Jump to:

NYSA TI Single-Page 1

Frank Bocchino International Editor

Date: No date
Length: 69 pages

Jump To Images
nysa_ti_s1 TI56740798-TI56740869

Abstract

Lock, rood Trade Journal Co. Inc., 130 West 42nd Street, Suite 2200, New York, N.Y. 10036 U.S.A.

Fields

Named Organization
Action Against Access (PM "youth" program to help prevent further regulation of ind)
Designed to help prevent further regulation of the tobacco industry, and to demonstrate self-restraint in marketing cigarettes to children
American Tobacco Company
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.
British-American Tobacco Company (Hong Kong) Ltd. (British-American Tobacco Company (Hong Kong) Ltd.)
Celanese Corporation (Sold materials for cigarette filters)
sold materials for cigarette filters
CNTC (China National Tobacco Corporation)
China National Tobacco Corporation
Fabriques De Tabac Reunies S.A. (Philip Morris facility in Switzerland)
Food and Drug Administration (FDA)
Gallaher's (British tobacco company)
Harley Davidson
Hoechst Celanese
Hyatt Regency
International Standards Organization (ISO)
ISO (International Standards Organization)
International Organization for Standardization - AN international federation of national bodies covering stadardization in all fields except electrical and electronic engineering standards. The largest non-governmental system of industrial collaboration on standards and technical regulations.
ITC (India Tobacco Company)
India Tobacco Company
ITC Ltd. (An Indian cigarette giant)
ITC is a Indian cigarette giant. India's second-largest private sector company, circa 1994
Japan Tobacco Inc. (Japanese gov't -owned tobacco company)
Japanese government -owned tobacco company, until 1994.
JTI (Japan Tobacco Inc.)
Japan Tobacco Inc.
Ministry of Health (Located in Singapore)
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 U.S.A. (See Philip Morris Incorporated)
See Philip Morris Incorporated
Proctor & Schwartz (Made Dryers for RL Process)
R.J. Reynolds Tobacco Co. (Cigarette manufacturer (Camel, Winston, Doral))
Cigarette manufacturer (Camel, Winston, Doral)
RJR Nabisco Holdings Corp. (Holding corp., owner of RJR Tobacco (1994))
A holding corporation, owns 100% of stock of RJR Tobacco Co. in 1994.
RJR Nabisco Inc. (Delaware corporation, subsidiary of RJR Nabisco Holdings)
Subsidiary of RJR Nabisco Holdings Corp.
Standard Commercial (Leaf buyer)
Star Tobacco Co. (Small company selling cigarettes manufactured by Brown & Wil)
Tabacalera Nacional (Tobacco Manufacturer in Costa Rica)
Tobacco Exporters
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 Institute of Japan (TIOJ)
Tobacco International
United Nations
United States Tobacco Company (Producers of Copenhagen/Skoal chewing tobacco)
Producers of chewing tobacco
UST Inc. (Parent of U.S. Tobacco Company)
The parent corporation of United States Tobacco Company
Westvaco Corporation
World Health Organization (Concerned with global public health)
International organization concered with public health worldwide
Named Person
Alsbury, John N.
Andre, Arnold
Arrow, Anthony
Barnes, Peter L.
Barnet, David
Bell, Jonathan W.
Belts, Eva
Benson, Ian
Benwell, Peter
Bocchino, Frank
Boham, Nick
Boysen, Wilfred
Burton, Harold R.
Bush, Lowell
Cavendish, Royal
Chau, Wai
Chen, David (PM Manager, Corporate Affairs, Taiwan)
1996; This is a different person from David T. Chan, Duty-Free Asia, Hong Kong, Macau and Micronesia VP for PM.
Feng, Edward G.
Fletcher, Robert (Regional Public Affairs Manager)
1989 Hong Kong
Garrett, Anthony
Gierer, Vincent A., Jr. (UST Chairman & CEO 1998)
Defense
Glatz, Julius
Green, C. Richard
Greeniaus, John H. (RJR Nabisco Brands President)
Defense
Holmes, Anthony
Hoyt, Ted
Ikeda, Takahiko (Chairman)
John, Glenn A.
Johnston, Anthony C.
Executive Directors,
King, Trevor
Levine, Michael
Levy, Jonathan
Lockwood, Frederick A.
Lockwood, George E.
Lockwood, Robert M.
Messer, Peter M.
Morgan, James J. (PM President and CEO (1994-1997))
PM VP ('76-83), then Pres, CEO, Director
Mullen, Charles H. (ATC Sales VP)
President ane dChief
Nares, Peter
North, Charlotte
Owens, William F., Jr.
Page, Rick
Redeker, Werner
Robinson, Debra
Roth, Karin
Rudman, Warren
Schroer, James C. (RJR Marketing & Sales Exec. VP 1991-94)
Defense
Schubert, Alfred
Stinson, Douglass
Super, Kent
Swee, Kim
Wild, Chris
Wilhelmy, Herbert
Zhao, China
Date Loaded
16 Mar 2005
Box
7943

Document Images

Text Control

Highlight Text:

OCR Text Alignment:

Image Control

Image Rotation:

Image Size:

