Marlboro Skyline Targeting Menthol Segment

While the discussions on what the U.S. FDA will decide about menthol cigarettes swirl around, Philip Morris USA has clearly demonstrated that it has no intention to give up on menthol category with the launch of new Marlboro Skyline brand that took place in October, 2010.

Philip Morris senior communications manager, Steve Callahan, said that Marlboro Skyline is a “premium menthol-flavored cigarette produced from an all-bright blend of tobacco,” giving adult a boost of fresh and intense flavor. The newest addition to Marlboro brand family doesn’t replace present Marlboro Menthol styles.

Marlboro Skyline can now be bought in any store across the USA, excluding Michigan, where the cigarette-maker is test-marketing another menthol cigarette, a new variety of its Marlboro Special Blend.

In the meantime, Philip Morris USA is still trying to find an opportunity in menthol category, stated the company’s spokesman, since it represents approximately 25 percent of the total cigarette market in the USA. Responding to the question about FDA talks, Callahan admitted that the company has taken an active part in the Tobacco Products Scientific Advisory Committee (TPSAC) meetings, providing its point of view of the science and evidence associated with menthol, and that it intends to continue those efforts.

“Phillip Morris USA thinks that the reliable science-based information and collective evidence doesn’t back a recommendation to prohibit menthol” he added.

In June, Altria Group - owner of Philip Morris - shared nearly 170-page documentation to TPSAC on behalf of Philip Morris USA supporting that understanding. The documentation comprised information about the design, production and testing of menthol cigarettes; as well as health impact of menthol cigarettes versus non-menthol ones.

Japan Tobacco is to pay $400 to the European Union

Japan Tobacco Company signed an agreement with the European Union for 15 years on struggle against tobacco smuggling. In the context of this agreement, Japan Tobacco has to pay $400 million to EU for break in tobacco trade. In return EU countries refuse any claims to Japan Company. The agreement was not signed by Great Britain, which is intended to continue investigations of breaks committed by Japan Tobacco.

Besides, according to the document, Japan Company has to take measures on struggle against smuggling of tobacco production also on production of infringing cigarettes production. Clear profit of the third tobacco company in the world Japan Tobacco Inc. in the first half year 2007‐2008 reduced at 25,3%. Operational profit of the cigarettes company in the first half year 2007‐2008 reduced at 10,4% and amounted at $928 million in comparison with $1,03 billion got at first half year 2006‐2007.

Japan Tobacco is the third cigarettes company in the world. It was founded in 1898. Japan Tobacco produces such popular cigarettes brands as Mild Seven, also possesses the right on sale of cigarettes Camel, Winston and Salem outside USA. 50% of JT shares belong to the Japan government.

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