Bad news for Renault?
Posted by Zcott
BRUSSELS (Reuters) - Cigarette brands such as Marlboro Lights and Mild Seven will be banned in the European Union from October after the EU's top court threw out a bid by two tobacco firms to challenge a tough new law.
The European Court of Justice said a ban on descriptions such as "light" and "mild" on products marketed within the EU was appropriate to protect public health, although analysts said manufacturers would find other ways to differentiate cigarette strengths.
"The ban is not disproportionate," the court said in a statement on Tuesday. "It is not clear that merely regulating those descriptions would have been as effective in ensuring that consumers receive objective information."
The court rejected a claim that the law was invalid because the EU does not have the power to legislate on health policy, and upheld it as an attempt to harmonise standards in the bloc.
David Davies, senior vice president for corporate affairs at Philip Morris, said the law would not stop the company selling the brands that are available now.
"Marlboro Lights, the product as we know it today, will continue to be sold," he told Reuters. "The use of the word 'light' is by no means the only way to differentiate our products."
He declined to say what measures the firm would take to comply with the law.
One British-based consumer analyst said the firms were likely to introduce different colour schemes such as "Marlboro Silver" and "Marlboro Blue" to indicate differing strengths.
The firm, which did not sponsor the court challenge but has about 36 percent of the EU market, currently uses red, gold and silver packaging on different strengths of Marlboro cigarettes.
NO RIGHT TO APPEAL
The court ruling was the endgame in a two-year battle by cigarette firms to force the EU to water down the new tobacco law, which also puts limits on tar and nicotine and demands that cigarette packets carry big stark warnings about health risks.
The court backed the EU in almost every respect but agreed that manufacturers such as British American Tobacco and Imperial Tobacco, who brought the legal action, could continue to make "mild" and "light" products for export.
"We are very disappointed that all other aspects of the directive remain valid," said Liz Buckingham, a spokeswoman for Imperial Tobacco. "We believe it imposes unreasonable measures with no supporting evidence that they will be effective."
BAT, which says 90 percent of its UK production is exported from the EU, welcomed the reprieve for exports but said the business community would view the ruling with concern.
"We seek to maintain the rights of our adult consumers to receive full information about our products without having to suffer fallout from the Commission's crusade against the tobacco industry," BAT's corporate affairs director said in a statement.
Japan Tobacco, which markets brands belonging to Camel producer R.J. Reynolds outside the United States, failed to overturn the law in a previous court challenge.
The firms have no right to appeal the decision.
"This has gone as far as it can go," Imperial's Buckingham told Reuters.
Christopher Wickham, consumer analyst at Lehman Brothers bank in London, said low-tar cigarette brands unaffected by the ban, such as BAT's Kent and Gallaher's Silk Cut, were the potential beneficiaries of the court's ruling.
However, firms would simply use different ways of creating and selling a brand's image, he said.
"I don't think (the court's ruling) is particularly damaging, and neither does the market," he said.
BAT shares ended up 3.2 percent and Gallaher closed nearly two percent higher. On Wall Street, R.J. Reynolds and Philip Morris gained more than one percent.
Another analyst said extra costs of repackaging and the ban on making high-tar tobacco within the EU could encourage firms to move production abroad.
Davies from Philip Morris said the firm would take the "substantial costs" of packaging redesign in its stride.
"I don't think this is going to impact our ability to continue to compete and continue to grow our business in the EU," he said.
The European Court of Justice said a ban on descriptions such as "light" and "mild" on products marketed within the EU was appropriate to protect public health, although analysts said manufacturers would find other ways to differentiate cigarette strengths.
"The ban is not disproportionate," the court said in a statement on Tuesday. "It is not clear that merely regulating those descriptions would have been as effective in ensuring that consumers receive objective information."
The court rejected a claim that the law was invalid because the EU does not have the power to legislate on health policy, and upheld it as an attempt to harmonise standards in the bloc.
David Davies, senior vice president for corporate affairs at Philip Morris, said the law would not stop the company selling the brands that are available now.
"Marlboro Lights, the product as we know it today, will continue to be sold," he told Reuters. "The use of the word 'light' is by no means the only way to differentiate our products."
He declined to say what measures the firm would take to comply with the law.
One British-based consumer analyst said the firms were likely to introduce different colour schemes such as "Marlboro Silver" and "Marlboro Blue" to indicate differing strengths.
The firm, which did not sponsor the court challenge but has about 36 percent of the EU market, currently uses red, gold and silver packaging on different strengths of Marlboro cigarettes.