Page 1: TI56740798
Editor Frank Bocchino International Editor Glenn A. John Associate Editor Ted Hoyt Editorial Assistant Michael Levine CORRESPONDENTS AFRICA EcvI-r M. Rifaat Naguib (Cairo) ASIA I~ANCLAOF.SI-I Mo~ibul Bhuiyan (Dhaka) CHINA Zhao Qinghua (Beijing) INOIA B~riie Rao (New Delhi) PAIaSTAN Mumtaz Ahmad (Islamabad) Syed Rashid All (Karachi) EUROPEAN UNION ~tANV Manfred K6mer (Hamburg) CREECE Diamantis Chras (Piraeus) voltT~^t Debra Robinson (Lisbon) UNITED KINGDOM Trevor King (London) EASTERN EUROPE FORMER YUGOSLAV REPUBLIC OF MACEDONIA Mihail Kirkov (Skopie) MIDDLE EAST ISRAEI~ Jonathan Levy (Belt Sheme~h) ~aRKr¢ C, Hasan Umur (Izmir) NORTH AMERICA UNITED SYl'ATES Ch~sto]~hez Bickers (Raleigh, N.C.) SOUTH AMERICA ~a~N~NA Sheila Misdorp (Salta) BRaZ,L Guido Iungbluth (Santa Cruz do Sul) COLOMBIA Peter Nares (Bogata) PERU Douglass Stinson (Lima) CHINESE TRANSLATIONS Wai Chau Editorial, advertising, and subscriptions offices: Tobacco International Magazine Lock, rood Trade Journal Co. Inc., 130 West 42nd Street, Suite 2200, New York, N.Y. 10036 U.S.A. Tel: (1)(212) 391-2060 Fax: (1)(212) 827-0945 Telex: 825 759 LOCK UF Cable: LOCI~4IN Amms 199 On .the !cOver... Primary i Processing 32 TI Editortat ............. ..' ............. 3 Intematlonal News.., ............. 5 Leaf News ........................... 17 Manulacturtng News .......... 24 Financial Reports ................ 60 Marketplace ........................ 63 People & Promotions ......... 66 Dates to Remember ........... 68 Advertiser Index ................. 68 Toba~o [ntemation~l 1 T156740798
Page 2: TI56740800
President Robert M. Lockwood Publishers Robert M. Lockwood George E. Lockwood Associate PubIisher Trederick A. Lockwood Production Manager Jueine Arlotta Circulation Director Edward G. Feng 'Secretary Peter M. Messer Advertising Representatives UNITED KINGDOM Peter Cockle, Elmwood, Kingston HiJL K/ngs ton-upon-Thames, Sttr~ey, KT2 7LN England Tel: (44)(181) 974-9001 Fax: (44)(181) 546-1907 BELGIUM~ FRANCE, HOLLAND~ ITALY, PORTUGAL, SPAIN Jonathan W. Bell, l,es I2a~ds-Ma~sac 81500 Lavaur, France, Tel: (33)(63) 41-35-90 Fax: (33)(63) 41-47-81, Telex: 533~3 BELL ARGENTINA, BOLIVIA, CHILE, PARAGUAY, URUGUAY Sheila ML~dorp, P.O. Box 110 4400 Salta, Argentina Tel: (54)(87) 244-209, Fax: (54)(87) 244209 AFRICA AND INDIA Re$ Buffer, Whin Cottage, Fr~eth, Near Henley- on-Thames, Oxfordshire RG9 6BP, England Tel: (44)(1494) 881-379, Fax: (44)(1494) 882-288 FOR ALl. OTHER AREAS/¢ONTACF ANY OF THE FOrLOWXNC George E. Loctwveod, Robert ~,~. Loc~,wood, Frederick A. Lockwood, R*m~'e Lockwood 130 West 42nd Street, Suite 2200 New York, N.Y. 10036, US. Tel: (1}(212) 391-2060, Fax: (I)(212) 8270945. Telex: 825 759 LOCK UF or Lan'y Frank, 150 Windham Center Road, Windh~m, ~.~ine 04062 US. Tel: (1)(207) 893-1152, Fax: (1~(207) ~93-1172 Telex: 825 759 LOCK UF C.ircula~ien Repzese~t~tJves J.B. Tr~t~ar~ ~ L~d., 15~a Gr~e~l Reed, t-~rrov.; ~d]~ex,HA1 JQT, LYe 5555, Tok3"o 1~-3-31, "Manufacturing News" Tobacco International's Newest Addition s news chroniclers to the tobacco industry, its our job to bring readers up-to-date on what's happen- ing each month in the international arena. When covering a particular industry, we think its impor- tant to cover all aspects of that industry ~ and not just what's politically correct, we would like to think that we do that rather well. But it's also our responsibility to supply readers not only with what we deem important, but. also with what they deem impor- tant as we//. That's why we've developed the Tobacco Interna- tional Reader Response Form that we will be running periodi- cally in the magazine. To that end, you've given us the go ahead to keep covering the areas that we're covering, as well as include some new ones. But we've also altered the format of the magazine a bit as per the request of our readers. One addition that we've decided to include in this issue was the formation of a new department called "Manufacturing News." It will inform you on the more technical aspects of ciga- rette manufacturing processes. Also look for detailed feature ar- ticles on cigarette manufacturing ~ like our first feature on pri- mary processing. We like the additional layer of coverage our new technical fo- cus has added to our magazine, and hope to bring you more news that you consider vital to operating your business. So keep those responses coming~ Frank Bocchino Editor V~.u~e 197, No. 8. TOBACCO [~X.rTERNATIONAL (155N C,049-fi79~5), e;tcbl]:hod In 1~.23, L~ I;U~l~c-'d rnon~y by Lcc~- : wood Tm~e Journ~ Co., Inc., 1~0 W. 42r.d S~reet, Su~:~ 2200, New Y¢ f(.. N.Y. 1(~3 U.S.A. Second c~ 1:~:~3~ l~d : To~¢~o ~n~ema~on~l 3 T156740800
Page 3: TI56740801
---
Page 4: TI56740802
Late-Breaking Reports Affecting the Tobacco Industry BRAZIL n~,v YORK-- Philip Morris U.S.A. said it completed its cigarette recall af- ter restocking more than 350,000 retail outlets over a three week period. At the same time, the company said it erred when it initially attributed the presence of methyl isothiocyanate (MITC), which caused the defect in the cigarettes, to a preblem with its Hoechst Celanese-supplied filter plasticizer. James J. Morgan, president and chief executive officer of Philip Mor- ris U.S.A., said in a statement, "We have conducted an exhaustive inves- tigation to determine the cause of the preblems that triggered the recall." The company said that the origin of MITC was related to the breakdown of a packaging preservative known as thione, present in the company's paperboard packaging. "Such packaging is used by all major U.S. cigarette manufacturers and severel foreign cigarette manufacturers," said Philip Mords. Thione, a packaging preservative approved by the FDA for many years for use in paperboard preduction, is used areund the wodd in paperboard packag- ing not only for cigarettes, but also for a wide range of all types of con- sumer products, including over-the-counter pharmaceutical preducts, foods, and personal care products. Hoechst AG unit Hoechst Celanese Corp., which supplies Philip Mor- ris with plasticizers, applauded the Philip Morris announcement, and said it was "confident that all questions will be resolved to the mutual satisfac- tion of both companies." Paper company Westvaco Corp., which is the principal supplier of packaging materials to Philip Morris, said it has dis- continued the use of thione following Philip Morris' findings. Westvaco said there are no health risks associated with these tiny trace amounts of MITC, and Philip Morals stressed that the defective cigarettes posed no danger to consumere. "In our desire to take prempt and responsible action to address this problem, we erred in suggesting that the MITC was derived from the plasticizer and could cause temporary discomfort," the company said. "Based on our subsequent investigation, we now know that our com- ments about MITC were inaccurate, and we apologize for any confusion that may have resulted. However, we believe that our consumers appre- ciated our overabundance of caution." Cigarette exports rise again for third straight record year S/~O PAULO -- Another record year for Brazilian cigarette exports was apparently set in 1994. The U.S. agricultural attache in Brazil esti- mates exports at 54.7 billion pieces, a third consecutive record. Belgium is the leading customer for Brazilian cigarettes, while Brazil's neighbor, Paraguay, ranks second. A significant volume of the Paraguayan exports is believed to be illegally shipped back to Brazil to evade high Brazilian excise taxes, which account for 74% of sales price. This contraband is believed to account for 10% to 15% of domestic consumption. Exports are expected to be roughly the same in 1995. Domestic cigarette consumption is forecast to increase in 1995 for the first time since 1990-- up 10% to 120 billion pieces -- because of gains in cort- sumer disposable income, the at- tache report said. Consumption had fallen 9% in 1994 to 10K1 billion pieces, but the Real Plan announced in July 1994 seemed to stop the de- cline. CUBA Brascuba: a Brazilian cigarette JV set for 1996 P, AVANA- The Brazilian subsidiary of British American Tobacco said it ~:~ll umdertake a $10 million joint Tobacco International 5 T156740802
Page 5: TI56740803
venture to make dgarettes in Cuba. The new compan}; Brascuba Cigar- illos S.A., will be 50% owned by Brazil's Souza Cruz S.A. and 50% by Cuba's government-owned Union de Empresas de Tabaco de Cuba, a Brazilian executive said. Milton de Carvalho Cabral, Souza Cruz's financial director, said Brascuba wiil start operation in Jan- uary, with production eventually reaching 500 million cigarettes a year. The first brands to be pro- duced will be CO~NTAL, Souza Cruz's top seller in Brazil, and PoP- ULAR, a Cuban brand. To make CON- Tn~NTAL, Souza Cruz will plant 700 hectares (about 1,750 acres) of Vir- ginia tobacco, milder than Cuba's traditional red tobacco, Cabral said. "With the U.S. blockade, which put American companies out of the market, it's interesting that we got there first," Cabral said. Brazil re- stored relations with Cuba in 1986, 22 years after they were severed by anti-Communist generals who seized power in a 1964 coup. INDIA ITC to build US$130 factory BANGALORE -- Indian Tobacco Com- pany (ITC) is ready to establish a state-of-the-art 37 billion per annmn cigarette manufacturing unit at Ban- galore in South India in a bid to re- place its current 83-year-old facility. ITC Ltd's new project is all set to shift its existing cigarette plant in Bangalore city to a suburban loca- tion near Nandi Hills, where it was sought from the government of Kar- nataka for release of 100 acres of land. It planned to manufacture 18 billion dgarettes per year at an in- vestment of Rs410 crore (US$130 million). It had assured the govern- ment that all 1,800 employees now working at its existing unit would be absorbed in the new plant. Ramalinga Reddy, minister of state for large and medium indus- tries, government of Kamataka, said that ITC was planning to expand the production of cigarettes from 19 billion sticks per annum at its exist- ing facility to 37 billion sticks per annum at its new Bangalore factory. Steam Expansion and Drying System O Expansion and drying by steaming On Line expansion takes place in a high efficiency steaming tunnel. Expansion of the tobacco cellular structure is achieved by the inter- active transfer of three types of energy. Compression and thermal energy is acthrated and transferred at high speed to the tobacco, by the free jat system In the steaming tunnel. The moisture within the cells boils, and the resulting vapour pressure increase, expands the ceIluIar structure and starts tha drying process. (~) Drying by evaporative cooling Following expansion, tobacco dry|ng and cooling takes place in one cylinder. No additional heat energy is needed to dry the tobacco. Sur- plus steam is taken from the tunnel, and passed through a heat exchanger to produce drying air. This is introduced into the tobacco before the tunnel discharge, and as hkJh speed vortices in the cylinder. The drying alr combined with tha high temperature of the tobacco, results in moisture reduction due to evaporatian and rapid cooling FRANZ SAGEMOLLER GMBH Nordstr. 30 - D-26345 Bockhorn • Germany. Tel. (044 53) 71691 +71692. Fax (04453) 71693 6 August 1995 T156740803
Page 6: TI56740804
1 1 1 1 ! ! ! | ] XTERYONE THAT BIGGER I S N 'T L AYS BI TTt R. Mergers and acquisitions have made lots of companies in our industry bigger. But have they made them better? Offering you better service? Better quality? More competitive pricing? 0r are you left with fewer choices and less opportunities for comparison? Try Haft & Cotton for a change. Our fidl-service capabilities make us a contender for your business. With personal service delivered by representatives who are experts in purchasing, handling, and processing. With capab~llties that enable us to meet and exceed your processing requirements ~or q~ahty custom work. And with competitive pricing that helps you compaxe. 8o give us a call. Hail & Cotton. After 90 years, we're not the biggest. Just the best. HAIL & COTTON SERvnqG 7I~E TOBACCO INDUSTm" SINCE 1902 2500 SOUTH MAIN STREET, BOX 638, SPRINGFIEld9, TENNESSEE 37172. (6151 384-9576. F.iX (6151 3~4-64.61. T156740804
Page 7: TI56740805
1TC set up its present factory in Bangalore in 1912, on a plot of 35 acres on what was then the out- skirts of the city. Now an integral part of the city surrounded by resi- dential areas, the area's traffic con- gestion and odor pollution have made smooth operations difficult. Forty percent of the project will be financed by the internal gen- eration at P, s164.37 cmre (US$52 million) and 60% by term loans, to the extent Rs246.55 crore. The new proiects are not likely to see sub- stantial generation in additional em- ployment. (m~o) MALAYSIA LITHUANIA Israel faces onslaught of smuggled products JERUSALEM -- Since the Jordan-Israel trade agreement was signed last year, there has been a marked in- crease in the amount of MARLI~ORO and KENT cigarettes being sold in the West Bank and Israel that origi- nate in the Arab world. As a pack- age of American cigarettes sell for US$2.30 in Israel but only US$1.74 in Jordan, US$1.14 in Egypt, and only US$0.71 in Lebanon, the smug- glers have discovered a lucrative market. Dubek, Israel's sole cigarette manufacturer, is applying pressure on the Israeli government to in- crease the price of foreign brands 10-15%, which wotdd make them twice the cost of its brands. Im- porters say that such a move will only serve to increase the hold the illegal trade willhave on the Israeli tobacco market and open the door for a further flood of smuggled to- bacco products. Proposed restrictions aimed at reducing tar levels VmNIUS -- The Lithuanian Parlia- ment has started negotiating legisla- tion concerning tobacco and prod- ucts restrictions, which is to come into force in 1997. According to the draft bill, ciga- rette packets will have to be provid- ed with Lithuanian language health warnings. Tobacco advertising will be prohibited and the State Alcohol and Tobacco Control Department will take full control over produc- tion and sales regulations. The bill also prohibits production of chew- ing and sniffing tobacco and sales ~rom vending machines. Sales of tobacco products con- taining more than 20rag. of tar in one cigarette will be banned as of January 1,1997, dropping to 15rag. as of January 1,1998, and finally to 12mg. by 2000. Cigarette manufac- turers will have to replace produc- tion lines to meet higher quality re- quirements, but companies have no hope to get subsidies, since the law prohibits the use of state budgets and the budgets of local govem- mertts for the development of tobac- co industry. Philip Morris to set up its first Asian processing plant KUALA LUMPUR -- Philip Morris Co. Inc. said it will open its first tobacco processing plant in Asia in October. Its wholly owned unit Philip Morris (M) Sdn. Bhd. ~vill operate the 182 million ringgit (US$72.8 million) plant, said Philip Morris Asia Inc. vice president David Barnet. The processed products will be exported to regional cigarette firms licensed for Phih'p Morris brands, Bamet was quoted by Bernama News Agency as saying in Serem- ban, in southwestern Negeri Sembi- lan state, where the plant is located. The plant will be capable of produc- ing 6,000 tons of processed tobacco a year when htlly operational. MALDIVE ISLANDS Cigarette imports plunge ~At~ m A dramatic reduction has been noted in the volume of ciga- EXITAB AG Leaf Tobacco of all Descriptions CH-4051 Basel SP_in~ngmb~n 28 Phon~: 061/'271.03.66 Fax: 051/271 09 77 Te'.ex: 984.681 xt~b ch Cab;~s: ExrrAB Bassi 8 August 1995 T156740805
Page 8: TI56740806
---
Page 9: TI56740807
T156740807
Page 10: TI56740808
Director of Sales DIMON lnternalionai, Inc. DI~ON T156740808
Page 11: TI56740809
T156740809
Page 12: TI56740810
rettes imported in the Maldive lands. Importation of cigarettes has decreased from 246 million ciga- rettes in 1993 to 174 million ciga- rettes last year. The corresponding import value of cigarettes also fell in 1994, from about Rf56.5 million in 1993 to about Rf49 million last year. (AU) MYANMAR Sampoerna in new cigarette joint venture YANGON -- Myanmar PT Hanjaya Mandala Sampoerna, a cigarette manufacturer from Indonesia, has joined up with a Myanmar busi- nessman, U Kim Swee, to establish a cigarette manufacturing plant in Myanmar. The joint venture will be 60% owned by U Kim Swee and 40% by PT Hanjaya Mandala. The plant will have a production capaci- ty of 30,000 boxes per month. The investment value was not disclosed. PAKISTAN PTC faces drastic cutbacks amid market deterioration PERU ISLAMABAD- Pakistan Tobacco Co (PTC), which contributes Rs6.5 bil- lion to the national exchequer annu- ally, may consider drastic curtail- ment of its business operations and abandon new projects in view of the unfavorable conditions prevailing in that country's dgarette manufac- turing sector. In a press statement, PTC chair- man J.B. Stevens said that unless the government reduces duties on low priced cigarettes the survival of the genuing manufacturers will not be possible. He said that administra- tive.measures taken by the govern- ment to check evasion of duty have not been effective in the past and were unlikely to work in the future. Instead, Stevens suggests that fiscal measures were required, and proposals were sent to the govern- merit that the incidence of excise duty on low priced cigarettes be re- duced in order to cut financial in- centive to evaders. He said that the reduction in excise duty has worked as a measure to reduce smuggling when the excise duty on the high priced cigarettes were reduced last year. Duty evasion by domestic manufacturers is on the increase ever since excise duties on the lower category cigarette brands were in- creased in the 1994 federal budget, says Stevens. Pakistan Tobacco Co. (PTC) has suffered a loss of Rs42 million in the first half of the current fiscal year (July 1994-June 1995) due to large scale excise duty evasion and smug- gling of cigarettes. Spanish, Mexico, B.A.T. all eye state tobacco firm LIMA-- A Spanish group and a local consortium are interested in buying state-run Empresa Nacional de Tabaco (Enata), which is to be pri- vatized in September, an official said. A source on Enata's privatiza- tion committee said Spain's Fierro group, owner of local cigarette firm Tabacalem Nacional and Peru's Ro- driguez Banda group, are interested Tobacco Intemnt~onal 1:3 TI5S740B10
Page 13: TI56740811
