as compared to some earlier years. Because of the over-supply, farmers were were not able to obtain prices that mat- ched their expectations, particular- ly during the initial rush marketing Ti563053~
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period, according to the FAS. To mitigate the farmers' hard- ship, the government asked the State Trading Corporation to enter and the market and make price sup- port purchases of tobacco directly from farmers. Between April and August 1983, the corporation bought 18,000Me" of tobacco, bring- ing stability to the market. The Karnataka market opened later, and is gaining momentum. The State Trading Corporation has no plans to buy any of the crop; however, the Mysore Tobacco Company, which is a govenment entity, has entered the market and indicated its intention to buy li- mited quantities as a price support measure. The government has decided to restrict the area planted to flue- cured to about loo, o00 hectares this year, in an effort to avoid a surplus of leaf and to insure better prices for the farmers. Realization by growers of less remunerative prices in 1983 and uncertain overseas de- mand are the other negative fetters likely to influence farmer decisions on 1984 plantings. Total area is ex- pected to fall to 420,000 hectares, producing a total crop in the range of 480,000MT to 500,00l)Mr. The 1984 flue-cured output is currently forecast at 125,000Me'. Burtey pro- duction is expected to decline to about 5,500~T because of the reduc- tion in area. ISRAEL: ,, Smoking in public places banned by Parliament Smoking in public places has been prohibited in Israel. The law bans smoking in pharmacies, hospitals, cinemas, libraries, public transpor- tation and elevators. Smoking has long been illegal in buses and taxis, but the law was rarely enforced, Anyone caught lighting up a cigarette, cigar or pipe in a public The Hogshead? It is a familiar term in the tobacco trade for a tried and true container that has been around about as long as tobacco---under heavy prizing presses, on the high seas, stacked high in storages in all climates. ~~Tobaccoisanexpensivecommodity worth protecting in a durable container--the wood or reuseable ply-wood hogshead, Lea Lumber & Trading Co. Rocky Mount, NC (919) 442-2124 place will be subject to a 5,000 shekel fine (about us$50}. Most observers believe it will be difficult to enforce the new law. ITALY: Oriental export subsidies may be eliminated by EEC Tobacco producers in Italy are con- cerned that the European Econo- mic Commission may eliminate ex- port subsidies to third countries for oriental tobacco. The subsidies are based on the difference between the domestic price and the world price of oriental leaf, assuming the domestic price is generally higher. The restitutions are designed to make the tobacco competitive on world markets, according to the Foreign Agricultural Service. The EC commission recently pro- posed that an internal EC price be used as the basis for calculating the subsidies. This would effectively end the export payment on Italian oriental tobacco. Italy produces about 25,000 tons of this leaf each year, most of which is exported-- primarily to Eastern Europe. Without the subsidy, the tobacco could not compete in the world market. The commission has given in- terested parties--mainly Italy and Greece--an opportunity to respond with alternative systems to cal- culate the subsidy. KOREA: Burley exports increase, while flue-cured declines Unmanufactured tobacco exports from Korea for the period lanuary through September 1983 are es- timated at 21,184 metric tons, down 10 percent from the same nine month period in 1982. However, in- dications are that total 1983 exports are likely to exceed last year's level. primarily because of increased burley exports. Burley exports for the January through September 1983 period were 13,151MT, up 12 percent from the same period in 1982. Cumulative flue-cured exports T15630538
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.'!SPD OF THE MOMENT. If you were to line up all the packet~ oT cisarettes that the leading companies the world o,,er have manufactured using our machine~, the,,, would cover 1 ~,.482.0Q0 Km 35 times the distance between the Earth and the .Moon This i~ Experience But we have impro,,ed on excellence Our X1-X2 4350-Pack So~ and Hinge-L~d Packer-V~tapper-Boxers are a GU,-~RANTE E D CHOICE because the~ ~ncorporate both the most advanced technolog,, and [he act~,,e collal~oration of the leaden8 cigarette manufacturers throushout the world P~c~-S~Tr]~ Ex~ w.T. EXHIBITION STAND C.a3 TIS~0S,'389
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IN'rE~J, TTONA~ NEWS c~w-.~e~ for the same nine months of 1983 are eatimated at 8,013MT, down 33 percent from the same period in 1982. However, flue-cured exports were expected to increase during the remaining part of the year. The 1983 flue-cured target of 14,000M% although below the 1982 level, is expected to be attained, because of the improved quality of last year's crop and favorable ex- port prices. MEXICO: Blue mold active in two tobacco producing regions Significant crop damage due to blue mold has been reported from the Gulf Coast region of Mexico, where Ridomil resistant strains are suspected. About 5,000 hectares of Turkish, oriental and dark leaf are produced in the Gulf Coast region, near Veracruz, where the disease is very active. Approximately 18,000 hectares of hurley, 12,000 hectares of sun-cured, and 5,000 hectares o f Virginia are produced in the Pacific region, near Topic, where blue mold lesions are also present, but not as active. Ma~'ield, Kentucky 42066 U.S.A. Telex: 215605 (KEN LEAF MYFD). Blue mold is out of control in the Gulf Coast region, reports the Blue Mold Warning System. Systemic stem, systemic vein and local lesion phases are all present and have caused extensive damage. Ridomil resistant "strains are suspected, because sporulation continues when Ridomil is applied to active infections. Growers practiced a "wait and see" approach which allowed the pathogen to build to high inoculum levels, before begin- ning to use Ridomil 56MZ. Many growers used preventative Ridomi] applications, but used all the chemical and let the disease be- come active, before attempting to use Ridomil in a curative role. The disease has been active in the region since August 1983. Tabamex, the national tobacco company, indicates that blue mold is under control in the Pacific region. However, heavy rainfall that occurred in the region at the end of January is likely to enhance disease activity greatly. There is no evidence to suggest Ridomil re- sistance is in the Pacific region. Only about 30 percent of the plan- tings have a protective fungicide program, mostly Manzate 200, because equipment is not available to spray all the acreage in a preven- tative fashion and costs are pro- hibitive. Instead, once activity is observed, curative applications of Ridomil 58MZ are used, until con- trol is achieved. Once the disease stops, fungicide applications are stopped until the disease becomes active again. PAKISTAN: Leaf exports fall, while cigarette exports rise Export of unmanufactured tobacco from Pakistan continues to decline, while cigarette exports increase. Leaf exports in 1982183 were less than one million kilograms, corn- pared to 1.92 million kilograms in 1981182. The value of exported leaf decreased from Rs31.21 in 1981/82 to Rs6.56 in 1982/83. Cigarette exports increased from 1.235 million pieces, valued at Rs74.34 in 1981/82, to 1.623 million pieces, valued at Rs116.18 in 1982/83. Statistics indicate that Pakistani cigarette manufacturers are exporting higher value-added cigarettes than in the past. Production target increased by raising yield per hectare The tobacco production target has been increased this year to 55 mil- lion kilograms, compared to 46 mil- lion kilograms in 1983, according to the chairman of the Pakistan Tobac- co Board, Mohammad Aurangzeb Khan. The crop target has been rais- ed to meet growing demand and to build up inventories that have been depleted during the last two years, The consortium of banks has a- greed to raise the credit ceiling for the tobacco sector from Rs.240 million to Rs.300 million this year. Although the production target is being raised, planted area will re- main the same. Increased output is to be achieved by improving the present per hectare yield of 1,850 kilograms. PHILIPPINES: Cigarette manufacturing and exporting firm begun Filipino-Chinese industrialist Lucio Tan has started a new corporation in the Philippines, Fortune Interna- tional Limited. The company hogan producing and exporting aromatic menthol and non-menthol cigaret- tes in March. The facility has a capacity of 450,000 cases of cigaret- tes a year, 70 percent of which is aimed for the export market. The manufacturing facility is located on a 14.7-hectare site at Bar- rio Parang, Marikina, Metro Mani- 24 TR--April, 1984
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a newleaf in export tobacco service. Dibrell Brothers' acquisition of Tabak Export & Import Compagnie (TEIC) of Amsterdam gives us one of the strongest Brazilian service capabilities in the tobacco world. Together, Dibretl and TEl(3 will grow, process and export the finest flue-cured, hurley and cigar leaf available from Northern and Southern Brazil. In addition to worldwide services already provided by the Dibrell group, TEIC offers expanded, reliable services to and from Zimbabwe, Germany, Dominican Republic and in other cigar growths. Dibrell Brothers, Inc. TI56305391
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In. The plant is an existing one which is beingleased from Fortune Tobacco Corporation, a sister firm. The plant has been modernized by R.J. Reynolds Tobacco Company to meet international standards. No importation of additional machin- ery or equipment was involved in the modernization. The firm will in- itially use the marketing facilities of Fortune Tobacco Company. Target export markets for the cigarettes produced by the new firm are the Middle East countries, especially Saudi Arabia, Bahrain and Qatar, and other non-U.S. aligned African countries. Employees say PVTA funds manipulated by officials Millions of pesos belonging to the Philippine Virginia Tobacco Ad- ministration (PVTA} have been misappropriated and practically left the government firm penniless, according to reports in the Manila Bulletin Today. Employees of the PVTA told the newspaper that most of the firm's money has been invested in several private banks, money market placements and time deposits. The same employees also claim that ranking PVTA officials diverted most of the funds in business deals despite specific prohibitions against them in the PVTA charter. Interest payments, averaging P40,O00, derived from the bank deposits have not been accounted for, sources said in the newspaper article. It was revealed that some of the PVTA funds were being manipu- lated to favor friends of PVTA of- ficials to purdhase government items, A ranking PVTA official reportedly gave his secretary authority to purchase Christmas gifts worth P148,000 intended for PVTA employees. However, the gifts were reportedly bought by the secretary in her own boutique and never distributed to employees. PVTA employees urged that a private auditing firm be contracted to audit the funds of the PVTA to determine if it could still afford to pay its employees in the coming months, Delayed transplanting reduces crop yield Unseasonable dry weather prevail- ed during the traditional rice harvesting season, which in turn delayed the transplanting of the ear- ly tobacco crop as farmers were unable to prepare fields on time. The crop is about two to three weeks later than normal, and plants are growing slower due to weather conditions. Due to the late planting, flue- cured production is forecast to be 40 to 45 million kilograms--five million kilograms below the 1983 crop. Export requirements should be met, however. Quality of the flue-cured leaf is average, and export prices should I I [ I The Premier Process for expanding tobacco VISIT US AT EXHIBIT C-IO IN THE HAGUE. ARJAY EQUIPMENT CORPORATION, PO BOX 2959, WINSTON-SALEM, NC 27102, USA. Telephone (919) 777"-510~. Telex 806~3. • Greatest potential for savings in cigarette manufacture since homogenized tobacco. • Used in hundreds of cigarette brands worldwide. • Important in production of "'light" cigarettes. • Proven process -- in operation on three-shift, five-day week basis since 1968. • Process plants designed and installation supervised worldwide by experienced "tobacco engineers." • Improved cigarette quahty (better firmness, less loose ends) 26 TR~April, 1984 TI56305392
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be approximately :10 percent below last year. A crop of 15 to 16 mill/on kilo- grams of burley is expected. Overall quality is judged to be above av- erage. Farmers were not extended cash advances as in previous seasons because of the economic situation. This resulted in a shortage of fuel for agricultural equipment, water pump engines and other supplies. Also, less fertilizer and pesticides than normal were used. Industry to compete in chewing tobacco market The Philippine tobacco industry is interested in entering the world market as a supplier of chewing tobacco leaf. The leaf industry in the Philippines has not seen much growth recently because of the low demand for native tobacco in the world market, according to San- tiago Respicio, general manager of the Philippine Tobacco Admin- istration (PTA}. But, he adds, the world market for chewing tobaccos is continuously increasing, giving the Philippines the opportunity to participate in the production and export of this type of leaf. The United States and several European countries were named by Respicio as potential outlets for Philippine chewing tobacco. Sur- veys show that cigar smokers in the U.S. and Europe are shifting to chewing tobacco, according to Res- picio. The Philippines has a good chance to get into this market, "because we have plenty of native tobacco good for the manufacture of chewing tobacco," explains Res- picio. All the Philippine growers have to do is improve the quality of their native leaf to enable them to satisfy consumers abroad, says Respicio. Researchers of the PTA have discovered that the chewing tobac- co leaf most favored by consumers can be grown plentifully in the Philippines from carefully selected seeds. This type of tobacco is cur- rently being grown in Jones in Isabela province, Tuao in Cagayan, and Diadi in Nueva Vizcaya, accor- ding to Respicio. "Beginning this year," says Respicio, "we will gather all the seeds available from these places for use in our project to boost production of this kind of leaf for the chewing tobacco world mar- ket." POLAND: Philip Morris extends Marlboro agreement Last December, a five-year exten- sion to the 1973 agreement for Marlboro cigarette production in Poland was signed by Philip Mor- ris and Agros. It is expected that about 300 million Marlboros willbe produced annually in Poland. much less than the output during the late Seventies, according to the Foreign Agricultural Service. Marlboros are the only licensed Western cigarette produced in Po- land. Part of the raw tobacco for Marlboros will be imported leaf, probably from Greece and Turkey, with minor quantities imported from the United States. The contract also calls for Philip Morris to grant Poland a $1.5 million credit line for the moder- nization of machines and equip- ment in leaf processing and ci- garette producing plants. This credit is to be repaid with Polish ex- ports of flue-cured Virginia tobac- co supplied at 500 to 600 metric tons annually. The Marlboros produced in Poland will be available exclusive- ly at Pewex and Baltona stores, sell- ing only for dollars, according to newspaper reports. It appears that signing the agreement was prompt- ed mainly by the desire of the Correction Our apologies to Hofnar Sigaren- fabrieken B.V. for having misspell- ed its company name in the No- vember 1983 article, "The strategy: aggressive marketing." Hofor Tobacco. Corporation Importers and Exporters of all Types of Leaf. Dealers & Packers in the U.S.A. since 1940 Soon to open office in Richmond, Virginia 342 Madison Ave. New York, N.Y. 10173 (212) 682-2700 Telex: RCA 224672 WUI 645373 American member of the A.L. van Beck Group TP~il, 1984 27 TI56305393
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government to earn foreign c]~ange through domestic cigarette sales to private citizeas. The vernment's expenditures in hard currency for this transaction will be relatively small. Recently published news on the health hazards of domestic cig- arette brands suggest that the war- ning "Cigarettes may adversely af- fect your health" should be chang- ed to read "The Min/st~ of Health warns that cigarettes are bad for your health." The suggestion stems from the finding tha.t the quality of filters used is ineffective. The tar and carbon ox/de content in some tested brands was: Carmen filter- tips, 18 mg. of tar and 18.2 mg. of carbon oxide; Caro filter-tips, 24.4 rag. tar and 17.3 mg. carbon oxide; and Popularne non-filter, 20.7 rag. ol ,, .cCo tra efficient of Hamburg CALL US IN NEW YORK (212)514-B220 OR WRITE TO: Mike Kutney, Port of Hamburg. 26 Broadway, Suite 911. New York. N.Y. 10004 Tel: 212/5148220, TWX 960504. tar and 11.5 l'~. carbon oxide. Neither the extension of the Marlboro license nor the suggested change in the warning is expected to significantly influence current demand on the cigarette market. SOUTH AFRICA: Fair to good quality leaf anticipated as sales begin The flue-cured tobacco crop in the Nelspruit area will be approximate- ly 9.2 million kilograms, of which three million kilograms will he available for export. The crop is later than normal because of lack of water at planting time. Therefore, 80 percent of the farmers planted with the rain. Very little irrigation has been used, resulting in a more natural crop, according to one buyer. The leaf is improved over last year, with fair to good quality, lemon to orange color, thin to medium bodied, clean leaf. It is ex- pected that 75 percent of the crop is in good quality grades and the balance in low quality. The color range is estimated to be 35 percent lemon, 45 percent orange, five per- cent mahogany and 15 percent slick green styles. By plant posit/ons, ap- proximately 11 percent will be lugs, 75 prcent leaf, six percent tips and the balance scrap. A crop of 17 million kilograms of flue-cured is expected from the MKTV area. Hail damaged the crop early in the season, forcing many farmers to replant and resulting in a late crop. The color of the leaf is expected to be predominantly lemon with some light orange, and leaf texture is expected to be main- ly thin to medium bodied, says one buyer. In general, the crop will be better than last year with a high percentage of the more desirable The African Football Confedera- tion has banned tobacco adver- tisements from all games it organ- izes to prevent large tobacco man- ufacturers from expanding their African market to offset declin/ng sales in Europe, according to the chairman of the AFC, Ydnekat- chew Tessema. 30 TR--/koril, 1984
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NOW TO TOBACCO RE!PORTER THE INDUSTRY'S STANDARD OF EXCELLENCE FILL OUT THE CARD BELOW, CHECK OFF ALL APPROPRIATE ANSWERS AND MAIL TODAY! YES Please send me the next 12 issues of TOBACCO REPORTER. ! have checked the price below that is ap= plicable for my preferred mail service. UoS.A./CANADA $20 - Bill me later INTERNATIONAL [~]AIRINTERNATIONALMAIL ~-~ SURFACE MAIL $55 - Payment enclosed $40 - Payment enclosed ALL PAYMENTS MUST BE |N U S DOLLARS - ALLOW 4-6 WEEKS FOR PROCESSING NAME: COMPANY: ADDRESS: CITY: STATE ZIP: COUNTRY: SIGNATURE: DATE: (FOLD HERE) PLEASE CHECK ONE OF THE FOLLOWING TITLES THAT IDENTIFIES YOUR AREA OF RESPONSIBILITY 10 ] CEO, Chairman, Presi- 20 " General Manager 40 ~ Vice-President dent. Managing Director. 30 ~ Manager, Director 50 Secretary-Treasurer ~. Other - Please Specify PLEASE CHECK YOUR PRIMARY JOB ACTIVITY 01 ~ Marketing & Sales 04 ; Production, Plant 06 Finance 02 ~ Leaf Purchasing Operations 07 ".= Engineering 03 ; Purchasing Other Than 05 ~ Research & 08 ' Traffic Leaf Development 09 :J Communications, PR, Advertising i Other. Please Specify PLEASE CHECK AND DESCRIBE FULLY YOUR COMPANY'S PRIMARY ACTIVITY Leaf Tobacco: Tobacco Manufacturer:. Tobacco Supplier: TI56305397
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~DE'I'AC H HERE] IBUSINESS RE, PLY MAI,L! F|RST CLASS PERMt3" NO. 789 RALEIGH. NC POSTAGE WILL BE PAID BY ADDRE.,~SEE TOBACCO REPORTER P.O. Box 95075 Raleigh, N.C. 27625 NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES SUBSCRIBING TO TOBACCO REPORTER BRINGS YOU THE WORLD TOBACCO NEWS ~FAST AND ACCURATELY EACH MONTH OF THE YEAR USE THE OTHER SIDE OF THIS CARD TO ORDER YOUR SUBSCRIPTION NOW! IT,APE HERE)
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"The Da~'a Lost Sale'" 8~, B. C. Patterson Have you met K. R. Edwards? In 1938, K. R. Edwards began to- bacco processing in a modest way. There were just a few customers at the start. But business flourished. Today, we offer highest quality burley and bright-leaf tobaccos, in any, desired quantities. Processed in extensive, modern facilities, for delivery throughout the world. But we remember how it began. It keeps us humble. Because it wasn't just our fine tobaccos, but you who had faith in our honest, small-town way of doing business. We aim to keep it that way. K. R. Edwards would have insisted on it. Throughout the world, tobacco men know... K. R. EDWARDS LEAF TOBACCO CO., INC. SMITHFIELD, NORTH CAROLINA 27577 (919) 9~4-7101 CABLE: KRECO ~,~2S TELEX 5~'~4-~q -i"156305399
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types and less of the thick heavy bodied slick grey types. Burley production in the Nelspruit area is estimated at 3.5 million kilograms, with one million kilograms available for export. About 15 percent of the total has cured out mottled, due to extreme dry heat in December. Weather conditions have changed and the curings are now producing some good quality, clean, long, thin to bodied tan and red leaf. SPAIN: Imported products hit hardest by price increase Last February the government of Spain announced retail price in- creases for certain domestic and imported tobacco products. While the increases are substantially lower--eight percent on the average--than those which took place in December 1982, the con- sumption of cigarettes, especially American-blends, and pipe tobacco is expected to be adversely effected. American cigarettes, both im- ported and locally manufactured under license, experienced sub- stantially higher price increases than equivalent domestic or im- ported West German products. This may result in a decline in the sales of American cigarettes, along with reduced utilization of U.$. leaf and blends in manufacturing. The price increases were report- ly prompted by the strong value of the U.S. dollar. Prices of domestic American- blend cigarettes increased by 5.7 to 17.8 percent. Cigarettes manufac- tured in Spain under license in- creased by 18.1 to 25 percent. Dark leaf cigarettes increased hy 3.0 to 5.5 percent. Pipe tobacco prices were raised by 12.5 to 18.8 percent. Cigarettes imported from the U.S. increased in price by 28.5 to 42.4 percent. Imports from the United PROCESSORS AND EXPORTERS OF ALL TYPES OF QUALITY LEAF TOBACCOS R. P. Watson Company ESTABLISHED 1895 Wilson, North Carolina. 27893, U.S.A. (919) 243-3191 H.N. Howard. Jc, President Cable WATSON | I II Kingdom increased by 40 percent. West German import prices were increased by 11.5 to 19.2 percent. Imported pipe tobaccos faced a 5 to 69.2 percent increase in prices. SWEDEN: Increased tax on tobacco products considered A recent bill on budget savings and tax increases also includes a pro- posal to increase taxes on tobacco products, according to the Foreign Agricultural Service. If approved, cigarette taxes would increase by five to eight U.S. cents per pack and pipe tobacco by 13 cents per 100 grams. The recent proposal follows tax increases which went into effect Februrary 1, 1983. At that time, taxes were increased from 10 to 15 percent for all tobacco products, with the exception of cigars and cigarettes. Cigar and cigarette use is expected to decline nine percent in 1983; no change is likely for smoking tobacco; and an increase of two percent is projected for snuff. TAIWAN: Uniform, mature tobacco expected from 1984 crop The 1984 tobacco crop has been estimated at 22,300 metric tons. Estimated yield hy area was: Tai- chung, 6,850MT; Chiayi, 5,850 MY; and Pingtung, 9,500M~'. After the completion of transplanting there was a long spell of dry weather; however, the plants were able to develop good root systems. Due to the intermittent rains that followed, interspersed with suffi- cient sunshine and favorable tem- peratures, the tobacco developed uniformly. Harvesting started in the middle of December. Curing work went well and the first thin side tobacco A warning that smoking is in- iurious to health must be carried on packaging and advertising for ci- garettes, cigars and smoking tobac- co in Uruguay. 34 TR--Apdi, 1984
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Come and see us at Den Hague--- Stand No. C-4 SUPPLIER MANUFACTURES ALL MACHINES AND EQUIPMENT FOR LEAF HANDLING AND PRIMARY : threshing lines, stem puffing process. conditioning, casing and flavouring cylinders • casing kitchens, automatic presses, stem flatteners • flow controls • cut tobac_ co dryers, blending bins • reconstituted ~bacco plants, equip. merit for oriental tobacco .feeders and feeding systems to rna_ kers • filters, redryers and stem dryers, conveying systems, et~ TI56305401
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coming out of the barns looked mature and full-bodied. Export prices were announced in February, and the packing season began in March. increase i,n leaf import volume expected this year Unmanufactured tobacco imports for 1983 are currently estimated at 11,903 metric tons, a decline of 26 percent from 1982. Of the total im- ports, 83 percent or 9,900MT, came from the-United States. Other sup- pliers include South Africa, 665M¢, Madagascar,.530M¢. South Korea, 408MT, Thailand, 250M¢, and Ma- lawi, 150MT. The 1983 decline in tobacco pro- duction, combined with the sharp drop in tobacco imports and an ex- pected increase in cigarette con- sumption, should reduce domestic stocks and strengthen demand for 1984 tobacco imports, which are forecast at 17,000MT. TANZANIA: Better yields and quality forecast for this year Despite drought, lack of spare parts and wood fuel the 1983 flue-cured crop totaled nine million kilograms, only 500,000 kilograms le~ than 1982. The Western region produc- ed seven million kilograms and Ir- inga produced two million kilo- grams. A slight increase to 10 million kilograms is expected for the 1984 flue-cured crop. More than 90 per- cent of the crop had been tran- splanted by mid-January, and wea- ther conditions had been satisfac- tory to that date. Projections for the 1984 dark- fired tobacco crop are from three to 3.5 million kilograms. The small size of the 1983 Songea crop--two million kilograms--was disappoin- ting and poor in overall quality. THA ILA ND: Slight reduction in leaf yield predicted this year Tobacco production in 1984 is forecast to be down marginally from the 1983 harvest, according to the Foreign Agricultural Service. Production of flue-cured tobacco is expected to total about 53,000 metric tons, up five percent, while hurley production is forecast at 20,500MT, down five percent. Growers' intentions to substan- tially expand 1984 flue-cured area ~ NORFOLK, VA Glenn P. King, Vice President II WILMINGTON II blllr'riRl: II MOREHEAD CITY, NC |/ PJIMDAMV )J Jack Tilley, Vice President 919-763-a271/TWX: 510-937-0306 Steamship Agents ~ Por~ Capta|ns Stevedores Chartering Brokers ~K ~ ~ 7J Project Speclzlist$ Terminal Operators ~ Mlritime Consultartts A COMPLETE RANO~..IN~ SYSTEMS NETWORK Phi~Ha - ~ - H~oik • ~ort Ne~ • ~sbu~h ~tmtn~on, ~. - CH~a~o • T~edo • Mi~w~ • ~tr~t * ~lm~gtoNMo~d ~ty, NC were curtailed somewhat by efforts of the Monopoly and independent curets to limit sales of seed. The quality of the 1984 crop is expected to be improved from 1983. Leaf imports expected to increase to meet demand Imports of unmanufactured tobac- co during the first 10 months of 1983 totaled 4,579 metric tons, down 64 percent from the same period in 1982. Flue-cured tobacco imports declined 65 percent to 3,019MT, while hurley imports dropped 73 percent to 1,060MT. The decline was attributable to the large volume of purchases made in 1982, foreign exchange restrictions and the obligation of processors to use a larger percentage of locally pro- duced leaf, according to the Foreign Agricultural Service. The United States continues to be the sole supplier of flue-cured and hurley tobacco to Thailand. Imports are expected to increase substantially in 1984 to replenish depleted stacks and fill the growing demand for the manufacture of Americamblend cigarettes. Despite the need to import 8,000MT to 12,000MT of leaf annual- ly, Thailand remains a net exporter of tobacco, with leaf exports during 1980 to 1982 ranging from 38,000MT to 39,000MT. Exports of flue-cured tobacco during the first 10 months of 1983 were 18,241MT, down 5.4 percent from the 1982 level. Maior markets include China, Japan, the United States. the United Kingdom and West Germany. TRANSPORTATION: FMC approves Sea-Land's proposed rate increase The Federal Maritime Commission approved a proposed rate increase by Sea-Land, which became effec- tive January 15, 1984. Sea-Land had proposed a 13.5 percent general rate increase and a 10 cents per cwt "terminal handl- ing charge" covering carriage of cargo, between U.S. Atlantic and Gulf ports and ports in Puerto Rico; between Puerto Rico and points in conUnued on page 122 TI56305402
