Industry News

The Australian August 17, 2012 IT has been a big week for finger-wagging. Cigarettes will be sold in vulgar, olive-green packets from December now that the tobacco companies (hereafter known as “big tobacco”) have lost their High Court challenge to the government’s plain package legislation. NSW Premier Barry O’Farrell is considering restricting customers to four drinks an hour after the death of a young man in Kings Cross. Meanwhile a self-appointed posse of moral vigilantes is policing the children’s clothing racks in Target, tut-tutting about “inappropriate” fashion choices for girls. We are told they represent a popular rising tide of public anger. How about we put that to a vote? Australians do not need to be told that smoking is harmful; they have heard that message loud and clear. In 1945, 72 per cent of men were regular smokers; by 2010, only 16.4 per cent of men and 13.9 per…

Aug 15, 2012 CSNews CANBERRA, Australia — Australia’s High Court yesterday upheld a new law that prohibits tobacco companies from displaying their logos on cigarette packs, a ruling that could set a global precedent, according to an Associated Press report. Starting in December, cigarette packs will be olive-colored and feature graphic health warnings and photos showing the effects of smoking on teeth, mouths, eyes and more. Tobacco companies challenged the law, arguing that the value of their trademarks would be destroyed without the ability to display brand designs, logos and colors on the packs. Tobacco companies British American Tobacco, Philip Morris International, Imperial Tobacco and Japan Tobacco International are worried that the court’s ruling could set a global precedent that would cut their brand values worldwide, according to the report. “Many other countries around the world … will take heart from the success of this decision today,” Attorney General Nicola…

Bruce McDougall August 16, 2012 The Daily Telegraph PARENTS could pay extra for their children’s lunch at the tuck shop as more than 2000 school canteens are hit by the carbon tax and spiralling power prices. Canteen operators serving more than 1.1 million students will for the first time be required to account for power usage, with some predicting food prices will be pushed up by as much as 10 per cent. The slug on canteens comes as schools receive their first electricity bills with carbon tax included and principals warn staff to “try harder to save electricity”. The July power bill of one large Sydney high school showed a carbon charge of $447.28 separately listed on an account totalling $6088.67. A teacher at the school said yesterday: “So much for the carbon tax not having an impact … the money will have to come from funds that otherwise would…

Jane Harper August 16, 2012 Herald Sun ANOTHER strong performance from supermarket Coles has helped drive retail giant Wesfarmers’ full-year net profit up 11 per cent to $2.126 billion. Total revenue across Wesfarmers for the year to June rose 6 per cent to $58.1 billion, up from $54.9 billion last year. Coles, which has outpaced larger rival Woolworths in sales for the past three years, reported a 16.3 per cent rise in earnings to $1.3 billion. The result sent Wesfarmers’ share price up nearly 3 per cent to a 15-month high of $33.48 by midday. Managing director Richard Goyder said an investment in lowering prices, along with store refurbishments and an improved network, had driven the strong result at Coles. He said the retail sector was expected to remain subdued, but the group was well-placed to withstand the continuing headwinds. “The group has a strong portfolio of businesses and a…

Patrick Carlyon 16 Aug Smoking is bad. Big tobacco is evil. These truisms are as entwined as pies and sauce. Therefore, the plain packaging of cigarette packets must be a progressive step, given tobacco companies have spent tens of millions of dollars fighting the idea. Yesterday, the High Court made such legislation binding. An industry so scary they now make funny movies about it… Even smokers might gloat at the idea of tobacco companies being flogged in a courtroom. And Australia, once again, gets a gold medal for showing the world how it should be done, which is a step up at least from some of ourl male swimmers. It was a “victory for all families who had lost someone to a tobacco-related disease” said a Gillard Government press release. It was “a relief for every parent”. “For anyone who has ever lost someone, this is for you.” Cigarettes, it…

August 16, 2012 The Age Big Tobacco may have suffered a loss in the High Court yesterday, but a look at the share prices of tobacco companies shows the market sees a future in smoking. While most tobacco stocks eased on the news of the court’s ruling on the plain packaging of cigarettes, shares in the companies are still up dramatically over the past year – underscoring the loyalty investors have for these lucrative companies and the booming markets they are tapping in Asia. The Chinese and Eastern Europeans smoke at bloody breakfast. Shares in Imperial Tobacco fell 1.7 per cent, or 44 pence, to £24.89, yet they are up 24.3 per cent over the past year. British American Tobacco stock fell 65 pence, or 2 per cent, to £33.80, but are up 27.5 per cent for the year. “Those stocks still have a defensive quality to their earnings in…