in buying 100% of Enata. The panel also has met with officials of Spain's Tabacalera Espafiola, British-Ameri- can Tobacco, La Moderna of Mexi- co, and Chile Tabaco. Tabacalera S.A. denied press reports in Peru's El Comercio that they intend to bid. According to published reports, the source said the state tobacco firm's base price will be set at be- tween US$2.5 million and $3.5 mil- lion. Enata has a 10% share of the local market, selling about 14 mil- lion packs of black cigarettes a year which amounts to $15 million to $18 million in revenue, the source said. The panel has finished the technical review of the firm in advance of its privatization; the source added. Fierro is owner of the local blond cigarette firm Tabacalera Nacional, as well as match maker Fosforera Nacional and Banco Intermaricano de Finanzas. THAILA ND ; WITZERLA ND OHILIPPINES Sampoerna acquires 40% of Rothmans MANILA -- PT Hanjaya Mandala Sampoema, through its subsidiary Sarnpoerna Int. from Singapore, has acquired 40% of Rothrnans with shares purchased from the Lorenzo Family Corp. in Philippines, as a move to expand its cigarette busi- ness in southeast Asia. With the ac- quisition, the new composition of Rothrnans shares are 40% owned by PT HM, 40% by Lorenzo Family Corp., and 20% by a Philippine company. Meanwhile, the Philip- pine cigarette plant has a produc- tion capacity of 75,000 boxes of ciga- rette per month. Fabriques de Tabac Reunies plans big improvements SERRIERES -- Tobacco processor Fab- riques de Tabac Reunies S.A. (FTR), a subsidiary of the Philip Morris group, says it will keep its facilities by the lake of Neufchatel at least for another eight to 10 years. The com- pany will invest SFr120 million in modernizing and enlarging its pro- duction sites over the next two years, keeping the Serrieres unit as a strategic production center for sev- eral years. FIR's production capacity is to rise from 20 billion to 24.5 billion cigarettes per year as a result of ex- pansion. The work:force is expected to remain at its current level of about 1,200. In 1994, FrR produced • 19.47 billion cigarettes (1993:16.73 billion). About 75% of these were destined for the Swiss market, giv- ing FTR a 45.0% (44.8%) market share. Cigarette ingredients regulations defended BANGKOK -- A public Health Min- istry draft regulation to compel for- eign cigarette producers to list their ingredients will not violate intellec- tual property rights agreements, a Commerce Ministry offidal says. Karun Kittisatapom, Commerce deputy permanent secretary, also said the regulation proposed does not discriminate between foreign and domestic cigarette producers. The Thailand Tobacco Monopoly (TTM) is already required to report ingredients used in Thai cigarettes to the Public Health Ministry. But the proposal has caused an uproar among foreign cigarette producers. Manufacturers from England, Japan and the United States have been lobbying furiously for a change in the regulation, which has received FABREEKA® FABLENE® FABCO®NRP Natural Rubber Polyolefin and EVA Belts Flat • Asendor~ • Chevron • Cleated All Belting Suitable for Direct Tobacco Contact Meets FDA Requirements ° No PVC U.S.A. -- England -- Holland -- Germany -- Canada 14 August 19~5 T156740811
Page 14: TI56740812
Cabinet approval and is now under review by the Council of State. Foreign producers say the resolution violates the General Agreement on Tariffs and Trade (GATT), a charge the Pub- lic Health Ministry denies. GATr protocol allows countries to regulate the import of goods deemed dangerous to public health. Producers fear Thailand will use the draft regulation to limit imports of cigarettes in order to protect domestic cigarette production. Suchai Jaovisidha, director-general of the Department of Intellectual Property, said that compelling cigarette produc- ers to provide information used in their production was in line with intellectual property rights laws. He said the infer- marion was necessary for the safety of the public. UNITED STATES Philip Morris launches program to prevent underage smoking NEW YORK-- Philip Morris U.S.A. is ending its cigarette giveaways and is threatening to penalize merchants who sell cigarettes to minors as part of a new push to curtail un- derage smoking. The company said it would support legislation to license cigarette vendors and prevent youngsters from buying ciga- rettes at vending machines. Philip Morris said the program reflected its concern about the tobacco industry's negative image caused by young people who smoke. James Morgan, chairman and c.e.o., said the new pro- gram should demonstrate Philip Morris" resolve to create "a marketplace where minors cannot buy cigarettes." The to- bacco company appointed former Senator. Warren Rudman of New Hampshire to audit its program and ensure compli- ance. State laws generally ban cigarette sales to people un- der 18. Company officials say there has been a long-standing corporate policy against marketing cigarettes to those under 18. The company said it dichVt know how many of its ciga- rettes are consumed by minors and said the potential for lost sales was not a factor in developing what it is calling the Action Against Access program. Its ban on cigarette giveaways would cut distribution by about 25 million packs a year, out of annual domestic sales of about 11 billion packs. BRABENDEW Moisture Tester Exact and direct determination of the moisture in tobacco and many other mat~s.'R~ idsal |nstmment for laboratory and factory.Improved drying oven method,considerable time reduction, testing 10 samples at the same gmo, high accuracy (0.1%). BRABENDEW Rotary Pulverizer System WILEY For laboratories where tobacco leaves and different kinds of materials must be ground before they am analyzed,Th~ laboratory mill pulverizes coame-gr~ned, f~brous and bulky materials. Please contact us for further Information. BRABENDER OHG DUISBURG West Germany Kulturst 51-55 • 47055 Duisburg Tel. 49- 203-7788-0 Fax 49-203-7788102 Ag~ncles In more than 60 countrlas all over th~ world. Tcbacco International 15 T156740B12
Page 15: TI56740813
FOR RELIABLE DELIVERY OF FRAGILE MULTI FILTERS YOU NOW HAVE A CHOICE... 0nly PEGASUS 2000 features: High efficiency, automatic delivery at up to 2,200 plugs per line per minute. Minimum degradation due to gentle, controlled product handling, including non-impact filter deceleration. Perfect plugs every time with automatic inspection incorporating dynamic rejection of sub-standard filters. [] Completely modular state-of-the-art technology. 2000 THE AUTOMATIC CHOICE FOR FILTER DELIVERY MOLINS RESPONDING TO YOUR NEEDS TI56740813
Page 16: TI56740814
Price, Crop, Quota, and Policy Updates BRAZIL Leaf production down I0.2%, quality looks solid s~,o PAULO -- The Brazilian tobacco crop for 1995 is being projected at 397,000 metric tons (MT) by the U.S. agricultural attache stationed here. This volume is 10.2% below 1994 but slightly higher than earlier estimates for this crop. The reduction from the previous year is in part due to a 6.3% reduc- tion in plantings. Very unfavorable weather conditions that led to low- er yields, especially in the major southern producing states of Rio Grande do Sul, Santa Catarina, and Parana were also a factor. The crop in southern Brazil, where flue-cured, burley, and the two other types used in domestic cigarettes are produced, is project- ed at 350,000 MT, down 12.5%. In the northeast, where dark types are grown, farmers planted slightly more hectares and an 11.7% in- crease to 47,000 tons is projected. The flue-cured Virginia crop is estimated at 280,000 tons, a 7.9% re- duction from 1994 Virginia crop. The burley crop is down by more than 30% for the second consecu- tive year at 55,000 tons. Just two seasons ago, hurley growers pro- duced 135,000 tons. But quality of both the flue- cured and burley crops, especially the latter, were reported excellent, perhaps because the lower level of production was better suited to available barn and management re- sources. GERMAN Y 1994 1995 :change,.: ~ South :"~::~,ii. Flue 161 154 -4.3% Burley 50 39 -22% Galp~o 3 3 0% Amarelinho 6 5 -16.7% Total South 220 201 -8.6% Northeast Cigar leaf 3 3 0% Cigarette leaf 20 25 +25% Twist 28 25 -10.7% Total Northeast 51 53 +3.9% TotaIBrazil 271 254 -6.3% Production of Amarelinho, a native tobacco type cured with furnaces and flues, was down 9.1% to 10,000 tons. Production of Galp~o, a native air-cured type, was unchanged at 5,000 tons. Both figure prominently in Brazilian cigarette blends. Production of the dark tobacco types of northeast Brazil was 11.9%, thanks mainly to a 37.5% increase in cigarette leaf production, to 22,000 tons. Production of twist was unchanged at 20,000 tons, and cigar leaf was down 16.7% at 5,000 tons. High prices for Sumatra leaf BREMEN ~ The 1995 season began at the Bremen Tobacco Exchange with an inscription of 4,038 bales of Sumatra cigar wrapper from the 1994 harvest year. With wide international partici- pation and lively competition, high prices were achieved. The signifi- cance of this inscription was further underlined by the presence of the State Secretary at the Indonesian Ministry of Agriculture, Irjen. Setiyana, and the Indonesian am- bassador in Bonn, H.E. Hartonoa Martodiredjo. All bales of tobacco were sold off, whereby the sought after sand leaf lots fetched top prices. Howev- er, good foot leaf tobacco was also much in demand. For the produc- tion of light cigars of the highest quality grade, Sumatra tobacco is often essential. Tobacco International 17 T158740814
Page 17: TI56740815
The prices exceeded expecta- tions and hence fully satisfied the Indonesian producers. Total earn- ings amounted to about DM13 mil- lion. A tangible shortage in some sectors due to a poor harvest fur- ther stimulated demand. The main purchasers comprised the Danish cigar industry as well as factories from Holland, Belgium, Germany, and France. Bremen's raw tobacco trade brought about 30% of the total sub- mission. Sales resumed on July 5, 1995, with an offer of 2,081 bales of Sumatra and 1,862 bales of Java. Locals believe flue-cured is poised for global growth DELh~ w With an average produc- tion cost of Rs16.50 (-US$0.53) per kg., Indian flue-cured Virginia to- bacco is perhaps the least expensive in the world market. Further judged by the internationally ac- cepted parameter for level of trade protection, Indian flue-cured Vir- ginia is seen to be the least protect- ed and therefore has the potential to gain more favorable terms of trade. Since the highly developed western tobacco industry demands a sophisticated leaf quality, it be- comes necessary for the Indian to- bacco industry to switch to the in- ternational method of leaf classification for export-quality to- bacco. The world trade in tobacco is growing rapidly with a 13% share in the global market place, with an estimated value of about $30 bil- lion. About 16% of the trade is CONVEYORS BLENDING BOXES SILOS FEEDERS TOBACCO HANDLING PROCESSING SPECIALISTS R6f~rences : .~EITA ~Franc~), RING WALD (RDA), TABACO DE CORIA ISpaln}, MABUCIG {Burkina Faso), MTK (Kairouan), MTOA {Dakar} .... ETS JOSEPH CRUANAS Av. d~ la l~sis.*a.ce- BP 12 -47230 LAVARDAC - FRANCE T~!:53655458 T~bx:571 114F Fax:53658305 18 August 1995 T158740815
Page 18: TI56740816
bert Fletcher Guaranteed Paper Strength Paper Strength Since 1990 the strength of cigarette paper produced by Robert Fletcher has been increased by 25-40% and it is now one of the strongest cigarette papers available. This has been achieved by optimising the fibre blend and the processing conditions for the individual fibres used in the paper making process. , R obert Fletcher uf~cturers of High Quality Cigarette Paper The improvement in paper strength provides significant benefits to the cigarette manufacturer in terms of cigarette production efficiency. Robert Fletcher We are committed to a programme of continuous improvement through investment in technology, Research and Development and perhaps most importantly, people. The results demonstrate the successes we have achieved and why we have become one of the world's leading manufacturers of high quality cigarette paper. T158740816
Page 19: TI56740817
MEXICO made up of tobacco leaf and the rest is comprised of value-added products, mainly branded ciga- redes. In hhe post-GATT scenario, India could we1~ become a major global player in tobacco trade if the ad- vantages are fully appreciated. "The main thrust should be to export value-added tobacco prod- ucts, which eam four to five times the value of leaf tobacco," says Amit Sarkar, director of the Tobac- co Institute of India. "Indian tobacco will have excel- lent opportunities in many more markets, once agricultural subsidies are withdrawn world over," Dr. R. L. Sanjiva Reddy, director-general said. CLM to increase burley in Chiapes TAPACHULA -- Chiapes, the south- emmost Mexican state, was former- ly a small but significant tobacco producer. In recent years, however, it has dropped almost entirely out of the leaf-production picture. But that's about to change. Ciga- rrera La Moderna (CLM), the lead- ing Mexican cigarette manufacturer, plans to increase its plantings of burley from 250 hectares in 1994-95 to 1,000 in the upcoming growing season, says a company spokesman. La Modema's plantings of Virginia will rise from 60 to somewhere be- ~veen 300-500 hectares. Adding small scale plantings of negro (dark air-cured) and cigar wrapper, the company expects to grow be~veen 1,400 and 1,600 hectares of tobacco of all types this season. That would be at least three times the level of the year just ended. Other cigarette companies are expected to grow about 200 hectares of burley as they did last season. That amount of plantings will in no way exhaust the land. In past years, between 4,000 and 5,000 hectares of tobacco have been raised in this state. An estimated 12,000 hectares could be sustained given the avail- able soil resources. The area's tropi- cal climate receives more than 150 MERIDIONAL INTERNATIONAL INDEPENDENT LEAF TOBACCO EXPORTERS FROM BRAZIL, ARGENTINA, PARAGUAY, ZIMBABWE AND MALAWI HEAD OFFICE: MERIDIONAL DE TABACOS LTDA. Av. Presidente Castelo Branco, 1285 P.O. Box 267 Distrito Industrial 96835-010 - SANTA CRUZ DO SUL RIO GRANDE DO SUL Tel: (55) (51) 713-1755 Fax: (55) (51) 713-1121 Telex: 510058 VIGA BR BRAZIL MERIDIONAL ZIMBABWE (PVT.) LTD. 20 AUCKLAND ROAD - SOUTHERTON P.O. BOX 24 Tel: (263) (4) 75701217 Fax: (263) (4) 754411 Telex: 24349 ZW ZIMBABWE 20 August 1995 Tl58740817
Page 20: TI56740818
T156740818
Page 21: TI56740819
T156740819
Page 22: TI56740820
ZIMBABWE inches of rain each year, which contributes to good yields and quality, although disease control is more of a concem than in other major leaf-producing areas in Mex- ico. A more pressing question, how- ever, may be that of social stability. Chiapas, which borders Guatemala, was the site of the Zap- atista insurrection in January 1994 that threw the Mexican economy into turmoil. Tobacco is grown primarily on the Pacific coastal plain, however, while the Zapafista unrest was con- fined to the highland areas of the state. An end to that conflict seemed to have been successfully negotiated as of June. (]~ICKERS) Imposed U.S. quota angers growers NARARE-- Plans to curb Zimbab- we's tobacco exports to the United States by two-thirds have left Zim- babwe's tobacco industry in dis- may. Anthony Holmes, United States commercial officer in Zim- babwe, said negotiations were like- ly to lead to an offer of a 12,000 ton annual quota -- the same as Malawi, a comparatively minor producer. "We do not believe that this is fair," said Bill Seafles, president of the Zimbabwe Tobacco Trade As- sociation. "We are a big tobacco growing country and we would like to see that quota increased." Although significantly smaller than Zimbabwe's 32,594 tons ex- ported to the U.S. in 1993, the quo- ta would exceed considerably the initial U.S. offer proposed as a re- placement system to the 75% Do- mestic Content law, which initially offered Zimbabwe only 5,000 tons. Zimbabwe has recently re- gained from Brazil the position of the world's second largest tobacco exporting country -- a~ter the Unit- ed States w a position it lost when United Nations sanctions were im- posed in the wake of Rhodesia's 1965 unilateral declaration of inde- pendence. CONVEYOR BELTS FOR THE TOBACCO INDUSTRY In order to meet the increasing requirements of the logistic systems for the tobacco industry BELTECH CONVEYOR BELTS are predominantly used in primary process along with the product finishing and other future-oriented fields of application like material handling. More and more customers rely on the innovative solutions of VERSEIDAG BELTECH. The worldwide presence of the BELTECH GROUP guarantees professional service and reliable advice in engineering and sales. For further information please contact one of our group companies: , BEL~CH VERSEIDAG AG, Industriestr. 56, D-47803 Krefeld, TeL: (49} 2151/890-236, Fax: (49) 2151/890-333, BODE-LEDER BELTECH GMBH, Spandauer Str. 18, D-21502 Geesthacht, Tel.: (49) 4152/937-0, Fax: (49)4152/77695. VERSEIDAG BELTECH AUSTRIA, Nuschinggasse 12. A-1235 Wien, TeL:national 0222/8653901, international {43) 1/8653901, Fax:national 0222/865390110, international (43} 1/865390110, LEDER BELTECH AG. Buachstr.37. CH-8645 Jona.Rappars,::il, Tel.: {41} 55/253535, Fax: (41) 55/253636, B;:LT MOVER S.R.L. V~a 4 I~Jovembre 44, b40051 Minarbio (Bologna}, Tel.: (39) 51/6505005, Fax: (39} 51/5605016. MIJTLLO B[LTECH S.A., Pla dais Avallanars 15, PoL End. Santiga, E-03210 B~rber~ dal Vall~s, Tel.: (34) 3/7183305, Fax: {34) 3/7186273, TRANSMffE B[LTECH $.A., Rua Eng. Frederico U~rich 2854. Zona l~dustrial Maia 1, P-4470 t,~aia, Tel.:(351) 2/9417~59, Fax: (351) 2/9413081. LED~:R B[LTECH FRA~CE Sa~l, 30-32, Rue I~un,~essar, F-94310 Oriy-V~Ile, Tel.: (33) 1/4~53052a, Fax: (33} 1/4~521302. LI:D~:R B~LTECH B~LG[UM r~I.V./S.A., St. Jansveld 2. Postbus 59, B-2160 Wom~elgem, Tel.: (32) 3/3541313. Fax: (32~ 3/3541323, LED~R BELTECH HOLLA[;D BV. R~ilak.kersstraat 32, Postbus 7002. t,~L-5605 JA Ei~dh~an. Tel.: (31} 401513975. Fax: (31) 40/5289,35. LEDER BELTECH U.K. Ltd., Unit 1, [,lichi~an Park. L',!ch;gzn t'-::an,:~. SzIf~rd, M~r, chaster ~,~5 2GL, Tel,: (44) 161/8767601 Fax: {44} 161/,3767019, I'~RMA B~LTECH A~, Box 13, S-2~054 G[im~za, {46) 44/43015 Fax: (46) 44/43349, BURRELL-LEDER EELTECH, I~'~C., 7501 h'.~rth SL Louis A;'anue. Skoki.~, Illinois 6~)076/USA. Tel.: (1] 70516736720. Fax: (1} 70~/6736373, LEDER BELT[I'|G CAt~ADA Ltd. 290 Britannia Road East, Uisaiss~:uga, Ontario, L4Z 1S5 C¢~.~d~, TeL: (1) 905./~931311. Fax: 9~35/~0~5~0. LOO~G GU.~I EELTECH PTE. LTD., Cr::o:~ ~ ~:u~e ~. 0.-1-02.3 U3! A,:erus 3, SGF-S,~:~c;:re 14~0, TeL: (55] 2~16339 Fax: (65} 2~5482 A G E t',l C I E S I r~l M O R E T H A ri 5 o c o u r~ T R I E S Teb~cco Intern~t~on~! 23 T156740820
Page 23: TI56740821