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YO U S,PEAK WITH AUTHOR'ITY. Our port managers thrive on challenges.When you call they listen hard and act fast. Just recently, Wilmington manager Bill Edwards got Bill Edwards and Bob Goin~ N C Oorls ~ a call from one of the worldb largest container operators. '~Ve'd l!,,k~ to ship through your port;' their traffic man- ager said,'"out we'll need a five and a half acre area paved and fencedThe h,e, sitat- ed,"within two weeks: Bill and his crews didn't miss abeat.Thirteen days later they had the area ship- shape.And a new container operator shipping through Wilmington. Meanwhile, Morehead City manager Bob Goins had a challenge of his own. ATurkish tobacco company traffic manager wanted to increase his Morehead 0%00mo . " ut we' , more square feetof storage space and an all- weather rail loading facility. AndS' he added,"we need it fast'.' Theygot it fast.Bob and port engineers quickly combined four sheds over the all-weather fadlitg, more storage space and more Turkish tobacco business. At the North Carolina Ports, good customer ser- vice isn't just talk. We know that if we can't deliver, you'll find someone else who can. And giving you what you ask fdr is verygood for busi- ness.Yours and ours. So if you're not speaking with as much authority as you'd like, call Bill at 919/762-8307 or Bob at 919/726-3158 or call toll- free at 800/334-0682. Just saythebossiscalling. ~o~Th an existing rail line, adding po~ IVorth Carolina State Ports Attthon'ty, t?.0 Bar 9002 Wilmingt_on,~ N C 28402 and BO Drawer822 Morehead City, N C 2855Z Offices: Wilmington, Morehead Ci~ Raleigt~ Winston-Salem, New York, Tokya T156305403
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Spotlight on Dominican Republic: Preparing for self-s=ufficiency Banned imports of light leaf, combined with rising consumer demand for blond cigarettes, has forced producers to alter many of their traditional growing patterns. The idea prevails that after supplying domestic demand, Dominica.n light leaf can compete internationally. By Peggy Gooch CH^N~-S IN world tobacco cbnsumption patterns, combined with a faltering 'domestic economy, are redirecting the focus of the Dominican tobacco industry. Tra- ditionally a producer of dark tobac- cos, the Dominican Republic has suffered the effects of consumers' switching to blond tobacco cigaret- tes. And now that leaf imports have been banned, effective January 1, 1984, domestic production of light leaf becomes more important to satisfy the demands of the local market. The Dominican Republic has also felt the effects of political instability in countries competing for the same cigar tobacco market. ?.merging as an important supplier of hand-rolled cigars, the country has gained recognition for the quality and uniformity of its products. In the switch to light leaf produc- tion, burley has created the most in- terest in the Dominican Republic for two major reasons: the world market is more favorable for burley than flue-cured and burley does not require the labor, irrigation or cost of flue-cured production. Price in= centives have encouraged farmers to switch from dark to burley pro- duction. Both Compania Anonima Tabacalera, the government owned processor and manufacturer, and El. Leon Jimenes, the Philip Morris affiliate, have raised the prices to stimulate production to meet their manufacturing requirements. For the 1983/84 crop, Tabacalera financed lO,OOO tareas [one tarea equals 628.86 square meters], and Jimenes financed 10,300 tareas of hurley, according to the Institute of Tobacco. AFTER SATISFYING. domestic de mend, the Dominican Repub- lic would like to export hurley. What is the potential for Dominican burley on the world market? "We have researched and studied the quality of the burley we have produced and it has proved to be good," says Andres Bautista, direc. tot of the Institute of Tabacco. "We need to increase areas and send samples of the leaf to potential buyers. Some companies have already seen the Dominican burley and have offered to buy." The Institute has planted about 360 acres ofburley this year on land usually planted to dark leaf, with 38 TR---Ag~, 1984 the goal of exporting the projected yield of 200,000 metric tons. Se- veral traditional dark leaf exporters are participating in the project-- Exportadora de Tabacos Thomen, Duran Taveras & Co., Tabaco San- ta Domingo and Empresas Tabacos Tropicales. Plans are for burley pro- duction to triple next year, depen- ding on the progress made this year. The maior obstacle to hurley pro- duction at this point seems to be too much moisture in the leaf. The in- dustry hopes more experienced cultural practices and better weather conditions will remedy the problem this year. Virginia leaf is also produced by the cigarette manufacturers for
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Air-cured leaf, hand-tied bundles and shade cigar wrapper illustrate Dominican leaf production. Below, fresh coconuts are cut and children glean for beans while their mothers tie tobacco in a nearby barn. domestic use, but production costs are too high to make it viable for in- ternational competition. TRADITIONALLY tWO types of dark air-cured tobaccos have been grown in the Dominican Republic --criollo {Amarillo Parade) and olor (Chago Diaz and Cuban Piloto). About 80 percent oft.he criollo pro- duction is exported for use in dark cigarettes. The middle leaves of olor are used as cigar binder and long and short filler, while the cutters and lugs are used in domestic cigarettes. The 1984 criollo crop is estimated to be 10 to 12 million kilograms, down from the 1983 yield of 14 million kilograms, according to lo Kelner, president of Empresa Tabacos Tropicales. Dry weather and disappointment about price took the blame for the reduced crop. Although less area was planted this year, yield per tarea is expected to increase [rom 110 pounds per tarea in 1983 to 150 to 160 pounds per tarea. Average farm prices in 1983 were 50 pesos per 100 pounds; this year prices willhe approximately 55 pesos per 100 pounds. Quality this year should be better since weather conditions were im- proved. The quantity of the crop will meet demand, which is es- timated by country of destination as: Spain, seven million kilograms; Africa and France, one million kilograms each; Northern Europe, one to one-and-a-half million kilo- grams; and the United States, 500,000 k/lograms. The lO-million- kilogram demand for criollo will stabilize, says Kelner. The olor crop is much smaller, only about 10 percent of the criollo crop, because of less demand and stronger competition from other countries. The olor leaf used for cigar filler and binder is exported to Honduras, the United States, Europe, the Canary Islands and Spain. It has been much easier for olor growers to switch to burley since both types require similar cultural practices and irrigation. Production of high quality olor has become unprofitable for growers. Only two million kilograms of the total 1983 dark crop were used domestically, the majority, about 12 million kilograms, was exported. A few years ago, an annual average of 20 to 25 million kilograms of criollo and olor was exported. Now ex- porters believe the export market for both types will stabilize at cur- rent demand of about 14,400,000 kilograms. The demand for dark tobacco as cigar leaf should sta- bilize the market, says Generoso Eiroa, president of [ndustria Expor- tadora de Tabacos Dominicanos. TR--April, 1984 39 TI56305405
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TH~ nR FACES TOUGH competio tion from Italy, where the dark leaf is highly subsidized and much cheaper. Italian tobaccos are characterized by big leaves and good treatment, however, the leaf doesn't have a good smoking quali- ty and some manufacturers can't use it in their blends, says one ex- porter of Dominican leaf. Also competing with the Domi- nican Republic in the dark leaf tobacco market are Colombia, Brazil, Paraguay and the Philip- pines. Colombian leaf prices are similar to Dominican prices, but ex- porters receive export incentives to remain competitive. In Brazil, prices are 20 to 25 percent less, and exposers are also allowed a special interest rate. Exporters in the Dominican Republic are supposed to receive an export rebate based on the value of their exports, but it doesn't always work, according to |I II I one leaf exporter. Spain is the largest buyer of Do- minican leaf, purchasing approx- imately 60 percent of the criollo crop, or about 9.5 million kilograms in 1983. Last year Spain bought on- ly about half of its usual purchase from Colombia and Brazil because these countries were not buying goods from Spain in return. The Caribbean Basin Initiative (CBI}, recently enacted by the United States, should be beneficial to the Dominican Republic. The CBI could bring some customers back and cause others to increase their purchases from the Domi- nican Republic, says Bent Ahm, president of Exportadora de Tabacos Thomen. Colombia would probably be the most affected of the Dominican Republic competitors by the CBI. Brazil will see little change, since it is not as easy to substitute Brazilian arapiraea leaf with other dark leaL The CBI will make it easier for the Dominican Republic to compete with Hon- duran and Mexican cigar filler leaf, which is much cheaper. The problem facing the dark leaf industry, other than declining markets, is the increasing cost for both growers and packers. The average farm size is five hectares, and many small farmers can not af- ford extensive use of fertilizers and pesticides. Availability and cost of irrigation is another consideration for farmers. Also, many farmers don't own their land, and therefore have no collateral for loans. Farmers are better off to produce tobacco under contract for com- panies. A few years ago, 30 to 40 percent of the crop was purchased by in- dividual packers, who sold the leaf to exporters after, it was fermented. Now, most exporters buy and pack Dominican Republic ,, "%." ', o , c~^~,.^ ~ LEYENDA ~) Capilal de la Rep~bllca , .~o,~ o Capital de la Provincia ~ LimHe de Provincla ~ Limtle de Zona [] Amadlle Pa~do [] Ch~o .~z I~B P~kde Cul~no
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Dominican Republic Area & Production by Type 1982 1983' 19842 Type Area= Preduction~ Area~ Production~ Area~ Produ©tion~ Budey 811 1,300 1,119 1,600 1,300 2,000 Virginia 1,236 2,000 1,447 2,700 2,000 3,700 Chago Diaz (olaf/ 4,416 5,765 5,332 5,400 3,700 3,800 Amarillo Parade (criollo) 25,168 29,882 19,483 22,756 19,500 23,000 Piloto Cubano 3,854 4,085 2,515 3,000 2,000 2,400 TOTAL 35,485 43,032 29,896 35,546 28,500 34,900 IEsllmated ZForecast 3Hectares ~Metrtc tons (few) ~urce: Compiled from estimates of Tobacco Institute, Secretariat of A~d¢u/~re, tram con~cts and U.& Foreign Agricultural Sen/ice. t~e leaf themselves. Qua]ity, unifor- mity and treatment of leaf have im- proved, says one exporter. Competition among exporters has become more intense as crop levels has been reduced. In the past exporters averaged 80,000 bales a year, now companies can survive on 20,000 to 25,000 bales. This year's dark tobacco crop could be of better quality, with heavier, more full-bodied uniform leaves, although the leaves may be smaller than usual. Transplanting was delayed because of dry weather during November and December. Rain finally began in late December and continued through lanuary. After blue mold outbreaks of the last few years, yields and quality declined. This year looks more pro- mising, however, as drier weather conditions kept blue mold and aphids under control. Leaf prices will increase, but buyers expect ex- port incentives to balance those ris- ing prices. There is a higher incen- tive for stripped tobacco because of the labor it requires. The tobacco export industry is more important as an employer than as a foreign ex- change earner, according to one • exporter. The industry in the Dominican Republic believes it can compete easily with leaf from other origins. And, they also believe the current foreign exchange situation will make the government more deter- m/ned to find an incentive for tobacco export, which in turn en- ables exporters to pay higher prices to growers. The future for dark tobacco export depends on incen- tives given to exporters and farmers. Whatever incentive is granted will determine what kind of year the exporters have. Last year, for the first time in history, the government set support prices for tobacco. If farmers fail to receive the minimum price from buyer, Tabacahra buys the leaf. In an effort to improve cultural practices, the Institute of Tobacco has initiated a new assistance pro- gram to growers of burley and dark leaf. The Institute provides growers with seeds, fertilizers, pesticides and Ridomil. It assists them in get- ting credit, gives advice on farm management, sells farm supplies at low prices, assists in selling tobac- co, and gives advice on when to sell and what price to accept. The cigarette manufacturing companies also give assistance to light leaf growers. M~NOTICEABLE CHANGE in Dominican tobacco in- dustry is in the production of cigar wrapper leaf, according to Institute director Bautista. Instability in Cen- tral America has brought many cigar leaf producers to the Domin- ican Republic. Cigar binder leaf is a by-product of increased wrapper production; therefore, the declines in olor production can be balanced from increased wrapper produc- tion. By producing adequate amounts of cigar wrapper and binder, the Dominican Republic can more readily compete with Central American countries. Many companies in the Domin- ican Republic are experimenting with wrapper production. Tabaca- lera has had satisfactory results from it experimental production of shade wrapper leaf, according to the former general manager, Hen- drik Kelner, who is now with Pro- ductora Tabacalera de Colombia, in Bogota. General Cigar is growing artificially cured green wrapper leaf on an experimental basis, all of which is exported. The Institute of Tobacco planted 141 hectares of Connecticut shade wrapper last year, in an experimental proiect with General Cigar and Tabacalera. This year they plan to increase the area by 40 hectares. Wrapper produced in Bonao district of the Dominican Republic is used for cigars made for local consumption. THE DR IS BUILDING a solid reputation as a cigar producer. The cigar boom began five or six years ago and continues to grow. In 1977 about 10 million cigars were produced for export. Last year, 45 million cigars were exported. Tabacalera's cigar-producing company located in the free zone, Compania Tabacalera Santia- guense, will produce over three mill/on cigars for export, according TI56305408
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The Parker Process... ,HigherYiel of a Quality uct at Less Cost. The Parker Process is an im- proved package ~mm.the warehouse to storage. PARKER PAKr~ increases yiel~l from the warehouse floor.., tobacco is re-weighed directly after the sale is completed.., and increases pound- age in shipping. Parker Pak allows correct orientation for processing by allowing greater green tobacco stor- age for more satisfied customers. The correct weight on the ware- house floor gets the product to the customer in less time.., minimizing CO,St. oWhO says ur customers. time, This system allows different cuts to individual areas eliminating costly additional processing of the customer's product. The Parker Bale Cutter utilizes more tips with less objectionable stem. The system also handles tangled-leaf-form tobacco with the same accuracy and quality. The Parker Bale Cutter produces a higher finished yield to the cigarette manufacturer. PARKER BLENDING begins by carefully selecting the correct per- centage of each tobacco that makes up the final desirable product to the customel: The Parker Process begins with the knowledge and experienee of ca- pable people in the leaf department selecting quality tobaccos from the worldwide markets. Over fifty yearg experience in buying and processing has brought Parker a reputation for PARKER BALE CUTTER the ability to re-grade the bale as whole and re-grade tobacco flaked for responsibility and expert personal- ized service. Throughout the Parker Process -- the purchasing; advanced technology of the Parker Pak; the Parker Bale Cutter; bulk silos instal- led for finer quality blends; consis- tent moisture content; and maxi- mum blending capabilities -- higher yields of a quality product cost less, That's why customers all over the world say: Satisfaction Assured with TOBACCO COMPAN~ INC. Maysville, Kentucky 41056 USA Phone (6061564-5571 - Cable PARCO Telex 21-8495 PARCO MAYS TI56305409
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to their sale.s proiection. The facili- ty has a daily capacity of 15,000 to 17,000 cigars. Tabacalera has in- troduced two hand-rolled cigars to the European market in the past two years, Cordon and Griffins. Sales of Cordon in 1983 totaled 500,000; sales of Griffins was be- tween 300,000 and 400,000 units. La Habanera is exported to the U.S. and Europe, and Vega Real is ex- ported to the U.S. Tabacalera has an approximate two to two-and-a- half percent of the U.S. import market. General Cigar Dominicana has been producing cigars in the Dominican Republic since 1978. In 1983 the company produced 12 million cigars, and expects that number to increase this year, accor- ding to Ernesto Cane, general manager. Dominican leaf, as well as leaf from Mexico, Brazil and Jamaica is used as filler; Mexican leaf is used for binder; and wrapper comes from Cameroon and Mex- ico. The company exported 250,000 cigars to Egypt last year, while ex- ports to the U.S. were low because of the strong dollar. Seventy per- cent of the production at the General factory is Portages; the re- mainder of the production is the Canaria D'Oro, Ramon Allones, Bolivar and Cohiba brands. General Cigar buys most of its Dominican leaf from Compania Panamericana de Tabacos (Copata}, a leaf exporter in Santiago. Copata packs the leaf and sends it to General's facility in Lancaster, Pennsylvania, where it is sorted in- to blends and aged. The cigar leaf is returned to the Dominican Republic already stripped and cured to be made into long-filler cigars. About 40 percent of the 110- million-unit-market for premium cigars in the U.S. come from the Dominican Republic. During the first 11 months of 1983, almost 36.6 million cigars were imported by the U.S. from the Dominican Republic, compared to 33.5 million in 1982, according to the Cigar Association of America. During the first 11 months of 1983, imports from other countries were: Honduras, 25.3 million units; Jamaica, 14 million units; Mexico, 12.3 million units; Nicaragua, 6.5 million units; Costa Rice, 1.3 million units; and Brazil, 2.6 million units. Total cigar im- ports into the U.S. during that period were 107.7 million units. The quality of Dominican Re- public leaf and availability of hand labor have helped the industry gain recognition, explains Joseph Blumberg, general manager of Tabacalera Santiaguense. Also, when Consolidated Cigar and General Cigar came to the Domi- nican Republic they brought large volume, which benefitted the in- dustry. Now the instability in Cen- tral America is working in favor of the Dominican Republic. Cigar leaf producers and cigar makers are leaving Honduras and some are coming to the Dominican Republic. The Dominican Republic's main competitor in the European market is Cuba. but poor crops and over- priced cigars are damaging that country's industry, says one cigar manufacturer. Brazil. Jamaica and Mexico also compete with Domini- can Republic in the cigar industry. Cigars for the export market are produced in two free zones in the Dominican Republic. one near San- tiago and the other near La Romana. Raw materials can be im- ported into the free zone for manufacture, and then they must be exported. Cigar makers in the free zones are Tabacalera San- tiaguense, Consolidated Cigar Corp., General Cigar Dominicana, Manufacture de Tabacos, and Tabacalera A. Fuente & Cia. Wrap- per from Connecticut and Came- roon is imported into the free zone, while Dominican leaf is used in some brands as filler and binder. THE CIGARETTE MARKET in the Dominican Republic is divided between two companies, Compania Anonima Tabacalera, owned by the government, and E. Leon Jimenes, affiliated with Philip Morris. Influence from the U.S. has turn- ed consumer taste to international brands. Jimenes produces the only international brand available on the Dominican market--Marlboro-- which competes with Tabacelera's top selling domestic brand, Montecarlo. Light tobacco cigaret- tes have 77 percent of the market. Tabacalera had worked out an agreement with R.J. Reynolds to form a third company to produce and market Winston in the Domi- nican Republic, but the government refused to grant permission for the venture. Tabacalera will be opening a new cigarette manufacturing facility in July or August. The plant will be equipped with a Haunt Protos which can produce 7,000 cigarettes per minute, and will increase capacity by about 30 percent. The average daily capacity at Jimenes is 9 to 10 million units, produced on a variety of machinery including a Molins Mark 9.5, capable of pro- ducing 6,000 cigarettes per minute. Cigarettes are divided into three price levels: Montecarlo, Contanza and Marlboro are the highest pric- ed at one peso per pack of 20; Na- cional and Hilton are 80 cents; and dark cigarettes retail for 40 cents. Higher taxes are levied on the top priced brands--27 percent of the price is tax. Only seven cents of the retail price of dark cigarettes is tax. The number of 20-pack cigarettes is decreasing, while the lO-packs are rapidly growing, from 60 per- cent of production six years ago to 75 percent of current production. Ti56~5410
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J Tobacco tomorrow: U.S. leaf production What would happen to the U.S. tobacco economy if production controls and price supports were eliminated? A recent study indicates that the result might not be the disaster so often predicted, but could actually result in greater output at lower priceswand a much improved competitive position for American tobacco in the world market. WHAT W?UL~ HAPP]~N IP the United States tobacco industry were substantially deregulated--that is, if support of the price and control of the production of tobacco in the country were eliminated? Two economists-- Dr. D.anial A. Sumner, associate professor, and Julian M. Alston, graduate assistant, both in the Department of Economics and Business at North Carolina State University in Raleigh--have spent several months analyzing this question, and their report, released on March 2, has stirred up quite a range of strong reaction in the industry, both pro and con. What have they said? We presented a sum- mary of their main points in the March issue of "rOSACCO R~PORT~.Z. Now we offer the full analysis, as promised. "Using the best estimates we can arrive at of the basic economic equations affecting the tobacco industry," say Sumner and Alston, "we have tried to calculate the range that prices paid and quantities produced would most likely fall into once there had been a period of about five years for adiustment." The economists note four characteristics of the U.S. tobacco industry that would have special impact if production were deregu- lated: * the concentration of ownership of tobac- co production rights--that is, quota--in the rural areas of the Southeast among farmers and nonfarm families, • the potential that exists for a great deal of expansion of tobacco production in many of these azeas, • the demand for American tobacco for the export market and to replace imports, which would allow significant expansion if prices were reduced, and This report was prepared by Chris Bickers, editor of THE FLUE CURED TOBACCO FARMER. * tobacco's storability at low cost relative to the value of the commodity, which allows production in one year to be considered as potential available supplies in subsequent years. "Given these factors," they say, "we have calculated the major effects of deregulation on tobacco production in the United States. The major points are listed on the facing page. OVI~R HALF A MILLION people in the U.S. own tobacco quota--the right to grow and market about two billion pounds of flue- cured and burley tobacco each year. This quota has a value which is reflected in the ren- tal rates that are received by the owners. In 1981, North Carolina county average quota lease rates ranged between 12 and 55 cents per pound, and all evidence suggests that these rates are typical of rents nationwide. In the Seventies, lease rates generally averaged from 20 to 25 percent of the price of tobacco in the high lease rate counties, but in recent years they appear to have risen up to about 30 percent of the support price in some counties. This suggests the flow of in- come to quota owners nationwide is about $800 million a year (in 1981 dollars}. If the tobacco program were expected to continue forever and underlying real costs and prices were expected to remain unchang- ed, then it would be fairly simple to measure the wealth capitalized in tobacco quota: $800 million a year at a discount rate of, say, five percent yields a capital value of $16 billion. But the quantities of both marketing quota and allotted acreage have been falling rapid- ly in recent years while market supply and de- mand factors--especially foreign competition --have been slowing the rise in the nominal price of tobacco. Also, uncertainty about the continuation of the tobacco program, along with the recent decreases in the real price of U.S. tobacco, has Ti56305412
