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June 1998
Volume 25
Number 3
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RETAILER & TOBACCO INDUSTRY NEWS (cont.)
Industry Actions
Cigar Association Campaign Fights Back on Cigars Sales to Minors
In response to the anti-smoking movement's growing concern that cigar smoking among teens is increasing, the Cigar Association of America has launched a new community awareness program called "Banding Together Ñ Keeping Cigars Away From Kids." The program's campaign invites tobacconists, cigar manufacturers, and importers to join in the effort to keep cigars from being sold to minors. The RTDA, which strongly endorses Banding Together, sent out information kits to its members in April, and urged them to comply with the program.
The campaign, which is intended to complement other prevention programs, provides retailers with information and display materials designed to help educate employees and consumers on the need to keep cigar smoking an adult pastime. The CAA has created this program to further stress the commitment of the industry to prevent underage cigar smoking and to work with retailers in keeping cigars out of the hands of children. For its part, the CAA has pledged to continue to uphold its guidelines in regard to the responsible marketing and promotion of tobacco products to a mature, adult-only audience.
The Banding Together program furnishes statistics on cigar advertising budgets in comparison to those of other adult products and cites recently published reports on the incidence of underage consumption of cigars in relation to drug and alcohol usage. The campaign uses the information to emphasize the fact that cigars are for the discriminating adult and to clarify the recent reports and hype concerning underage cigar use.
One of the major differences between the marketing of cigars and the marketing of other adult products, such as alcohol and cigarettes, is the amount of money spent to publicize their brands. In 1996, the cigar industry spent around $10 million on advertising. By contrast, the most current information indicates the cigarette industry spent an estimated $540 million. The cigar industry does not target youth in its advertising and its marketing dollars are used for consumer advertising in adult lifestyle publications. In addition, even though cigars have undergone a surge in popularity, recent reports have shown that the use of cigarettes, alcohol, and drugs among adolescents is still far more prevalent. Underage consumption of cigars remains extremely low in comparison.
Banding Together information kits are available from: The Cigar Association of America, 1100 17th Street, N.W., Washington, D.C. 20036, Fax: (202) 833-0379.
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Tobacco Companies Seek to Circumvent Ad Bans
With a European Union-wide ban on cigarette advertising and sponsorship impending, some of the world's biggest tobacco companies are planning to circumvent it by legally promoting their cigarette brand names in new ranges of coffee products.
The scheme is being tested in Asia by British American Tobacco, one of the world's largest tobacco companies, with the creation of Benson & Hedges Quality Blend coffees. With the markets in which they can openly advertise dwindling, the company hopes the advertising of its coffee products will have a halo effect on the cigarette brand. The move follows research by a London advertising agency, which suggests that coffee and cigarettes, both stimulants, are closely associated in the public mind, particularly among smokers. If proven successful, Benson & Hedges coffees would be distributed internationally and a chain of branded coffee shops could follow.
The idea of linking coffee and tobacco is being tested in Malaysia by World Investment Co., a private company set up by BAT specifically to develop non-tobacco products. These products will be tied in to the company's brands of cigarettes, which include Benson & Hedges, Lucky Strike, John Player Special, and Kent. David Bacon, head of corporate communications at the company, said a number of other spin-off products are also in development.
Earlier this year, the Benson & Hedges Bistro, the first of what BAT hopes will become an international chain, opened in Kuala Lumpur. Shortly thereafter, dozens of young adult Malaysians were smoking in the bistro while drinking the Benson & Hedges Quality Blend coffee. "This is all about keeping the Benson & Hedges brand name to the front," said Danny Sta Maria, the bistro's manager. "We advertise the Bistro on TV and in the newspapers. The idea is to be smoker-friendly. Smokers associate a coffee with a cigarette."
The ban aims to prevent all forms of indirect advertising by tobacco companies, but experts believe that separately created enterprises which can be shown to be profitable in their own right could not legally be barred from continuing to use their established names. If this brand diversification plan, which is being aggressively pursued by almost all leading tobacco companies, proves to be successful it will allow firms to continue to promote cigarettes in Europe after the ban comes into effect in 2006.
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SMOKESHOP - June 98
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