News from the Supplier, Machinery, and Equipment Industries B.A.T. Embraces lnfrared's "Instant" Moisture Measurement sotm-t~n~roN, ENGLAND -- B.A.T. has replaced the overnight oven test traditionally used for routine quality control with an automatic system which completes a moisture measurement in just a few seconds. The system allows immediate iden- tification of production variations and minimization of scrap. Following comparative testing by B.A.T. engineers, the Infralab TM5000 from Infrared Engineering has been adopted as the main method for quality control testing and daily bias checks on in-line in- strumentation on the flue-cured to- bacco line. Data collected from more than 2,000 samples over two months shows the infralab test-- which takes only three minutes to complete moisture measurement of a batch of ten samples -- to be as accurate, consistent, and reliable as the 16-hour oven test. "The data we collected showed quite clearly that the performance of the Infralab is very close to that of the oven test," said Nick Boham, process liaison manager at the B.A.T. Technology Center, respon- sible for the testing of the Infralab. "It is wen within the 0.5% accuracy level that we need for routine quali- ty control purposes." The Infralab TMS000 is a bench- top infrared laboratory instrument for automatic chemical analysis of tobacco samples -- measuring pa- rameters such as moisture, sugars, and nicotine. A control PC with multitasking software allows simul- taneous scanning control, data col- lection, and statistical analysis. To- bacco samples are simply placed into a tray which is inserted into the scanning unit. The system then au- tomatically indexes the tray in posi- tion and rotates it at constant radial velocity, presenting the full area of the sample to the measurement sen- sors. Scanning takes just 15 sec- onds, then the tray is automatically ejected. Results are displayed on a screen, and logged. B.A.T.'s Southampton manufac- turing facility now routinely uses the Infralab for regular moisture measurement checks at all process- ing stages on the flue-cured line. As a precaution, the Infralab is checked against an oven test once a week, to ensure there has been no significant drift in calibration. Per- formance has been found to be con- sistently high. "We now get moisture measure- ment results straight away, instead of having to collect samples throughout the day and run oven tests overnight," says Mike Rab- betts, quality assurance manager at B.A.T. "Should there ever be a pro- duction problem, we can react to it immediately, and continue to take as many measurements as neces- sary until the problem is solved, minimizing the possibility of pro- ducing out-of-tolerance product." "The Infralab is now our main 24 August19~5 T156740821
Page 24: TI56740822
nicos gleoudis ~ t~k~.• (o~D s~6 ~o~s • F~.~: (osl) ~-~7 7~0 oTIs.: ~!~BT~ KVX T156740822
Page 25: TI56740823
moisture measurement method for the entire production plant -- we just use the oven test as conforma- tion of results. The Infralab gives more stable results than the oven test which is affected by other volatiles which may be present in the tobacco, in varying amounts," says Rabbetts. About 15 B.A.T. sites around the world have now invested in an In- fralab system, following recommen- dation by the B.A.T. Technology Center and manufacturing facility at Southampton. For further information contact Ian Benson, Infrared Engineering, Galliford Road, The Causeway, Maldon, Essex, England CM9 7XD. Tel: (44)(1621) 852 244. Fax: (44)(1621) 856 180. Wolverine oxidizers destroy up to 99% of VOCs DE PERE, WISCONSIN Designed to convert harmful air pollutants to carbon dioxide and water at tem- peratures ranging from 500 to 650 degrees Fahrenheit, catalytic oxi- dizers from Wolverine (Massachu- setts) Corporation can destroy up to 99% of volatile organic compounds (VOC's) and exceed all local, state, and federal clean air requirements in the United States. Wolverine catalytic oxidizers use a fully welded, counterflow, REINDL- BTS Reind] Masch|nenbau GmbH lrn SpeyeT 5 • 54294 Tr~eT * Germany Te|.= + 49-6.51.88843 • 26 August 1995 plate type heat exchanger to pre- heat incoming exhaust fumes and help reduce operating costs. As the process exhaust fumes are passed through the catalytic chamber, a pure platinum group metals cata- lyst is used to promote oxidation. To insure complete oxidation, a nat- ural gas fired burner provides the necessary heat. An industrial grade process sup- ply fan is used to convey the ex- haust from the process collection point or points to and through the oxidizer. Depending on the applica- tion, the precious metals used in the process are deposited on either a monolith substrate or on pellets and in most cases can be expected to last seven to 10 years. Designed for fully automatic or unattended operation, Wolverine catalytic oxidizers can be easily retrofit or adapted to existing processes. For optimum performance, the unit's catalytic chamber/internal housing is manufactured of heavy gauge stainless steel with all inter- nal components fully welded and insulated using a combination of ceramic fiber blanket and ceramic fiber board. To lower operating costs, the airflow volumetric turn- down can be five to one, with the unit automatically adjusting to the airflow volume being exhausted by the individual process. Depending upon individual needs, design assistance and test- ing prior to installation is offered by Wolverine as well as start-up supervision and complete turnkey installations. To minimize site in- stallation time and costs, Wolver- ine catalytic oxidizers are prebuilt T156740823
Page 26: TI56740824
and prewired and are backed by a full two year factory warranty. For additional information, con- tact Wolverine (Massachusetts) Corp. Pollution Control & Industri- al Dryer Division at P.O. Box 521, De Pete, Wisconsin 54115-0521. Tel: (1)(414) 336-5231. Cardwell, Tholander to supply deodorizing plants FARNBOROUGH, ENGLAND -- Card- well Europe Limited has signed an exclusive marketing and manufac- hn'ing collaboration with Tholan- der GmbH of Germany to supply biological deodorizing plants to the tobacco industry. Tholander's BioFilters, modular biological filters which utilize an activated filter bed of peat and heather to break down odors pro- duced in the primary processing ar- eas, are combined with a two stage packed wet scrubber. The system combines the advantages of both scrubbing and filtering systems and is completely natural, since odors are decomposed in the Biomass into water and carbon dioxide. The process is a positive environmental system and a low cost operation. "With Cardwell's extensive ex- perience in air handling and pneu- matic systems in the tobacco indus- try, combined with Tholander's experience in Biofiltration with ref- erence plants throughout Europe and more recently in the Far East, a comprehensive cost effective solu- tion using environmentally friendly technology may be offered," said Peter Benwell, managing director of Cardwell Europe. "qt also creates new opportunities for Cardwell to support Tholander in non-tobacco areas." A flexible package has been de- veloped to maximize locally avail- able materials in terms of fabrica- tion, and BioMass thereby reduces the amount of foreign exchange customers overseas have to find. Laboratory facilities are available to test alternative local BioMass mate- riais such as coconut fiber. For more information, contact Cardwell Europe, St. Albans House, 40 Lynchford Road, Farn- borough, Hampshire, England GU15 6EF. Tel: (44)(1252) 371 042. Fax: (44)(1252) 275 977. General Eastern's mirror dew point hygrometer WOBURN, MASSACHUSETTS m General Eastern has introduced the Model M4 chilled mirror dew point hy- grometer, which allows lower cost multi-parameter measurements than previously available. The hy- grometer can be mated with any one of General Eastern's five chilled mirror sensors to provide an overall measurement range from -80°C to +50°C (-112°F to +122°F) dew point, 0.003% to 100% relative humidity (RH), or less than 500 parts per bil- lion, depending upon configura- tion. The unit is available in three versions: Model M4-DP for measur- ing and outputting dew point; Model M4 for measuring dew point and temperature, and outputting dew point or relative humidity, and temperature; and Model M4-PR for measuring dew point and pressure, and out-putting dew point, parts- per million, grains/pound, grams/kilogram, or pressure. Standard features include selec- table display units, autobalance, field scalable 4-20mA and 0-5 VDC analog outputs, and RS-232C com- munications. Models M4-RH and M4-PR also provide a second ana- log output, a 5 amp, FORM C alarm relay, and terminals for connecting a GEI Model T-IOOE temperature sensor or PT-30A/PT-300A pres- sure transducer. Alternatively, the users may connect their own RTD or 4-20mA input for temperature or pressure. For more information, contact General Eastern Instruments, 20 Commerce Way, Woburn, Massa- chusetts 01801. Tel: (1)(617) 938- 7070. Fax: (1)(617) 938-1071. Improved activated carbon cigareffe wrapper PISGAH FOREST, NORTH CAROUN'A- A dgarette wrapper developed by William F. Owens, Jr. uses activated carbon to stabilize and demobilize volatile organic and volatile inor- ganic acids, according to Microp- orous Materials Technology News. The activated carbon is incorporat- ed into a cellulosic fiber sheet, which also contains inorganic fillers. The activated carbon absorbs M4 Chilled Mirror dew point hygrometer from General Eastern. Tobacco InternaEonal 27 Tl56740824
Page 27: TI56740825
the acid, preventing the volatile acids from migrating to other parts of the cigarette during storage. The patented dgarette wrapper provides improvements in side- stream smoke aroma, reduction in sidestream smoke irritation, and im- provements in subjective taste of the mainstream smoke. For more information, contact William F. Owens, Jr., 12 Orchid Heights, Pisgah Forest, North Car- olina 28768. Tel: (1)(704) 877-3313. Shorewood Packaging to close Pittsford facility PITTSFORD, NEW YORK -- Shorewood Packaging Corporation, in an effort to streamline its operations and en- hance the overall productivity of its remaining ten plants, will close its Pittsford, New York paperboard packaging facility. The plant is ex- pected to close sometime during the fall. The company plans to transfer the equipment to other Shorewood facilities. Filtrati awarded ISO 9002 quality certification ROME -- Filtrati, manufacturers of cigarette filters, has achieved ISO 9002 quality certification at all of its sites -- Rovereto and Salerno facto- ties, and at the head office in Rome. "Filtrati has always adopted a high quality profile for the products manufactured and customer servic- ing, and we are therefore very proud to see this quality image fur- ther endorsed by ISO 9002 certifica- tion," the company said. BTS, automated box handling from Reindl TIER, GEI~IANY -- As a result of many years of experience, Reindl Maschinenbau GmbH specializes in nearly all pa "eking machines used in the cigarette industry. During the last four years, Reindl has worked on various machines for 1TM in Holland. This work has mainly con- sisted of rebuilding and general overhauling, including modifica- tions. Independently, Reindl has suc- cessfully built a new and specially designed cigarette massflow system for longies -- long rods to be cut by smokers -- with a cigarette reser- voir, a direct linkage between mak- er and packer. Reindl has also car- ried out various client-specific projects. Reindl can provide references from many renowned cigarette manufacturers who have used our services. The company's latest pro- ject has been the development of a box/bundle transport system 0BTS). This box/bundle transport sys- tem consists of a conveyor belt which transports dgarette boxes and bundles to a centralized case packing department. This transport technology has been newly devel- oped as a result of approximately 15 years of experience gained in well known cigarette companies. Displayed during the exhibition TABEXPO 94 in Vienna, the Reindl BTS has generated a great deal of interest in the international field of dgarette manufacturing. The modular structure of the system allows it to be installed as required. The Reindl BTS is distin- guished by its smooth and careful transportation of cigarettes. The ele- vators are capable of carrying boxes or bundles of any size, to any height of transport line required. The same technology allows the el- 28 August 1995 T156740825
Page 28: TI56740826
evators to transport dgarettes to any desired case packer. The system can be adjusted to take any box or bundle size used in the cigarette industry without using size parts. The component reservoir enables boxes or bundles to be stored, should the case packing ma- chine malfunction. The same tech- nology utilized in the elevators is also used here. The volume of the reservoir is dependent upon the vertical space available, and, in situation where little ground space is available, the respective height of the production room may be used in its entirety. The bundles and cigarette boxes are transported by conveyor belt, which may be extended to a length of 200m. Bends and slight upward and downward slopes in the trans- port system allow it to fit easily into any shape of production room. Any necessary adjustments to the system, or change in position on the production floor are easy to im- plement. The technicians of any cig- arette company, or any local techni- cians would be able to carry out the alterations. Iustallation costs are therefore kept to an absolute mini- mllm. No training costs for production workers or technicians are neces- sary, as instructions on how to use the system are given in several lan- guages on display panels. In addi- tion, the whole system is mainte- nance-free. The design, in aluminum and stainless steel, along with the use of high quality materials and the most modem electronics, guarantees a long life span without wear and tear. The Reindl BTS provides the optimal flow of material as a result of its logistics. The centralization of case pack- ing departments saves significant transport costs. The energy con- sumption of the whole Reindl BTS including reservoirs is less than 2 Kwh. The low level of manual transport required means that not only is energy saved, but also man- power costs, as no acddents can oc- cur. Use of the Reindl BTS means that packing machines are not clut- tered by packing material on pal- lets. This, in addition to the fact that it takes up so little space, means that there is more room, light, and cleanness on the production floor. This transport technology and transport capadty of over 100 bun- dies boxes per minute is a sure mark of progress. With this system, manufacturers are effectively pre- pared for the future. For more information, contact Reindl Maschinenbau GmbH, Im Speyer 5, D54294 Trier, Germany Tel: (49)(43) 651-88843. Fax: (49)(43) 651-88807. Paper & Packaging Specialists Proudly serving the Tobacco Industry Recipient of the Philip Morris "Award of Excellence" 3 times. Over 30 years experience manufacturing SBS Committed to providing the best products and service available. RO. Box 43 2018 Bmvard Road H~h Po!nt, h'C 27281 USA (910} ~37-2651 tax (910} E32-2C59 Tobacco lntematd+nal 2.9 IIII T158740826
Page 29: TI56740827
Kbrber Group restructures; targets new direction HAMBURG -- The K/~rber Group's re- structuring process has now reached completion. In June, the committees of both K/~rber-Stiftung (in its capacity as sole shareholder) and K6rber Holding GmbH decided that with retroactive effect from Jan- uary 1,1995, the group, consisting of 30 engineering companies located in Germany and abroad, would be divided into three branches with a management holding assuming overall control of all three. The group's holding company is the newly formed K6rber Aktienge- sellschaft, which has been provided with a nominal capital of DM250 million. It will assume overall con- trol of the three independent opera- tire branches which are: • Primary and secondary equip- ment for the tobacco industry; led by Haurd Maschinenbau AG; in Hamburg-Bergedorf. It is also a manufacturing company with capital of DM200 million. • Machinery and equipment for the paper and tissue processing industry; led by PapTis Holding GmbH, Hamburg. • Machine tools; led by Schleifring Maschinenbau GmbH, Hamburg. The group's overall 1994 turnover-- a difficult year for the German engineering industry -- to- taled about DM1,800 million includ- ing new acquisitions, (compared to DM1,440 million the previous year). Of this around DMI,100 million was achieved by the tobacco branch, DM430 million by the paper and tis- sue branch, and DM290 million by machine tools. 30 August1095 The group achieved a satisfacto- ry result considering the general difficulties facing the engineering industry. Overall turnover is expect- ed to increase to around DM2,000 million for 1995. Orders have in- creased since the end of last year. However, business is still under considerable pressure, due to tough competition from suppliers in other European "soft currency countries." The number of employees in the KSrber Group will increase to 8,200 this year. This is due not only to the expansion of fast-growing sectors (such as the tissue sector) but also to the establishing of a new subsidiary Haunt Sopiana, in Pecs, Hungary which produces primary and sec- ondary machine parts for the Haunt branch. This constituted a further step towards internationalizing the group's production facilities. Around 80% of the group's total production is sold to export mar- kets. There are currently around 2,700 staff employed in manufactur- ing companies abroad (Italy, Switzerland, the U.S., France, Hun- gary, South Africa, and Braze. Management says the reorgani- zation corresponds to the increased importance of the three branches. It makes them more flexible in terms of competition because all three units operate independently of one another, makes it clear where re- sponsibilities lie (including the re- sponsibility for profits and losses) and mobilizes additional driving forces. It also believes the company structure is clearer to customers. KOrber AG (which due to the re- structuring process no longer exists) was directly respons~le for opera- tions in the tobacco machinery bust- hess (Haunt), as well as being a holding for companies in the other branches including subsidiaries and companies in which the company has a share holding. Karber Aktiengesellschaft, which has overall control of the group, in addition to being a share holding company, is also a manage. ment holding." In addition to Eber- hard Reuther (chairman), Dr. DieteJ Tenter (finance), the board of this company also includes the manag- ing directors of the three branches. These are Wolfgang Jeglitza (tobac- co), Uwe Langfeld (PapTis), and Dr Werner Redeker (machine tools). K6rber Aktiengesellschaft has a supervisory board: Dr. Frank Ni- ethammer (chairman), Dr. Hans Fahning, J~rgen Jantzen, Dr. Eber- hard yon Koerber, Helmut Schmid and Ulrich Voswinckel were ap- pointed as representatives of the K6rber-Stiftung, the sole sharehold er. Representatives elected by em- ployees from German group corn- parties are: J~rgen Haubrich, Uwe Mallmann, Klaus Lohnzweiger, Wolfgang Rabethge, Karin Roth, and Marina Teltow. Haunt Maschinenbau AG, in- volved in all tobacco business con- tracts, has also been provided with a supervisory board. Representa- fives of the sole shareholder K/~rbe Aktiengesellschaft in this supen, isl ry board are: Eberhard Reuther (chairman), J&rgen Jantzen, Dr. UI. rich Meincke, Dr. Johann Schfiffle, Alfred Schubert, and Dieter TenteJ Appointed as Haunt Maschinenba AG board members: Wolfgang Jeglitza (chairman), Hans-Heinrid Bruns, Dr. Gerhard Hensgen, and Haus-Dieter Pade. T15674082i
Page 30: TI56740828
---
Page 31: TI56740829