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limited the capital value of quota. If quota owners and would-be owners believe, for instance, that the program is fair- ly likely to last only four more years, the capital value of quota at a five percent dis- count rate would be $3.8 billion rather than $16 billion. In fact, the prices recorded recent- ly for sales of quota suggest that buyers and sellers are not confident of the program's in- definite continuation in the future. The few sales reported indicate that in early 1983 flue- cured quota was being sold for three to five times the annual quota lease rate. ~'F ~'HZ PR~CZ SUPPORT and production con- .~trol system were eliminated, the restriction o~ national supply would also be eliminated, and the market price of U.S. tobacco could move down. Production could move to the geographic areas where costs are lowest, The initial effect of eliminating the market- ing quota and price support program would be to reduce the cost of the current output of tobacco by about 30 percent. The farm resources most likely to limit expansion of the industry in the absence of regulation would be the availability of prime tobacco land and the availability of efficient producers willing to operate farms in the lowest production cost regions. There seems no reason to think either land or human capital would be in short supply. The land used for tobacco production is a small percentage of the total available cropland, even in the best-suited regions of North Carolina and Kentucky. Expansion of both burley and flue-cured acreage from the recent 700,000 to 900,000 acres to one to 1.5 million acres still would not exhaust the available cropland in prime tobacco areas. As production moved across county and even state lines, yield per acre would tend to rise, so the output from the acreage planted would increase more than the acreage planted. Successful tobacco production requires a good deal of specific knowledge and specializ- ed experience on the part of the producer, and it is possible that there might be a limit to the amount of this human capital available. But this does not appear likely, given the severe quantity restrictions imposed by the reduced quota in the last few years, and given the clear willingness of many current producers to ex- pand. Over the past 20 years, technological changes have significantly reduced the labor demands for grow/ng, harvesting and curing tobacco. The number of active tobacco farmers has fallen steadily, and many of those who have go~ten out may be willing to move back into production. In competitive agricultural industries without supply restrictions, prices tend to equal the cost of production of the efficient producers, including a normal rate of return to invested capital and to farmer time and talents. This pattern would hold for tobacco in the absence of a federal program. In tobacco, as in othbr farm commodities with price support programs, a rationale for government regulation has been the en- couragement of price stability. This rationale The major points ECONOMISTS Sumner and Alston have projected that if the U.S. tobacco program were discontinued, the following effects could be expected: • Quota would lose its value, a loss of about $800 million in annual income to quota and allotment owners. • Output of tobacco would increase by 50 to 100 per- cent or more. Resources in tobacco production and marketing would expand along with it. • The price of American tobacco would fall by 20 to 30 percent. • The imported leaf now used in American-made cigarettes would be replaced by American tobacco for the most part, except for Oriental types. • The price of domestic cigarettes would fall by three percent, increasing domestic sales by one percent, ex- port sales by 10 percent, and slightly increasing the total amount of tobacco used in domestic cigarettes. • The quantity of American tobacco exports would ap- proximately double. • The total demand for American tobacco would in- crease by 50 to 100 percent or more. • The total revenue to domestic tobacco leaf produc- tion would increase by 25 to 75 percent or more. • Fluctuations in prices for tobacco might become greater, especially relative to the period from 1950 to 1980. But we do not expect major problems of variabili- ty in producer income, especially relative to the recent period of regulatory instability. • Production of tobacco would move to those regions that now produce it at the lowest cost. These regions can be identified as those where quota lease rates are highest. • Tobacco farms would continue to expand in size, but not appreciably faster than the current trend. • Total personal income would drop in counties which have a high proportion ofpersonal income deriv- ed from quota, perhaps by two or three percent. This will be especially true in counties from which production would be expected to migrate. • Personal income would increase in areas to which tobacco product/on m/~rates. • Marketing procedures would change, but there is no reason to think that advantage would go more to the buyers than to the producers. TR--April, 1984 47 TI56305413
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has been used as a supporting argument even when government has had a more immediate obiective. It is sometimes the sole argument for regulation. However, due to the importance of interna- tional trade in tobacco, the relatively small size of the tobacco industry and the intensity of factor use in tobacco production, it is like- ly that both supply and demand for U.S. tobac- co are elastic--that is. responsive to changes in price. Thus, any variablity in the supply and de- mand will be reflected more in quantity ad- justments, especially on inventory, rather than on prices. One would not expect large price variation in a tobacco market in the absence of controls. ONB NEAR-CERTAIN EFFI~C'r of deregulation would be geographic movement of tobac- co production. A long-term trend of flue-cured tobacco moving south and east was halted when the program was begun in the Thirties. This movement could be expected to resume. Some experimentation with tobacco pro- duction outside traditional areas could also be expected. Land characteristics probably would not be a major barrier to movement of the crop to other regions of the United States. But the large localized investment in human capital, farm technology, marketing channels and processing facilities suggest that the Southeast would maintain a significant cost advantage in tobacco production relative to One near-certain effect of deregulation: a geographic movement of tobacco production to larger growing areas in the south and east. other regions at least for several years. For the most tohacco-~tensive areas, loss of quota incomes for rural economies and for some quota owners would be offset by expan- sion of the tobacco-producing industry. In those regions such as the Piedmont of North Carolina and Virginia and eastern Tennessee where we would expect a decline in tobacco production, there would be a net loss of in- come. Currently these regions depend less on tobacco as a" major income and employment source than do the tobacco-intensive regions, but individual families might suffer major losses in income. Should the political decision be made to deregulate the tobacco industry, how might it occur? The program could be eliminated at once by removal of both price supports and production quotas; however, the costs to the industry, in terms of drastic dislocation and disruption, would likely be severe. Quota owners would lose the total value of any wealth held in the form of quota, and for some families this might mean severe hardship. At the same time, the incentives for adjust- ment and relocation in the industry would be maximized and the process would occur relatively rapidly. For those who would benefit from deregulation--domestic and foreign tobacco consumers, suppliers of pro- duction inputs, growers who do not own quota--the more rapid the deregulation, the greater would be the benefits, The costs of political uncertainty would be eliminated and federal budget costs would be minimal except for federal liability for stocks held by the Commodity Credit Corporation (CCC}, a loss which might be about $200 million. A comparable loss world face current producers for sale of Stabilization stocks covered by the No Net Cost program. These stocks might have to be sold at a price about 25 percent below current levels. If, instead of immediate termination, de- regulation could be accomplished gradually, with policy changes made clear and definite, then costs to all concerned might be con- siderably less. To give an idea of what might happen under different deregulation plans, the two econo- mists consider two possible programs. Quota could be phased out through free Irunsferabillty and elimination oJrprice sup- paris. Over a period of, say, five years, a "phase-out" of quota could take place by im- mediately allowing transfer of quotas across county and state lines, to anyone anywhere who desires it. At the same time, all supports on the price of tobacco would be eliminated. With a clear announcement of intentions to do so, the production quota could be increas- ed by perhaps five to 10 percent each year so that the price of quota falls smoothly. At the end of the five years, the quota could be in- creased to the point where it no longer is a constraint on production. Quota would, then, have no value. Such a plan would allow quota owners to realize a higher value for their quota because they could transfer itby sale to growers in the most productive reg/ons. The removal of price support would allow the increases in quota and would permit gradual sale of current Stabilization stocks. One advantage of a program of this type is TI56305414
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that it would allow quota owners to realize at least some of the value of their quota. They would have the option of retaining their quota and earning explicit or implicit income over five years, or selling at the market price that results from this new policy, knowing that quota would be worthless at the end of five years. Gradual expansion of the industry through steady increase of the total quota would reduce the disruption while regional economies, input supply industries and manufacturers adjusted to the new policy. Price supports could be phased out by con- tlnuing the freeze. Under this plan, the quota system would be retained but the support price would be reduced by freezing the sup- port price at the present level so that in real terms it would fall by the rate of inflation. The total quota would continua to be ad- iusted so that demand is satisfied at a price slightly above the support price. With inflation rates of around five to six per- cent, this plan would result in a fall in real prices of about 25 to 30 percent over a period of five years, lust as the real price of tobacco would fall and the quantity of quota would rise, quota rents and the price of quota would fall. Eventually, quota would be worthless, the support price would be irrelevant, and output and prices would be determined by unregula- ted market forces, The main difference between gradual phase-out of quotas and a continued price sup- Losers in the 'program' have been consumers of U.S. tobacco and potential growers discouraged by the costs of acquiring production rights. port freeze is that production would not be permitted to move to the lowest-cost counties under the freeze. The disruption caused by a freeze would be similar to that caused by the phase-out, but adjustments would be ham- pered. There would be some migration, as quota ~vould become worthless {and would be unus- ed} in high-cost regions earlier than in low- cost regions, but it would be slower than under the quota phase-out. Compared to phase-out of quota with free transferability, people who own quota in the least-efficient growing areas would lose more under the freeze because their quota would become worthless relatively quickly. Those who own quota in relatively low.cost growing areas may gain. Their quota would lose value relatively slowly. A second difference would be that the time path of the phase-out would be uncertain in that it would depend on the rate of inflation. r~luE TOBACCO PROGRAM in the United States ~.has enjoye~i industry and political support for almost half a century, Sumner and Alston note. "It has allowed higher tobacco prices by restricting quantities. The major beneficiaries of the program have been the original reci- pients of tobacco production rights and cer- tain foreign tobacco industries. The losers have been tobacco consumers in the United States and abroad and certain potential tobac- co farmers who have been discouraged from tobacco production because of the costs of ac- quiring production rights. "Over the last decade, increased tobacco production outside the United States, agita- tion over health consequences of smoking, government budget problems, and a general movement toward deregulation--have made continuation of the program less likely," they continue. "The maior findings of this report suggest further work that may improve the precision of our estimates of the important parameters of the industry and the precision of our predictions of the likely consequences of policy changes. We are reasonably confident of our estimates of the total value of quota that would be lost by deregulation. However, there is little detailed information on the distribu- .tion of quota ownership necessary for discuss- ing income and wealth effects at the disag- gregated level. "The bounds on our estimates of potential expansion in the industry are large so as to include extremely conservative estimates. The main reason for wide bounds is uncertainty about the appropriate valuse for elasticities of supply and demand and especially substitu- tion among tobacco types and qualities. There have been many studies of the export demand for U.S. tobacco and the demand for cigaret- tes. There remains disagreement.., about the appropriate magnitude of the export demand elasticity, in part because the export situation has changed in the last few years. "We have little formal evidence on the substitutability between U.S. tobacco, other tobaccos, and other inputs. As these substitu- tion parameters are of crucial importance in analyzing the effects of deregulation of tobac- co, a prelect to estimate them has begun at N.C. State University." Wt 50 TR--Aprg, 1984 TI56305416
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of MOlins .... presence--where there is no MoJins equipment there i~:: usuallyno cigar~t-~ industry. MOLINS TI56305417
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Commentary: The dangers of protectionism A poficy of trade protectionism can lead bnly to economic disaster for the U.S. tobacco economy. By Hugh Kiger ALL SeGMeNTS o~ THe U.S. tobacco economy have a vital stake in maintaining a high level of tobacco trade. In view of this fact-- and the fact that key tobacco leaders and associations over the years have supported a freer trade policy--it is surprising and a source of concern that some tobacco officials have recently been ad- vocating protectionist actions or policies. Let's take a look at some of these activities. First, the so-called "scrap tobacco" issue. Last year, a peti- tioner requested that the Customs Service change the classification of imported machine-threshed cigarette leaf for tariff purposes at a higher rate of duty {32 cents per pound} under the provisions for stemmed leaf rather than under the general provision for tobacco, manufactured and not manufactured, not specially provided for (a duty of 17.5 cents per pound}. In 1980, after extensive study, Customs determined that machine-threshed cigarette leaf was neither scrap tobacco nor stemmed leaf but that it had been process- ed to the extent that it was considered a partially manufactured product classifiable as "tobacco, manu- factured or not manufactured, not specially provid- ed for." After intensive political pressure on the Secretary of the Treasury and Customs Service, in Ju- ly, 1983, Customs determined that imported machine- threshed cigarette leaf should be considered as stem- med leaf. This change in classification had the effect of changing a bound duty from 17.5 cents per pound to 32 cents per pound. The reaction by our trading partners was predic- table: The European Community strongly protested the action and is seeking relief under the GATT. Con- Dr. Kiger is executive vice president of the Leaf Tobac- co Exporters Association and the Tobacco Association of the United States. 52 TR--Apdl, 1984 sultations on this subject were held under provisions of GATT in November and January, and the EC is now indicating retaliation. This is most unfortunate since the EC is the largest market for U.S. tobacco. In 1983, the U.S. exported about 189 million pounds of leaf to the EC valued at about $492 million, and the value of U.S. cigarette exports to the EC was about $307 million. Because of duty drawback provisions, the action by Customs will have little effect on the volume of U.S. tobacco imports. On the other hand, retaliation by the EC could far outweigh the small benefits from this ac- tion. This is a good example of a protectionist action that has backfired. T~" ~-^s~" sssslo~ OF Congress considered legislation which would require a pesticide cer- tification and grading of imported tobacco, and even- tually passed a bill which provided for grading of im- ported tobacco. Both the U.S. Department of Agriculture and the Office of the Special Trade Representative opposed this legislation because of its protectionist nature, noting that it could result in pro- blems with our trading partners and GATT. If this legislation is implemented in a manner that adds substantially to the cost of imported leaf, we can expect some similar retaliatory action by importers of U.S. tobacco-an occurance which will worsen the competitive position of U.S. leaf in the world market where it is already the highest priced leaf in the world. A third example: A member of Congress from the U.S. hurley area has offered these legislative sugges- tions as a means of solving the problems facing burley tobacco: • to restrict imports to no more than a certain percentage of previous year's sale of pool stocks; • to increase numerous tariffs for all tobacco with no exceptions; • to assess tax penalties on companies with foreign subsidiaries who grow tobacco in foreign countries and export to the United States. These suggestions which relate to trade are contrary to U.S. trade policy and a violation of GATT. Such unilaterally restrictive actions would be a giant step backward in U.S. efforts to expand tobacco exports. As the world's largest exporter of tobacco, the U.S. has the most to gain by liberalized trade policies and the most to lose from protectionist policies. IT IS ILLUSORY TO ASSUME that protectionism is the answer to all of the economic problems currently facing the U.S. tobacco industry. More likely, it would contribute to these problems and delay even further any improvement in the situation. However, many of- ficials are using protectionism as a scapegoat to avoid dealing with the real problem: price. If U.S. prices become competitive, we will experience a decrease in tobacco imports and an increase iR exports. A policy of trade protectionism can lead only to economic disaster for the U.S. tobacco economy.Wt TI56305418
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Tobacco tomo,rrow: Cigarette sales and markets Consumption remains flat around the world and output in mature markets continues to fall. The latest moves in the cigarette industry are aimed at reaching out for new markets--either by diversifying the corporate base or by making major brand introductions into new territories or other countries. By Anne SheRon LINGERING economic reces- sion, stable smoking populations, tax and price increases, and growing anti-smoking activity--all continue to impede growth in the mature cigarette markets of the world. Consumption in most major markets is either static or declin- ing, and the latest available infor- mation indicates that world cigarette output showed virtually no growth again in 1983. Output in the United States, which produces nearly one-fifth of all the cigarettes in the world out- side China, fell last year by about four percent. In Japan, the world's second leading producer, cigarette production was flat. West Ger- many's output registered six per- cent below 1982's depressed level, and Britain's production dropped another two percent. Sales in the U.K., however, have apparently taken a slight upturn. The latest available figures show that cigarette sales for the year end- ed October 31, 1983, increased by 0.5 percent to 102.6 billion pieces. In the Netherlands and the Scan- dinavian countries cigarette output last year was down from 1982 levels, but sales of smoking rebec- co rose, picking up much of the loss. Static or declining cigarette sales were also recorded in other European markets, including Switzerland, Denmark, Ireland and Austria. Only Italy, Belgium and Spain showed some production in- crease for the year. Among Asian countries, Taiwan, Thailand, Korea, Malaysia and the Philippines gained in cigarette pro- duction. Consumption of light cigarettes will continue to expand in 1984. Foreign exchange shor- tages are affecting these countries' trade positions, and tobacco needs for their growing cigarette markets are having to be met largely from domestic supplies. Cm^azTT~ PRonucT~oN in the United States held firmer last year than had been expected in the wake of sales declines due to substantial tax increases and rising prices. Output totaled 666,896 mil- l/on pieces--down 3.9 percent from the 1982 level. Taxable removals amounted to 597,465 million un/ts, down 2.7 percent. Reflecting the continuing strain in exports, tax-~_.xempt removals for the year dropped :15.1 percent to 69,680 million pieces. Last year's U.S. cigarette exports totaled 60.7 billion units (about nine percent o~ production); imports, including kreteks, totaled 740 million pieces --just over one-tenth of one percent of the U.S. cigarette supply. The Tobacco Institute reports that the number of cigarette packs taxed by the states fell by 6.7 per- cent for the year. U.S. industry observers among the financial analysis community have expressed pleasant surprise that declines in cigarette unit sales have remained smaller than ex- pected under the circumstances. There is general consensus that the cigarette market has a greater abili- ty to withstand price pressures than it had been credRed with, and that given continued economic recovery, some turnaround in sales might even be expected. In a healthy economy, many analyst-observers also predict that "bargain" cigarettes--the generics and the 25-to-a-pack economy brands--will tend to show slower or lessened sales as the market resumes its strong, traditional focus on brand image. A few months ago, some analysts in and out of the industry were voicing concern that too much TI56305420
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However you say "cigarette adhesives',' H. B. Fuller understands. In the world d cigarette pro- duction, we spe~k many languages. We have to, With plants and technical service centers located in 30 countries, H.B. Fuller must understand the needs of every cigarette pmducea: Our worldwide experience allows us to stay current on paper weights and types, filter components, high-speed packaging machinery and more. Every day H.B. Fuller tobacco specialists solve production problems around the globe,. And with a world hill of knowledge like that, you can bet we've already solved problems just like those you're facing. One of our technical service managers is ready to recommend the right adhesive for you, fight now. For more information, contact H.B. Fuller Company, Tobacco Strategic Business Unit, P.O. Box 8341, Louisville, KY, U.S.A., 40208-034L Telephone: (502) 637-9771 Telex: 20-4236. We work chemistry into al~wer~ o H.B. Fuller Company TI56305421
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price-oriented promot/on could serve to thrust cigarettes into the mass of non-durable consumer pro- ducts wtdch sell more by price than by brand image or quality, thus cut- ting into profitabil/ty. But such speculation seems to have eased now that the after-shocks of doubl- ed taxes can be examined and seen to be less drastic than first feared. Now the speculation leans more toward a resettling of the market, with the weight of opinion tending towards more segmentation, renewed or broader emphasis on • brand image, and a small niche reserved for the economy brand or non-brand cigarettes which have forged ahead so well during recent months. In a static sales environment, manufacturers must turn their em- phasis toward capturing what can be termed as 'loose' market shares. New brands, more line extensions, more packings, more specialty pro- ducts, more ways to make use of the excess capacity some U.S. manufacturers currently have--all efforts directed at gaining market share. W~dTHE GENI~RIC cigarettes the economy-25s brands continue to carve out significant Comparison of pipe tobacco and cigarette price levels in the EEC ~rda~ U~ market shares in the months to come? Most industry analysts think it depends on the economy. If the budding recovery proceeds to full bloom, if unemployment continues to decline and if the spectre of hard times fades--it is logical to assume that as the cigarette market returns to its former strong emphasis on brand image, the bargain brands will not find so quick an accep- tance among people who have jobs and money to spend. But strong fears remain that the recovery will not last. And if it does* not, the bargain cigarettes will con- tinue to fill a very important place in the market: they will keep in the market those people who might not be able to afford to smoke other- wise. Either way, there should con- Branching out for profitability DIVZRSlrlCATION seems to be the name of the game for the tobacco industry in the United Kingdom--both out of it and into it. The latest company coming in is Palmer & Harvey, wholesale tobacconists and confectioners, which has launched a new brand on the market, King George, at just under one pound for 20. P&H, also the new distributor for B.A.T cigarettes in the U.K., has sa/d little about its new cigarette, which is on sale only in London and surrounding areas, and of- fers "higher than normal returns and greater proF~ margins." In reverse, Gallaher's brand Silk Cut has introduced a r~nge of coordinated clothes {its sister brand Benson & Hedges tried this last year}, but the Silk Cut Leisure line is the first to be of- fered for sale through retailers. Clothing is not the first depar- ture for Gallaher, as it is already in the book business and in long- haul holidays. Industry observers tend to feel the long downturn in the British cigarette market is coming to an end. "Cigarette manufacturers felt the recession from 1980 to 1982--some time behind other manufacturers," observes Mark Duffy of stockbrokers W. Green- well in London. "But with the economy generally lifting, their problems should not be so per- sistent. The trends suggest the decline in sales is coming to a halt." Whether tobacco manufac- turers belii~ve this is hard to ascertain. While industry in- aiders say that cigarette sales declines have been halted, they are in no mind to stop diversi- Wing out of the tobacco in- dustry. "Our biggest problem," says one manufacturer, "is we never know what is going to happen to our market--not so much from our own deeds, but from outside influences. "There's the annual chance of the Budget: Will taxes go up or down? Will this stop smoking? Will the anti-smoking lobby beat us? Will people smoke more or less as the economy starts to go ss TR--Ap~, 19~
