NYSA Indexed
Tobacco Reporter for the International Tobacco Industry
Fields
- 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
Document Images
TOBACCO REPORTER
FOR THE INTERNATIONAL TOBACCO INDUSTRY
us$3/$4.50
TI56305361
[~~ 16th Edition .
I:ntemonneehng Interests of
~.~so_~_~~ Majo,r Tobacco Manufacturers
AuMmlIm
Belgium
El SMvador
Clqarreda
NTE:REST
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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
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Leaf Tobacco
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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 
---
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
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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
---
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
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
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
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~
Unwind and
rel ...
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T!56305373
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
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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
TI56305379
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
Ti56305381
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
flOUt
to packaging.
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~
•
.:
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
---
---
.'!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
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w.T. EXHIBITION STAND C.a3
TIS~0S,'389
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
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
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
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
---
---
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
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=
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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
~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
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P.O. Box 95075
Raleigh, N.C. 27625
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IT,APE HERE)
"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
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
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
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
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
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
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
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
---
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
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
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
---
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
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
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
---
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
of MOlins ....
presence--where there is no MoJins equipment there i~::
usuallyno cigar~t-~ industry.
MOLINS
TI56305417
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
---
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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Every day H.B. Fuller tobacco
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We work chemistry into
al~wer~ o
H.B. Fuller Company
TI56305421
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~
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
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
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
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
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
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
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.
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
"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
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
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
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
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:
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
North America
Another part of the world
of Universal Leaf
TI56305437
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
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
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-
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
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
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
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
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~
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
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
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.
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
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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THIELE PLACERS
THIELE
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Paxall ThieIe M~,}.i~
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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.
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
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The total leaf service, worldwide.
TlSr~5
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
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
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~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-
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~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~
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.
---
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
T15C:)3054~
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
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
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
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
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-
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
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800-621-4117
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the exclusive distributor of
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provides you with the most
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.~ FRUTAROM
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HERTZ b SELCK
amm, MTAROM conPowmo.
TR--April. 1984 105
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
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
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~
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
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
---
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
....... ~'~' ,,:-"~:- ~ :' "" " 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
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
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
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
---
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
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
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
---
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
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
---
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
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
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
---
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
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~
---
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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