Dired Cylinder Conditioning: Directly Deserving of Wide Acceptance Cigarette manufacturers are hesitant to Mtroduce processing changes. But a new primary processing method, direct cylinder conditioning process (DCC), is becoming more accepted by multi-national manufacturers as a better way to go. by Herbert Wilhelmy n established principle of pri- mary process- ing is to avoid handling tobac- co more than absolutely nec- essary until its moisture has been increased from storage moisture to at least 15-16%, to keep degrada- tion low. Unlike conventional oper- ations, such as vacuum condition- ing, the direct cylinder condi- tioning process (DCC) does in- volve some han- dling of the to- bacco at storage moisture level. The good news is, however, that it causes little or no change to the characteristic of the tobacco, and it actually reduces degradation! Investment in DCC to replace conventional pre-condition- ing and conditioning processes of- fers excellent prospects of pay- back. Until recently, the state-of-the- art has been the vacuum pre-condi- tioning process with subsequent cylinder conditioning. At the vacuum pre-conditioning stage, bales of tobacco lamina are placed Storage area for Tobacco Feeding Conditioning tobacco Slicer Conveyor Cylinder into a strongly built sealed cham- ber. The air is then evacuated and steam injected into the chamber. The steam condenses on the lamina increasing its moisture from 11- 12% (storage moisture) to approxi- mately 15%. The vacuum process requires around 45 minutes, after which the bales are removed from the chamber to an intermediate storage area. From here they are loaded into a tipper-feeder and via suitable means of flow control, fed into a condition- ing cylinder for permanent mois- ture addition. While this process offers several advan- tages over earlier methods, it also suffers from a number of inher- The direct cylinder conditioning process (DCC) for tobacco is gaining some much deserved notice for its compact and efficient design. 32 Augu~ 1995 T156740829
Page 32: TI56740830
ent shortcomings. First, the equip- ment cost for the vacuum chamber and the vacuum pump is high, as is energy consumed in the process, due to the large amount of steam used. Second, the moisture added to the tobacco in the chamber is "tem- porary," and therefore equivalent to the heat energy added in this process. Care must be taken to re- duce drying of the tobacco before it is fed into the tipper-feeder. The moisture has to be "fixed" and in- creased in a subsequent condition- ing cylinder to that required for further processing (18-26% wet weight basis). Other problems range from hot and cold spots in the pre conditioned tobacco; bales require double handling and are stored twice -- before and after vacuum conditioning. A]so, the tip- per-feeder adds considerably to to- bacco degradation. The DCC eliminates the vacuum process drawbacks. Although DCC initially involves the handling of dry tobacco, the overall degrada- tion within this process is lower than that experienced by vacuum processing and subsequent condi- tioning! Its basic stages are: 1. Vertical or horizontal slicing of the tobacco bale. 2. Feeding of slices into a condition- ing cylinder. 3. Addition of permanent moisture in the conditioning cylinder in one stage up to the required level for further processing (e.g., cut- tmg). The weaknesses of the vacuum process are thus eliminated. More- over, the DCC process requires tel- atively simple equipment m "aking capital cost savings of over 50% possible. Processing energy is 1/3 to 1/4 of that required with vacu- um processing and subsequent cylinder conditioning. The added moisture is "perma- nent," and no further conditioning stage is needed. The tobacco tem- perature is more readily control- lable in the conditioning cylinder than in the vacuum chamber. The tipper-feeder is not required and overall degradation is reduced, and labor and space are saved because there is no double handling of to- bacco. The process is virtually con- tinuous, reducing moisture and temperature fluctuations. Less equipment required Another major consideration with primary processing is equip- ment. The vacuum process requires the use of an auto-feed (e.g., tipper- feeder) and additional equipment, such as metering tube and weigher, Storage area for Vacuum tobacco Chamber Conditioning Cylinder to achieve the necessary flow con- trol into the conditioning cylinder. Tobacco degrading takes place in the feeder, particularly to the last bales of a vacuum processed batch which have suffered moisture loss and cooling. By contrast, the DCC process eliminates the need for the degrading tipper-feeder, and achieving accurate short and long term flow control could not be easi- er[ The tobacco slicer is set to di- vide the tobacco case into a pre-de- termined number of slices at pre- set time intervals. Hence, flow con- trol is as accurate as the weight variation of the cases, which at this stage of the primary process may be sufficient. For example, cases of 200kg. lamina are processed at 6 slices per case and sliced/discharged at the rate of one slice every 40 seconds. The tobacco flow rate into the con- ditioning cylinder then amounts to 200kg. every four minutes or 3,000 kg. per hour. Storage area for processed tobacco Flow Tipper- Control Feeder T~b~cco lntem~t:on~] 33 T156740830
Page 33: TI56740831
WORLD LEADERS Tobacco Processing Dickinson has set new standards of • performance and enjoy a world wide reputation for quality and reliability in the design and manufacture of tobacco processing machinery and control systems. TECHNOLOGICAL ADVANCE A succession of 'firsts' in tobacco processing bear witness to the productivity of development programmes to date. From the Weycon and ITM drying system to the industry's first form of continuous pre-conditioning (CCM) in the early 1970s, Dickinson Engineering has led the industry on machine development since the company's inception. Continuing on in the 80s with machine firsts such as self compacting box filling system, Pycon tubular conveyors, the industry's first commercially accepted direct cylinder conditioning (DCC) system, Admoist stems conditioning, the industry's first commercially accepted hessian removal system and on into the 90s with STS stem expansion system. IN a W H D~,ckinson Engineering Limited, Moors!de Road, Winchestsr, Hants SO23 7SS. Telex: 477271. Cab~a: Primary Winchester. TeI8phone: Winchester (0962)842222. Fax: (0982)840567 !: A B~',f Grcup T156740831
Page 34: TI56740832
i Where case weight variation is a problem, a weigh scale can be em- ployed. The slice thickness, or the slicing cycle time, can then be cor- rected automaticaliy to account for the lighter or heavier cases. Using the slices from a 180kg. case would be discharged at the rate of one every 36 seconds, and slices from a 220kg. case wou~d be discharged at one every 44 sec- onds, to maintain a flow rate of 3,000kg. per hour. Although DCC initially involves the handling of dry tobacco, the overall degradation within this process is lower than that experienced by vacuum processing and subsequent conditioning. Two basic DCC methods When choosing a direct cylin- der conditioning line the differ- ences between various designs need to be considered. One such difference is the direction in which the tobacco case is divided. Princi- pally two systems are offered to- day: vertical or horizontal slicing. In horizontal slicing, the case is divided into sections where the di- viding plane is parallel to the plane of lamina stratification. A separat- ed slice is pushed over the top of the residual case onto a feeding conveyor which carries it into the conditioning cylinder. While in vertical slicing, the case is divided perpendicularly to the plane of stratification. The cut off portion is lowered onto a sys- tem of feeding conveyor(s) where it tends to separate into sections (or "logs") and from where it is trans- ported into the conditioning cylin- der. Each of the two methods offers certain advantages and there is no universal agreement on which of them is the better. A choice of suppliers Today, most of the major sup- pliers of tobacco primary equip- ment offer their version of DCC equipment and processing lines. Among the most experienced are two suppliers in the U.K.: Dickin- son Engineering Limited and GBE Tobacco (formerly GBE Legg). GBE Tobacco offer a range of to- bacco slicers, both horizontal and vertical, capable of handling all to- bacco types and case sizes, as well as a "revolutionary new condition- ing cylinder which has been de- signed around the special condi- tioning needs of the tobacco slices." They claim simultaneous improve- ments in filling power and particle size and quote filling power gains of "between 2% and 7%, depend- ing on the tobacco characteristics and subsequent processing after conditioning." Their conditioning cylinder has a patented slice open- ing mechanism "which uses dif- fused low pressure steam and a special pin configuration to open the slices gently and progressively without overheating the tobacco." Dickinson Engineering Ltd. of- fers both horizontal and vertical slicers suitable for 900 or in line configuration. They state that they have been "the first to pioneer and introduce the modern DCC process commercially to the in- dustry during the mid 80's" and to have "installed over 100 sys- tems in all the major manufactur- ing groups worldwide." It's horizontal slicer can handle a wide variety of tobacco. Very lit- tle breakage is said to occur while the laminates are being parted by the slicing forks "due to the fact that the natural tendency of the tobacco is to separate into layers." Among the benefits claimed by Dickinson are excellent opening and conditioning on a wide vari- ety of tobacco, energy consump- tion to be approximately 70-75% lower than conventional process- ing, consistent flow rates, low moisture deviation, moisture in- crease from 11% to 18-24% in a sin- gle pass, and greatly reduced floor space requirements. ~ Herbert Wilhelmy is a director of Wallop Technology Ltd, indspendent tobacco industry consuUants, and is associated with independent tobacco industry con- suitants John B't~s',d Ltd. Tobacco Internat!on~! 35 T156740832
Page 35: TI56740833
by Zhao Qinghua ~n an attempt to upgrade the cigarette industry, which sounds a bit odd when China is launch- ing an anti-smoking campaign, the State To- bacco Monopoly Administration (STMA) has decided to put its strongest support behind the Tian- jin Cigarette Factory (TCF). This has re'kindled the desire of TCF's workers and staff to recover its old status as one of the nation's top three cigarette producers.The 76- year-old TCF, one of the oldest in China, is building a new factory at a new site. The 92 million yuan (US$11 million) project highlights TCF's determination to reassert its importance as a major producer of cigarettes in China. According to Song Guozhu, the new factory di- rector elected by the company's board of directors in February, TCF will "focus on raising the quality of products and developing new ones with the International Standards Organization's 9,000 world-class standard as our target." Construction of the new factory began on October 6, 1994 on the 13- hectare-site of the cut-tobacco workshop in accordance with a joint decision of the China National Tobacco Corporation (CNTC) and TCF. The cost will be shared, with CNTC contributing 70 million yuan (US$8.4 million) and the factory providing the rest. TCF, (originally called the Yee Tsoong Tobacco Co. Ltd.), was set up in 1919 by the Great British Cig- arette Co. Ltd. (GBCC), a sub- sidiary of the British-American To- bacco Company. The factor},, one of the three branch factories of GBCC in China, was formerly the largest cigarette producer in north China. 36 Augu~ 1995 China's oldest cigarette f actort, li The other two GBCC factories were building was too old, and its space | in Shanghai and Qingdao. The first characters of the two cities" names, together with that of Tianjin, form the manufacturer's logo "shang- qing-tian," which means "soaring to the sky." TCF was nationalized shortly after the Peoples Republic of China was established in 1949. In the early 1980s, the factory built a new primary processing depart- ment in what is now the Yangjiatai Industrial Zone on the outskirts of Tianjin, as the downtown factory too limited, for any expansion. But when the primary processing plant was separated from the rest of the factory, production was adversely affected. The new factory building will be a one-story netting structure with a combined floor space of 20,000 square meters for the workshop and office complex. The building of the new factory is the second large-scale renovation of TCF since the 1980s. The first T156740833
Page 36: TI56740834
Tianjin, gets a new lease on life overhaul involved US$21.8 million worth of imported machinery for tobacco cutting, cigarette rolling and packaging, as well as testing apparatus from the U.K., Germany, France, Italy, and Japan. Philip Morris playing a role Despite the fact that Chinese policy discourages Sino-foreign joint ventures, Philip Morris Asia htc is also partidpating in the pro- ject. The company has sent two groups of experts over the past year to discuss what it can do to help TCF upgrade production. Peter L. Barnes, president of Philip Morris' Hong Kong-based Asian operation, visited TCF and the Beijing-based CNTC in November 1993, with the hopes of starting a joint venture with TCF. The PM experts have carefully studied the blueprints of TCF's new factor),, advised on the design of the primary processing plant and suggested improvements. These in- dude the addition of a space for processing strips, basically blend- ed strips and Oriental tobacco, and for producing flue-cured Vir- ginia cigarettes such as M~a~L~ORO. The suggestions have been readily accepted by TCF. They will pro- vide the factory with the means to produce Philip Morris renowned brand of cigarettes and add new products to its inventory. "The details added by Philip Morris experts to our designs are very helpful to improving our technology," says Zhang Zhongx- in, the factory's chief engineer. Zhang adds that Philip Morris has also offered to provide technical training to managers and workers ~or TCF in both China and the United States. Higher quality expected The new factory building is to be completed by the end of No- vember, and everything should be ready for moving production fa- cilities into it before the end of the year. These will include most of the existing equipment in the old factory, such as Molins Super-9 cigarette rolling machines, B-1 type packing machines made by Schmermund, and Sasib-6000. The primary processing depart- ment, which now occupies a floor space of 5,400 square meters, will be rebuilt for a processing llne with an hourly capacity of 5,000 "kilos. While the main machinery has been imported from Korber AG, the workshop will also have MPC-type filler pneumatic feeders from Japan, and a double-vacuum hu- midification unit for tobacco leaves has been imported from Malle of France. These items will form a di- rect continuous conditioning sys- tem (DCC). A vertical and horizon- Tobacco tntcmat~0pa! 37 T15674f1834
Page 37: TI56740835
tal tipping table has been designed for the cut-tobacco workshop to re- place the VT2500 vertical threshing n~achine currently in use, which produces too many broken tobacco leaves. Training began earlier this year for machines operators. The factory plans a further in- vestment of 300 to 400 million yuan (US$35-47 million) between 1996 and 2000, to upgrade its cigarette making and packaging equipment. Quality a priority But, with the distribution of its production facilities rationalized, plus use of better equipment and technology for other workshops, TCF expects to substantially raise the productivity and quality of its best products. To do so, it wiil raise its output of filter-tipped cigarettes, but substantial]), cut its of non-fil- tered and low quality brands. TCF produces seven brands of cigarettes. The brand names are 38 August 1995 ZIGUANGGE ("Purple Light Pavil- ion"), HENGTA ("Always Big"), YU- ~]NGX[ANG ("Tulip"), SHUANGMAO ("Double Cats"), YIZHONG ("Yee Tsoong'), XINGANG ("New Har- bor") and DAQIANMEN ("The Great Gate in Front of the Forbidden City"). ZICUANCC~ was awarded a gold prize in 1988 at China's first nation- al food fair and was cited as a qual- ity product of the national cigarette industry in 1991. TCF has improved the quality of its old brand HENGTA to a level comparable to Britain's 555 cigarettes. Production of DAQIANM£N, suspended for more than five years, was resumed early this year with improved taste and aroma. Total cigarette production at the factor}, will be cut from the present 500,000 cases to 400,000 cases a year by eliminating what management calls "inferior brands." The compa- ny now turns out 190,000 cases (50.-000 cigarettes to each case) of filter-tipped cigarettes a year. It plans to boost its production to 280,000 cases. It produces 64,000 cases of its highest quality ciga- rettes (both filtered and unfiltered) a year and plans to increase the amount to 150,000 cases. By 1997 the plant should pro- duce 300,000 cases of cigarettes. However, because of increased pro- duction of more expensive ciga- rettes, the company's profits will potentially double. TCF plans to sell the old factory building in downtown Tianjin or develop it for commercial purposes. The new building, in an industrial zone nine kilometers away, will be "large and good enough to accommodate ma- chines the factory is importing," factory management says. Cigarettes produced by TCF are exported to the M.iddle East, North Africa, and former Soviet nations. In 1994, 21,000 cases of I-I]~GTA cig- arettes, worth US$4 million, were exported. ~ T156740835
Page 38: TI56740837
T156740837
Page 39: TI56740838
One milligram of tar, that is. The l mg.-tar segment rejuvenated the industry, as it has become the fastest growing in the Japanese market --prompting nearly every major manufacturer to enter the game. by Glenn A. John International Editor n 1994/95, international cigarette brands in Japan, after a two-year "nap," have begun to get back in the market with the low-tar segment. A striking 23% of total cigarette vol- ume now lies at 6mg. or less tar de- livery. Looking over several years of tar segmentation statistics, Akira Matsumi, group manager sales for Philip Morris K.K. in Tokyo, says, "The mountain of bar charts is moving toward ultra light." Low-tar dgarettes now comprise the majority of sales in Japan. In 20 years, the average tar/nicotine de- liveries have dropped radically. Only four years ago, 60% of the market was medium and higher tar [greater than 8rag.]; today 60% is under 8mg. And its getting even lower. In January, 1993, the lmg. segment was only 0.8% of the market, ac- counted for by JT's FRONTIER. With- in only two and a half years, the once-dismissed lmg. segment took a 7.4% market share with 14 brands from all major manufactuzers, mak- ing Japan the highest low-tar mar- ket in the world. Virtually every brand of note -- except M~LD SEVEN m has a lmg. version. The four leaders are: JT's FRONTIER (¥240), PM's NEXT (¥250), Pt~n' MORFJS' 1 (¥220), and B&W's K~rr I (~220). NEXT, PM's entry in the lmg. segment had a phenomenal suc- cess. One month after it was intro- duced in 1993, it took 1.3% of the overall cigarette market, but the in- creases quickly slowed down, and now the brand is losing share. Tobacco lnternat~na! 41 T156740838
Page 40: TI56740839
Fishburne Presses... Fishburne Hydraulics... Fishburne Controls... Fishburne Quality! And quality begins with our people like Bill, Stan, Jerry and Norman... CFISHBURNE the best in the world at what we do! F~shburn8 International PO Box 708, Arden, NO 28704 Phone (704) 684-3521 Fax (704) ~4-4671 Toil Free in the US,&. (800) 438-8101 TI56740839
Page 41: TI56740840