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Effect of tax increases on UK cigarette c~nsumption 80 -- 120 - ÷~p +3p + tinue to be a place for cheaper ciga- rettes in the marketplace. Whether as just one of many small segments or as the only affordable luxury of the unemployed depends on future gains in the economy. At best, 1984 will probably be a break-even year for U.S. cigarette manufacturers. And if taxes on the state level continue to soar at the rate of recent years, this could well be another declining year for sales. By segment, the market picture shows a decline in sales of ultra- low-tar brands, a slower growth in the low-tar segment, and continued gains in the popularity of 10Omm brands, particularly the 100ram in boxes. pERHAPS THE GLOOMIEST scene in the U.S. cigarette industry can on the upward trend? These questions are virtually unan- swerable," he continues. "After all, B.A.T spent many millions of pounds to get into the insurance market and soon after announc- ed they were going to stop sell- ing cigarettes in the U.K. market." It is these imponderables that worry the tobacco industry in the U.K. more than the p .rqsent decline in smoking. Too many people still go.into shops ~ ~ for "twenty Of the cheapest,"" sIthongh many do trade up on weekends and holidays. : I~VOaTZD CZC, Z~T~e are also g~ ining a small share of the British market and generic brands are ~ present, and all this is eating away at the tradi- tional tobacco manufacturers' sales and profits, as can be evidenced by B.A.T's recent de- cision to pull out of the market. So the battle for B.A.T's four- to-five-percent share is now on among Imperial with about 45 percent of the market, Gallaher with 32.5 percent, and Carreras Rothmans with about 14 per- cent. In "an early strategy move, far example, Imperial is offering a ~-2-cants reduction on the mar- ket price for the next pack customers buy of its King Size Ibctra Mild, and a 74-cents-off coupon is being offered in press advertisements. Usually, where one leads, others fol|ow. The future can only get more excitin~ --M~ be found in the export picture. The very high level of the dollar against major European currencies--com- bined with the relatively stagnant cigarette market in Europe--has cut severely into overseas sales of American cigarettes during the past year. As a natural result, manufacturers are turning their ef- forts more and more to building markets in developing countries and to negotiating with nations which have traditionally restricted imports. In what it describes as one df the most extensive consumer sampling and promotion programs for a foreign tobacco product entering the Japanese market, R.J. Reynolds Tobacco International has launch- ed its Camel brand in Tokyo. The introduction makes Camel Filters and Camel Milds the first Ameri- can cigarettes to be marketed in Japan since the relaxation of re- strictions on imported cigarettes by the Japanese government last year. Reynolds notes that the introduc- tion is a major test of the Japanese demand for American cigarettes. B UT ZT WORKS BOTH WAYS: Im- ported cigarettes are making notable inroads into the American market. Cigarettes from approximately 40 countries registered U.S. sales of close to 600 million units in 1982, reflecting a continued market growth rate of more than 10 per- cent a year. Nearly half of these sales are English cigarettes; ano- ther 40 percent or so are Canadian. But holding about 10 percent of the market are Indonesian brands, which began building a market on the west coast and are now begin- ning to expand eastward. The ap- peal seems to lie in their exotic nature: Kreteks, like bidis and other unusual styles or shapes or lengths which have also gained some following in the western U.S., are totally different from any Ameri- can-made smoking products. And therein lies the much of the future for world cigarette sales: Find a market away from home, where your product has the appeal of the new, the different, the exotic. TI56305423
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Previews The Tech.n,o, logy o,n d,sp:i ay In just a few days, the doors will open on the 4th World Tobacco Exhibition and Symposium in The Hague. On the pages that follow, TOBACCO REPORTER continues its preview of displays .featuring the latest technology for the tobacco industry. Among the wide range of new equipment and supplies be- ing exhibited are microprocessor monitor- ing and control systems; new styles of papers, filters, plugwrap, and packaging materials; equipment for leaf processing, for cigarette making and packing, and for cartoning, and shipping. Cardwell Machine Company P.O. Box 34588 Richmond, Virginia, U.S.A. Cardwell Machine Company (UK) Ltd. Invincible Road, Farnbomugh Hampshire, England Cardwell Stand G-11 Cardwell will have on display a rotadrum feeder and tobacco dischargers used in the feeding of cut rag tobaccos to cigarette making machines. Together with the Cardwell microprocessor control system, this unit results in a simple, cost efficient method of servicing high speed cigarette machines. The exhibit will also feature photographic displays of equipment and systems designed and manufactured for the tobacco industry. Representing Cardwelh Charles Hotchkiss, President J. Derek Darkins, Managing director, Cardwell (UK) Colin Lungley, Sales director, Cardwell (UK) Roy Owen, Technical director, Cardweli (UK) Doug Kirkman, Chief engineer, Cardwell (UK) Len Buie, Contract engineer, C, ardwell (UK) Ed Ward, International sales manager 58 TR--April. 1984 AMF Legg Newbury Road, Andover Hants SPI0 4DW, England Stands N-25 and N-26 AMF I_egg's exhibit will feature a pictorial display of new developments in process technology encompassing jet conditioning of tobacco; automatic drying systems, electronic process; control from rod weight control; microprocessor controlled weighing conveyors, up to total turnkey information retrieval and. control systems for primary making and packing departments--together with recent developments in tobacco cutting and auto weighing and packing of fine cut tobaccos. Representing AMF Legg: G.B. Edwards, Managing director & Chief executive Dr. M.D. Sanderson, Director of engineering A.E. Clarke, Director of sales R.E.G. Neville, Research & Development manager A. Aldridge, Deputy director of sales C.R. Mabey, Marketing executive P.F. North, Sales executive--Europe C.H. Dexter Europe S.A. Avenue de Tervuren 269 1150 Brussels, Belgium Associated with: C.H. Dexter Division One Elm Street Windsor Locks, Connecticut, U.S.A. Stand N-18 The C.H. Dexter stand features the company's high performance porous plugwrap developed especially for diluted cigarettes. These plugwraps are designed in a range of porosities to provide cigarette manufacturers an economical and consistent means for achieving desired dilution levels. In addition to its manufacturing facilities in the United States, France and the United Kingdom, Dexter also has offices in Australia, Belgium, Canada, Germany, Great Britain, Japan and the U.S. Representing Dexter: R.B. Gettins, Managing director--European products D.G. Gordon, Marketing director--Europe C.S. Ross, Sales director--Europe =D 'ER TI56305424
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10 East Baltimore Street Baltimore, Maryland 21202 U.S.A. Stand C-5 The Craggs organization has served the international tobacco industry for over fifty years in the sale of both new and good surplus equipment and has acted as consultants and appraisers to both large and small tobacco manufacturers. It also represents several tobacco machinery manufacturers such as Schmer- round, Marden Edwards, Tingey and Quester--all of whom will have their own stands at the exhibition. Representing Craggs: Ted E. Lewis, Vice president Rachel Berger Finifter National Tobacco Board of Gre~ece 36, Kapodlstriou Street Athens 102, Greece Stand C-39 NTB will exhibit a comprehensive range of odental and burley leaf tobaccos. There will also be a display of Greek cigarette brands and gratis distribution of many of the brands to visitors. Board President Alexis Baltas will head the NTB delegation. Robert Fletcher & Son Ltd. PO Box 10 Kearsley Paper Works Stoneclough, Radcliffe Manchester M26 9EH, England Branch works: Greenfield Paper Mill Greenfield, Oldham OL3 7NG, England Fletcher will exhibit its range of cigarette papers, available commercially in permeabilities up to Coresta 200, and plugwraps, available in a range of types and grammages. Research and development in the company has resulted in the commercial development of high in- herent porosity cigarette papers, the ability to control the variability of such papers within fine limits, and the emergence of cigarette paper with the capability to restrict carbon monoxide deliveries. Also on the stand will be the subsidiary co~tlpany, Proofed Packings Ltd.(Newbury, Berkshire, England), which manufacturers all types of cigarette tipping, in- cluding overprints and perforated, tear tape, cigarette G.D SpA V'~ Pomponia, 10 40133 Bologna, Italy Stand C-13 Featured will be a complete range of films illustrating the full G.D production line, including high-speed soft packers and hinge-lid packers; high-speed integrated cellophanerlparcaller and cellophaner/parcetlerlover- wrapper groups for cigarette packets; maker/packer direct rink-up system with buffer reservoir; faulty packet detecting/rejecting systems; and units for application of stamps and/or banderoles. In addition, there will be information about various installations of G.D machinery at leading cigarette factories all over the world. Among G.D's representatives: Giorgio Seragnoli, Vice president Dr. Gianoarlo de Martis, Joint managing director Romano Chiesi, Sales director Giancarlo Fusari, Tobacco division manager Carlo Grossi, Area manager Stefano Cavallad, Area manager ...and other agents from G.D's foreign offices: G.D Package Machinery Inc. (U.S.A.) G.D do Brasil/Maquinas de Embalar Ltda. (Brazil) G.D Machinery Ltd. (England) G.D Enveloppeuses Automatiques S.A. (France) G,D Automatische Verpackungsmaschinen GmbH (West Germany) bundle wrap and many types of flexible packaging in- cluding waxed, printed and laminated. Representing Fletcher: Gordon Horn, Managing director Richard Bohren, Marketing director Nigel Plackett, Production director Eddie Felton, Director of research & development Andrew Gordon-Stewart, Sales manager Frank Lawton, Technical sales manager Representing Proofed Packings: Gordon Harvey, Sales director Ken Greenwood, Sales dkector designate T~, ~984 59 Ti56305425
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The ue Focke & Co. Verpacku,n,gsmaschine,n Siemensstr. 10 Verden/Alter, West Germany Associated companies: FOPAC Maschinenbau GmbH & Co. KG H.-H. Focke GmbH & Co. KG Focke & Co. Inc. (U.S.A.) FOPAC Enterprises Ltd. (Canada) _---- FOCKE & CO ----__ Stand C-45 Focke will show for the first time its high speed hinge lid packer (Model 350 HS), which has a capacity of more than 350 packs per minute. The company will also display the latest version of its case packer, the Model 465. Thede two pieces of equipment will be shown link- ed to a fully automatic tray unloader (model 317), which feeds cigarettes automatically to the packer. Personnel will be available to discuss this new equip- ment as well as any other in Focke's complete range of machinery--complete hinge lid and shell and slide complexes, including film wrappers, boxers, parcellers, combined wrepperlparcellers and combined wrap- pedboxedoverwrappers, autoweighers for tobacco, pouch packers and parcellers for tobacco pouches, and different case packers for the cigarette and tobacco industry. Representing Focke: Heinz Focke, President Jurgen Focke, Personal assistant to the president Hans Schonberger, Vice president Manfred Moormann, Sales manager Peter Henning, Technical sales manager Hermann Roesink, Representative in the Netherlands Dieter Neuber, Representative in the United States Fishburne International P.O. Box 706 Arden, North Carolina 28704 U.S.A. Stand N-43 Fishburne invites visitors to share the latest advances in tobacco press design and the technology of com- puter aided design and drafting. David Felts will in- troduce you to computer drafting and offer a personaliz- ed memento of your visit. Representing Fishburne: Frank Fishburne, President David Sanford, Executive vice president David Felts, Computer draftsman ,~.~~ FISHB URNE ',, ,,, , ~>\,k.\.ti/ Japan Tobacco & Salt Public Corporation 2-1, Toranomon 2-Chome Minato-Ku, Tokyo 105, Japan Tobacco Industry Engineering Servic 5th Floor, 13 Mori Building 3-13 Toranomon 2-Chome CIE) Minato.Ku, Tokyo 105, Japan Stand C-21 On display will be the JTS bottom fold packer, shell and slide packer, and direct linkage device. Personnel will be available to give information about consulting engineering services, cigarette exporting, and other JTS and TIES businesses. In attendance: Kiyoshi Kawabata, JTS Kazuo Sekiguchi, TIES Mobil Plastics Europe 6761 Virton-Latour, Belgium Mobil will display its Bicor R OPP films for the inter- national tobacco industry. Among the products featured will be MB621, a 21-micron acrylic coated pack and car- ton overwrap film sold throughout Europe for cigarette and individual cigar packaging. Of particular interest will be the innovative differentially coated MB777 for a high flavor and odor barrier tobacco packaging ap- plications and the unique differentially coated white opaque film "Oppalyte." M bil Plastics Europe
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IN ITS PROPER PLACE ? ;e Introduced just 10 years ago, the Kaymich Gravity Fed Nozzle Applicator System has already sent countless starch wheels to the scrap heap. And now accounts for sealing some 50% of all cigarettes manufactured worldwide. Easy to install, simple to maintain, the Kaymich System cuts out cams and gears, tricky preparation of adhesives, and wheels that need to be re-ground. The Kaymich System is at home with all kinds of ready-made adhesives - sealing often at ,See you on Stand N17 at t~e 4th SYMPOSIUM WORLD TOBA - The Haaue ~,~ ...... CCO EXHIla/T~u .~. ........ =-nnos. April 15-18 1984 ....... Time-worn starch wheel system first introduced in the late 19th century temperatures of under 100°C, and a huge range of cigarette papers and plug wraps. In fact, its simpler design - with just one moving part - and greater versatility mean that in most instances it's substantially increased overall efficiency. Small wonder that so many manufacturers are switching to Kaymich- and that the prospects for the starch wheel are going up in smoke. If you're not already using it, find out more about the Kaymich Nozzle Applicator System. C.B. Kaymich & Co. Limited, Leigh Street, Sheffield S9 2PR, U.K. Telex 54171 Telephone Shf~field (0742) 44607 I Kaymich Inc., 420 Southlake Boulevard, Richmond, VA 23236. U.S.A. Telex 828312 Telephone Richmond (804) 7941648/9 TI56305427
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Previews The Gandy Betting Ltd. Corporation Road, Birkenhead Merseyside L41 8JX, United Kingdom Sland N-40 In addition to its collection of cotton and synthetic fabric based PVC tobacco conveyor belts, Gandy Belting will introduce a further addition to its range. This new belt, developed in close liaison with tobacco processors and equipment manufacturers, utilizes the latest in non- toxic polymers and is designed to meet the demand for a conveyor belt for use in possibly combustible ap- plications. Like all other Gandy tobacco conveyor belts, its ingredients are totatly non-toxic and comply with all recognized international food quality standards, in- cluding tile U.S. Food and Drug Administration. Technical staff from Gandy Belting will be on hand throughout the exhibition to discuss new developments with original equipment manufacturers. Export sales and marketing personnel will also be in attendance to give details of the many locations through the world where their products are being used successfully to convey tobacco. MOLINS Hambro Machinery Ltd. Chandos Street, Netherfield Nottingham NG4 2PF, England Machinery Limited Stand G-7 The stand will feature photographs and descriptive literature covering the Hambro range of tobacco primary process plants. Video films will be shown of the new fluidized bed dryer and the high .capacity cigarette ripping and tobacco reclaim plant. Also to be featured are Hambro's new high efficiency separator, the Elutriator, and a new microprocessor-controlled band weighing system which permits "bolt-on" conver- sion of existing conveyors. Representing Hambro: Derrick W. Brooks, Managing director Chris P. Morris, Sales and engineering director Peter Crump, Sales engineer Molins Tobacco Machinery Ltd. Evelyn Street London SE8 5DH, England In the forefront of its information facilities on The Hague stand, Molins will have on hand a products video library and a selection of sales literature embracing the com- pany's comprehensive range of cigarette making, plug manufacturing, inspection, mass-flow, trayfilling and packing/wrapping equipment. With these aids, Molins aims to provide the widest possible advice to match customers' needs throughout the secondary machinery field, recognizing the diversity of requirements in speed, efficiency, reliability and flexibility. In the week preceding and during the exhibition, Molins will be showing at their Saunderton premises a full range of hardware and services. The Molins team will be headed by the product plan- ning and marketing managers and supported by technical and sales staff from the U.K. Moisture Systems Corp. 117 South Street Hopkinton, Massachusetts 01748 U.S.A. On display will be a working demonstration of the com- pany's new microprocessor-based moisture analyzer, the Micro-Quad 8000, which measures moisture, nicotine and reducing sugars. Ti56305428
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Not Marlboro! Not Winston! Not Salem nor Kool! It's Newport! The fastest growing brand of all[ In fact, total Newport packings are up over 10% for 1983! That's the llth year in a row that Newport has shown a sales increase. We couldn't have done it without you. Keep backing a winner. Newport. The only business we do is the business you do. We never forget that.
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Maschinenfabrik Fr. Niepmann GmbH & Co. Postfach 1820 B~strasse 21 5820 Gevelsberg/Westfalen West Germany On display will be Niepmann's newly designed, fully automatic shipping case cartoner with integrated palletizer type ROBOT 633, which can open, fill and close shipping case cartons with contents from 5,000 to 12,000 cigarettes and then palletize them. Representing Niepmann: Dr. Brinker, Commercial managing director Mr. Stewart, Technical managing director Mr. Krefter, Sales manager Mr. Sokoli, Sales manager Philip Morris International 120 Park Avenue New York, New York 10017 U.S.A. Stand C-47 PHILIP MORRIS INTERNATIONAL The Philip Morris display has been designed to func- tion as a hospitality area where people can meet and talk and be served refreshments. There will be a short video shown about a new ex- panded tobacco process developed by Philip Morris in conjunction with the Airco Industrial Gases Division. Attending will be: Cynthia H. HammeR, Director of communications, PM International Patrick Clarke, Director of operations services, Tobacco Techology Group, Philip Morris Inc. Rudy Juenger, Assistant director of international services, PM International D.S. Devitre, President, Philip Morris Asia R.H. Bockman, Director of corporate affairs, PM Asia Leo McCullagh, Area director, PM Asia C.E. Smith, Director of operations services, PM Asia Ira Steinberg, Manager of engineering programs, Airco H~roid Hersch, Program manager for tobacco ex- pans.ion, Airco Rentsch AG 4632 Trimbach-Olten Switzerland Associated with: Rentsch International SA (France) Rentsch GmbH (West Germany) Prestige Packaging Ltd, (England) Rentsch Services Ltd. (Switzerland) Stand C-31 With its facilities in Switzerland, France, England and Germany, Rentsch produces and prints more than 25,000 tons of paper and cartons each year, making the company a leading supplier of specialized cigarette packets in Europe. At the Exhibition, the company's trade experts will be on hand to greet old friends in the industry, establish new ones, and hold discussions on the newest ideas in how to improve production methods and how to meet the strictest requirements for the smooth flow of modern cigarette making machines. Representing Rentsch: Rudolf Rentsch, President Peter Brotzer, Sales director Rene Woessner, Tobacco sales manager Ked Hiestand, Sales representative Alain Gassner, Sales representative 64 TR--April, 1984
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"Being a good buyer me~ more than btheUY~fig~ .t tobacco.' '~Ks buyers for CATCO, we work a lot more than only at the auctions. Once we've purchased the grades to make the customer's blend, we follow his order every step of the way-- and that's a lot of steps: shipping, regrading, blending, picking, threshing, redrying and packing. And we're mighty glad when the customer wants to check along with us because we're always proud to take him through the operation. That way, we can learn from him and he can see, first hand, how we've earned our reputation:" CHINA AMERICAN TOBACCO COMPANYIYour International Tobacco Company... And Proud of tt! P.O. Box 9921Rock~ MounL North Carolina 27802-0992 Phone (919} 442-1141/Telex 801252/Cable "GATCO'" TI56305431
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The ue Rizla International Marketing Ltd. P.O. Box 40 Douglas, ~ of Man United Wmgdom Representing: L. Lacroix Fils S.A., Witrijk, Belgium Rizla Ltd., Treforest, U.K. L. Lacroix Fils S.A., Mazeres, France House of Rizla Inc., New York, U.S.A. On display will be products from Rizla--hand-rolling cigarette paper booklets and tubes, a full range of roll- ing aids and accessories, and the complete range of cigarette tissues for cigarette manufacturers from Lacroix France. The Rizla Group is also involved in chewing gum, sweets, air fresheners, cosmetic tissues, and scientific tissues. Personnel in attendance: F. Painblanc, Lacroix Belgium M. Painblanc, Lacroix Belgium R. Painblanc, Lacroix Belgium B.S. Minshull, Rizla U.K. and U.S.A. J.P. Tardi, Lacroix France H.K. Gower, Rizla U.K. E.D. McLaughlin, Rizla International TEIC S.A. 8-10, Rue de Hesse CH. 1204 Geneva, Switzerland Stand C-2B On display will be tobacco samples from all the various sources where the group operates. The TEIC Group is affiliated with Dibrell Brothers Inc., Danville, Virginia, U.S.A., and is related to the follow- ing companies: B.V. Tabak Export and Import Companie (Holland) Carolina Leaf Tobacco Co. Inc. (U.S.A.) Commonwealth Tobacco Co, Inc. (U.S.A.) C.W. Waiters Co. Inc. (U.S.A.) Dibrell Brothers of Canada Ltd. Dibrell Carolina Far Eastern Co. (U.S.A,) Dibrell Brothers International S,A. (Switzerland) Dibrell Brothers U.K. Branch (England) DibrelI-Kentuck-y Inc. (U.S.A.) Piedmont Leaf Tobacco Co. Inc. (U.S.A.) Rohtabakvergaerungs A.G. (West Germany) Texport Trading (Zimbabwe) Verafumos Ltda. (Brazil) Hanil Tobacco Export Co. Ltd. (Korea) 66 TR--Ap~i, 1984 Max Schlatterer GmbH Co. KG. P.O. Box 1265 D-7922 Herbrechtingen/Wuertt West Germany Schlatterer will display its full program of endless belts and tapes for the tobacco industry and the latest developments of garniture tapes and nylon suction tapes. In attendance: G. Beckh M. Schneider I. Beckh T. Vinzio Softal Electronic GmbH Hovestrasse 65 D-2000 Hamburg 28 West Germany Stand N-14 Softal will display its equipment for electrical micro- perforation of cigarette paper and tipping paper. Representing Softal: Bernd Martens, Managing director Karl-Heinz Meyer, Sales manager Reditab S.P.A. (italy) Reditab Hellas (Greece) TEIC S.A. (Switzerland) Personnel attending: P. Dodd, TEIC, S.A. R. van de Stadt, TEIC, S.A. F. Baggen, TEIC, S.A. M. Maks, TEIC, S.A. P. Ingwersen, TEIC, S.A. P. van tier Kroft, TEIC, S.A. J. Oeste:haus, TEIC, S.A. R.L. Mills, Carolina Leaf C.B. Owen Jr., Dibrell USA C.A. Cart Jr., Dibrell USA T.M. Oakes, Dibrell USA C.V. Borzi|leri, Reditab N. Hac~jigeorgiou, Reditab/Hellas H. Siegmueller, Rotag D.W. Morris, Texport TI56305432
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in Oriental Tobaeeos fol" over 50 years 0 Leaf Tobacco Co., Inc. 90 Park Avenue New York, :N.Y. 10016 Geneva, Switzerland Izmir, Turkey Salonica, Greece
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Maschinerrfabdk Alfred S,ch,mermund P.O. Box 2060 D-5820 Gevelsberg West Germany GmbH & Co Stand C-1 Featured will be the company's newly designed high- speed packing machine, model BF, which produces cigarette packets with bottom fold seal. Personnel in attendance: Helmut Huckenbeck, Managing director Norbert Hohenschuh, Assistant to managing director Walter Paulus, Chief of service engineers and technical adviser Tabak Journal International Grosze Bleiche 44-50 P.O. Box 3120 D-6500 Mainz, West Germany Visitors to the stand of Tabak Journal will receive in- formation on the Tobacco Encyclopedia, an essential English reference work for tobacco people, which will be published in the early summer, Many other tobac- co trade publications and books will also be exhibited, such as E.G. DieTabak Zeitung, a specialized weekly newspaper for the tobacco trade and industry, and Pipe Club, an informative quarterly magazine for pipe smokers. Complimentary copies of all periodicals, order forms and additional informative matedal will be available upon request on the stand and can also be obtained direct from the publishers in the FRG. Representing TJh Ernest Voges, Managing director Hans-Georg Poehl, Editor Barbara Home, Editorial assistant Manfred Thomas, Advertising manager Michael Wahlen, Commercial assistant 68 TP,--,~I, 1984 Tingey & Co. (Engineers) Ltd. Eastwood Street London SW16 6ED, England Stand F-3 Tingey has extended its range of machines to include the recovery of cigarettes from reject packets. On display will be the new packet opening machine operating on dummy packets, with a video display of its operation on real packets. Representing Tingey: Richard J. Munday, Managing director Michael A. Usick, Financial director Douglas Jones, Development engineer Loma Zeitzeff, Secretary TI56305434
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his "Job name is , his job is yours. Tireless, he spends his life meeting everyone who does something important within the cigarette industry, all over the world. He's a connoisseur. His passion : successful professional contact, but also life in the country, a good play, an exhibition or a rare liqueur. He's part of the JOB team. A very good team, renowned throughout the profession. A team which is constantly at your disposal and like Michel, always ready to help, CIGAREI-I'E PAPERS ANO CIGAREI-rE FILTERS ~3, I~)UL~'VARD EXELJ~t~ - 7S~ PN:I~S ~ 15 PHONI~ 65 ~.43.38 - "~ 610 ~L~ - ~ : ~ PAPAS TI563054:
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Previews The Hag Tamag Basel AG / Tamag Basle Ltd. Sternenfeldstrasse 16 CH-4127 Birsfelden, ~witzer|and Stand N-30 Three special tobacco processing systems and a widely-used instrument highlight the Tamag Basle stand. One is the Tamag tobacco flake homogeniza- tion process which uses tobacco waste of any kind and composition to produce a finished flake similar in form and appearance to natural tSbacco. Another is Tamag's puffing system for the expansion of midribs and lamina, which is industrially realized in cooperation with Comas. In addition, there will be shown a system for the reduc- tion of sharpness and/or nicotine in tow-grade tobac- cos which is now being used successfully by several cigar and cigarette manufacturers. Again on show will be the Nicoesta portable ap- paratus for fast nicotine determination. Representing Tamag: .~..~ Laszlo Egri, Managing director Walter Leupi, Executive sales manager Gabriele Cristina, Technical manager Juraj Rehak, Research chemist B. Vonaesch, Secretary Kimberly-Clark Corporation Technical Papers & Specialty Products Group 1400 Holcombe Bridge Road ~ Roswell, Georgia 30076 U.S.A. Stand G-1 Kimberly-Clark Corporation produces and supplies to the international tobacco industry a wide variety of com- ponent materials used in the manufacture of cigaret- tes and cigars, including cigarette paper, conventional plug wrap, Porowrap, porous plug wrap, tipping paper and reconstituted tobacco products. The display will emphasize its reconstituted tobac co wrapper and binder products, with information available on the flexibility of the K-C process which allows the company to offer its customers products that are customed designed to control such properties as taste, color, basis weight and moisture levels. Representing Kimberly-Clark: Ronald H. Frear, Director of sales and marketing-- tobacco products Joseph Allen, Marketing manager--tobacco products J. Richard Grau, Director of sales and marketing-- cigarette papers David C. Luehrman, Manager of international sales Pieter Van Bakel, European sales manager A.C. Monk and Company, Inc. West Marlboro Road Farmville, North Carolina 27828 U.S.A. Wiessner GmbH Dr.-Hans-Frisch-Str. 4 8580 Beyreuth, West Germany Stand N-8 On display will be photographs and tobacco samples from all of Monk's worldwide operations: A.C. Monk and Company, Salta, Argentina A.C. Monk and Company, Santa Cruz do Sul, Brazil A.C. Monk and Company, Tillsonburg, Canada Tabacos Maya S.A., Guatemala City, Guatemala Greek American Tobacco S.A., Thessaloniki, Greece Extratab SpA, Rome, Italy Korean American Tobacco Co., Ltd., Seoul, Korea Monk Zimbabwe Tobacco (Pvt), Ltd., Harare, Mashona~and Tobacco Company (Pvt), Etd., Harare, Representing Monk: Zimbabwe A.C. Monk III, Senior vice president R.P. Michaels Jr., Senior vice president R.H. Cash, Vice president E.S. Griffin, Vice president R.W. Hodge, Vice president F.L. Powelt Jr., Vice president J.S. Strader, Assistant vice president W. Zadeits, Assistant vice president R.D. Harris Jr., Sales representative T.N. Lowery, Sales representative Trevor John, Sates representative Keith Haywood, Sales representative Stand C-22 Wiessner will display illustrations of air conditioning plants and heat recovery plants it has executed Materials and information about energy-efficient a~r conditioning systems will be available. Representing Wiessner: Klaus Groh, Technical manager Michael Bachmann Jr., Marketing and sales manager E. Waldemar Winkler Hamburger Allee 45 6000 Frankfurt/Main-90 West Germany Stand C-12 Winkler will display its perforated stainless steel bands and its consumable spares for cigarette making, such as filter attachment springs, carbide knives, inlet/outlet tubes, toothwheels, and inlet fingers. Representing Winkler: Waldemar Winkler, President Willy Winkl.er, Sales manager Karin Moelter, Secretary 70 TR---Aprd, 1984
