Monthly Archives: June 2011

Company Loses Place to Contraband Cigarettes

From: CRE Brazil

The illegal cigarette trade was responsible for reducing the share that Souza Cruz had – a Brazilian subsidiary of British Tobacco – in the domestic market. Last year, the company held 62.3% of the sales volume. In the first quarter of this year, it fell to 61%. According to the Director of Strategic Planning for the company, Paulo Ayres, the illegal products are occupying more and more space in retail.

To prove this fact, he cites a survey showing that contraband cigarettes being negotiated in 45% of the points of sale regulated in Brazil. In 2008, this percentage was 38%.

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Unprecedented Seizure of Contraband Tobacco

From: CRE Brazil

The Federal Highway Police seized a load of approximately ten tons of tobacco as well as material for packaging in the state of Rio de Janeiro at dawn last Saturday, the 28th. The merchandise was hidden inside a truck that had come from Paraguay and was heading to an illegal factory in the northeast of the country.

It was an unusual seizure because illegal cigarettes generally come into Brazil already packaged. In addition to several boxes of nearly 100 kilos of tobacco each, the truck was carrying stamps, silk, a machine for packing cigarettes and packages marked Paraguay US.

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ATF: “we’ve had people…pay for cigarettes with two kilos of cocaine”

From: Daily Press

By Austin Bogues

ATF: Counterfeit cigarettes on the rise

The average consumer won’t recognize a pack of counterfeit cigarettes, but they might recognize the taste is different.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has been seeing an increase in counterfeit cigarettes, which mimic brand-name products, according to Teresa Merhige, resident agent in charge of the ATF’s Norfolk office. Raids this week targeted those cigarettes or other tobacco-related offenses.

Federal authorities announced Thursday they had made arrests in Hampton Roads involving people charged with counterfeit and untaxed cigarettes. Local law enforcement also raided stores on Wednesday that were believed to be selling untaxed cigarettes after being tipped off by federal authorities.

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The Daily Deluge

 The proponents of a menthol ban continue to deluge the American public with studies and press statements supporting their position.

In the past several days consider:

FDA Must Ban Menthol Smokes, Louis Sullivan, Atlanta Constitution

 Tobacco Giants Engage in ‘Predatory Marketing’, Stanford School of Medicine

 Preceding the aforementioned actions, the American Public Health Association released a number of studies supporting a ban.

 Much in the same way that water will always flow downhill, the public can expect to continue to be inundated by studies proposing a ban sponsored by organizations whose alleged mission is to protect the public health.

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Millions of fake cigs go up in smoke

From: ECR Newswatch (South Africa)

Five million counterfeit cigarettes have gone up in flames at Briardene, north of Durban.

The consignment, which was confiscated at the Durban harbour in 2008, was destroyed today jointly by the Tobacco Institute of SA and SARS.

While their origin is still unknown, the 500 cases – which bore the Phillip Morris trademark – were declared as shoes bound for Sudan. 

The Institute’s Francois van der Merwe says counterfeit cigarettes cost the country an estimated R3-billion in unpaid taxes every year.

He says it has taken three years to destroy the contraband as officials had to follow due process.

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