"NEXT went from "rookie of the ),ear" in 1993, to "sophomore jirLX" in 1994/" says Matsumi. PM is trying to revitalize the brand with NE'X'r MEm'HOn, released in April. Extensions such as ling. menthol variations are coming on the mar- ket, but Japan might be seeing the "fight" at the end of the tunnel; cig- arette manufacturers can't go much below ling. Many insiders don't think this segment will grown much more -- certainly not reaching a 10% share. C. Richard Green, presi- dent, Brown & Williamson (Japan) Inc., agrees. "The driving market force is low tar," he says. "How long it stays down there is unclear." Green believes that tfltra-low tar is "the way to go." As such, B&W discontinued a few brands, namely LUCKY STRIKE Lights and LUCKY TTRn~ Milds. "Just five years ago," he adds, "almost 90% of the market was medium and higher tar [Smg. or more]. Today, almost 40% is under 8rag." Sometimes it's hard to determine whether product changes are con- sumer- or manufacturer driven. But most sources agree that the ultra low tar segment, all the way down to ling, is consumer-driven. Simply MILD SEVEN MILD SEVEN L~S MILD SEVEN CASTER MILD ~C~NM~m Box put, the Japanese like light. And to satisfy the Japanese taste for ever-new products, it is a very expensive proposition to succeed in Japan. There are many product launches, and these launches are very expensive. "Japan is a very expensive mar- ket to enter, and to introduce new products," says Dinyar Devitre, president, Philip Morris K.K. in Tokyo. "But once you're estab- lished, it's worth it." The importers' overall sales are growing steadily, while JT manages to maintain its overall sales. For the past five years, Brown & Williamson has had a high growth rate in the Japanese market, cur- renfly holding an overall 5.2% mar- ket share. The company's two main brand families are KENT and LUCKY STRIKE. B&W also offers KOOL, CAPRI, and JPS -- a B.A.T. trade- mark Tv,'o KE~ extensions came in 1994/1995: Kmvr SU~E~ Lights 100s and Kmcr 1. Philip Morris actively supports seven brand families. I_~t~K, the im- port brand leader, accounts for 30% of PM's volume, but it is slipping, going down 6.1% year-to-date as of April, 1995. 1Vi~Io~ is also encounter- ing problems. "We are now trying to revitalize these two brands," says Matsumi. Other PM brands include the PHILW Momus family, up 60%; the 1V/m~oxo family, up 26%; VIRCINI~ SIMMS, up by 21.2%, whose tar deliv- ery was reduced in 1994; and PAR- UmWENT, up by 10.7% after it was re- launched in 1994 with a beveled edge pack. (PM will soon introduce PARLIAMENT LIGHTS 100'S in a beveled edge box.) Around 60% of R.J. Reynold's volume comes from SALEM, WhiCh overall was up 6.1% in 1994. Reynolds debuted several varia- tions, including SAL~X~ 1 and SALEM P~a~v~SSn~O 100 t,~ 1. Rothmans, another important importer, offers the CAm-mR, DuN- HILL, VOGUE, and RO~e,L~NS fami- lies, "all blended for the Japanese taste," according to William T~ba~x:o Int,~mat2on~! 48 T156740840
Page 42: TI56740841
C~RTIEEA I)ELMAGLIO T156740841
Page 43: TI56740842
Telling, president, Rothmans Marubeni Corp. The company's main strength is the DLm1HrLI. fami- ly, accounting for 65% of its vol- ume. Rothmans introduced a lmg. DUNt~, ULTm~AT~ LIGHTS MENTHOL in a beveled edge box. Besides the leading brands ~rom the main importers, there are many brands with very small market shares, such as Lorillard's HARLEY DAVIDSON, Gallaher's SILK CUT, JT's licensed brand GAULOISES, even Nat Sherman brands. The inroads made by foreign manufacturers in the low tar seg- ment have not knocked Japan To- bacco out of the race. On the con- trary, JT has been leading the ultra low tar segment, first with CASTER in 6rag. and FRONTIER in ling. "JT is not a company you disregard," says Green. "They've improved sig- nificantly in quality and marketing since importers entered the market. They are losing ground, but they are losing out very slowly to the best tobacco marketers in the world." JT's distribution company han- dles distribution of most imported brands, allowing them access to the market. "Without them, it would have been very expensive to enter the market," says Green. "Of course there are certain advantages to JT being our competitor and distribu- tor, but they have been very acces- sible to all of us -- we've been treated fairly." "Import duty suspension hit JT hard," says Matsumi, "and recently that trend has been accelerating again." Volume of "imported" brands, including MARLBORO went from 47.4 billion in 1990, to 73.3 bil- lion as of April, 1995 [adjusted for a yearly basis]. The international seg- ment grew phenomenally after market opening, but the 58% and 155% increases seen in 1986 and 1987 are now down to around 6% and 10% in 1993 and 1994. The majority of JT's market share comes from four brands; 80% of their volume is in ]V[ILD SEVEN, CASTER, SEVEN STARS, and CABIN. Of JT's individual brands only ling. FRONTIER showed significant vol- ume growth. "The big brands lost big," says Matsumi, each losing 4- 8% of their volume in 1994. But un- like many other tobacco markets, cigarette consumption is holding steady or increasing in Japan, and there are several good reasons for this. "The demographics are very good for imported brands [of ciga- rettes]," says Devitre. There are many people (20 and over) coming into smoking age, a trend that will continue for several years to come. And imported products especially -- from beer, records, and ciga- rettes -- find disproportionate mar- kets in the young adult category. "People in their 20s and 30s like im- ports," he says. Another reason for a robust to- bacco industry is price stability. There have been no industry in- creases for nine years. The sole 3.7% hike in cigarette prices which came via the controversial con- sumption tax in 1988 is well below the overall consumer price index, which rose 13.5% correspondingly. Cigarettes today are comparatively cheaper than they were previously. Another positive for tobacco is that smokers in Japan are not polar- ized by an "us versus them" envi- Tobz~o lnt~_rn~2~n~l 45 T158740842
Page 44: TI56740843
Souza Cruz has a high standard of quality which is already known by name on the international market: Personal Touch. In order to supply tobaccos with absolute regularity and the best value for money, we spare no effort. The best evidence that our work is not in vain, is that today it goes up in smoke in almost every country in the world. We blend with all your needs. -~'L E A F T O B A C C O C O R P. R~B F¢I;,~: Jazotr~ 6 • 9&~'0.11£¢ • S:mta Cruz do S~ • RS • Br;_r] P.O. l~x 101 • F~:~.=.~: (65I) 711-_~573 • F~_~ (C61) 713-21~ T156740843
Page 45: TI56740844
ronment. Non-smokers are appar- ently just non-smokers and are gen- erally not anti-smokers. Television advertising, a forbidden outlet for most developed markets, is still al- lowed in Japan, albeit after 11 p.m. "The anti-smoking movement [in Japan] is increasingly supported by western organizations," says Devit- re. "But here, we enjoy more bal- anced news reporting on the issues facing tobacco -- it's not all one- sided." "[In Japan,] there is no Waxman, no Kessler," says Matsumi, refer- ring to the anti-tobacco crusaders of the U.S. Congress. The anti-tobacco movement is therefore quieter. Also, the government and tobacco industry have close ties in Japan; the Ministry of Finance is the ma- jority shareholder in JTI. But Mat- sumi suggests that the days of lais- sez-faire government may end. "Government interference may get stronger now that JT is privatiz- ing," he says. Another growth indicator for the industry: Smoking rates in Japan remain higher than many other markets. Although the rates for men decreased slightly in 1994, a 59% majority still smoke. Female smoking is going up too...or is it? Officially, 14.8% of Japanese women smoke. But several ob, servers point out that this figure is low. "Surveys are conducted door- to-door, face-to-face," said one source "Not many Japanese women would admit that they smoke...es- pecially to strangers." He placed the female smoking rate at 36%, a figure confirmed by other sources. Domestic Products t993/94 UNITS CHAt,'GE AMOUNT 332.6 +1.1% 3,781.7 ! ~d-i? " 334,4 +0.5% 3,818.3 CHA~GE +1.6% +1.0% Earlier this year, the Ministry of Health & Welfare shelved propos- als to regulate the industry further through enacting new laws. The Ministry studied the long-awaited Tobacco Action Plan for six months, and decided to continue to allow the tobacco industry to self- regulate as it has been doing for many years. The Tobacco Action Plan called for drawing up offidal regulations to encode what the industry has al- ready done, plus, of course, tight- ening up dramatically. Specifically, the Plan called for regulation of vending machines and total adver- tising bans, two ways the propo- nents believe minors are "induced" into smoking. Other recommendations called for new health warnings. Since the introduction of warning labels, there has been no mass consump- tion drop, so the proponents are frustrated and want the wording now to "get the message across without fail." The Tobacco Action Plan, a rarity in Japan, recently gained momentum through its as- sociation with the World Health Organization (WHO), whose execu- tive director is Japanese. "Now it's the tobacco industry's turn to examine their internal regu- lations, and come up with modifi- cations," says Takahiko Ikeda, managing director of the Tobacco Institute of Japan. "There will be some further restrictions on televi- sion and billboards, but the final details have not yet been worked out." He says he ex~pects a new plan to be ready in a few months.,~-" Tobacco International 47 T158740844
Page 46: TI56740845
48 August 19~5 III II II1~ IIIIII IIIII T156740845
Page 47: TI56740846
TAIWAN tobacco, Tai- desire to en- ter GATT -- the world trade organi- zation m would mean changing the name of TTWMB. The first step: taking out the word "monopoly." Then, according to David Chen, a spokesman for Philip Morris Taiwan, the de-mo- nopolizing TTWMB, maybe five or six years down the road, the com- pany will be privafized in some way, either partial or in whole. "It will happen," says Chen, "because of GATT." But TWM, or TTWB, as it may be called, won't quietly forsake the empire it created. On the contrary, with a 65% market share, the com- pany is ready to be reborn, loos- ened from its yolk of government constraints. Unlike the former ciga- rette monopolies of Japan and Ko- rea, Taiwan's government main- tains strict control over TTWMB. According to sources within the company, TT%r~B only carries out by Gleam A. John International Editor what the goverrtment tells them to do -- they have little say-so in de- veloping new programs or market- ing their products, or even issuing press statements. Even so, TTWMB is reportedly preparing for a mini-privatization. The Bureau established an interna- tional department which, uncon- firmed by TTWMB sources, is look- ing at foreign markets for its products. Another source expects the group to diversify into land de- velopment "[TrWMB] owns a lots of land in Taiwan." There's also been talk, off the record, about the monopoly developing other busi- Davidoff Marlboro Mild Seven State Express 555 All Others nesses: a dgarette distribution sys- tem; an import business for foreign beer; and manufacturers and mar- keters of soft drinks. "There's been lots of talk, but nothing concrete so far/' says the source. In Japan and Korea, the former monopolies were quick to switch their focus internationally, while being more market conscious local- ly. In Taiwan, market opening meant abolishment of import duties TAIWAN for a "margin" fee, payable directly to TTWI~B. "In Taiwan, the im- porters don't pay a tax/' says Chen. "We pay a 'margin" to the monop- oly, which in effect means that we are taking their market share, so we have to pay them some sort of com- pensation." This margin of NT$830 per 1,000 pieces becomes part of TTWMB's income, of which 65% is surren- dered to the central government, and 35% is sent to the provincial governments. "When Taiwan joins GATT, the government will have to abolish the monopoly margin for a fair system of VAT and customs taxes," Chen said. If the monopoly system is abol- ished, then the private sector will be allowed to manufacture and im- port cigarettes. If Taiwan doesn't allow this, according to GATF, they wouldn't be able to charge a cus- toms tax. Whatever happens to import "taxes," the importers don't want change to mean higher prices. "Our current understanding is that the total tax burden won't go over [the current level of] NT$830 per 1,000," says Chen. A new proposal calls for a high import duty, where current- ly there is none. "If customs duties are high, this could put imports in an unfavorable position/' he said. Unfavorable or not, Japan To- bacco isn't complaining. In Septem- ber, 1994, the Taiwanese cigarette market opened belatedly to Japan- ese dgarettes. Prior to this, JT had set up a licensing agreement with F.J. Burrus of Switzerland in 1991. According to the original rules of Tobacco Int~rna*2~nal 49 T15,~740846
Page 48: TI56740847
TAlWAN market access, cigarettes imports from the U.S. and 22 others coun- tries, including Switzerland, were allowed m but not from Japan. JTI also bought Manchester Tobacco Co. in Manchester, England, and some JTI trademarks are produced there. With only 60 advertising inser- tions per company allowed in Tai- wan, manufacturers must rely heavily on retailer promotions to introduce new brands. JTI uses two kinds of gifts: a big box with two cartons including stationery sets, radios, lighters, cigarettes boxes, etc.; also last year, a very popular item was the briefcase containing two cartons of MI-NE cigarettes. JT's management is delighted by the normalization of cigarette im- ports. "Now we can source ciga- rettes directly from Japan," said Masaaki Hosoi, managing director of JT Tobacco Intemational Taiwan Corp. "When sourcing from Eu- rope, it was difficult to provide op- timal deliver3,. "Now we can effect smooth sup- 50 Aug,Jst 19~5 TAiWAN plies from Japan, because we have a lot of available specifications in Japan," says Hosoi. "We can change more rapidly to different brand packaging, something our subsidiary and licensee aren't equipped to do." Hosoi says the li- censing agreement with Burrus will continue. In January, 1995, JT introduced IVIILD SEVEN INTERNATIONAL in fiat international hard box packaging. Says Hosoi: "The volume of MILD SEVEN LIGHTS was becoming so wide that the cigarette was becom- ing common. So we decided to in- troduced an image leader -- MILD SEVEN INTERNATIONAL." In October, 1994, JT re-launched its MILD SEVEN with a new package design in hard box. JT brands available on the market now are MILD SEVEN (box, soft), MILD SEVEN LIGvrrs (soft), and Mr~D Swci~ INTERNATIONAL (95 ram. fiat box). Other brands available from JTI are MI-NE and PEACE. ing," said Hosoi. "Most of VmGtI, aA SLIMS is menthol, about 30-40% of YSL is menthol -- and then there's SALE~4. Most of the sales of menthol are in 100s and are bought in con- venience stores. Therefore, we thought introducing this brand would have wide visibility in the retailer shops." The brand will be referred to as BEVEL. "You need to have these [types of value packaging], but Taiwan's smokers also demand high quality and good taste, or flavor," said Hosoi. "Our marketing surveys show that consumers "know taste and flavor very well." Also gaining in popularity is Reemtsma's DAVrDOFF, marketed as the most expensive brand in the world -- an appeal not lost on Tai- wanese smokers. The brand comes in black beveled edge hard box. One source says the Taiwan market is one of "the blind rich phenomena ... if it's expensive, it's good." Taiwan Value added packaging such as hard box, international packaging and bevel edge box -- is becoming more popular. In July, JTI intro- duced CASTER BEVEL MENTHOL in a box. "The menthol market is grow- Official year-to-date figures shot,," B.A.T.'s STATE EXPRESS 555 leading the imports, but MILD SEV- EN is not;" the leader in the first months of 1995. Including contra- band, I~LD SEVEN is and has been TI58740847
Page 49: TI56740848
Tobacc.o recovery machines In our tobacco recovery machines every cigarette is split without using a knife or impactor to recover tobacco as long and clean as it exists in your cigarette. 99.8% of the tobacco in 250,000 cigarettes can be recovered on the COP.5 every hour. TINGEY & COMPANY (ENGINEERS) LTD 36 WATES WAY, MITCHAM, SURREY CR4 4HR, ENGLAND Telephone 031-640 0553 (3 lines) Telex No 262433 Ref. W6160 Fax 081-640 9660 T156740848
Page 50: TI56740849
i 'l TAIWAN far and away the largest-selling im- port brand. But the smuggling channels are open, and, ironically, even though JT's brands are now legal, 25% of their share comes in as contraband. Some Taiwanese smokers perceive smuggled brands -- that is, brands without Chinese warning labels or a TTWMB stamp -- as the "real thing." Since smuggled cigarettes are viewed by many as genuine, they enjoy a premium price on the market, pushing margins up phe- nomenally for retailers, some of whom are glad to turn a blind eye toward their sale. "We actively in- form our consumers that [JTI's] specs are controlled by headquar- ters, blends are controlled, taste is controlled," says Hosoi. "Cigarettes made in Japan or elsewhere will all be the same." JTI sales agents are trained to regularly inform cus- tomers about this in an effort to cut down on contraband. If passed as it reads now, the Smoking Health Prevention La'e¢ would be one of the ~;,orld's most 52 Augu~ 1995 TAIWAN stringent anti-tobacco statutes. The first reading contains provisions disallowing all marketing, promo- tion, and product displays. "Our criticism of the law is that it is too hard, too strict by world standards, and would be hard to implement," said Dr. Bemard Joei, executive di- rector for the Tobacco Institute of the Republic of China (TIROC). "The 1986 agreement [between the U.S. and Taiwan] must be hon- ored," said Joel "Advertising and promotional access were part and parcel of the 1986 agreement. The proposed law does away with the agreement." "Our position in Taiwan is very delicate," Joei said. "Since there are officially no diplomatic relations with the U.S., any agreement be- tween the two is not a treaty. There- fore, some lawyers say that if the government adopts a new law, this would override the provisions agreed to by the U.S. and the gov- ernment of R.O.C." The Smoking Health Prevention bill went through a first reading in 1994, and, depending on the out- come of the second and third read- ing, will become law. "Today we are lobbying to make changes to the draft for the second and third read- ings," said Joel "Basically, we are willing to give up marketing activities, but we want to keep sponsorship and point-of-sale materials," he said. In the June, 1995, U.S./ROC meeting, there were indications that Taiwan might allow sponsorship. "It is the most restrictive tobacco law in the world," says Joei, "[and] will have to be amended to avoid contradic- tions in GATT agreements." The Ministry of Finance drafted two other laws effecting tobacco: one on wine and tobacco product taxation, and another on how to regulate and control the industry, creating two new bureaucracies just to deal with the products. "Our po- sition is that tobacco and wine are like other commodities, so why are they being treated like special prod- ucts, asks Joel Recently the government con- sented to look at treating tobacco and wine as special commodities," says Joei, and create two separate bureaucracies to deal with them. He says that in the past few weeks, rumors have circulated that the leg- islative feeling is that the two prod- ucts can be effectively handled through existing laws and agencies, and that this proposal won't be nec- essary. "But they are still loo "king for comments," he adds. Since 1992, all confiscated con- traband has been destroyed. But re- cently TIROC heard rumors that T156740849