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North America Another part of the world of Universal Leaf TI56305437
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xa EDITION OF THE I,NTERCON:NEICTING I'NTERESTS OF MAJOR IS AVAI~BLE IN EN~RGE,D FORMAT SUITAB~ FOR OFFICE DISPLAY. Each year the editors of TOBACCO REPORTER research the tobacco industry and develop the most detailed, informative listing of all the inter-relationships ex- tant today. In April subscribers to TOBACCO REPORTER receive a small version of this chart FREE along with their copy of the magazine. Now, we are making this chart available as full-sized enlargements (24" x 24") in either laminated or unlaminated formats suitable for framing. And, if you act now, we'll send you 1 FREE for every four charts you buy! Payment in U.S. dollars must accompany your order. BONUS! RECEIVE 1 FREE CHART WITH EVERY ORDER OF FOUR CHARTS! I have checked the appropriate type and number of charts I want. My payment is en- closed (in U.S. dollars please) made payable to TOBACCO REPORTER, P.O. BOX 95075, RALEIGH, NORTH CAROLINA, 27625, U.S.A. LAMINATED UNLAMINATED $20.00 EACH = $ $14.00 EACH = $ TOTAL CHARTS # @TOTAL PAYMENT $ NAME ADDRESS CITY POSTAL CODE STATE/PROVINCE COUNTRY TI56305438
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IN HONOR OF THE HAGUE EXHIBITION TOBACCO REPORTER "THE INDUSTRY'S STANDARD OF EXCELLENCE" WILL MAKE .AVAILABLE SUBSCRIPTIONS PAYABLE IN ANY ONE OF 12 R.S.V.P. APRIL 15-18, 1984 STAND N-15 CONGRESS CENTRE THE HAGUE, NETHERLANDS CASH AND CREDIT CARDS ACCEPTED
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Tobacco & health: Medical investigato rs pursue answers The relationship between smoking and cardiovascular disease as prompted research, discussion, even controversy, but very little concensus. Are tobacco and health mutually exclusive terms? Do environmental, genetic or personality factors matter? Doctors and scientists gathered recently at an international symposium to present their findings. Not always agreeing, and certainly not always easily interpreted, their conclusions are, nevertheless, of vital interest. By Peggy Gooch RP, SI~ARCH ON THI~ alleged health risks of cigarette smoking is an on-going ,process done by cigarette companies, medical laboratories and research institutions. Some of the research is instigated for the sole purpose of determining the ef- fects of cigarette smoking, while other research stems from larger medical research projects. Little concensus exists among resear- chers; strong correlation between cigarette smoking and health risks are found in some research, while other projects show mderate to lit- fie cause and effect. Medical in- vestigations are continual projects, constantly re-evaluating and building on the results. Disseminating information is also a constant and important function for the scientific world. It was with that goal that the Tobacco & Health Research Institute at the Univerei- ty of Kentucky sponsored an Inter- national Symposium on Smoking and Cardiovascular Function last February in Lexington, Kentucky. Lines of communication that are so badly needed between all areas of research have not been established as well as they could be, according to Dr. Layten Davis, director of the Institute. "The purpose of this sym- posium is to provide an opportuni- ty for information on a wide range of topics to be presented," Davis said at the opening ceremonies. About 20 researchers and physi- cians from the United States and Europe presented their papers and research findings on the effects of cigarette smoking on cardiovas- cular diseases. Brief summaries of several papers are described here. Results from a study conducted in Oslo, Norway, were presented by Dr. Ingar Holme. The relationship between smoking and coronary heart disease (CHD) was studied in a group of men 40 to 49 years of age. The role of cigarette smoking as a risk factor for coronary heart disease was reviewed from three sources of information within the study: epidemiological evidence from the whole group; p~thological evidence from an autopsy series; and a primary prevention trial where cigarette smoking was reduced, along with dietary changes in an intervention group and compared to a random control group. The men were divided into five social status groups. The per- cent of cigarette smokers was close- ly and inversely related to increas- ing social status. From the epidemiological evi- dence, there appears to be a trend towards a strong relationship be- tween smoking and CHD; the more advanced the complications of atherosclerosis, the stronger cig- arette smoking is as a risk factor. Cigarette smoking seems to work synergistically with serum choles- terol as a risk factor for CHD, as op- posed to blood pressure. These fin- dings clearly support the hypothe- sis that cigarette smokers are at a higher risk when CHD is advanced, according to Holme. .Pathological evidence was in con- trast to clinical observations, show- ing that the extent of coronary rats-
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ed lesions, which are fatty forma- tions on the arteries, and average number of stenoses are not signifi- cantly related to degree of cigarette smoking. This finding indicates that cigarette smoking is o~ly a weak artherogenic factor, if any at all. Several explanations for different results are possible: cigarette smok- ing could enhance the formation of thrombi or spasms on advanced le- sions and precipitate CHD. Smok- ing could also increase catechola- mines and cause fatal rhythm dis- turbances, or injure small vessels in the myocardium, ereatin~ reduced blood flow and increased risk of ischaemia. The prevention trial was design- ed primarily to determine if lower- ing of serum cholesterol by dietary means could significantly reduce the incidence of CHD in a healthy high-risk population of middle-aged men. In addition, smokers were re- quested to quit or reduce smoking. The anti-smoking and diet trial did not have the statistical power to demonstrate a beneficial effect on CHD with regard to cessation of smoking, However, within treat- ment groups there was a tendency of lower CHD incidence the better the response to anti-smoking. Ac- cording to epidemiologica[ fin- dings, the most efficient way of reducing CHD risk due to cigarette smoking is complete cessation, not only a reduction. Overall conclusions of the study: cigarette smoking was found to be strongly associated with sub- sequent development of CHD or sudden death, but not as strong or as regards development of first angina pectoris. Coronary raised le- sions, stenosis or coronary death in the autopsy series could not be shown to be related to cigarette smoking. THEOmES oN I~E m,~Ec'rs of diet, exercise and smo~ on ~ ~seases we~ con~a~ ~ ~e presentations by Dr. William C~, one o~ ~e ~s~hers in ~e Fra~n~am H~ S~, ~d Dr. ~y ~ ~m ~e S~ fo~ ~s~h In~e. The F~ ingham Heart Study was con- ducted on the population of Fram- ingham, Massachusetts, looking at a variety of physical/biological developments as the population ag- ed. This study showed a definite link between smoking and diet and incidence of coronary disease. The latest theory from the on- going investigation is that when Nicotine and stress increase platelet active, ma ng aspidn effestive against platelet thromhus fo n. But, low amounts of nicotine stimulate p!atelst activity less than high amounts blood fats get high enough, fats enter the the white blood dells, leading to atherosclerosis, a form of arteriosclerosis. The aversge Amer- ican consumes 60 to 120 grams of fat per day, while in counb~ies with virtually no incidence of coronary disease, the average fat intake is 20 to 30 grams. Atherosclerosis canbe reversed by dietary modifications. The Framingham study showed that smokers of filter cigarettes have increased levels of carbon monoxide in the body. Levels of cholesteral and myocardial infarc- tions were discovered to be the same in smokers of filter cigarettes, as in smokers of non-filter cigar- ettes. Dr. Rosenman, who first describ- ed the possible connection between heart disease and Type A behavior in 1959, believes that research should be concerned first with the person who has risk faetors, and secondly with those risks. Type A behavior is typically described as competitive, impatient and gressive, while Type B behavior is generally marked by an absence of hostility and by the ability to work in a rel~.ed fashion. Curbing the Type A ho~,~dlity-anger component, which is mo~t closely linked with coronary risk, and the ~xie~- pro- ducing sense of time urgency and compulsiveness, would reduce the risk of coronary heart disease. Ac- cording to Rosemnan, there is no justification that diet and exercise effect risk factors leading to car- diovascuhr heart disease and there is no correlation between smoking and CHD levels. An eight-and-a- half-yea~ study showed that CHD rates were twice as high in Type A personalities as in Type B. Cor- onary disease is a disease of ino dustri:di~,-ation, Rosenman says. ~EVERAL STUDIES LOOKED AT Othe treatment of arthero- sclerosis with aspirin, which in some cases has reduced the build- up of platelets. However, in a paper presented by Dr. John Folts from the University of Wisconsin Department of Medicine, aspirin was shown to be less effective against acute platelet thrembus for- marion under certain condirions, for instance stress or nicotine presence. Both nicotine and stress increase platelet activity;, however, low amounts of nicotine stimulate platelet activity less than high amotmts of nicotine. Dr. ].P. Strong, from the Loni- siana State University School of Medicine, presented findings from the autopsies of 1,300 men. From interviews with the families of the deceased men, Strong was able to determine smoking levels. The heavy smokers were found to have the heaviest, most extensive lesions, or fatty formations, in the arteries. Pindings in U.S. populations show- ed significant correlation between the measure of smoking and the ex- tent of athetosclem~s lesions. In European populations significant relationships between the measdre of smoking and aortic artheru- sclerosis were found, while a less significant correlation was found between smoking and coronary ar- therosclerosis. Similar studies on Chi]ea~ populations showed no significant relationship. In sum- to be associated primarily with aortic arthero~lerosis, and occa- sionaliy with coronary artherscle- rosis. TI56305441
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TAUS looks at different future for U.S. tobacco "If there was ever a time when all members of the trade must pull together to work for the common good of the industry, it must be now," so said lack Dunn, president of the Tobacco Association of the United States, as he opened--and set the tone for--the recent Mid- Winter meeting. This annual gathering of various tobacco in- dustry members is a working meeting, a platform for serious consideration of the even more serious problems facing the U.S. tobacco industy--price, quality, ex- cessive loan stocks, pesticides, taxes, a too-high dollar, and the tobacco program itself. "I didn't have to come down here from Washington to tell you you're in trouble," said Hoke Leggett, associate administrator of the ASCS/USDA. "You know that bet- ter than anybody else. But I'm not sure all of us recognize just how serious our problems really are. When the no-net-cost assessment becomes so great that it effectively eliminates the loan program, where do we go from there? The possibili- ty is very real, and we need to ad- dress it." Why has the U,S. market turned around from what it was in the ear- ly and mid-Seventies? Leggett ask- ed. "Is it because we grow too much tobacco? Is it because it's overpriced? Or is it because of some other factors underlying in the market? "Back in the early Seventies, the oil boom which created a tremen- dous amount of funds in our overseas markets. The OPEC na- tions had a tremendous amount of money, and they were rather generous in spreading it around to developing nations, thus creating their ability to purchase not only tobacco but all U.S. agricultural commodities. At the same time, we were experiencing record low levels for the dollar in the world monetary market. It made Ameri- can agricultural commodities--in- eluding tobacco--a very good buy, and we enjoyed a pretty good heyday. "Then the oil boom fizzled, money dried up, interest rates rose, and our exports have reversed. "What has U.S. flue-cured pro- duction done to meet the situation? The 46 percent reduction in quota over the last several years is not one of these things. The current price freeze is." One thing needed is flexibility in the program so that it can continue to meet the needs of the changing tobacco situation without having to get new legislation every time something has to be done, Leggett stated, But producers cannot be ex- pected to give that kind of flexibili- ty without some checks and balan- ces in the system. What kind of flexibility, and how dramatic a change might be need- ed? Leggett proposed one option: marketing orders, with a marketing board established which sets quota and loan rates. But there can be no substantial changes this year, an election year, he said. "We must wait until 1985 to make the necessary changes, but that will be our only remaining chance--our last chance." The challenge of 1984 is moving 760 million pounds of loan stock tobacco and figuring out how repay $1.6 billion in debt, said Fred Bond, general manager of the Flue Cured Tobacco Cooperative Stabi- lization Corporation. "We have thought very carefully about how we could generate some activity in sales. "We considered a number of sug- gestions," Bond noted, "such as the continuous bidding process and setting established prices, and we tried to determine where the price should be set to be competitive." The 1984 Stabilization price schedule was established on a published price basis, with special emphasis on the old crops, Bond explained. Prices for the 1976 crop were reduced by over 30 percent from prices on the 1983 schedule. Prices for the 1977 crop loan stocks were cut by 25 percent; the 1978 crop by 23 percent; the 1979 crop by 15 percent; the 1980-81 crops by 1.5 to 3.5 percent; and the 1982 crop by two percent. "Reaction to our new pricing schedule has shown us that it seems to be basically all right," Bond noted. "At least I've had two telexes from Brazil protesting bit- terly what we did! "But we've got to move these stocks. We haven't made a lot of progress so far--only some 8 or 9 million pounds of tobacco have moved. Trade reaction to our prices seems to be that the prices are in line with competitive tobac- cos. So, why hasn't the tobacco moved? Is price the total factor? Maybe there's just too much around the world." Finally, there's the problem of processing and handling costs, Bond noted. "In view of the cur- rent conditions that exist," he ~old the leaf dealers, "we must look at some alternatives with respect to processing and handling charges, for example, a freeze, a partial pay- ment, deferred payment, payment in kind, a bidding process, or even a purchase commitment on the quantity processed by each pro- cessor, or at cost, or using your purchases of old crop tobacco as a basis for processing current crop tobacco in terms of assignment." In other presentations, reports were made about new types of fumigants and fumigation pro- cedures, about the outlook for ship- ping costs and efficiencies under the new U.S. maritime legislation, factors which will determine the fate of the U.S. leaf export market, new tobacco varieties being studied and released, and various university studies underway to help improve the quality of tobac- co produced. Much interest was directed to the presentation of Dr. Daniel Sumner, co-author of the recently-released study on the economic consequen- ces of deregulating the U.S. tobac- co industry. A full report on this "important work begins on page 48 in this issue of TR. T156305442
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S NE 1949... FRA FISHBURNE HAS BUILT MANY PACKERS FOR INSTALLATION IN THE U.S. AND AROUND THE WORLD. RESULT SOME OF TH~ FIRST MODELS WE HAVE INSTALLED MAY NOT HAVE RECI~v'~D ~ LATEST UFDATK MODIFICATIONS. ,, , PACKER YOU MAY WANT TO CH~CK TO SEE IF YOUR PRE~ IS EQUIPPED WITH ALL TH~ LATEST IM~ROV]~vrgNT~ WE HAVE PRINTED A LIST OF THESE IMPROVEMENTS AND WOULD BE HAP- PY TO MAIL YOU A SURVEY SHEET. SIMPLY CALL OR WRITE TO FRANK FISHBURNE OR ONE OF THE FOLLOWING TRAINED PERSONNEL... MR, I~ON HINGENITZ MR, ROBERT BROOKLAND MR. DAVID SANFORD WHEN RECEIVED, TAKE THE SURVEY SHEET AND HAVE YOUR ENGINEER OR SUPERINTENDANT GO OVER THE PACKER TO CHECK IF ALL AVAILABLE I~ODIFICATIONS HAVE BEEN INSTALLED. Ashevl#e, N.C.U.S.A. P.O. BOX 338 * ARDEN, N.C. 28704 U.S.A. * Phone (7'04) 684-3521 • Telex: 577431 TI56305443
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Tobacco fa~ers receive gift from U.S. Tobacco Kentucky farmers who grow tobac- co for U.S. Tobacco's smokeless brands were presented with a hat and jacket when they delivered their dark-fired tobacco to the com- pany. The hats and jackets were embellished with an eight-color tobacco leaf design surrounded with the words: I Grow Tobacco for Skoal and Copenhagen. "We wanted to show our ap- preciation to these farmers whose skill and knowledge go into produc- ing the tobacco for our products year after year," said B. Sory Flet- cher, vice president of leaf opera- t/ons. "As sales keep rising, we count on these people to grow that rich dark-fired leaf and want to en- courage them to continue farming, part/cularly the young ones coming tip." The short crop this year meant an flacrease in buying directly from the grower, and these were the farmers who received the 3,00o hats and jackets. Only those who work the land, not the landowners, were eligible. Imperial promotes Golden Virginia with give-aways Imperial Tobacco is offering con- sumers of Golden Virginia hand- rolling tobacco a chance to win ~100,000 in a Match-Money game. Game numbers are printed on the inside of the 12.5-gram and 25-gram packages, and on the inside of the 50~gram pouch and lid of the 50- gram tin. These numbers must match numbers on Match-Money game card held by consumers. Prizes range from holiday dis- counts and=el in cash to ~1o0,000. There is at least one prize on every game card. A Golden Virginia hand-rolling competition will also be part of the promotion. New cigarette introduced to Pakistani market Sarhad Cigarette Industry in Pakis- tan has introduced a new cigarette to the Pakistani market. Manhattan King Size Filter, in crush proof packing, retails for about 35 US cents per pack of 20. The Sarhad company showed a financ/al loss at the end of 1982, and in an effort to boost sales introduc- ed three new brands. However, ex- cessive stocks of cigarettes from other companies kept any substan- tial gains from being made. Sarhad Manhattan had tried to remain profitable by producing cigarettes for other com- panies, rather than keeping the manufacturing facility idle. Sales of the new Manhattan brand are expected to improve the company's financial status. Cigar-lover's guide to area restaurants available The second in a series of Cigar Lover's Guides to Restaurants has been published by Consolidated Cigar Corporation. The free. 24- page guide lists more than 200 restaurants in the Washington, D.C., Baltimore, and surrounding areas of Maryland and Virginia, where cigar smoking is welcomed. "All over the world cigars are of- fered as an appropriate finale to a fine meal," says Jim Brown, senio vice president of Consolidatec "The new guide will help A_meric~ cigar lovers locate restaurant where they can enjoy an after din net cigar." The pocket-sized guide contain; names of restaurants, their ad dresses, telephone numbers, note: on cuisine, reservation require ments and price break-down Cigars may be purchased at man3 of the restaurants listed in the guide. The guide is the second in a series planned to cover major metropolitan areas throughout the country. The New York area guide is currently in its third printing. The Cigar Lover's Guide to Restaurants is available free of charge from Consolidated Cigar Corporation, Harmon Meadow PIaza, 400 Plaza Drive, Secaucus, New Jersey 07094. RJR launches Camel in 'new' Japanese market Camel Filters and Camel 1VLilds have become the first American cigarettes to be marketed in Japan since the relaxation of restrictions on imported cigarettes by the Japanese government last year. Camel cigarettes, introduced by R.J. Reynolds Tobacco International the beginning of February, will be a maior test of the Japanese demand for American cigarettes. "This will be the largest introduc- tion of a foreign cigarette in Japan, and one of the largest of any im- ported consumer product," said Lester W. Pullen, president and czo of RJR International. The $5 million campaign to in- troduce Camel will be concentrated in the Tokyo area, with about 1,000 television ads and substantial newspaper support, RIR International estimates that ad spending will account for more than 20 percent of all tobacco ad- vertising in Japan this year. The Camel launch represents one of the largest advertising expen- ditures for any imported consumer product in Japanese history. "Japan is the largest cigarette ,market in the free world outside of the United States," Pullen said. "Camel is the fastest growing ma- TI56305444
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Why look elsewhere? Adams International, Ltd. (AIL) is the only export company handling ,dl types of Thailand tobacco, With two plants, one at Chiengmai for processing Flue-cured and Burl,.~y, and itn- other at Ban Phai for Oriental, we can service your complete blend requirements. AIL is totally committed to the Thailand export market, so.. why look elsewhere? FLUE-CURED VIRGINIA • ORIENTAL • BURLEY • TH AILAND GROWN T( )BACCO ADAMS INTERNATIONAL LTD. TELEX: ADAMINT TH 2792 ,No. 1 Convent Road, P.O. Box 844 Cable Address: Adamint Bangkok Bangkok, TEail.and TI56.3054~
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BRANOS ~n~ ]or international cigarette brand in the world. We are confident that Camel will be as big a success in Japan as it has been in other coun- tries around the world." The introduction of Camel in Japan follows years of RIR Interna- tional, other American companies and the U.S. government working with the Japanese government to remove restrictions that have kept foreign brands to less than two per- cent of the $10 billion-a-year Japanese cigarette market. "I am encouraged that the )apanese government has con- frofited a difficult issue and has started the process that eventually will help create a truly open market in Japan for American cigarettes," Pullen said. Belvedere Lights launched in Quebec and Maritimes Benson & Hedges (Canada) has an- nounced the introduction of new Belvedere Light cigarettes in Quebec and the Maritimes reg/on. This introduction follows the brand's launch in Ontario last July. Belvedere Light is the company's latest entry in the popular, light cigarette segment, and com- plements the existing line of Belvedere products. It is available in regular, king size and lOOmn lengths, offering consumers a corn plete range of smoking alternatives Market studies show that the ligh cigarette segment has doubled ir size over the past six years, and the 100ram segment has tripled durin~ that time. Belvedere Light's packaging features a bright blue background and a new, stylish design. The launch will be supported by an ex- tensive advertising campaign and merchandising at point of sale, con- veying the brand's dynamic, young image through the slogan: "Good Taste Comes Alive." Benson & Hedges manufacturers Belvedere Lights at its Brampton, Ontario, and Montreal, Quebec plants. Reynolds launches Sterling on national U.So market Sterling Special Blend, a low tar cigarette put into test market last January by R.J. Reynolds, is being 86 TR--Awil. 1984 TI56305446
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When Maersk Une says your shipment will arrive at a certain port at a certain time, that's a promise. V~ also promise the fast- est service available, covering the greatest number of ports. Our fully containerized vessel,s sail with timetable precision. There s no delaying. No s!tting around in port. Because,.with today s high interest rates, you can t afford to tie up your money. , Fast, dependable, regular transit times. It s Maersk Une benefits like these that end u? saving you money. And that s a promise. MAERBKUNE T156305
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introduced nationally during the month of April. "Based on a successful test of the Sterling product, its advert/sing campaign, and its point-of-pur- chase materials in Florida in January, we have decided to market the product nationally," said Harold ]. Lees, vice president of new brands. Available in filter and menthol styles, the brand is targeted to both male and female smokers, ages 25 to 49. Sterling will feature a 94ram international length. The tar level for both styles is 12 rag. Sterling is packaged in a black box framed with silver and gray pinstripes. Silver embossing is us- ed for the crest, the name of the pro- duct and the Special Blend de- s/gnat/on. We transport quality tobacco the way it's grown. very, very carefully. Propedy shipping your tobacco is as important as grow- ing and curing it. That's why Farrell Lines has a 56 year history of carrying a major share of the world's tobacco to and from the United States. We do it with know-how.., and we do it fast. The next time you transport your tobacco, call Farrell Lines. Your quality deserves our know-how. 88 TR--April. 1984 Carreras Rothmans launches pipe tobacco Dunhill Rubbed Flake, Dunhill Mild Blend, and Dunhill Mild Aromatic from Carreras Rothmans are now on sale in Denmark at DKr20 for a pouch of almost two ounces--about $2.96. This new introduction is the largest proiect ever undertaken by the company's pipe tobacco export department. Denmark was chosen for the first international Dunhill launch because it is a classic pipe- smoking country. "Five million Danes smoke as much pipe tobacco as 57 million British," notes David Gohns, export director. "They are tough com- petitors of ours in international markets." Test shows 12-packs not profitable in machines Consumers are not ready to accept a smaller cigarette pack at a reduc- ed price in vending machines, a test of two major cigarette markets has shown. The test, conducted by R.J. Reynolds Tobacco Company in Tampa and Detroit at the request of the vending industry, resulted in fewer packs sold and less revenue from vending machines used for the test. "Since the test shows that packs of 12 cigarettes are not viable for vending at this time, other proiects to address opportunities in the ven- ding industry can be developed," a Reynolds spokesman said. The 12-pack test was conducted from December 13, 1982, through April 25,1983, on 100 vending mac- hines in each of the test markets.