NO RIGHT TO APPEAL
The court ruling was the endgame in a two-year battle by cigarette firms to force the EU to water down the new tobacco law, which also puts limits on tar and nicotine and demands that cigarette packets carry big stark warnings about health risks.
The court backed the EU in almost every respect but agreed that manufacturers such as British American Tobacco and Imperial Tobacco, who brought the legal action, could continue to make "mild" and "light" products for export.
"We are very disappointed that all other aspects of the directive remain valid," said Liz Buckingham, a spokeswoman for Imperial Tobacco. "We believe it imposes unreasonable measures with no supporting evidence that they will be effective."
BAT, which says 90 percent of its UK production is exported from the EU, welcomed the reprieve for exports but said the business community would view the ruling with concern.
"We seek to maintain the rights of our adult consumers to receive full information about our products without having to suffer fallout from the Commission's crusade against the tobacco industry," BAT's corporate affairs director said in a statement.
Japan Tobacco, which markets brands belonging to Camel producer R.J. Reynolds outside the United States, failed to overturn the law in a previous court challenge.
The firms have no right to appeal the decision.
"This has gone as far as it can go," Imperial's Buckingham told Reuters.
Christopher Wickham, consumer analyst at Lehman Brothers bank in London, said low-tar cigarette brands unaffected by the ban, such as BAT's Kent and Gallaher's Silk Cut, were the potential beneficiaries of the court's ruling.
However, firms would simply use different ways of creating and selling a brand's image, he said.
"I don't think (the court's ruling) is particularly damaging, and neither does the market," he said.
BAT shares ended up 3.2 percent and Gallaher closed nearly two percent higher. On Wall Street, R.J. Reynolds and Philip Morris gained more than one percent.
Another analyst said extra costs of repackaging and the ban on making high-tar tobacco within the EU could encourage firms to move production abroad.
Davies from Philip Morris said the firm would take the "substantial costs" of packaging redesign in its stride.
"I don't think this is going to impact our ability to continue to compete and continue to grow our business in the EU," he said.
ban all cigerette adverts IMO........just IMO it should all happen at the same time, so not to have problems such as Belgium
Ban it all!
Racing Is Life. Anything that happens before or after is just waiting
Jesus may be able to heal the sick and bring the dead back to life, but he can't do shît for low fps
Ban it all!
Racing Is Life. Anything that happens before or after is just waiting
Jesus may be able to heal the sick and bring the dead back to life, but he can't do shît for low fps
Williams are hardly doing too bad these days without tobacco advertising.
Morbid, brother, as usual I agree a 110% with you.
REHAB IS FOR QUITTERS
REHAB IS FOR QUITTERS
Williams are hardly doing too bad these days without tobacco advertising.
and Stewart didnt do too bad for themseleves either
It MUST go
Racing Is Life. Anything that happens before or after is just waiting
Jesus may be able to heal the sick and bring the dead back to life, but he can't do shît for low fps
and Stewart didnt do too bad for themseleves either
It MUST go
Racing Is Life. Anything that happens before or after is just waiting
Jesus may be able to heal the sick and bring the dead back to life, but he can't do shît for low fps
If you want to quit smoking try Zyban, there are some nasty side effects like hives and insomnia, extreme agitation etc. but what's a few weeks of side effects compared to your improvement in health and of course think of the money you will save. I was once a pack a day smoker and getting on Zyban 3 years ago was the best thing i ever did. I figure that over a 30 year habit I have funded tobacco companies to the tune of around 100,000 dollars! A couple of nose cones or some gearbox bits 
Anyway being on Zyban was like being totally wired for a few weeks and I actually managed to quit without completing the program, have faith, be strong, it can be done. Good luck 
(sorry if the thread is going off on a tangent)
[www.mediafire.com] Some say you should click it, you know you want to. [www.gp4central.com] <----GP4 Central
Anyway being on Zyban was like being totally wired for a few weeks and I actually managed to quit without completing the program, have faith, be strong, it can be done. Good luck (sorry if the thread is going off on a tangent)[www.mediafire.com] Some say you should click it, you know you want to.
[www.gp4central.com] <----GP4 Centrallee evans once said that those cigarette nicotine patches were brilliant, he put one over each eye and could'nt find his fags
LS's Tip of the week
ESSENTIAL OILS aren't essential unless you're an engine, a gearbox or a twat
LS's Tip of the week
ESSENTIAL OILS aren't essential unless you're an engine, a gearbox or a twat
:P
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