Page 51: TI56740850
INDUS'I RY STAN[)ARD. . . LEAF THt .ESHING SYSTEMS GRIFFIN'S Green Leaf Threshing Systems... • Increase your product yields over other lines • Improve product qualit~ • Strengmen ,,,our competitiveness in the marketplace The flexible modular design of GRIFFIN'S MODSWAN® Separators, available in 2, 3, 4 and 5 unit configurations • Eliminates transport circuits between separators • Saves valuable floor space • Reduces installation time and expense • Significantly reduces energy requirements GRIFFIN'S exclusive MODSW_AN® Separators (patem pending) and patented SWAN~ technology provide the highest throughput, the best cost-efficiency, and the gentlest product handling available today. T158740850
Page 52: TI56740851
TAiWAN TTWMB may resume its former auction system, whereby seized cigarettes are auctioned and re-cir- culated, making an illegal product legal. On the issue of destroying smuggled products, Yau-Shiuan Wey, director, business depart- ment, TTWMB, says "destroying" confiscated products is not what other countries do. "There is a sug- gestion amongst political represen- tatives that cigarettes have a market value, so it should be sold, not de- stroyed," says Wey. "It's not about getting the money, it's about doing what other countries do." He says even the U.S. does not destroy everything it confiscates, and TTWMB should be held to interna- tional standards. Another problem addressed by TIROC is smuggling. Of a 40 billion stick market, 75% are TTWMB brands, and 25% are imports, but some estimate that 50% of the im- ported share is smuggled into Tai- wan. "That is NT$10 billion retail IBAT TAIWAN value in smuggled cigarettes," said Joei, noting that the problem has re- cently decreased. Two years ago this amounted to around 5 billion pieces; now it is down to 3.5 billion. "A full 9% of consumption is smuggled," said Joel, adding "the volume is huge, the tax loss is huge, but government doesn't do much to stop it. No one is put in jail for ~rnuggling, they only confiscate the cigarettes." He estimated the mo- nopoly tax loss at US$300,000 per container of cigarettes. TrWMB, with its three-quarters market share, is noticeably absent from TIROC proceedings. "In a way TTWMB is our boss; we pay them a margin fee," says Chen. "As our boss, they feel they can't be in- volved with the institute." "We need new laws to change from a monopoly," says Wey, adding, "It's a process that's been going on for two years." Changing the tax law is only the first step, which includes changing to domes- tic and commercial taxes. The sec- ond is changing the administrative law, which requires TTWMB to handle administration and anti- smuggling activities and giving li- censes for the import and export business, among other duties. All the timing and procedures of these changes are the duty of the central government. "TTWMB hasn't anything to do with these changes," says Wey. "It's up to TTWMB; it's role will be to adapt the changes that are made." When this will happen is anoth- er story. Tobacco and cigarettes are only one of the issues that must be worked out before Taiwan joins GATT. He estimated changes will happen within one to two years, the same timetable given for the past few years in interviews. After changes, Wey conjectured about TTWMB's new role, saying maybe the company will have more control of its budgets, more control over marketing and development of new products, and possibly be- come agents for other foreign prod- ucls. ~." 54 Au;tust 1995 T153740851
Page 53: TI56740852
fHESE ~¢E filE lIES THAT B~ND. People do business with people. And since 1918, the employees of Universal have been reaching out to the people around them. Building life-long business relationships by creating opportunities and honoring commitments, Investing in people not just in the United States, but all over the world. Providing them with the means to lead better lives. Forging these bonds with a word and a handshake. At Universal, we process billions of pounds of tobacco on five continents in 32 countries. But we still do business one person at a time. ® UNWERSAL LEAFTOBACCO COMPANY II I T!56740852
Page 54: TI56740853
hen you see that nearly eve~" car~ bus, and truck cir- cu]ating around Seoul's streets are Korean- made Hyundais and Daewoos, you quickly surmise that Koreans are so nationalistic that they will go out of their way to support Korean trademarks. port fax any industry that gets a 5% share here is a success." Average monthly arrivals of im- ported dgarettes were 500 million in 1993, but went up to 800 million in 1994. In May, monthly arrivals for imports were 1.1 billion. "On a year-to-date basis, imports are up 60%," says Pak. "Overai1, the im- port share is much higher in metro- politan areas," says Pak, a trend he believes will continue. In some re- tail outlets in Seoul, imports have a This market is tough-to-crack for foreign products -- including cigarettes -- to penetrate. The lion's share of the market is still re- tained by the government-owned cigarette company Korean Tobacco & Ginseng Corp. (KT&G). Even so, John N. Alsbury, exec- utive director, Brown & Williamson (Korea) Ltd. says he is "quite bullish about this market -- it's the eighth largest." Cigarette import market share, after hover- ing at around 5-6% since Korea le- galized foreign cigarettes, has dou- bled to 1Z4%. Some still think that import performance is somewhat lackluster, Abut alsbury disagrees. "Koreans are very nationalistic people/" he says, "and an), ira- 5S August 19~5 50% share. "Imports will do well because they do better in cities, but the health law will slow down the growth." Importers have learned a lot from the highly competitive mar- ket in the highly competitive tobac- co industry. "Originall); the com- panies came in with products they wanted to see have success," says Alsbury. For instance, Philip Mor- ris brought in LAIn<, which had amazing success in Japan, which they hoped to repeat in Korea, but consumers balked. "I think we've all learned to look at consumer taste preferences," says Alsbury. Therefore, many brands wer~ de-listed to concentrate on a few target brands. B&W now offers KENT SUPER LIGI-rrs, discontinuing seven other versions of the brand. "In 1992 we offered 18 different products," says Alsbury. "We've eliminated 17 brands, and today only market the KENT brand. FI- NESSE, a 9mg. uitra-thin brand, is actually B&W's C~a, va. Philip Mor- ris also holds the rights for that name in the Korean market. "When foreign companies origi- nally came in, they marketed full- flavored cigarettes," says Pak, "out the market was already below 10mg. The domestic market leader -- 88 LIGHTS ~ was 8.5mg. The perception created then was that U.S. cigarettes were strong." To- day, the industry average is T15~740853
Page 55: TI56740854
down to 7.Stag. "Importers had to localize their brands, something they did not do at first," says Pak. In Korea, tar deliveries of MARL- BORO are lower than in the United States: MARLBORO RED is 12mg., MARLBORO MEDIUM is 8mg., and MARLBORO LIGHT is 7.Smg. "Over the years, we have successfully modified our products to suit the market here, such as charcoal fil- ters, and reducing tar deliveries," says Pak. KT&G also has had success in finding loopholes in new laws. As a government company, KT&G must get approval to raise the prices of its products. To avoid this bureau- L,,, cracy, the company instead launches as new brand at a desired higher price instead, marketing it as an improved version of the older brand. "We believe KT&G educates its consumers to switch brands to new introductions," says Alsbury. "The Korean smoker is taught that the new product is an improved ver- sion over the old; therefore you see new brands grabbing huge market shares." This has been a very suc- cessful policy in the past -- the 88 family, introduced in 1987 at W600, and the GLORY family, introduced in 1993 at W700, among others are good examples of this. But Alsbury says this trend is weakening. Recent introductions in 1995, such as THIS and OMAR S~Rn~, grabbed only a combined 15% market share. One explanation is the tax hike of 1994. Cigarette prices must go up on existing brands -- something the consumer was not used to. In January 1995, taxes went up. Imported prices went from around W800 in king size to W1,000, and W1,000 in 100 mm. to W1,200. KT&G's lower- priced brands went up by W100, and higher-priced brands went up by W200. That pushed KT&G's leading brand, GLORY, up to WS00, and the brand nose-dived as consumers t switched back to the 88, which now costs what GLORY did before the ..- " Tcbacco Intema~onal 57 T153740854
Page 56: TI56740855
tax hike. This put 8~ back in the lead with a 30% mart~et share. Oth- er smokers switched to imported dgarettes, which were priced rela- tively well compared to pre-tax levels. "Without a new brand [launched from KT&G], the con- sumer was miffed," says ]1 Seong Pal<, planning and business devel- opment manager for Philip Morris Korea, "and imports showed dra- matic growth." KT&G's major strength iS its peninsula-wide distribution,: which allow new brands to be immediate- ly available and get a high trial rate. Due to importers' smaller market share, country-wide distri- bution is not cost-effective and reach only an estimated 30% of outlets. The Korean market is not like Japan, where a branch of Japan Tobacco handles distribution equi- tably for all importing companies. Here, every imported brand has its own independent distribution agent. In January, B&W switched to its own distribution system, rather than the traditional cash-van sys- tem. Now orders are taken over the telephone and dgarettes are delivered the next day by B&~V vans. The company has seven re- gional offices and 150 employees. "Delivery vans only go to stores where cigarettes are ordered," says Alsbury, adding that this is the fixst time his company has tried this approach anywhere in the world. But next month, importers will get another setback when the con- Ocoversial Public Health Promotion Law is scheduled to go into effect, and magazine advertising, aIxeady limited to 120 ~ons per brand family l~,.r year, will be halved to 60. Othex provL~ions v~ll ban ciga- rette vending machines every- vchere except inside adult estab- Iishments; will limit sponsorship to corporate-only; v~ll require vvan'~- ing labels to move to the front and back of cigarettes packs; and ac- cording to some interpretations, will entirely eliminate consumer promotions. "I~e Korean government is try- ingto rewrite the Record Of Under- standing (ROU) between the U.S. and Korea," says Pak, referring .to the original agreement between the government of the U.S. and.K0rea regarding market opening to for- eign cigarettes, a Commodity that was expressly forbidden 'before 1986. "They are trying to work in new freedoms to increase taxes and alter tax structures. Key fea~ tares of the. ROU are advertising and taxes, so if you take it away, the agreement is nullified/': The ROC allows magazine ad- vertising, consumer sampling, and on-Pack promotions, Accordingly, Pak says that the decree, as is, can- not be implemented. "Our own reading [of the new law] is that 58 1995 (0/94-5/95)* Volume Import Mkt. Share JTI 2,321.9 49.9 PM 1,730.8 37.2 B&W 259.3 5.6 RJR 218.3 4.7 Rothmans 122.1 2.6 Imports 4,652.4 108% 1,005.8 36,1 1,213.9 43i5 235.4 8.4 263.8 9.5 69.0 2.5 2,787.9 108% (Pl=~as~ note ~at clue to t~ l~.rn9 at th. end of 1994, figures far first months of 1995 and market shar~s may b~ much d;fferent than what the end of 1995 v~'ll shin;;) August1095 T156740855
Page 57: TI56740856
corporate sponsorship vfill still be allowed, but we aren't sure," says Pak, adding, "the wording is vague." This develop- ment shows that the gov- ernment of Korea is in a more regulatory mood to- ward cigarettes. "The government is paying more attention to tobac- The limited advertis- ing availability makes it difficult to rely on maga- zines to introduce brands in an effort to get smokers to switch. And with limit- ed advertising insertions allowed per brand, "retailer and consumer promotions is where it's at," says PM's Pak. "There are so 15_ 12/ 9L 6L giveaways. The importing compa- nies, which got together to volun- tarily limit this activity, have re- When the market opened to foreign cigarette manufacturers, KT&G quickly ~transformed itself into n formidable rope,tar, launching new brands and styles, while effocfively utilizing its vast strihutionnetwork, Cigarette importers ~mny haveinitially misjudged this market, but ~recent gains show that now they are doing their homework. many magazines and so little ad- vertising allowed." Since retailer promotions are one of the only outlets, most companies carried out elaborate programs which eventually "spoiled the cus- ~'~ tomers" with materials and cently been ignoring their own guidelines, as these promotions are again inczeasing in this highly com- petitive market. "The new health law will have a much greater effect on an im- porter's ability to introduce new products," says Pak.-" "KT&G enjoys a much bet- ter advantage in introducing new products because of its market access." The new health law aims to severely curtail marketing rights agreed upon during the original market opening be- tween the U.S. and Korean governments.Has it height- ened government and pri- vate anti-smoking activities? In 1994, for the first time in recent memory, overall ciga- rette consumption went down in Korea, registering a 3.3% drop. for imporfsrs The Korean Tobacco Association (KTA), an association of import companies, and KT&G meet regu- larly to discuss items of concern to the tobacco industry. But one mem- ber complained that, instead of fo- cusing on being the voice of the in- dustry, the association spends much time working out inter-com- pany problems. "The focus is on the internal environment -- com- plaints between companies ~ and not the external anti-smoking envi- ronment," he says. But Alsbury believes the associa- tion is changing ~ slowly. "This market has come a long way since 1987," he says. It was only back in 1983 that possession of foreign cig- arettes was illegal, an offense that could land you in jail. With these restrictions lifted, the market is still tough. "KT&G doesn't not make it easy; they are formidable competi- tors," says Al~btLr~; adding, "If you make it in Korea, you've really earned your money." ~.:~ T~ba~co lnt.=rnat~onal 59 T156740856
Page 58: TI56740857
FINANCIAL REPORTS Earnings, Profits, and Tobacco Investments Cost-cutting helps profits at JT j~ok~o ~ Japan Tobacco 0T) Inc. ~,e, por~s that year to March 1995 pretax profit was sup- ported by cuts in costs despite growing pres- sure on sales in the domestic market. The company said year to March 1995 pretax profit was ¥131.8 billion, from ¥110.4 billion on revenue of ¥3.57 trillion, up from ¥3.46 trillion. Sales were boosted partly by the inclusion of 36 new companies to consolidated accounts. The company said it was able to cut production costs as a percentage of revenues to 84% from 85%, al- though sales, general, and administrative costs rose to 12.4% of revenues from 11.8%. Year to March 1995 to- bacco division pretax profit rose to ¥128.7 billion from ¥107.2 billion, with sales rising to ¥3.50 trillion from ¥3.39 trillion. The company said parent-level tobacco di- vision sales fell to ¥2.69 trillion from ¥2.71 trillion, as domestic cigarette demand remained flat and competi- tion from overseas makers increased. The company said short-term borrowings were nearly unchanged at ¥24.6 billion compared with ¥24.9 billion the year before. Long-term borrowings fell to ¥82.5 billion from ¥89.1 billion. Profit, turnover jump at Rothmans of Pall Mall ~~/2~/~/~,~SELANGOR, MALAYSi4 -- Rothmans of Pall Mall (Malaysia) Bhd posted a 7.7% increase in pre-tax profit to M$433.21 million for the year ended March 31, 1995 from M$402.34 million previously. This was achieved on the back of a turnover of M$1.44 billion, an 8.7% increase over its turnover of M$1.33 billion last year. Operating profit increased to M$431.65 million from M$400.77 million. Profit attributable to shareholders rose 11% to M$303.9 million from M$273.75 million. Earnings per share increased to M$106 from MS0.96 while net tangi- ble asset backing per ordinary share fell to M$0.76 from 1~L$1.23. Directors expect profit to be satisfactory for the year ending March 31,1996 barring unfores.een drcum- stances. They have recommended a final dividend of M$0.50 per share less tax amounting to M$99.94 mil- lion. If approved, the final dividend combined with the interkn dividend of M$45 per share less tax paid on January 4 and the special interim dividend of M$1.25 per share less tax paid on April 26 will amount to a to- tal dividend for the year of M$2.20 per share less tax. The total dividend net of tax amounts to MS439.72 mil- lion. Standard Commercial Fiscal 1995 shows a 11.2% jump O WILqON, NORTH CAROLINA -- Standard Commerdal Corporation reported sales from continuing operations for its fiscal year ended March 31, 1995 of $773.5 million, up 11.2% compared with $695.6 million in fiscal 1994. Fiscal 1994 has been restated to treat the wool business as a discon- tinued operation. Sales in the 1995 quarter of $279.8 million increased by 25.5% over the comparable year-earlier sales of $222.9 million. Net losses for the 1995 quarter and full year totaled $25.6 million and $30.5 million, respective- ly, compared to losses of $15.5 million and $35.8 million in the same 1994 periods. Tobacco sales in fiscal 1995 in- creased by 27.8% for the quarter and 12.6% for the year compared ~o the same periods in 1994 primarily be- cause of higher volume -- up 17.7% for the quarter and 17.8% for the year. Average unit prices were down 4.8% year to year, but were up 8.4% for the 1995 quarter, re- flecting the recovery in leaf tobacco markets and a change in sales mix. Losses before taxes were $2.6 million for the quarter and $23,000 for fiscal 1995 against losses of $11.1 mil- lion and $28.9 million reported for the corresponding periods in 1994. As in fiscal 1994, the receivables from an Italian affiliate of $6.5 million (1994 $5 million), re- dundancy and debt restructuring costs of $2.5 million (1994 $0.8 million), provision against receivables of $2.8 million and profit on sale of properties of $13.5 million (1994 $3.2 million). The fiscal 1995 results included in- ventory valuation charges of $5.3 million compared to 60 August 1995 I TI58740857
Page 59: TI56740858