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A.L..van Beok (Intemationaal) B.V. P.O. Box 494, Eendrachtsweg 71, Rotterdam Netherlands Telex:23365 BETAB NL, Cable Address:Albeek-Rotterdam Phone: (010) 147822 AffliCted Ind A~K~--lmtd Com~nles from A to Z Ite4e0c 711505 Cove hr. ptt0~e: {71) 24~31~ TI5630.~-49
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laI=IOID "q & OUtlaWIENT New over/under scale has no weight display A new scale, called t~e Speed Re~d, engineered for production line weighing, portion control, drybulk filling, check weighing and short run parts counting, has been in- troduced by Weigh-Tronix. The easy-to-read panel has no weight dislay to slow the operator or allow inaccurate readings, accor- ding to the company. Instead, a row of lights that can be set to represent increments as fine as 1/32 of an ounce indicate immediately if the weight on the scale is acceptable. Scale response time is adiustable to accommodate operator speed or various production line require- ments. Target weights can be set in seconds. Other features include: complete- ly washdown stainless steel con- struction, easy in-plant service and a two-year warranty. Models are available in 10, 2o, 30 and 50 pound capacities. Platform sizes are eight lay eight inches and 12 by 14 inches. For more information call Bob Brown, Weigh-Tronix, Inc., 1000 N. Armstrong Drive, Fairmont, Min- nesota 56031; telephone: {507)238- 4461.. Magnetic equipment testing and inspection available Eriez Magnetics is now offering an inspection and test service on all types of magnetic separation equip- ment r~gardless of manufacturer. oo Test proc~ res provide a complete performance profile to make sure magnetic separation equipment is protecting equipment and product purity. If systems need updating, Eriez can also recommend modern magnetic separators, including some self-cleaning equipment, to handle a wide variety of processing problems. Eriez technicians measure magnet pull strength; examine physical condition of magnets; evaluate effectiveness of the in- stallation; determine suitability for process conditions and material flows; and provide a written report, including recommendations for repair or replacement if indicated. For additional information con- tact Eriez Magnetics, Asbury Road at Airport, Erie, Pennsylvania 16514; telephone: {814}833-9881. Bulk curing system for smaller farm operations Powell Manufacturing Company has introduced the new MaxiMiser Pony Bin Bulk Curing System for use by farmers who prefer hand- priming tobacco, offering the same labor and fuel saving benefits as large containers. "The Pony Bin was developed to meet the needs of the smaller {5 to 15 acre} farm operation, and is aim- ed at the farmer who wants to hand- prime," says Robert Wilson, presi- dent of Powell. "It is perfect for the farmer who chooses to market straight-laid or aligned leaf." The simplicity of the closing gates and pins, along with a removable floor, allows tobacco,to be aligned as it is hand-loaded and unloaded. Loading can be done at the barn site, down the fifth row in the field or on a harvester. The size of the Pony Bin makes it easy to handle and maneuver. The Pony Bin System includes a Triple Interlock container design and a bin tightening device. This device adds leverage to secure the bins together inside the MaxiMiser barn structure. Two models are available: PB-14, with 832 square feet of Ioading area, and PB-11, with 653 square feet. Kits to update and convert existing barns to use the Pony Bin curing system are also offered. For more information contact Powell Manufacturing Company, Inc., P.O. Drawer 707, Bennetts- ville, South Carolina 29512. Moisture analyzers for powdered materials Data Tech has introduced two new moisture analyzers, Models G-aR and G-9, for powdered and granular materials. Model G-SR was design- ed for laboratory or production line analysis of moisture content in pro- duction samples. Model G-9 is a hand-held portable tester for spot checking moisture content on a wide variety of substances. Both models employ a Data Tech patented principle of measuring the variation in the radio frequency power loss factor of the compacted sample, as this property is affected by changes in moisture content. The G-gR obtains homogeneity by applying pressure to the sample to bring it to a compressed condition which eliminates particle varia- tions and air pockets. This ap- proach permits analysis by one instrument. A detachable sample cup is at- tached to the G-gR. Interchangeable sensing modules permit increased sensitivity. A hydraulic jack with a pressure gauge allows fast testing. The meter locks the reading, insur- ing accurate readings at a stable pressure and stores reading of the last sample for comparison of dry- ing trends. Model G-9 uses twin-needle sen- sor probes which may be inserted into drums, bins. bags, bales or other containers for spot testing moisture content. Five different needle proble lengths from 5/16 TI563054,~
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BEST WAY TO GET FROM HERE.,, ...to here! THIELE PLACERS THIELE Paxatl Paxall ThieIe M~,}.i~ 7225 Bush Lake Rd. Minr~ap<~, MN ~ 61~835-2290 • Te/e~ 29-0~6 inch to 12 inches are available. Fif- teen different sensitivity modules are also ava/lable to accommodate the individual product and mois- ture range involved. For additional information con- tact Data Tech, P.O. Box 5130, San- ta Ana, California 92704-0130; telephone: (714}546-7160; telex: 9101595-1570, Pressure blower for low volume applications Sheldons Manufacturing Corpora- tion has introduced their new Series PXS heavy-duty single-stage pressure blower for combustion air, pneumatic conveying, scrubber ex- haust and other low-volume high- pressure applications. The blower is offered in wheel diameters from 22-and-one-fourth through 36-and- one-half inches to attain pressures of up to 110 inches water column when rotating at 3550 rpm. Available with a complete line of accessories, the blower comes in both arrangement 4 (wheel attach- ed directly to motor shaft) and ar- rangement 8 (four bearing with flexible coupling] configurations. For complete information and copy of Catalog number 953 contact John E. Manczak, vice president of marketing and sales, Sheldons Manufacturing Corporation, 1400 Sheldon Drive, Elgin, Illinois. Heavy-duty vibrating feeder offers improved design The Vibra-Feeder from Profes- sional Engineering Associates, Inc., represents the latest in structural design and will provide years of ser- vice under the most difficult condi- tions, according to the company. The Vibra-Feeder features all standard heavy-duty drive com- ponents. Available in lengths up to 20 feet and widths ranging from one to eight feet, the vibrating feeders may be designed for overhead suspension as well as sup- port from below. Offered in both natural frequency and brute force designs, the Vibra-Feeder features the frequency and stroke best suited for penetration into the burden of product being fed. The design pro- portioning enables the feeder to ac- commodate maximum head load. The electro-mechanical drive is powered by a motor ranging from one to five horsepower, as required by the application. Both natural fre- quency and brute force designs can be supplied with variable rate con- trois, allowing the feed rate to he ad- iustable from zero capacity to max- imum capacity. For more information write Pro- fessional Engineering Associates, Inc., 4324 Foebum Lane, Louisville,, Kentucky. IAsk for Bulletin 2000.} BOOKS Agriculture in the Twenty-First Century. Published by John Wiley & Sons, 605 Third Avenue, New York, N.Y. Edited by John W. Ros- enblum. 415 pages, us$29.95. The volume is composed of papers presented a a symposium held in April 1983, which was spon- sored by The Colgate Darden Graduate School of Business Ad- ministration, University of Vir- ginia, in cooperation with 11 schools of agriculture, and Philip Morris Inc. The work offers view- points from an international roster of experts on a variety of topics, in- cluding insights on how science and technology can be used to pro- duce unprecedented crop yields; the role of computers in harvest planning, disseminating agricul- tural information, and monitoring farm machinery; how to best utilize limited energy, land and water resources; and the responsibility of the U.S. to bring scientific and technological breakthroughs to less developed nations.
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one telex does it all... Contact. Information. Answers. That's what the tobacco world is all about -- getting in first then moving fast. Casalee supplies information and comes up with answers -- fast. Because worldwide, through our network of offices in the leading tobacco centres, we're on the spot. The Casalee nerve-centre is the head office in Antwerp where a continuous flow of information is processed, collated and on tap for you. When you want tobacco information, anywhere in the world, telex us. We have the answers. • Antwerp, Belgium: • Hsrare, Zimbabwe: • Chinngmai, Thailand: • Limbe, Malawi: • Rome, Italy: • Winston Salem, USA: • Ssnl~ Crtrt, ~1: 35365 CASA B 2342 CASAZ ZW 4.331 CASFAR TH &.~48 CASA M! 610.402 CASALE ! $06478 TOWNSEND WSL 513697 CAFU BR CASALEE BELGIUM N.V. Jan Van Rij.~wijeklaan 76. 8-2000 Antwe~ Teleohone (03) 216 130 40 The total leaf service, worldwide. TlSr~5
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ACQUISITIONS: Parker Tobacco Parker Tobacco Company has pur- chased Brown & Williamson Tobac- co Corporation's hurley processing and storage facilities in Lexington, Kentucky, and B&W's storage facil- ities located in Louisville. With the addition of the processing plant in Lexington, Parker will have the capacity to process 900,000 pounds of tobacco a day in Lexington and 400,000 pounds a day in Maysville. Parker headquarters will remain at the Maysville location. The Lex- ington facility will be in operation for the 1984-85 season. Parker Tobacco Company's sto- rage capabilities now include 15 storage houses to hold 40,000 hogsheads in the Maysville loca- tion, and five storage buildings in Lexington. The Louisville storage complex has 39 storage houses with space totaling one million square feet to store as many as 120,000 hogsheads. Total storage capacity at Parker Tobacco Company in Kentucky is now about 200 million pounds. Parker also has a 50 percent in- terest in a processing plant in Rocky Mount, North Carolina, and can accommodate another 150 million pounds of storage, bringing the total storage capacity to 350 million pounds in the U.S. Parker Tobacco Company also has opera- tions in Honduras and Brazil. AWARDS: Primo Awards The 1983 recipients of the Primo Award for executive leadership have been announced by James Brown, senior vice president, Con- solidated Cigar Corporation. The Primo Award is presented to one person in each of several ma- jor areas of American industry. Recipients of the Primo Award are chosen by a group of impartial business observers. , "A fine handmade cigar has long been associated with the business leader," explains Brown. "The award is named for our Primo del Ray brand--handmade premium cigar from La Ramona in the Dominican Republic." The award was introduced in 1977. Primo award recipients were: Willard Scott, Today, NBC-TV; Frank S. Greenberg, president, George Weissman (center), chairman and CEO of Philip Morris Inc., and Vernon Jordan (left) were 1983 recipients of the National Urban League's Equal Opportunity Awards. John Jacob (right), pres~ent of the League, ptesertted the Awards. Burlington Industries; Robert Jacoby, president and chief ex- ecutive officer, Ted Bates World- wide Inc.; and Marvin H. Chud- neff, executive vice president, Ed- ward S. Gordon Company. Also Robert M. Bennett, senior vice president, Metromedia Inc.; Bever- ly Sills, general director, New York City Opera; Berry Gordy, chairman of the board. Motown Industries; I.M. Pei, I.M. Pei and Partners; Robert A. Gottlieb, president, Alfred A. Knopf Inc.; and Donald R. Keough, president and chief operating officer, The Coco-Cola Company. ASSOCIATIONS: NAW-D Nicholas E. Ca|io has been ap- pointed vice president of govern- ment relations and executive direc- tor of the WDPAC by the National Association of Wholesaler-Distri- butors. Celia recently served as chief litigation counsel to the Washing- ton Legal Foundation and as coun- sel to the law firm of Santarelli and Bond. COMMUNICATIONS: Naarden Int'l lee A. Willenborg has been ap- pointed as director of corporate public relations of Naarden Inter- national. In assuming this position, Wilienborg will return to Naarden's corporate headquarters in Holland. Wil[enborg was previously direc- tor of communications for Naarden USA in New York. He succeeds Jan de Kock who is retiring after 35 years with the company. MANUFACTURING: R.J. Reynolds Industries RJR Industries. Inc., has announc- ed the following promotions: Paul C. Bergson, formerly ma- nager of federal public affairs for g.l. Reynolds Industries, Inc., in Washington, D.C., has btmn pro- moted to director of pubtic affairs
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likeness of[tan Nitot, Frtndi diplomal, after whom '°nicotine" and "Nicotiana Tabacum " wffe named MORE OR LESS NICOTINE Nicotine levels are bccomln~ a growin~ concern to ~e d~i~e~ of modem dg~t~,~l~ly Sine ~rh lower ~ de~vefies. ~e ~m~rly~l~k ~bacco mcom~mfion p~s ~d by L~ INDUS~ ~m ~jus~en~ of ~cofine ~ yo~ e~ct ~quim- ~n~. ~ese ~jus~en~ ~ not ~ect ~e o~er im~t ~es of custodial ~ted tob~c~ ~u~d at L~INDUS~:Iow t~deH- ~, ~gh fil~ ~wer,~h ~eld ~d ~e fle~bility to ~nve~ o~o~pfic mo~fi~fio~ We ~ help you ~n~l your ~o. INDUSTRIES 7 AVENUE ~ / 75016 PAR~ F~ANCE TE~X 62(3907 TABREC PAr41~ / PHONE (I) 524 43 22 TELECOPY INr-OTEC / ~ 0) 52~ e~ ~4 Get more tobacco from all your toba~o LTR INDUSTRIES, a subsid~axy in Frm~ce of TLq63054fi~
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for R.J. Reynolds Tobacco Com- pany. W. Eugene Ainsworth, formerly director of public affairs, has been named to the new position of direc- tor of government relations. In his new position, Ainsworth will over- see the company's government rela- tions programs at both the federal and state level. Bergson joined Reynolds Indus- tries in 1979 as federal public affairs representative. In 1981, he was pro- moted to manager of federal public affairs. Prior to joining the com- pany, he was manager for legisla- tive affairs for The Babcock and Wilcox Co., and was special assis- tant to the director of congressional relations, U.S. Energy Research and Development Adminstration. Prior to joining Reynolds in 1976, G ET DART HEAD START,, We specialize in steamship service to and from Europe, the United Kingdom, Ireland, and the Far East. Nobody knows tobacco better. Our bottleneck-busting savvy and experience assure your cargo the smoothest sailing from your door to you r customer's. That means you've got a head start crossing the Atlantic or the Pacific. So you can count on delivery of your shipment -- with the right paperwork -- safe, sound and on-time. Dart and tobacco are the pertect blend. SEAPAC SERVICES, INC. Five World Trade Center, New York. NY 10048 212-432-9050. Airmworth was senior Washington representative for Standard Oil Co., vice president of Timmons and Co., special assistant for legislative af- fairs to Presidents Richard M. Nix- on and Gerald R. Ford, and ad- minstrative assistant to U.S. Rep. G.V. Montgomery of Mississippi. R JR-Macdonald The following promotions have been announced at RJR-Macdonald Inc., the Canadian subsidiary of R.J. Reynolds Tobacco International, Inc. Donold S. Schafer, formerly manager of leaf buying, has been promoted to director of domestic leaf at the subsidiary's Tillsonburg, Ontario, tobacco processing facili- ty. In his new position, Schafer has responsibility for the buying and packing of all tobaccos for use within the domestic Canadian market, as well as for re-dried leaf sales. Robert A. Vansco, formerly manager of export leaf, has been promoted to director of export leaf at the Tillsonburg plant. Vansco is now responsible for the buying and packing of all tobaccos for export and also oversees Tillsonburg sto- rage and private trucking opera- tions. Schafer joined RJR-Macdonald in September 1956 as a buyer grader. He was later promoted to manager of leaf purchases and sales, and to manager of leaf domestic. Vansco joined the subsidiary in May 1976 as a buyer grader. He was later promoted to assistant manager of leaf buying, and to general super- visor of leaf buying and export sales. Prior to joining RJR, Vansco was a buyer for the Canadian Leaf Tobacco Corp. R.J. Reynolds R.J. Reynolds Tobacco Co. has an- nounced the following promotions in the comptroller's and marketing departments. ].R. Summers has been promoted from manager of business analysis and financial planning to assistant comptroller of financial planning and control in the comptroller's department. Summers joined the company in 1977.
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Kenneth ]. LapL-,j~o has been pro- mated from manager of financial planning to manager of business analysis and financial planning in the comptroller's department. He |oined the company in 1977. John D. Weber has been promoted from marketing research manager to group marketing research manager in the marketing develop- ment department. He has been with the company since 1976. Philip Morris U.S.A. The following promotions at Philip Morris U.S.A. have been announc- ed: Ellen Merlo and Robert P. Roper have been named group directors of brand management. Three new brand managers were also ap- pointed. In Merlo's group, Herbert H. Foster, who had been on special assignment to Australia, was nam- ed brand manager for Virginia Slims, and Howard S. Goldfrach, formerly brand manager for Vir- Roper Merlo ginia Slims, was appointed the new brand manager for Merit. Merlo, who was director of mar- keting communications, joined Phi- lip Morris in 196~9 with Benson & Hedges (Canada} Ltd. After transferring to Philip Morris head- quarters in New York, Merlo was in turn brand manager between 1073 and 1978 for Virginia Slims, Benson & Hedges and Parliament, and was named director of mar- keting communications in 1982. In Roper's brand group, Richard L. Stirlen, formerly brand managor for Merit, has been appointed brand manager for Marlboro. Roper, brand manager for Marlboro since 1981, joined Philip Morris in 1974 as a marketing trainee. After various brand as- signments, he became brand man- ager for new products in 1978, and in 1979 was named brand manager for Virginia Slims. He became B an- son & Hedges 100's brand manager in 1980. Thomas/~. Keim who was former- ly group director for brand manage- ment, has been named director of marketing communications. RESEARCH: R.J. Reynolds Charles R. Green has been pro- moted from master scientist to prin- cipal scientist in the research and development department of R.J. Reynolds Tobacco Co. He joined the company in 1968. David E. Townsend has been pro- moted from senior staff chemist to tapes for cigarette and fitter production We are looking forward to meeting you at our stand No. C-34, World Tobacco Exhibiti.on at The Hague. Max Schlatterer GmbH & Co. KG P. O. Box 1265 D-7922 Herbrechtingen Tel. (07324) 2045 - 47 Telex 714 834 W.--Germany
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master scientist in the research and development department. He has been employed with the company since 1977. Robert G. Shore has been pro- from senior staff blends specialist to master blends spe- cialist in the research and develop- ment department. He joined the company in 1966. Loriilarfl Lorillard has named Dr. S.T./ones director of marketing research at the company's New York head- quarters. For the past six years Jones had been manager of operations and research at the company's manu- facturing facility in Greensboro. He began his career at Lorfllard in 1968 as a research chemist, moving on to become supervisor of product de- velopment in 1970. He was later named manager of product development, international, and has been a member of the product development committee for the last six years. Jones Gertenbach Tobacco Research W. T. Hoyt, president of the Coun- cil for Tobacco Research, has retired after 30 years with the organization and its predecessor. Also retiring is another 30-year veteran, Dr. Robert C. Hockett, who had been research director. Both men will continue to serve the Council as consultants. Hoyt was succeeded by Robert F. Gertenboch, who joined the Coun- cil in 1980 as executive vice presi- dent. Gertenbach had previously been a vice president of the Coun- cil of Better Business Bureaus in charge of its national advertising division. The Council also announced the addition to its scientific staff of Dr. Harmon C. McAIlister Jr. as an associate research director. He formerly had been director of the Office for Institutional Research at Wayne State University where he also taught and did research in biochemistry. Hoyt became the first full-time staff employee of the Tobacco In- dustry Research Committee when it was established in 1954. It later became the Council for Tobacco Research-U.S.A., Inc., but its goal remained unchanged: to sponsor research by independent scientists into smoking and health. Dr. Hockett was named associate scientific director when he was hired by the Committee in 1954. SALES & MARKETING: Philip Morris Int'l Elizabeth MargarJt/s Butson has been appointed director of mar- keting services at Philip Morris In- ternational. She was previously director of promotions and advert rising services in the Latin Ameri- ca/Iberia region. In her new position Butson is responsible for international adver- tising and marketing, and sales analysis, of the international operating company of Philip Mor- ris Incorporated. She also provides regional affiliates with marketing support, including advertising, point-of-sale materials, promotional activities, graphic package design and marketing research. Butson joined Philip Morris In- ternational in 1965 as public rela- tions coordinator. From 1968-1971 she held the position of manager of special projects and promotions in Butson the PMI marketing department. In 1972 she was promoted to manager of marketing services for the Latin America/Iberia region and in 1977, was made director, continued 100 TF~, 1984
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U.S. Gov't Report: Carlton Box-Lowest Tar King. No Brand Listed Lower Less than 0.5 rag. tar, 0.05 rag. nicotine Carlton-Lowest Tar Menthol Less than 0.5 mg. tar, 0.I rag. nicotine Carlton-Lowest Tar l20~ Regular& Menthol-6 rag. tar, 0.6 rag. nicotine Carlton 100~ Refftdar & Menthol Less tar than over 160 brands-4 rag. tar, 0.4 rag. nicotine 19th Consecutive Report: No Brand Listed Lower Than Carlton. Box King-lowest of all brands-less than 0.01 mg. tar, 0.002 rag. nic. Carlton is lowest. Carlton is America's best selling Ultra Low Tar. Don't get caught short. STOCK UP TODAY! RETAILERS: DISPLAYING AMERICAN'S QUALITY BRANDS CAN MEAN EXTRA MONEY FOR YOU. THERE'S A PLAN TO FIT YOUR OPERATION. FOR FULL DETAILS CONTACT YOUR AMERICAN TOBACCO COMPANY REPRESENTATIVE. ~ Less than 0.5 reg.'tar: 0.1)5 rag. ne:otine~ Menthol: Less than 0.5 rag. "~', 0.I Soft Peck and 100"s ~ 1 m(j. "iar', 0.| m~j. ~ 100"s Soft Pack arK1100"s Menll~, 4 rag. "lax', 0.4 m9. n~cotme: 120"s: 6 Ing."lar', 0.6 rag. p.icotine av. per cigarette. RC Rep~r~ Mar. "83. TI56305461
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SUPPLIERS: Loveshaw Corp. The Loveshaw Corporation an- nounced the appointment of Mar- vin Schurgin as vice president jet printer sales. Schurgin will continue to imple- ment plans for the accelerated growth of the company's Little Da- vid iet printer division. His ne.w responsibilities include developing a national network of factory-trained jet printer sales specialists, intensifying sales sup- port for distributors throughout the United States and expanding the customer-relations/sales-service department. The Upjohn Company Gerald A. Welch, divisional vice president of the agricultural divi- sion and director of animal and plant products for The Upjohn company, has assumed respon- sibility for worldwide marketing and production activities of the Asgrow Seed Company. In addition to his new Asgrow Seed Group duties, Welch is re- sponsible for the overall manage- ment of Upjohn veterinary phar- maceuticals, TUCO animal health and agricultural chemical products and the worldwide operations of Cobb, Incorporated, a developer of broiler breeders. Welch has been with Upjohn since 1959. Accuflay AccuRay Corporation has an- nounced the appointment of John T. Fleckenstdn and/ohn C. WiLhers- peon as vice presidents of process automation systems. In his new position, Fleckenstein will continue to direct AccuRay's Western Hemisphere specialty pro- ducts operations, which include systems for the tobacco, metals roll- ing, plastics and fiberglass insu]e- Fleckenstein tion industries. Fleckenstein joined AccuRay in 1966 as a market plan- ner. He progressed through several marketing and marketing manage- ment positions before assuming the position of manager, Americas divi- sion, specialty products, in early You can depend on our experience and service for your complete satisfaction. WINSTON LEAF TOBACCO COMPANY Winston-Salem, North Carolina 27102 Cable: WINLEAF 198-3, a position he held until this re- cent appointment. Witherspoon began working in AccuRay's services, sales and marketing organizations in 1959 as a field engineer. Prior to this new position, he was manager of the western division of AccuRay's pulp and paper group. Witherspoon will maintain responsibility for all pro- ducts and services for pulp and paper markets in the southern, western and northern regions of North America. C.H. Dexter C.H. Dexter has reorganized its manufacturing operations into a worldwide department under a single head. Steve Haycock, former- ly vice president and general manager of C.H. Dexter's Special- ty Nonwoven Products Depart- ment, has assumed the new senior vice president position in charge of worldwide manufacturing. The new worldwide manufactur- ing organization includes all pro-* duction facilities, quality control, planning, engineering and ad- ministration and purchasing for the entire C.H. Dexter Division. The organization also aims to effective- ly use the plants' capacities when conditions around the world vary. Haycock joined C.H. Dexter in 1982 as vice president of the Specialty Nonwovens Products Department which develops and markets trial nonwovens such as fil- ter media and cigarette filter wrap. Before coming to C.H. Dexter, Haycock served as general man- ager of various specialty materials businesses with Albany Interna- tional Corporation. Himont U.S.A. Charles Platz has been named pro- duct director for Pro-fax natural polypropylene resins by Himont U.S.A. He reports to Robert J. Ockun, director of marketing, Hi- mont U.S.A., a subsidiary of Hi- mont Inc., a joint venture of Her- cules Inc. and Montedison, S.p.A- Platz was previously product manager for Hercules polypro- pylene copolymers and prior to that southern region district manager for plastics. TI56305462
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Z, I M B B W E To knowledgeable tobacco people, Zimbabwe leaf stands for quality and consistency. And that's why, year after year, season after season, Monk will continue to be in the business of supplying Zimbabwe tobaccos to markets around the world. MONK ZIMBABWE TOBACCO (P VT) L~ RQ Box 4691.Loma ~ Cooleen R~d AKfbennie Hat-am.Z'~mbabwe. Telephone Nos : 65310165319. Telex No :98 7-4803 MONK ZVV
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FINANCIAL REPORTS AccuRay AccuRay Corporation announced that in 1983 net income rose 37 per- cent to $5,255,000, or $1.31 per share, compared to $3, 833,000, or $1.08 per share, in 1982. Total operating revenues increased to $116.5 million from $108.7 million in 1982. For the fourth quarter of 1983, net income was $1,650,000. or $0.40 per share, compared to $1,193,000, or $0.34" per share, for the same period of 1982. Total operating revenues for the quarter were $31.2 million versus $27.7 million a year earlier. At year-end, AccuRay's balance sheet reflected a continued reduc- tion of total bank debt to $1.5 million, down from the level of $10.2 million a year earlier. Bank debt has now been reduced $72.9 million since its peak of $74.4 million in 1984. The remaining bank debt reflects international bor- rowing, primarily for foreign cur- rency hedging, and marks the first time in the Company's 33 year history that it has been essentially free of all bank debt. Conwood Conwood Corporation reported record revenues and net earnings in 1983. For the year ended December 31, 1983, net sales were $193,665,000 compared with $183,518,000 for 1982, an increase of six percent. Net income increas- ed 13 percent to $22,911,000 com- pared with $20,255,000 for the previous year. Per share earnings were $2.06 versus $1.82, up 13 per- cent. For the fourth quarter of 1983, revenues increased to $46,877,000 from $41,197,000 in 1982. The fourth quarter earnings per share comparison was $0.54 for 1983 ver- sus $0.47 in the previous year. "A strong showing in our tobac- co products group led to our twelfth consecutive year of increased revenues and operating earnings. All our major tobacco brands registered increased market share. The gains from the tobacco group more than offset lower results from household products and popcorn products. At this point, we feel that 1984 will be another strong year for Conwood," said W. M. Rosen, pres- ident. Gallaher Limited Gallaher Limited has reported calendar 1983 sales and profits were at record levels. Sales were up 16 percent at ~2,580 million, and profit before taxation was up 35 percent at ~101 million, with in- terest costs down £6 million. Tobacco and non-tobacco con- tributed to the improvement with non-tobacco profits up 46 percent to ~°36 million--an 80 percent in- crease over the past two years. The domestic cigarette business showed strong growth in 1983 in a market virtually unchanged from 1982. Gallaher volume was up near- ly 10 percent with a significant in- crease in market share. Benson and Hedges Special Filter and Silk Cut were again the leading brands. Cigar volume was fractionally down, but market share increased, helped by a fine performance from Hamlet. Both the pipe and roll- your-own tobacco markets were down, but again the Gallaher share was up. Condor and Mellow Virginia performed particularly well. The overseas tobacco companies had mixed fortunes. Overall trading results were up six percent with im- proved performances from Gal- laher (Dublin) and Ritmeester, but Niemeyer results suffered from severe price competition in the West Germany market. The economy recovery appears to be under way and most parts of the Group are reporting a higher level of activity. Provided the government takes a fair rather than a penal view on tobacco product taxation, there are grounds for cautious confidence. North Carolina Ports A five percent increase in revenues at the North Carolina Ports four months into the 1983184 fiscal year was announced at a meeting of the State Ports Authority's board of directors. Revenue for all ports' operations totaled $4,958,864 or $223,313 more than the same four month period last year. The State Port of Wilmington showed the most increase with an 11 percent jump over revenues in July, August, September and Oc- tober of 1982. The facility record- ed $3.9 million this year as oppos- ed to $3.5 million last year. Profit during this period was $753,886. Year-to-date revenue at the Port of Morehead City was $1,017,645, a 14 percent decrease in revenue for the same period last year. The port, though showing a profit for the month of October, is still displaying a loss of $130,000 for the year. The month of October was par- ticularly good for the Port of Wilm- ington. That facility showed a pro- fit of $248,000 on gross revenues of $1,o56,ooo. The Port of Morehead City show- ed an October net profit of $36,520 on gross revenues of $304,872 which well exceeds the budget which called for a $8,640 profit on revenues of $296,931. R.J. Reynolds Industries The board of directors of R.J. Reynolds Industries, Inc., voted to spin off to its shareholders Sea- Land Industries Investments, Inc. RIR's 1983 results, consequently, report Sea-Land as a discontinued operation. Prior years have been restated accordingly. For the twelve months ended December 31, 1983, consolidated net sales from continuing opera- tions were $13.53 billion, up 18 per- cent from $11.49 billion in 1982. Consolidated earnings from opera- tions for continuing businesses were $1.59 billion, up 10 percent from $1.44 billion in the prior year. Net earnings from continuing operations in 1983 were $835 million, up 5.6 percent from $791 mill/on in 1982. J. Tylee Wilson, president and czo. said, "1983, when adjusted for non-operating factors, was especially encouraging because our companies faced difficult external challenges during the year. Never-
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theless, the company improved pro- ductivity, cut costs and gained volume and market share in many of its product lines." For the 1983 fourth quarter, sales from continuing operations were $3.62 billion, up 6.5 percent from $3.4 billion in the 1982 fourth quarter. Earnings from continuing operations were $437 million, up 25 percent from $349 million. Net ear- nings from continuing operations were $226 million, up 42 percent from $159 million. Wilson said, "Our fourth quarter was strong. Fourth quarter tobacco volume improved, Del Monte's per- formance benefitted sig~_ficantly and we anticipate continued strong performance. Our energy business has done well considering the dif- ficult climate confronting the in- dustry, although the outlook does not indicate any real short-term improvement." In 1983, Reynolds Industries' in- ternational tobacco volume increas- ed 4.3 percent to 84.1 billion units while domestic volume declined 10 percent to 187.5 billion units. Inter- nationally, the company increased its share in 18 of its top 20 markets. In the U.S., the company's market share was 31.5 percent. "With the spin-off of Sea-Land, our primary strategic direction for 1984 will be to increase our focus on being a global producer and marketer of quality consumer pro- ducts and services, while continu- ~ng to manage energy as a strategic investment," Wilson said. Standard Commerical Standard Commercial Tobacco Company has reported sales for the third quarter ended December 31, 1983 of $132,609,000, were up from the $125.894,000 achieved in the corresponding quarter of 1982. Ear- nings for the 1963 third quarter were $2,251,000, compared with $258,000 in 1982. Sales of $322,430,000 for the 1983 nine months were down from $335,669,000 in the comparable 1982 period. Earnings for the 1983 first three quarters of $4,76.5,000 were below the $6,481,000 for the comparable 1982. period. The level of sales improved dur- ~ng both the second and third quarters of the current year. Sales for the first nine months remain below the comparable period in 1982, reflecting a lag in the t/ruing of tobacco deliveries. However, sales for the current fiscal year are still expected to exceed the level achieved in the previous year. Gross margins and net income for the third quarter and nine months to December 31, 1983 were in line wi~h expectations, although down from the comparable periods in 1982 primarily because of general- ly difficult market conditions. Due to the seasonal nature of the Company's business, results for in- terim priods are not necessarily in- dicative of results expected for a full year, the company noted. Frutarom Good news for U,S. customers A TOLL FREE FLAVOR HOTUNE 800-621-4117 FOOD MATERIALS CORPORATION, a leading custom flavor house and the exclusive distributor of HERTZ & SELCK FLAVORS provides you with the most economical and sophisticated .~ FRUTAROM CONCENTRATES for Cigarettes, Cigars, Chewing Tobacco, Snuff + Band Tobacco Made in Germany Delivery from U.S. stocks - No import problems You'll want samples, so dial ;N FOOD MATERIALS CORPORATION 2711, W. lwing Park Road Chicago, II. 60618 800-621-4117 Your partners in Brand Main- tenance with over 100 years of combined flavor experience HERTZ b SELCK amm, MTAROM conPowmo. TR--April. 1984 105
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INOL. 'I'RY PATENTS - H.B.Fuller: Heat-activated adhesive for bonding label stock A heat-activated pressure-sensitive adhesive which comprises an aqueous emulsion of finely divided solids comprising a rubber poly- mer, a resin and a plasticizer, which optionally contains urea, a urea-compound andlor a poly- hydroxy compound in the aqueous phase. Substrates such as plastic film, metal foil and cigarette paper may b~ effectively bonded. U.S. Patent 4,427,744. Developed by Robert M. Hume, III, Cottage Grove, Minn. Assigned to H.B. Fuller Company, St. Paul, Minn. IFF: Material to enhance tobacco aroma or taste Described is the use for augmenting or en.hancing the aroma or taste of smoking tobaccos and smoking tobacco articles of methyl sub- stituted pinyl oxopentenes and mix- tures of same defined according to the structure: ;/ wherein 7. represents methylidene defined according to the structure: ethylidene defined according to the structure: or ethylenyl defined according te the structure: wherein one of the dashed lnes represents a carbon-carbon single bond and the other of the dashed lines represents no bond; wherein n ~.s 0 or 1, and m is 0 or I with the sum of n+m being equal to 1; wherein X represents carbinol hav- ing the structure: or ketone having the structure: wherein R,, R,, R,, and R, repre- sent hydrogen or methyl; wherein one of the lines: represents a carbon-carbon single bond and the other of the lines: represents a carbon-carbon single bond or a carbon-carbon double bond; wherein one of the lines: /+1+/+/+/+/+/ represents a carbon-carbon single bond and the other of the lines: /+1+/+/+/+/ represents a carbon-carbon single bond or a carbon-carbon double bond; with the provisos that: (i) when R~ and R, are each hydrogen, the dashed line at the 7-5 position is a carbon-carbon single bond; n -- 0 and m is 1; z represents ethylidene having the structure: or ethylenyl having the structure: [it) when one of R, or Ro is methyl, then either the dashed line at the 7-5 position or the dashed line at the 7-4 position is a carbon-carbon single bond; and Z represents methyl- idene defined according to the structure (iii) when R~ is methyl, then n is 1 and m is 0 and R, is hydrogen; and (iv) when R, is methyl, then hydrogen, n is 0 and m is 1. U.S. Patent 4,428,387. Developed by Braja D. Mookheriee. Holmdel; Robert W. Trenkle. Bricktown; Robin K. Wolff. Point Ph;asant; Richard M. Boden, Monmouth Beach; Takao Yoshida, W. Branch, all of N.J. Assigned to ternational Flavors & Fragrance~ Inc., New York, N.Y. Molins: Variable capacity reservoir for rod-like articles A variable capacity reservoir cigarettes or similar rod-like ticles, in which an helical suppo~ surface is reversibly drivable from a storage position, in which it compactly stored with adiacent helical turns closely spaced, to an operative position, in which adia- cent helical turns are spaced apari to allow a stack of the articles to conveyed. Pairs of pinch roller~ engaging the inner edge of the strip are provided for moving the strip. The strip may be made up of a series of substantially annular sec- tions, each of which has been severed along a substantially radial line, and with adiacent section~ joined to each other in stacked formation. U.S. Patent 4,429,779. Develop~l by Dennis Hinchcliffe, London, England. Assigned to Molins Limited, London, England. R.J. Reynolds: Folding mechanism for cartoning machine A folding apparatus for use on • cartoning machine which folds and secures the end flaps of a blank to form a carton including a pivotin~ rocker arm positioned adiacent to the path of said carton movement All new patonts ~or the tobacco industry m~e supplied exclusively to Toba= Repo~e¢ by Inventions. tnc, They are revi~ed =nd ~ m~i~ by To~ ~s m~. To ~t a ~py of a patent, s~ ~e num~r a~ 50 ~n~ to ~e C~mi~ion~ ~ pa~n~ W~ Ing~n, D.C. ~1, U.S~ (~ ~len~ ~ ~ ~n~ e~.) To ~ In~ ~ ~n~, if ~e addr~s is insuffl~ent. ~ite ~m m ~ ¢ ~ ~.~r of Pa~, ~1~ ~re ~ c~e ~t number. ~ 106 TP,--April, 1984
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NICOTESTA ~ Portable Model NICOTESTA...,hefast, accurateequipmentfordeterminingni¢otineintobac¢o, filters and smoke condensates Fast,..Results can be read directly from the apparatus in about 7 minutes. Simple .,. No trained staff or laboratory required: Various working stages are mechanized. Accurate,..Test results correspond exactly to international standards. Portable,..Unit weighs less than 30 Ibs. and plugs into standard electric outlet. Indispensable,.. For all tobacco people who will profit from a fast, accurate determination of nicotine content. Unit can be complemented with a small portable dryer that will dry tobacco in approximately 5 minutes. TAMAG--the Partner of the Tobacco Industry TAMAG Basle Ltd. Sternenfelderstr. 16 Ch-4127 Birsfelden/Switzerland Tel.: 61 - 52 01 43 Telex: 63 403 tamag ch Tl56305467
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IH'DfJSTRY PATENTS con~u~ and a fold blade pivotedly attached to one end of said rocker arm which engages the flap and moves it into contact with the side of the carton. A device for manipulating said rocker arm is provided so that the fold blade will engage and dis- engage the flap and a yieldable means associated with said fold blade to apply a selected pressure to said flap with a roller assembly for engaging the fold blade and con- ire! the pressure applied by said yieldable means. U.S. Patent 4,428,742. Developed by Philip A. Deal, Winston-Salem, N.C. Assigned to R.J. Reynolds Tobacco Company, Winston-Sa- lem, N.C. Hauni-Werke: Apparatus for testing cigarettes A cigarette testing apparatus wherein a rotary drumshapod con- veyor has axially parallel peripheral flutes for cigarettes and is flanked by two swash plates which rotate therewith and carry annuli of elastically deformable sealing elements for the respective ends of cigarettes on the conveyor. Each sealing element has a socket facing the adjacent end of the cigarette in the corresponding flutes of the con- veyor when the cigarette is inserted into the flutes. The swash plates thereupon move the sealing elements nearer to the ends of the cigarettes therebetween whereby the ends of the cigarettes enter the corresponding sockets and displace transversely extending partitions of the sealing elements with attendant radial contraction of those tubular sections of the sealing elements which surround the respective sockets. This moves the internal surfaces of such sections into seal- ing engagement with the external surfaces of the ends of the cigaret- tes during transport of cigarettes through the testing station where the cigarettes receive streams of testing fluid flowing through cen- trally located apertures of the adia- cent partitions. The sealing elements have thin- walled annular membranes flank- ing the respective partitions to allow for movement of the parti- tions in response to the application of pressure by the respective ends of a cigarette as well as to facilitate radia| deformation of the tubular sections in response to such displacement of the partitions. The sealing elements reassume their undeformed states when they move away from the respective ends of the cigarette therebetween in response to further rotation of the swash plates. U.S. Patent 4,429,567. Developed by Franz P. Koch, Schwarzenbek; Adolf Helms, Hamburg; Wolfgang Siems, Hamburg; Peter Brand, Hamburg, all of Fed. Rep. of Ger- many. Assigned to Hauni-Werke Korber & Co. KG, Hamburg, Fed. Rep. of Germany. ~ontinuefl ment, supplies, fertilizers or chemicals -to the overseas buyen But even bet- ter, weql provide the service and tech- nical assIstance to make absolutely sure that whatever you buy works. And works groperly. We~l make sure that equ/pment from different manufacturers match, your people are completely trained and you're com- pletely satisfied. Our consultants are also available for planning and feasi- bility studies. Eotitact Gene Akins or Red Barnes at 1185 Pineridge Road, Norfolk, VA 23502.Tele- ~ phone (804) 855-0191, ~ Tdex 828-385--cal1 back Dominican NFK. TI5630546~
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Tobacco's Mes:age Is Free Choice I~ems ranEin~l from coffee mu~s and decals to T-shir~s for giwaway ~ promotion, and all bead~ t~ cop~hted se~cema~ ~ "~ ~m. ~ Cho~e". ~ ~i~ble in bulk ~m the Noffh ~mlina r~cco Gmwe~ ~iation. a ~n-p~it o~ni~tion. All mo~y ~m ~s ~s to the as~iation~ ~.~ Ada~ simply bd~s ~u ~ mes~. For a a~d p~ce lisf FREE CHOICE P.O. Box ! 9848 Ra|etgh. NC 27619 TI56305469
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110 TR--Ap~I, 1984 INI~USTRY PATENTS confk~ed CIR S.p.A: Emptying cigarette trays into magazines The feed hopper of a cigarette pack- ing machine is provided with an in- let mouth comprising a fixed rec- tangular tubular member over which there is mounted teles- copically slidable in the vertical direction a telescoping rectangular tubular member. The tray filled with cigarettes is positioned upside down, with its discharge side clos- ed by a bottom closure plate, over the open upper end of the telescop- ing tubular member. The full tray is then lowered, together with the telescoping member, until the bot- tom closure plate reaches the level of the cigarettes already contained in the hopper. At this point, a level sensing device gives a control signal for the side shifting, and con- sequent opening, of the discharge side of the tray. After the opening of the discharge side, the tray is again raised to its starting position. U.S. Patent 4,403,908. Developed by Italiano Cartoceti, Bologna, Ita- ly. Assigned to CIR S,p,A. Divisione Sasib, Bologna, Italy. IFF: Enhancing aroma or taste of a tobacco composition Described is a process for augmen- ting or enhancing the aroma or taste of a smoking tobacco composi- tion or smoking tobacco article component comprising the step of adding to a smoking tobacco com- position or at least a portion of a smoking tobacco article, an aroma or taste augmenting or enhancing quantity of at least one compound defined according to the structure: wherein one of the dashed lines is a carbon-carbon double bond and each of the other of the dashed lines is a carbon-carbon single bond: wherein the wavy line: ~ is a carbon-carbon single bond or no bond at all: wherein Z rcpr~ents hydrogen, --CH2--, or C2--C4 acyl; with the proviso that when the way line: -- is no bond at all, Z represents hydrogen or C2-C4 acyl and when the wavy line:- is a carbon-carbon single bond, then Z represents --CH2--. U.S. Patent 4,413,639. Developed by Richard M. Boden, Monmouth Beach, N.J. Assigned to Interna- tional Flavors & Fragrances Inc. New York, N.Y. Molins: Apparatus for treating filter tow material Apparatus for treating filter ma- terial, particularly a filter tow for forming into a cigarette filter rod, includes an applicator chamber containing a rotatable brush for spraying a fluid additive such as a plasticizer towards the tow. A pressure manifold having a per- meable surface adiacent the path of the tow produces an air flow which redirects towards the tow of plasticizer not captured initially by 0 the tow. Air supplied to the manifold passes through an air ionization region, to reduce static electricity in the chamber. Air is withdrawn from the chamber by a pump to prevent a pressure build- up which could cause loss of uncap- tured plasticizer. A separator is pro- vided for collecting any plasticizer entrained with the extracted air and for returning it to a supply tank. U.S. Patent 4,421,055. Developed by Hugh M. Arthur, High Wy- combe, England: Francis A, M. Labbe, Neuilly-sur-Seine, France. Assigned to Molins Limited, Lon- don, England. Sasib: Forming a continuous cut braid in a making machine An apparatus for making a con- tinuous cut tobacco braid in a cigarette making machine. A transfer duct transfers the cut tobacco in an air stream from the cut tobacco feeder to an endless braid-forming suction tape, and a pneumatic collecting duct which receives the greater and heavier tobacco particles and conveys them into a collecting box. A second pneumatic collecting duct receives TI56305470
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INDUSTRY PATENTS con~ueo" the excess tobacco trimmed from the tobacco braid being formed and convmjs it into a feeding hopper. A deflector valve between the two pneumatic ducts is switchable be- tween two positions, in one of which the tobacco ribs are con- veyed through the first-mentioned duct into the collecting box and the trimmed excess tobacco is con- veyed through the second duct to the feeding hopper. In the second position, the deflector valve causes the cut tobacco, including the tobaccb ribs, to be returned into the feeding hopper. A sensor is arrang- ed within the transfer duct and, with the help of a control circuit, switches the deflector valve so as to assure proper operation of the apparatus. U.S. Patent 4,417,594. Developed by France Garrone, Bologna, Italy. Assigned to Sasib S.p.A., Bologna, Italy. Philip Morris: Vibratory pneumatic tobacco feeder Tobacco feeder consists of a con- veyor belt, vibrating collecting pan, and control flaps. Metering tube delivers tobacco to conveyor belt, the speed of which varies depen- ding on the number of cigarette making machines in operation. Conveyor belt deposits tobacco on vibrating collecting pan which has an inclined portion to cause the tobacco flow to increase in veloci- ty, thereby decreasing in density, as tobacco moves down the inclined portion. Control flaps direct the flow of tobacco to vacuum tubes depending on which cigarette makers are in operation. U.S. Patent 4,408,619. Developed by J. E. Steven Perkins, Colonial Heights, Va. Assigned to Philip Morris Incorporated, New York, N.Y. G.D Societa: Device for replacing empty reel of strip material A method and device for replacing a first, empty reel of strip material with a second, new reel in which the strips of the two reels are posi- tioned over one another and partly cut thereby forming on them coin- cident lines of perforations or weakening, the strip from the emp- ty reel then being broken along the associated partly cut line and the re- maining part of the strip from the empty reel being connected to the other strip, the part of which disposed downstream from the associated line of cut then being cut off after the said connection be- tween the strips. U.S. Patent 4,415,127. Developed by Enzo Seragnoli, Bologna, Italy. Assigned to G.D Societa' pel,' Azioni, Bologna, Italy. Cables: HARKEMA TELEPHONE: (203) 693-637019 TELEX: 9-9330 Mailing Address P.O. BOX 382 CANTON, CONN. O6019 HARKEMA, INC. TOBACCO BROKERS 305 Albany Turnpike, Route 144 CANTON, CONNECTICUT 06019 Amsterdam Affiliate: G. HARKEMA, B.V. Telex: 13612 Korean Monopoly: Expanding tobacco stems with superheated steam Tobacco stems are expanded by superheated steam in a U-shaped, tubular expansion device, which is provided with a venturi tube and cooling jackets. The superheated steam under high pressure is ejected toward the venturi tube. The rapid speed of the steam stream creates a Bernoulli flow, namely strong suction force in the venturi tube. By this force, the tobacco stems, which are being continuously supplied into a hop- per from a tobacco cutter, are auto- matically sucked into the expansion device via the venturi tube. Tobac- co stems primarily expanded in the expansion device are sent to a cyclone system and further puffed therein. U.S, Patent 4,418,706. Developed by Ki-Hwan Kim; Kwang-Keun Yoo; Tee-He Lee, all of Seoul, Rep. of Korea. Assigned to Office of Monopoly, Seoul, Rep. of Korea. • Rohm and Haas: Polymer beads and crosslinked products Linear addition polymer beads hav- ing repeating units of vinylbenzyl alcohol and at least one other struc- ture different from vinylbenzyl alcohol, wherein the vinylbenzyl alcohol units comprise at least 0.5% by weight of the linear polymer, and thermally crosslinked deriv- atives thereof. The beads are ther- mally crosslinked by heating during formation thereof or thereafter in the presence of a free radical in- itiator, such that benzylic me- thylene or benzyloxy crosslinks are formed between aromatic rings of the vinylbenzyl alcohol units, and between the vinylbenzyl alcohol units and other active sites in the polymer. The linear addition polymers may be formed directly from vinylbenzyl alcohol monomer and at least one other monomer, or 112 "I'R--,~I, I~ TI56305472
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....... ~'~' ,,:-"~:- ~ :' "" " A MEMBER OF 3"HE STANDARD GROUP ~ .... "~" ~" : .... OFTOBACCO COMPANIES STANDARD COMMERCIALTOBACCO COMPAN':" 2201 Miller Road, Wilson, North Carolina 27898, U.S~., Tel. 919-237-1"K)6, Telex 579489 TI56305473
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OF ALL FLUE CURED TOBACCO FARMERS WILL READ THIS MAGAZINE.! IF YOU HAVE A MESSAGE TO DELIVER TO FLUE CURED FARMERS, WHAT ARE YOU WAITING DR? ADVERTISING DEPT., FCTF, P.O. BOX 95075, RALEIGH, N. CAROLINA 27625
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What could & know about t.Jte tobacco imsiness that you might not? How to protect it. You probably know just about all there i~ to know about the tobacco business. At Marsh & McLennan. we can insure almost anything the tobacco business has to protect. And we've been doing it for over 50 years, Marsh & McLennan~ worldwide facilities help ensure assistance in claim handling where~er a loss oct-m~, That, plus our roots in the tobacco field, is mtr own special blend. For more information on how we can help with your protection needs, write: Marsh & McLennan, Incorporated, I l South 10th Street, Richmond, V:a. 23219. ()r call {804) 649-4100. Whon it com0s to lnsuran~o, eomo to tho leader. TI56305475
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indirectly by hydrolysis of vinyl- benzyl chloride during linear polymer formation therefrom. The crosslinked products are useful as adsorbents, hydrogels and as in- termediates in the preparation of other adsorbents, ion exchange resins, catalysts and slow release agents. U.S. Patent 4,427,793. Developed by Samuel F. Reed, Holland, Pa.; David L. Hundermark, Knoxville, Tenn. Assigned to Rohm and Haas Company,'Philadelphia, Pa. Hauni-Werke: Transferring rod sections into flutes of a conveyor A magazine which contains a sup- ply of parallel filter rod sections has an outlet which discharges a multilayer stream of sections onto a receiving conveyor which de- livers the sections into a gap be- tween two parallel belt conveyors wherein the sections form a single layer and are positively advanced into successive flutes of a rotary drum-shaped withdrawing con- veyor. The speed of the receiving conveyor equals or exceeds the speed of the flutes, and the speed of the belt conveyors exceeds the speed of the receiving conveyor. This ensures that the gap invariably contains a layer of parallel sections so that the belt conveyors can ad- mit a section into each oncoming flute of the withdrawing conveyor. The sections which issue from the outlet and are about to enter the gap accumulate in a pileup zone which is disposed above the receiving con- veyor and from which the receiving conveyor accepts sections in the absence of adequate delivery via outlet of the magazine. U.S. Patent 4,420,073. Developed by Nikolaus Hausler, Oststeinbek; Klaus-Dieter Mallon, Hamburg, both of Fed. Rep. of Germany. Assigned to Hauni-Werke Korber & Co. KG., Hamburg, Fed. Rep. of Germany. Stauffer Chemical: Substance to control tobacco budworm Compounds of the formula wherein R, is hydrogen or C,--C, alkyl, and R, is C,--C, alkyl which are useful for controlling tobacco budworm. U.S. Patent 4,427,699. Developed by David L. Lee, Martinez, Calif. Assigned to Stauffer Chemical Company, Westport, Conn. Kabushiki: v/" Smoke filter capable of removing substances A tobacco smoke filter capable of effectively removing carcinogenic substances from tobacco smoke is presented. This tobacco filter con- Why th/s magaz/ne andmorethan 900 others/etus go over their books once a y r. Some magazines, we're sorry to say, keep their readers undercover. They steadfastly refuse to let BPA (Business Pubr~atk)ns Audit of Circulation. Inc.) o~ any other independe~L not-for-wofit ~ganizatk:~ audit their cireulatic~a records. On the other hand, ove~" 900 pobr~cations ffP, e this ooe) b~ to BPA. 0¢¢:e a year, BPA audil~ots examine in~ helps adveaisers to determine if they are saying the right thing to the right people in the right place. It also helps somebody else important: you..Because the morea publication and its advertisers know aoout you, the better they can provide you with articles advertisements that meet your informational needs, BPA. For readers it stands for meaninglul intomaatk:~. For advertisers it stands for meaninglul readers. Business 116 ~, 1984 TI56305476
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We're proud to see our work go up in smoke. H&R has a burning message for all who work with tobacco: a new generation of tobacco flavors consisting of four individual, complex building blocks. Products with above average fixation and extraordinary burning characteristics. Our new package of tobacco flavor ~Bagents (TFA) includes: Continental. urley, Virginia, For Filters... ~.,,~'T~ ~' and for those worried about an ~l~_~.~.~,& ~"identity crisis", worry no more: "~T~gk~~ H&R's TFA's allow you to ~.~ ,~-,~.q~,,~,,~ creatively combine flavor notes ~.~,,~"~- while still maintaining your ~ product's integrity. We give you 9reater flavor control whether you are enhancing an existing brand or developing a new one. Of course, we'd like to get you as ,,fired up,, about our flavor as we are. So please get in touch with us. We'll prove that where there's smoke... there's H&R. H&R's TF/Ys: another flavor cornerstone from the manufacturers of I-menthol. Haa[manr'&Reirner Corp. 111 U,S. Htghway 22 PO. Box 175 Springfield. N.J. 07081 ]'elepho'~e: 201-686-3132 Te~e_craws lencne, Sl:z~gfeld Tele~ 6853 203 TI56305478
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IIII III ~TOBACCO PROCESSING "MACHII~- RY FLUID BED DRIERS. BULKING AND BLENDING SILOS. AUTOMATIC .. FEEDERS. IMPULSE CONVEYORS. CONDITIONING CYLINDERS. THRESHING AND SEPARATING PLANTS. MACHINERY LIMITED Chandos Street Netherfield Nottingham NG42PF Telephone Nottingham 879450 Telex377421 Telegrams HAMBRO, NOTTINGHAM. TI56305479
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tNDUSTRY PATENTS rains an aqueous solution of a com- pound having a metallic ion or especially, ferric ion binding pro- toporphyrin ring structure, as a removal agent of carcinogenic substances from the tobacco smoke, and a porous carrier therefor. U.S. Patent 4,414,988. Developed by Michiko Yagi, Tokyo, Japan. Assigned to Kabushiki Kaisha Ad- vance Kaihatsu Kenkyuio, Nihon- bashi, Japan. Focke & Co.: Packaging apparatus with radial transfer An apparatus for packaging cigarettes includes a magazine for supplying cigarette groups to pockets of a first revolver, where- Cables: Geharkema .Telex: 13512 Telephone: 22 04 04 P.O. Box 3598 G. HARKEMA B. V. Sworn Tobacco Brokers Offices and samplerooms: German Affiliate: G. HARKEMA G.m.b.H. Tabakborse--Eingang B Europahafen 2800 Bremen 1 Tel,: 380788 SInt Berberenstraat 2-4 1012 HP AMSTERDAM U.S. Affiliate: HARKEMA Inc. P.O. BOX 382 CANTON, Conn. 06019 Tel.: (203) 693-B370/9 Telex: 9-9330 FLAVORS IABORATORY- HEINR. no.F 15 on the 4 th Worltl Tobacco Exhibition. 1867 BORGWALDT P.O. BOX ~00224 FRIESENWEG 4 D-]000 HAMBURG 50 PHONE 040/g~2006 TELEX 2 H439 after they are transferred into lined pockets of a second revolver and then into paper lined pockets of a third revolver. The groups are always oriented with their wide front or rear faces outermost in the pockets to minimize the radial transfer distance, and movable sup- port plates are provided at the first transfer station to engage the free outer row of loose cigarettes to retain them intact during trans- fer. U.S. Patent 4,428,177. Developed by Heinz H. Focke; Kurt Liedtke, both of Verden, Fed. Rep. of Ger- many. Assigned to Focke & Co., Verden, Fed. Rep. of Germany. Hauni-Werke: Influencing the permeability of filter wrappers Discrete uniting bands which are used in a filter tipping machine to connect filter plugs with plain cigarettes consist of foraminous material, and the permeability of such material is varied, when necessary, by changing the quanti- ty of adhesive which is applied to the uniting bands prior to convolu- tion around the respective plain cigarettes and filter plugs. This en- sures that each convoluted uniting band admits a preselected quanti- ty of cool atmospheric air into the column of tobacco smoke when the respective filter cigarette is lighted. The paster which applies ad- hesive to a continuous web which is about to be subdivided into uniting bands is adjusted in response to signals which are generated by a testing device for the wrappers of successive filter cigarettes. If the permeability is too high, the paster is adjusted by reducing or increasing the quanti- ty of adhesive which is applied to successive unit areas or unit lengths of the running web. This can be achieved by changing the thickness of the layer of adhesive or by changing the area of that portion of each unit length of the web which is coated with adhesive. U.S. Patent 4,403,619. Developed by Rolf Dahlgrun, La CeIIe-St. Cloud, France. Assigned to Hauni- Werke Korber & Co. KG, Hamburg, Fed. Rep. of Germany. T156305480
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Canada via Elizabeth, New Jersey;, and between Puerto Rico and points in Mexico via Houston, Texas. These filings were protested by the Chamber of Commerce of Puer- to Rico, the Puerto Rico Manufac- turersAssociation, and Ralston Purina Company. VPA withdraws suit challenging FMC The Virginia Port Authority has moved to withdraw the suit it filed recently in the U.S. Circuit Court of Appeals, challenging the Federa[ Maritime Commission's jurisdic- tion to approve amendments to seven North Atlantic Conference agreements to include U.S. inter- modal rate making authority. The action was announced by J. Robert Bray, executive director of the Port Authority. The VPA's petition for review was prompted by its concern over the pattern of rate increases con- benefit! tained in the conference tariffs relating to their new intermodal authority. By filing the petition, VPA preserved its ability to mount an effective legal challenge against conference action adversely affec- ting shippers and consignees using Hampton Roads' ports or diverting cargoes from those ports. VPA simultaneously employed the Con- ference procedures by seeking to achieve appropriate tariff action on commodities diverted from the ports as a result of the new con- ference intermodal tariffs. Regarding the VPA's concerns, the North Atlantic Continental Freight Conference members ap- peared to appreciate the diver- sionary effect of various rates published in the North Atlantic Conference tariffs, and expressed readiness to give full and prompt consideration to any specific ship- pers requests for tariff action necessary to protect the legitimate and commercial interest of Hamp- ton Roads ports and its shippers and consignees, including any such requests that may be brought to the Conferences by the VPA. Based upon these responses by the Conferences. the VPA conclud- ed that it would not be necessary to pursue this matter any further in the courts, and therefore submitted a motion to dismiss the proceed- ings. HAUSER ENDLOSBAND AG CH-8152 Glattbrugg/Switzerland Phone; 01 810 6105/Tetex: 52816 ERHA CH Endless tapes for cigarette and filter production such as garniture tapes of natural and man-made fibers, nylon or metal suction Ioand~s, tobacco belts for cigar ma~ing machinery. See u~ in Booth C-33 ~t tt~e Hague TURKEY: Nearly all tobacco bought during first days of sale The Agean tobacco market for the 1983 crop opened February 14, f984. Virtually all of the estimated output of 145,000 metric tons was sold within a few days at prices ranging from TL60 to TL1095 per kilogram, according to the Foreign Agricultural Service. The ceiling support price was in- creased by the Ministry of Customs and Treasury from last year's TL335 to TL465 per kilogram. Premarket purchases by private merchants at prices well above the official ceiling pushed overall average producer prices to about TL470 per kilogram, co~t~ed Distinguished Achievement in Tobacco Science Nominations for the 1984 Philip Morris Inc. Award for Distinguished Achievement in Tobacco Science must be receiv- ed by May 1, 1984. Each year Philip Morris recognizes an outstanding young scientist with an award for his research ac- tivities in tobacco science. The Award, consisting of a medallion and a cash award of $2,000, will be presented at the Tobacco Chemists' Research Conference next October in Atlanta, Georgia. The Award is given for an outstanding early career in either basic or applied tobacco science which may include one or more of the following: • scientific achievement in the development of fundamental knowledge related to the growth, harvesting, or curing of tobacco • scientific achievement in the development of fundamenta~ knowledge concerning the pro- parties and qualities of tobacco or tobacco products; • scientific achievement in the development of methods for the evaluation of the properties of tobacco or tobacco products. To be eligible for the current Award, nominees must be work- ing in research or development, residing in the United States, and be less than 45 years of age ' as of March 1, 1984. Anyone ac- quainted with a qualified in- dividual is invited to submit a nomination for the Award. Nominations shall be on the prescribed form obtainable from and submitted to the chairman of the Editorial Board of Tobacco Science; Dr. W,H. )ohnson, Editorial Board, Tobacco Science, P.O. Box 7625 N.C. State University, Raleigh, North Carolina 27695-7625. Nominations for the 1984 Award must be in the office of the chairman by May :1, 1984. The recipient of the Award will be selected by a special Awards Committee elected by the Editorial Board of Tobocco Science. Ti56305482
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RLTRONA AUTOMATIC TEST STATIONS By combining a number of important measurement modules into a single computedsed unit, Filtrona can offer major improvements in test eff'¢iency for Quality Assurance. .More Information from Less Samples Combinations of Weight, Circumference, Ventilation, PD and Hardness can be measured sequentially on individually indexed samples, so fewer samples are needed for valid statistics. *More Testing with Less Handling A batch of 20 samples can be fully processed and a report provided within three minutes. *More Capability in Less Space Filtrona Test Stations are compact and strongly built for use in laboratories or on the factory floor.They come complete for stand-alone use but can easily be linked to external data-processing and sample-handling systems. There are choices of cigarette or filter hardware, each with software for further selection by users, of tests and conditions. Ask now for furl details filtr na Filttona Instruments & Automation Ltd., Denbigh Road, Bletchley, Telephon~ (0908) 72716 Telex: 82429 TI56305483
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INTERNATIONAL NEWS Beginning purchases by the State Monopoly are estimated to be about 75,000MT at an average price of about TL350 per kilogram, while merchants are estimated to have purchased 55,000MT at an average price of TL700 per kilogram. (us$1.00 equals TL311.71]. UNITED KINGDOM: Advertising campaign seeks freeze on tobacco taxation The British tobacco industry is preparing a us$560,000 advertising campaign to tell Nigel Lawson, Chancellor of the Exchequer, that "enough is enough." The Tobacco Advisory Council will ask him to freeze taxation on cigarettes and hand-rolling tobacco, or at least, on- ly raise taxation in line with infla- tion, which would add about four cents to pack of 20 cigarettes. The Chancellor has been asked to break with budget tradition, which always seeks extra money from tobacco and alcohol, and also to start a progressive reduction in taxes on cigars and pipe tobacco in keeping with most other countries in the European Economic Com- munity. "Already tobacco taxation is punitive and has damaged our in- dustry with thousands of jobs lost," said Sir James Wilson, chief ex- ecutive of TAC. "Taxation at this level is discriminatory and regres- sive. High and unfair tax restricts people's right to choose whether to smoke or not. Any increase, es- pecially above current inflation, will threaten more iob losses and eventually cause diminishing re- turns for the 8overnment." Health ministers are pressing for an increase of about 25 US cents, in the belief that their anti-smoking drive can be best pursued by hitting smokers through their pockets. News from ANH h's word, a test'. Wc at AXtI arc specializing in tobacco flavors and casin~s and xvc offer you fidl insider-service and cooperation on a stri~'tly confi(lcntia[ basis. Why not send tts Saml)lcs of your hd)accos, and let us try to upgra(tc the quality of your "suffcrin~ brands? "I'hcrc is no charge nor obligation for your part[ Wc (h)n't a(ivcr~isc ~wondcr flav(~rs'. I)ul wc can assist you in modii]cati(ms of tobacco blends as well as "tailoring" the most suital)lc casin~ and top flaw)r formulations. Please con~ct our Rkl) I)cparlmcnt and let us start working fi)r you right away - scc address l)ch)xx'. USSR: Leaf procurements likely to exceed government's plan Results from the three most impor- taut Soviet tobacco regions indicate that total USSR procurements will TR--Awii, 198~ 125 TI56305485
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INTERNATIONAL NL=WS cord~u~/ exceed the 346,000 metric ton target, unless significant shortfalls from 1982 levels are recorded in other parts of the country. Approx- imate production reported by each region is: Moldavia, 127,000MT; Kirghizia, 65,000MT; Azerhaijan, 58M~'; and others, 103MT. The estimated total is 353,O00MT. The growth in Moldavian {28 percent) and Kirghiz (49 percent) procurements is remarkable, accor- ding to the Foreign Agricultural Service, because there is no indica- tion that tobacco area in the republics increased during 1983. Moldavia has called for higher procurements in 1984 [130,00OM~'} without changing the size of the tobacco area. In other tobacco pro- ducing areas, noticeable changes in area are not expected, indicating For Your Total Burley Req ents growing Burley ~ l.z~ Amerk~. are the fertile fidds of and excellent P.O. BOX 1337, SMITHRELD, NORTH CAROUNA 27577 TELEPHONE ~ 934-7101 TELEX- KRECO 126 TR--April, 1984 that future growth will depend on good weather, and greater amounts of technology and labor discipline, notes the FAS. UNITED STATES: Dry weather reduces dark fire-cured tobacco yield Dark-fired tobacco production in Kentucky and Virginia during 1983 declined to about 35 million tons. Dry weather in Kentucky reduced the crop to only 30 million pounds of below average quality leafi Ap- proximately 85 percent of the crop was bought directly from the farmers. Demand was strong with prices higher than last year for both tobac- co bought in the country and on the warehouse floor, according to one buyer. The basic quota has been increas- ed by 10 percent for the 1984 crop. If favorable growing conditions are present, 43 million pounds could be" produced, bringing supply more in balance with demand. Virginia dark-fired sales totaled 4.7 million pounds averaging $125.94 per 100 pounds. Last year 5.5 million pounds were sold at an average price of $117.19. Drought decreased the quality and poun- dage, but a better growing season this year could increase the size of the crop to a more normal level of 5.5 million pounds. New tobacco varieties approved for release Six new flue-cured tobacco va- rieties have been approved for re- lease by the Variety Evaluation Committee for planting in 1985. The five participating states are North Carolina, Virginia, South Carolina, Georgia and Florida. Meeting the requirements are the varieties Coker 206Y. NC 48, NK 94. PD 88 and Speight G-80. Seed of these varieties maybe available for 1985 planting should the breeder or agency decide to increase the seed, said Dr. Daryl Bowman, in charge of variety testing at N.C. State University. Coker 206Y was developed by Coker's Pedigreed Seed Company
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SASIB ELPER tipping paper electrical perforator detail of the perforating head DO IT YO, URSELF Make in your own factory the perforated paper you need YOU DO IT BETTER Elper permeability coefficient of variation, measured over an 8 hours period, is lower than 5%. Holes invisibility is ensured both on white and on cork type papers, YOU DO IT EASILY Permeability and paper type changes are simple and make Elper particularly suitable for factories where changes of brand occur frequently. Downtime for SO SI'B maintenance and electrodes resetting is less than 5' every 8 hours, running at maximum machine performance. Elper can be used on or off-line. YOU DO IT PROFITABLY Elper pay-back t~me is short, due to its high productivity: paper permeabihty is of 100 Borg units at the equivalent spee of 16000 :.pro. and of 200 Borg. uP, ts at 8000 T156305487
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II I I1 I -- II-IF - I I I I I I Your problem: Reduction in specific smoke compo- nents. Take advantage of our experience. We produce: Porous paper combinations for air ventilation of your cigarettes. Please apply for trial bobbins Papierfabrik Schoeller & Hoesch GmbH we are exhibiting at ~ ~_~'-,'~WORLD if|i-~', d/TOBACO0 ~ EXHIBITION& ~ SYMPOSIUM The Hag Netherland .... Stand C 16 • porous cigarette papers • electropefforated cigarette papers • super high porous plug wrap papers • porous tipping base papers. P.O. Box 1155. D 7562 Gernsbacb West-Germany Phone (07224) 66-0- Tx 07-8925 Telegrams Schoellerhoesch TI56305489
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from a three-way cro~s of Coker 139 and two breeding lines. It has resistance to black shank, Granville wilt and fusarium wilt. NC 48 was developed by the USDA Tobacco Breeding Program cooperating with NCSU's Agricul- turn| Research Service. It resulted from a cross of Coker 139 and Coker 298. It has resistance to black shank and Granville wilt. NC 24 was developed by the NoC. Agricultural Research Service. It has in its parentage NC 2326 and SC 58. It is resistant to black shank. NK 94 was developed by Nor- thrup King Seed Company from a cross of Speight G-28 and McNair 944. [t has resistance to black shank and Granville wilt. PD 88 was developed by Clemson University from a cross involving EVENTS APRIL 15-18 4th World Tobacco Exhibition and Symposium The Hague, Netherlands Contact: Mr. Michael Barford London 01-839-6171 APRIL 24-25 Burley Leaf Tobacco Dealers A~ocistion Annual Meeting Lexington, Kentucky Contact: Mr. John Logan Bowling Green 502-781-9540 MAY 6-9 LTEA/TAUS Annual Meeting The Greenbrier White Sulphur Springs West Virginia Contact: Dr. Hugh Kiger Raleigh 919-782-5151 MAY 17 Tobacco Merchants Assn. of the U.S. Annual Meeting • New York, New York Contact: Mr. Farrell Delman New York 212-239.4435 MAY 25 Flue-Cured Tobacco Coop. Stabilization Corporation Annual Membership Meeting N.C. State Fairgrounds Raleigh, North Carolina Contact: Mr. Charlie Finch Raleigh 919-821-4560 MAY 30-JUNE 1 JUNE 21-23 Bright Belt Warehouse Association Annual Convention Mariner's Inn Hilton Head, South Carolina Contact: Dr. Kenneth Keller Raleigh 919-828-8988 SEPTEMBER 27-29 Burley & Dark Leaf Tobacco Export Association Annual Convention Knoxville, Tennessee Contact: Mr. Frank Snodgrass Washington 202-296-6820 OCTOBER 4-5 Tobacco Growers' Information Committee Annual Meeting Mission Valley Inn Raleigh, North Carolina Contact: Reginald Lester Raleigh 919-832-3766 OCTOBER 7-12 Corestsw8th International Tobacco Scientific Congress Vienna, Austria Contact: Mr, G. Mayer Vienna 52-68-39 NOVEMBER 6-8 38th Tobacco Chemists' Research Conference Westin Peachtree Plaza Atlanta, Georgia Contact: Dr. O.T. Chortyk Athens, GA 404-546.3424 Burley Auction Warehouse Association Annual Convention NOVEMBER 29-DECEMBER 2 G~ove Park Inn Cigar Association of Asheville, North Carolina America, Annual Meeting Contact: Mr. Thomas Edwards The Breakers Mt. Stealing, KY 606-498-2002 Palm Beach, Florida McNair 30, Coker 316 and Coker 298. It also has resistance to black shank and Granville wilt. Speight G-80 was developed by Speight Seed Farms from a cross of Coker 254 and Speight G-28. It has resistance to black shank, Granville wilt, fusarium wilt and the most prevalent species of root knot ne- matodes. Only seed crops of the new varieties will be grown this year. Complete information on these varieties, including data on yield, value and disease resistance ra- tings, will be made available to farmers following the 1984 harvest. ZIMBABWE: Good quality leaf expected as markets open Markets for both flue-cured and burley tobacco opened at the begin- ning of April. Early indications are that the burley crop will exceed five million kilograms. The humid con, ditions during February helped both leaf development and quality, and good yields are expected in most growing areas. The overall outlook for the flue- cured crop remains good, especial- ly in the traditional northern areas, where many growers have ex- perienced virtually ideal rainfall patterns. In the southern areas, the rain was not so well distributed, and there is evidence of stress, however, only 10 percent of crop comes from this area. Irrigated tobaccos will represent no more than seven percent of the total crop, according to one buyer. At the end of February, the crop was reported to be ripening well and producing increased quantities of ripe orange and mahogany leaf. The rain during February caused a ripening clash between the early and late plantings; this may result in a small loss in yield but should not affect the overall crop target of 110 million kilograms. It appears that despite indifferent qualities in some of the bottom reapings, the upper lugs and leaf have developed well and should provide a variety of bodied and flavored tobacco. 130 TR--April, 1984 TI5630549~
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REBUILT PACKAGING MACINERY: PACKAGE MACHINERY FA AND FA 2 Over- wrap Machines, rebuilt with Hercules high speed polyproplene kit. SCANDIA 707, 710, STS8, 607, 507 and SFA-6 Wrappers wtwo TearTape. PACKAGE MACHINERY CA2 & CM3 Wrappers. BARTELT PACKAGERS, HAYSSEN Wrappers, PETERS, BRIGHT- WOOD Pkg. Mech., PALMER and BARTELT Cartoners, PADLOCKER, STANDARD KNAPP, ARC & FERGUSON Case Sealers. WANTED YOUR SURPLUS PACKAGING EQUIPMENT. UNION STANDARD EQUIP- MENT CO. B05 E. 141st St., Bronx, N.Y. 10454 Phone 212-585-0200, telex 220547 or 422513. TOBACCO REPORTER Classified RATES: $3.00 per Iw~e (minimum. $15.00). Boxed or display ads $30.00 per column inch. Ads repeated ~n consecuhve issues charged at 80% of mitral charge. For ads using blind box number, add $5.O0 to total cost of t~l. Agency cornrmss~on will be given only when camera-ready artwork is supphed by agency. MAIL AD COPY TO: TOBACCO REPORTER, P.O. Box 95075, Raleigh, N.C. 27625. BOX NUMBER REPLIES: Mail box number replies to: TOBACCO REPORTER, P.O. Box 95075, Raleigh, N.C. 27625. ...write here. 2 S',3t' w,~h {mOn~h~ ....... ~0 ~C,~'~ ~':~: be n ~v tat of mqnth preceding) NAME ........... COMPANY STRE~T ................ C~IY .................... STA~E ZiP. MAIL AD COPY TO: TOBACCO REPORTER, P.O. Box 95075, Raleigh, N.C. 27625 RATES: $3 00 per bne (ram=mum S15 00) Boxed or ~=splay ads $30 0O per column mcb Ads repeated fn consecuhve ~ssues Charge@ a{ 80% of ~n~hal charge For ads using blind box number, a0d 55 00 to Io~l coal ofad INDEX Adams W, A. Co .................. 109 Adams international, Lid ............. 85 Agaliam Trading .................. 128 Alvarez National ............ 24 & 112 American Tobacco Company ........ 101 Arjay Equipment .................. 26 Atl~,ntic Containerlines ............ 117 Austin Company ................... 45 Azienda Tabacchi Italiani ............ 17 Barber Blue Sea .................. 53 Benson Int'l ..................... 16 Borgwaldt .................... 120 Carolina Leaf Tobacco Co., Inc ....... 97 Casalee Belgium ................. 93 Case Expert, Ltd .................. 126 Catalytic Generators, Inc ........... 108 China American Tobacco Co ........ 65 Comas S.R.L ..................... 35 Companie General ................. 41 Dart Containerline, Inc ............ 96 Dibroll Brothers, Inc ............. 25 Edwards Leaf .................... 33 Export L~af Tobacco Co ......... 111 Fan-ell lines ................. 88 F'dtrona |r,,~trume~ts and Automat,on Ltd.123 Fittrona Internatmnal Ltd .... 15 Fishbume international .... 83 Focke&Co .......... 10& 11 H. B. Fuller ........ 55 132 TR--Apdl, 1984 Gieske & Niemann, Inc .............. 20 Gonzalez International Inc .......... 110 Haarman & Reimer Corp ........... 118 Hambro Machinery Lid ............. 119 Harkema, Inc ..................... 120 G. Harkema B.V .................. 112 A. Heinen ......................... 9 Alfred N. Hertz ................... 125 Hertz & Selck .................... 105 Hofor Tobacco ................... 27 Job Export ........................ 69 Kaymich ........................ 61 Kennedy Leaf Tobacco Co ........... 24 Kimbelty.Clark ............... 21 & 131 Gebruder Kulenkampff .............. 99 Lavino Shipping Co ................. 36 Lea Lumber ...................... 20 Liggett Group ..................... 13 L. L. Lorillard .................. 63 LTR ............................ 95 Maersk Lines ...................... 87 Malaucene ........................ 2 Marsh & McLennan ........... 115 Mashonaland ............... 121 Ma,.~luit ................... 7 Molins ..................5I A C. Monk ...............4 & 5 Monk Z~'C~owe ............ 103 North Carokna State Ports Authority.. 37 Olin Corporation ................... 86 Parker Tobacco Co ................. 43 Paxall Theile ...................... 92 Philip Morris International ........... 19 Port of Hamburg ................... 30 Proctor & Schwartz ................ 100 R. J. Reynolds, Inc ................ CV2 Rothmans of Pall Mall ............. CV4 Sasib Per Azioni .................. 127 Max 8chlatterer .................... 98 8choeller & Hoesch ............... 129 G. D. Sociela per Azioni ........ 22 & 23 Socotab .......................... 67 Jno. H. Swisher & Son .............. 18 Tamag Basle Lid .................. 107 Tobacco Associates ................ 49 Trans-Continental Leaf .... 28 & 29 & 113 Universal Leaf ..................... 71 A. L. Van Beek .................... 89 Virginia Port Authorities ............. 91 R. P. Watson Co ................... 34 Wattenspapier ................... CV3 Winston Leaf Tobacco Co ........... 102 TI56305~92
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