$23.2 million in 1994. The fiscal 1995 results were also affected by the company's policy to reduce its uncom- mitted tobacco inventories, which were reduced from $87 million at March 31,1994 to $60 million at March 31, 1995 with a goal of further reductions over the next six months. Losses from continuing operations were $27.9 mil- lion in fiscal 1995, down from $38.9 million in fiscal 1994. Fourth quarter comparisons of the same years showed losses of $19 million in 1995 and $17.3 million in 1994. Also accounting for fiscal 1995 is the effect of the previously announced agreement in principle to sell the wool business, which has been treated as a discon- tinued operation. Wool division net income in fiscal 1995 was $7.4 million (1994 $2.4 million). An anticipat- ed loss on disposal of $10.1 million has been charged to income for the year and the 1995 quarter, and a reversal of the translation gain of $11.9 million has been charged to the translation component of shareholders' equity. Despite the losses incurred in fiscal 1995, balance sheet ratios and liquidity have been strengthened by the expected sale of the wool business, a substantial re- duction in uncommitted tobacco inventories, and dis- posal of nonessential assets. Reemtsma lifts group net turnover 6.2% HAMBURG -- Reemtsma Cigarettenfabriken GmbH, part of Tchibo Holding AG of Hamburg, said it lifted world- wide sales to 90.4 billion units last year, up from 74.2 billion in 1993. However, the business report showed total sales of only 76.4 billion units because, said fi- nance director Wilfred Boysen, the Ukrainian sub- sidiaries were not consolidated yet. Last year, board spokesman Ludger Staby set a sales target of 100 billion cigarettes. Despite the overall 22% rise in sales, this target was not achieved. Figures in- cluded Ukrainian subsidiary Reemtsma Cherkassy (65%), which was acquired at the turn of the year 1993/94, and Reemtsma Kiev (65%). hno ogYll when Proctor introduced the ~ FmST~ CO~OUS TOBACCO D~tYE~ to : i: LDF2000 Incline Feed ~or leaf ' a~d strip tobacco dryer~, Proctor has maintained the lead in tobacco drying technology. Let Proctor introduce you to state-of-the-art : i redrying and toasting machinery to achievethe lowest degree of product degradation and the highest degree of product uniformity available today. ~Proctor& Schwartz, Inc. Circa 1897 251 G!~t~r Rd.,H~ham, FA 1~, F~o: ~15) ~52C~, T~ : ~510~3, F~ ~1~ ~8 Teba~o l~t~mativ~al 61 T158740858
Page 60: TI56740859
Cost-cutting helps profits at JT TOKYO- Japan Tobacco 0T) Inc. reports that year to March 1995 pretax profit was supported by cuts in costs despite growing pressure on sales in the domestic mar- ket. The company said year to March 1995 pretax profit was ¥131.8 billion, from ¥110.4 billion on revenue of Market ¥3.57 trillion, up from ¥3.46 trillion. Sales were boosted partly by the inclusion of 36 new companies to consoli- dated accounts. The company said it was able to cut production costs as a percentage of revenues to 84% from 85%, al- though sales, general, and administrative costs rose to 12.4% of revenues from 11.8%. Year to March 1995 to- bacco division pretax profit rose to ¥128.7 billion from ¥107.2 billion, with sales rising to ¥3.50 trillion from ¥3.39 trillion. The company said parent-level tobacco division sales fell to ¥2.69 tril- lion from ¥2.71 trillion, as domestic cig- arette demand remained flat and com- petition from overseas makers increased. The company said short-term borrow- ings were nearly unchanged at ¥24.6 billion compared with ¥24.9 billion the year before. Long-term borrowings fell to ¥82.5 billion from ¥89.1 billion. Advancing-Cam Rotary Placer or Leaflet Inserter from Minnesota Automation Adding a special promotion coupon to individual cigarette packages? Your solution is the Advancing-Cam Rotary Placer from Minnesota Automation. Dependable operation provides precise, accurate placement at high speeds. The patented Advancing-Cam Rotary placing motion assures accurate placement of your insert. Inserting special promotion leaflets to standard ten package cartons? Then you'll find the Leaflet Inserter to be the best fully automated placer. Like all Minnesota Automation Placers, the Leaflet Inserter is designed for operational simplicity and easy adjustability. Minnesota Automation Placers are field proven and easily retrofit to existing production lines. Getting up to market speed has never been faster. Call a Minnesota Automation sales engineer for a manufacturer direct price quote. "nnesOta . autOmatinn Placers O;vi~!on cf R|VER'I,OOD II'fI'EPJ,~ATIOhtAL USA, INC. First Street SW P.O. Box 1~0 Cro~by, MN 5e~,41 218-546-2222 FAX 218-54~-2104 Profit, turnover jump at Rothmans of Pall Mall SELANGOR, MALAYSIA m Rothmans of Pall Mall (Malaysia) Bhd posted a 7.7% increase in pre-tax profit to M$433.21 million for the year ended March 31, 1995 from M$402.34 million previously. This was achieved on the back of a turnover of M$1.44 billion, an 8.7% in- crease over its turnover of M$1.33 bil- lion last year. Operating profit in- creased to M$431.65 million from M$400.77 million. Profit attributable to shareholders rose 11% to M$303.9 million from M$273.75 million. Earnings per share increased to M$106 from M~0.96 while net tangible asset backing per ordinary share fell to M$0.76 from M$1.23. Directors expect profit to be satisfactory for the ),ear ending March 31, 1996 barring unfore- seen circumstances. They have recom- mended a final dividend of i~0.50 per 62 August19£5 I T156740859
Page 61: TI56740860
Brand News, Marketing Promotions, & New Products SIR ANDREW launched by Arnold Andre Cigars ~UE~O~, c~'~'~ -- Arnold Andre Cigars has launched Sm ANDr~:¢¢ 100%-tobacco cigarillo, based on se- lected tobaccos enriched with Royal Cavendish, in the growth-promising sector of flavored cigarillos. Sm A~- DREW is characterized as mild in taste and rich in flavor, and is priced at DM0.60 a piece or DM12 a box. The packaging provides improved humidity protection. Godfrey Phillips launches premium ORIGINALS cigs D~-]~, ~a -- The budget this year has again hiked cigarette rates, which is bound to bring extra rev- enue into the government's coffers. But what happens to smokers who have to spend extra money? The more premiv_m the cigarette, the higher the price hike. Hence, smok- ers have little choice. They either shift their brands or cut down on their smoking. Companies like Godfrey Phillips managed to pre-empt this trend by introducing premium tobacco ciga- rettes at Rs19.90 0dS$0.64) for a pack of 20 before the budget. Called O~aC- INALS, the}, were launched early this year in Bombay and Pune. The company has budgeted Rs3 crores for advertising, including roadside hoardings, press, point-of- sale material, consumer campaigns, and glow signs at retail outlets. The company has also tried several other new alternatives to promote its products, including road shows to target younger segments, and bazaars have been used to contact the consumer directly to promote trials of its products. A bed-time bazaar starting in the evening was held for Bombayites. As a result of its consumer campaigns, it has also developed a mailing list of around 9,000 homes, which will become the basis for consumer offers of free ra- clios, shirts, and similar items.(R~O) Oir-conditioning cos!s.bq-hi(jher output copecilq! .... Why air condition the • ffhole works, .... With a very simple solution: ... only the production / area needs a defined :climate. we only treat the area in which the air-conditions are actually required. You can save a lot of energy costs because we do not sup- ,.~,~7~~ ply air into ~ : ........~-~ the whole ':':::" production hall, • ]'his concept holds even if your cigarette ::~ machines carnj off greater heating loads due to higher cape- If you too search for a.~:~ cities. ]'his always happens, if you establish a new genera- reliable partner in the ~ . ~ tion of machines with 14,000 cigarettes/minute and field of air-conditioning for !;%, the same applies of course for your existing machinery, the tobacco industry, give us ' ~\ too. We will take care of your complete fadlity ma- a c~ll, write us or s~d us a fax. ~ .:.~.~. nagement as walt, including the biological ex- - ].~~wpour cleaning. ~2:~a KdL'v, at_~%Ck t,~, P..:'. ~,~_,'strz.~z 111, D-~.24~:~t;,L~__-~ T~L+44~-~:.~tl ~5 U~.,-O, F~ ~ C4-162 T~bacco lntemat!onal 63 T15o740oo0
Page 62: TI56740861
---
Page 63: TI56740862
Since these things are traditionally supposed to bring luck in a partnership, we've decided to use them to woo you here. Something old. That, of course, is definitely not what we are. Let's say mature. As expe- rienced experts in the cigarette manufac- turing industry we have certainly reached maturity. Something new. Our company, our striving for independ- ence, and the power we're investing in the new enterprise. We want to change things. That's new! Something borrowed. Here, too, we have spared no expense - the n'lodel on your left is straight from a top Paris agency. And something blue. Well that's the way things worked out. We decided at short notice to make our company logo blue. So everything is set now for the road to mutual benefit and prosperity. But you At last a serious alternative: garnlt,',re tapes made in England by ~inPeint Technologies Ltd. know yourselves that there is more than this to a successful compan): Know-how, imagination, ideas and a great deal of hard work. We assure you, you've come to the right people. We will supply you with gar- niture tapes for cigarette and filter manu- facturing which are a match in quality and probably in price for any on the market. We are offering an unbeat- able service. And our ideas and solutions make us just the right partner for you. We will make you a promise we are sure to keep if you put your trust in us now. But why take our word for it? Why not try us yourselves? We dare you to! We have invested in our dream and now we want to share it with you. Please contact Lusia McAnna or Chris Wild on UK (01388) 775577. PinPoint Tschn~;cgi-~s Ltd. "" TI567408~3Z
Page 64: TI56740863
Corporate Moves, i Newsmakers, & Milestones RJR Nabisco Holdings Corpi~ in an through !994, Rothenberg S~rved ~ Baldwin joined the company in unexpected executive shakeup, as a seni6r vice president, responsi- 1985 and advanced to manager of namdd H: John Greeniaus; presi~ : i ble for tl~e ~:omvany,s:marketing : state government relations in 198Z- dent and chief executive Of Nabisco oI~erations, Bulgartabac I-Iolding, Bulgaria's Holdings Corp., roan additional ~ :: Rothenberg:joined the c0mpa- ~: tobaccOmonopoly, has appointed post running the ursJciga~ett@!~ ny ip. i~70 £s a market research an~: Spas Geleme~ov, as chairmani : business,: 1LJ; Reyno!ds:T0bac~0; .: i alyst;~ t~77;h:e Was ~amed sales : Gelemer0viS me former director;of ~ the ne~,ly fo~med po~on o~ : ~ m~ge~ ~o~ the ~tema~onal~d~,~ ~he ~t~te for ~Tobacc0 P~oau~; vice.:chairman. James Jo~ton), sion.:In ~984, he,,,as promoted to! i : : i formerly chairman of R,J! i:~. ~: : groupipr0due~managerf0r Copen-, Siandard Commercial Corp: has: : Reynolds Tobacco World.de; re~ ~ ~ ~ hagen Smokeless tobacco aVd new appointedRobert E. "Pete" Harri- i mains in charge o~ th~ inte~ona! smoke!eS~P~oducts, Rothenberg,:in ~ son:as s ~erfior vice president and ~ cigarett~b~sinesS~:al~d~.~vice!:il : ::: ig~6~i~as.elected~vicepresid~nt: i chieffinanCi~il officer.• : .:ii :. ! ch~an, 0Verse~ing worldwide :::: :: and~ubseciia~fly headed alllmar,:: :: :Harris0n previously served ~S: tobacco_strategy and public:pokey.::: : keting ~o~ the companygs smokeless :!vice pres!dent Of business develop- : : : :: :: : ::.:i:: : tob~Ce0~oducts, ap0sitionhe - mentand genezalmanager, In: : Andrew1. $chindler,::preside~nt held through !990. He rec.ei~ed the: dochina; at R.J. Reynolds Tobacco ; and: ~hief operating 6ffi~er;hag : :i::~ ::tobaC~dustry's prestigious :: : : :International:Inc., New York: Hat-: been n~ed:chiefexec~t~veofficer~, :: :Ko!o~y~:oungE.xec~twe:::: : ..... : :~ ~ r~son:succeeds Anthony Arrow-:: : RJR Nabisco,s office of thechair- : : :: has:b~een:~/member of:the :~0ung:.: ~ :signed earlier: to pursue other ::: : James C. Schroer, cxe0ative : ::: ~s6~0n0fTobacC0:~tributors :: : ' The company also electedtwo : vice president of marketingand:: ': : since i970 ::!::~ :: : :::: : :i _ directors, Charles H; Mullen, re- tion: • :: :. !::: ::: ::Deb.~iA~Bakerwas:elected tO' : officer of American Tobacco Co:, : • : ¢orpo~a~e~ed~dEar~ a~l~. Preston .andDanielM'SulIivan, retired : RobertD. Rothenbergwas Baldwin III to vice president of :~: chie~executiveofFrost&Sutlivan elected president of United States Tobacco Company, succeeding Joseph 1L Taddeo, who resigned as president of United States Tobacco Company on June 14. He will re- p0rt~to Vincent A. Gierer Jr., chair- ma~of the board and c.e:o, of par- en[ holding company UST Inc. A marketing:and sales executive for :ove/25 years, Rothenberg,.prior to his election, was executive vice president With responsibiIitT for these functions for United $~ates Tobacco company: From 1S~0 UST .... Inci Baker had served as:assis- ! Inc.: They succeed re0.ring board rant c0rp0zate s~creiary: Sinc~ i986i: members R, Anthony Garrett and She joined the Company in:1983 : J, Anthony Johnston. and in 1984 was promoted:to man-i: ager of shareholder relations. In'his new position; Baldwin willsuper, vise federal and state government relation~ activities: He will contin- ue to report to Edward D. KratoviI, senior Vice president of UST; Previ- ousl}~ Baldwin served as director of state government relations, a sition he held since 1990. Star Tobacco Corporation, Peters- burg, Virginia, named Rick Page as regional vice president~ Great ~ Lakes Region. Page brings 26years of cigarette marketing and sales e~x- perience, most recently as a sales executive ~dth the American To- bacco Co. 66 August 1995 TI5~740g~3
Page 65: TI56740864
r ... MADE OF 100% SHLORINE-FREE BLEACHED NEW GLA TZ WNERLINER ~ !
Page 66: TI56740865
Advertiser Index Bode-Leder Beltech GmbH ..................................... 23 Brabender OHG ...................................................... 15 Cartiera del Maglio .................................................. 44 Casa Export Ltd ...................................................... 31 Comas SpA ............................................................... 4 Ets Joseph Cruanas ................................................ 18 W.H. Dickinson Engineering Ltd ............................. 34 DiMon ........................................................................ 9 Exitab AG .................................................................. 8 Fabreeka International Inc ...................................... 14 Fishburne International Inc ..................................... 42 Robert Fletcher Ltd ................................................. 19 Julius Glatz GmbH Papierfabrik .............................. 67 Nicos Gleoudis Kavex S.A ...................................... 25 Godioli & Bellanti SpA ............................................ C3 Griffin & Co ............................................................. 53 Hail & Cotton Inc ....................................................... 7 Hauni/KOrber .......................................................... C2 MacTavish Machine Manufacturing Co ................... 21 Meddional de Tobacos Ltda .................................... 20 Minnesota Automation ............................................ 62 Molins Tobacco Machinery Ltd ............................... 16 Philip Morris Inc ...................................................... C4 Pinpoint Technology ............................................... 64 Proctor & Schwartz Inc ........................................... 61 Reindl Maschinenbau GmbH .................................. 26 Franz Sagemuller GmbH .......................................... 6 Alfred Schmermund Maschinenfabrik ..................... 39 Siegling GmbH .......................................................... 2 Souza Cruz ............................................................. 46 Tingey & Co. Ltd ..................................................... 51 Universal Leaf USA ................................................. 55 Winter, Bell Co ........................................................ 29 Zander Klimatechnik AG ......................................... 63 Tc~aiS index Is proylded for.reader reference, and due to late additions and nges, we umorlunate/y cannm guaram~e its accuracy. Dates, to,Remember , .... ~ I II I II I I II I~ I I I I I ~ ~ II I I II I~11 u III, August 23-26, 1995i 63rd An"uoi RTDA Con~vontion ~! !September 28~30, 1995: Burley and DmkLeaf ' i and Trade Show, Marriott World Center, OrlandO, Florida. Contact.Retail Tobacco Dealers of America, 107 East Baltimore Street, Baltimore, ME) 21202, Tel: (1)(410) 547-6996, Fax: (1)(4~0) 727-7533. September 19-21, 1995: MOSCOW Symposium: & :Tradefair, Tobacco in Eastern Europe, $ovincenter, Moscow. Contact: International Trade Publications, Queensway Houset 2 Queensway, Redbdlt, Surrey RH1 1QS England, Tel: (44)(737) 768 611, Fax: (44)(737) 761 98. September 24-27, 1995: 49th Tobacco Chemists" Research Conference, Hyatt Regency, Lexington, Kentuck}; U.S.A. Contact: co-chairmen Lowell Bush, Tel: (1)(606) 257-3309, or Harold R. Burton, T~ (1)(6%) 2574o.0Z Fax: (1)(606) 68 August1995 Tobacco Assoclaflon~ 46th Annual Convention, Sheraton Music City, Nashville, Tennesseei Contac~ BurIey & Dark Leaf Tobacco Association, 1100 17th St. N.W., Suite 505, Washington, D.C., 20036 U.S.A., Tel: (1)(202) 296-6820, Fax: (1)(202) 467-6349. ~ November 9-12, 1995: Cigar Association of America Annual Meeting, Long Boat Key Club, .Saras0ta, Florida. Contact:. CA_A, 1100 17th Street, N.W.,~ Suite 504, Washington, D.C. 20036 LI.S.A., Tel: (1)(202) 223-8204, Fax: (1)(202) 833-0379. June 4-6, 1996: 5th Tobacco Intematlonal/TMA Tradefair & Conference, Charlotte Convention Cen- ter, Charlotte, North Carolina. Contact: Lockwood Trade Journal Co., 130 West 42nd Street, New York, New York 10036 U.S.A., Tel: (1)(212) 391-2060, Fax: (1)(212) 827-0945. Tl56740865
Page 67: TI56740866
The automatic press GB/5000/50/C packs up to 9.000 At 0nly 8 meters height, * Single charging, single pressing • Packing of cartons, zipper bags, bales * Highest production levels with the minimum of personnel Godioli & Bellanti 18, Via R. Morandi 06012 Citt~ di Castello (Perugia) Italy Automatized packing line equipped with: • Electronic check scale • Hold-down/ sample press • Automatic strapper I® Telephone: +39-75-852 1331 Fax +39-75-852 1363 Telex 660102 GBTAB ! T156740866
Page 68: TI56740867
---
Page 69: TI56740869
WORKING OVERTIME FOR YOU NEW YORK~ CHICAGO~ SEATTLE A whj~ back, a few of us at R JR started meeting after work to discuss the k~nd of products we as smokers would like to buy. Before we knew it, some of the best Ideas we have ever had for tobacco products began to take shepe. After several months, it was agreed that we MoonIIghte~ wou(d form a separate, independent company within RIR itself. Our misslon is to create unique and Innovative products for smokers, while providing Increased Izaffic and full priced profits for our retail pmtne~. On behalf of our friends and co~}eagues, we'd [~ke to invite you to join our Moonlight family. For more information about our new MOONLIGHT Tobacco products, contact your Ioc~! MOONLIGHT/P JR repre~ntal~ve o¢ c~l 1-~00-915-1212. Because at MOOI~LIGHT Tobacco Co., we're woddng o';e~d~r~ for you. Smoke'em if you got em. D~ B~-~n and D~ne Roberts - Co-Founders T156740889

Text Control

Highlight Text:

OCR Text Alignment:

Image Control

Image Rotation:

Image Size: