Big Tobacco's nightmare

He is one of the most famous whistleblowers in the world, but his face is relatively unknown.

Jeffrey Wigand, the scientist who revealed Big Tobacco's dirtiest secrets and found a bullet in his letterbox, says he's "an ugly old man with white hair". But the world knows him as the fattened-up but still handsome Russell Crowe in a celebrated film.

Wigand likes the movie. "I think Russell Crowe did an amazing job of capturing my essence," he says on the phone from his home in Michigan. "I was sorry he didn't get an Academy Award."

The Insider showed one person can bring about change, that the truth will out, and that tobacco companies will fight to bury it. And that life is horrible for a whistleblower with kids.

"The death threats were never directed towards me, they were directed towards my two little girls," he says. "The bullet in the mailbox wasn't for me, it was for my kids. For a father, that really goes at the core. Here I'm doing something I believe is ethical and moral and as a result I could create harm for my children. It was difficult."

Wigand's revelations about Big Tobacco's lies and deceptions helped sink its reputation forever, and nowadays he spends his life spreading the word and advising governments.

He is in New Zealand this week to talk to the Maori Affairs select committee, which is investigating the effect of smoking on Maori, and to give lectures. His message: throw everything at the problem.

The anti-smoking lobby – Ash (Action on Smoking and Health) is sponsoring Wigand's trip – has pulled off a coup by bringing a world-renowned hero of the movement to New Zealand. It hopes his visit will "light a fire" under the public and the politicians.

"The heartlessness of the people who work in the tobacco companies is beyond the imagination of most New Zealanders," says Dr Marewa Glover, director of the Centre for Tobacco Control Research at Auckland University. "We are a little bit naive about how evil people can be."

Wigand went into the industry hoping to do good. His job was to make a safer cigarette, and make tobacco reviews.

The scientist had spent 25 years in the medical and healthcare industry. He was, he told a US congressional subcommittee on whistleblower legislation in 2007, "steeped in the mindset of using science to search for the truth, to make products better and to improve the quality of life and save lives".

Smoking Mad: ANA Files Briefs To Challenge Tobacco Ad Ruling

The Association of National Advertisers still believes restrictions on tobacco advertising violate free speech.

The ANA joined with two other industry groups in filing a "friend of the court" brief challenging decisions made to withhold restrictions on tobacco advertising.

The brief is against a recent U.S. District Court for the Western District of Kentucky decision that upholds the Family Smoking Prevention and Tobacco Control Act of 2009.

Dan Jaffe, executive vice president of government relations for the ANA, stated: "The District Court went against 30 years of commercial speech precedent in upholding a majority of the most burdensome restrictions ever passed by Congress pertaining to the truthful advertising of a legal product."

That act placed restrictions on advertising tobacco products. It bans all outdoor advertising for tobacco products within 1,000 feet of any elementary or secondary school or playground; requires all ads to contain a government statement -- in addition to the current Surgeon General's warning -- about the possible dangers associated with the use of tobacco products, and bans promotional items, such as hats or T-shirts containing the name or logo of a tobacco product.

In addition, the court ruled that any sponsorship of athletic, musical, social or other cultural events by corporate name be restricted to adults.

It also demands compliance with more stringent requirements enacted by state and local governments and authorizes additional restrictions if the number of minors who use tobacco products has not decreased by 50% from 1994 levels.

Joining ANA in the amicus brief were the American Association of Advertising Agencies and the American Advertising Federation.

Azerbaijan bans demonstration of cigarettes on TV channels

The demonstration of cigarettes in the TV programs, films on the Azerbaijani television will be banned based on the bill "On Restriction of smoking in public places in the Republic of Azerbaijan ", whose adoption is expected this year in the Milli Mejlis (Parliament) of Azerbaijan, Parliamentary Social Policy Committee Deputy Chairman Musa Guliyev told Trend.

"Advertising of cigarettes is banned also in accordance with the law "On tobacco and tobacco products", adopted in 2001. However, despite this, the mechanism of fines and supervision in this regard does not exist. The new bill also specifies that cigarettes will not be demonstrated on television, and in the movies shots on cigarettes will be demonstrated in such a way that cigarettes would not be visible," Guliyev said.

Guliyev said the bill also specifies that all the television companies in Azerbaijan should demonstrate TV programs regarding dangers of smoking, ways to get rid of this fatal habit lasting at least 90 minutes a month.

Guliyev said the law "On Restriction of smoking in public places in the Republic of Azerbaijan" will be adopted at the autumn session of the Milli Mejlis.

"In many countries of the world legislative bases for the establishment of environment without tobacco are determined. There are rules banning smoking in places where there are children and young people," he said.

"Experiences of various countries are used in developing the bill " On Restriction of smoking in public places in the Republic of Azerbaijan", Guliyev said.


"Due to the fact that some details of the law have not been fully worked out, it was not submitted to the spring session. Probably, in the autumn session, the bill will be submitted and accepted", Guliyev said.

Top 5 Companies in the Tobacco Industry Offering Investors the Best Cash Flow (AOI, UVV, LO, RAI, MO)

Below are the top five companies in the Tobacco industry as measured by the price to cash flow ratio. Often companies with the lowest ratio present the greatest value to investors.

Alliance One International (NYSE:AOI) has a price to free cash flow ratio of 3.7x based on a current price of $4.4 and a free cash flow per share of $1.19.

Universal (NYSE:UVV) has a price to free cash flow ratio of 6.6x based on a current price of $46.27 and a free cash flow per share of $6.97.

Lorillard (NYSE:LO) has a price to free cash flow ratio of 17.7x based on a current price of $73.01 and a free cash flow per share of $4.12.

Reynolds American (NYSE:RAI) has a price to free cash flow ratio of 18.2x based on a current price of $50.58 and a free cash flow per share of $2.77.

Altria Group (NYSE:MO) has a price to free cash flow ratio of 20.9x based on a current price of $20.16 and a free cash flow per share of $0.97.

SmarTrend is bullish on shares of MO and our subscribers were alerted to Buy on March 11, 2009 at $16.48. The stock has risen 22.3% since the alert was issued.

Alley vacation up for vote

The city council’s Public Works Committee this week will consider vacating part of the north/south alley north of Williams Street and east of North Vermilion Street for a drive-through tobacco shop.

The new shop would be located in the little strip mall on the northeast corner of Williams and Vermilion streets, at 501 N. Vermilion St., according to Mayor Scott Eisenhauer.

Shicia Wang of Urbana is paying the city $1,307 for the alley vacation.

In other business, the committee will consider:

-- Approving about $88,000 in additional sewer work by Atlas Excavating of West Lafayette, Ind., in the areas of Oak, Franklin and Walnut streets and Vermilion Street from Voorhees to Roselawn.

The city requested additional work: to extend portions of the improvement north after finding conflicts with existing utilities, to repair and replace collapsed storm sewers and to pay for work on a time and material basis in areas where telephone duct banks could not be relocated or taken out of service.

The total contract: $779,866.

-- Approving an additional $15,000 in Danville Stadium roof work by Craftmasters Roofing of Decatur. Additional work was needed for installation of new sheeting on the front overhang of the roof, which was found once overhang was exposed to view.

The funds come from the city’s Parks and Public Property maintenance of buildings’ funds.

-- Approving a contract for a poured concrete floor for the parks storage and maintenance facility at the Voorhees Street Public Works Operations Center. City officials were to open bids today. Funds come from the city’s capital budget for buildings.

-- Authorizing Eisenhauer to enter into an engineering agreement, not to exceed $54,500, to perform a traffic-use study at various schools: Danville High School, North Ridge Middle School, Edison Elementary and East Park Elementary.

The Danville Area Transportation Study has budgeted and given approval for the city to enter into an agreement to assess and make traffic pattern recommendations that will tie into future Jackson Street improvements.

The city’s 20 percent funding for the project comes from the Midtown Tax Increment Financing District.

Eisenhauer said the city has three engineering proposals to consider.

-- Prohibiting parking on both sides of Griffin Street between Main and Voorhees streets. The city plans to stripe newly paved Griffin with two 10-foot travel lanes and two 5-foot shoulders to move traffic away from the curb line to increase pavement life and to allow for easier passage of fire safety equipment and buses.

Children Living In Apartments With Nonsmoking Adults Still Exposed

The majority of children living in apartments are exposed to secondhand smoke, even when they don't live with smokers. This study from the University of Rochester Medical Center is the first to examine whether housing type is a potential contributor to children's exposure to cigarette smoke. The abstract was presented May 1st at the Pediatric Academic Society Meeting in Vancouver, Canada.

Among children who lived in an apartment, 84 percent had been exposed to tobacco smoke, according to the level of a biomarker (cotinine) in their blood that indicates exposure to nicotine found in tobacco, and this included more than 9 of 10 African-American and white children. Even among children who lived in detached houses, 70 percent showed evidence of exposure.

"We are starting to understand the role that seepage through walls and through shared ventilation may impact tobacco smoke exposure in apartments," said Karen Wilson, M.D., MPH, author of the study and an assistant professor of Pediatrics at the University of Rochester Medical Center's Golisano Children's Hospital. "We see that children are being exposed in ways we are not picking up, and it's important, for their health, that we figure out where this exposure is taking place, and work to eliminate it. Multi-unit housing is one potential source, but a very important one."


Previous studies have shown that children with cotinine levels indicating tobacco smoke exposure have higher rates of respiratory diseases, decreased cognitive abilities and decreased antioxidant levels.

The study analyzed data from almost 6,000 children between 6- and 18-years-old in a national database (National Health and Nutrition Examination Survey 2001-2006) to see if there was any relationship between their smoke exposure and their housing type. Apartment living was associated with a 45 percent increase in cotinine levels for African American children and a 207 percent increase for white children. About 18 percent of U.S. children live in apartments, and many of these children are living in subsidized housing communities where smoking is more prevalent.

Wilson said many parents are trying to limit their children's tobacco smoke exposure by not allowing smoking in their apartments, but they say they can smell tobacco smoke coming from other apartments or from common areas. Last summer, the U.S. Department of Housing and Urban Development released a memo recommending that their housing developments enact smoke-free policies. A smoking ban within multi-unit, subsidized housing could further reduce the tobacco smoke exposure for children and reduce smoking rates among residents.

This study was funded by the AAP Julius B. Richmond Center of Excellence, through a grant from the Flight Attendant Medical Research Institute.

Ontario suing tobacco companies for $50B

Ontario is looking for $50 billion from a group of tobacco companies to recoup health-care costs linked to illnesses stemming from tobacco use.


Under the Tobacco Damages and Health Care Costs Recovery Act, which passed the provincial legislature this year, Ontario can file suits against companies seeking the recovery of tobacco-related damages.


The legislation impacts alleged damages from the past, as well as ongoing tobacco-related health issues.


Ontario Attorney General Chris Bentley told reporters Tuesday the government filed the suit in an attempt to reclaim the money dished out by taxpayers to fund the health-care system as it relates to ailments linked to smoking.


"The taxpayers of Ontario have paid a lot of money for health-care costs directly related to tobacco use over the decades," Bentley said, adding $50 billion is the estimated financial strain on the health system linked to smoking since 1955. "We have passed legislation that is consistent with legislation in other places and we believe the taxpayers should be compensated for the costs they have paid."


Although the new law allows government to move forward with the process, it is still required to prove its allegations — and cost estimates — in court.


Bentley played down questions about the government suing over tobacco use in Ontario when the province places hefty taxes on the products. "Even if we related the two, the amount paid out in health-care costs far exceeds the amount any government has collected for taxes," he said.


Acknowledging the length of time that may pass before results, Bentley said: "This is an important lawsuit . . . and we'll pursue it as expeditiously as we can and we'll pursue it to its conclusion."


Provincial NDP Leader Andrea Horwath said Tuesday the focus should remain firmly on reducing smoking, which would then filter down into less stress on the provincial health-care system.


"There's no doubt it will be an expensive undertaking and that it will take decades, likely, before it's resolved," Horwath told reporters. "That's why we're saying government should be doing something proactively . . . to help people quit smoking and to help young people to not start smoking in the first place."


Along with Ontario, six other provinces have taken steps to recover health costs from tobacco companies.


Meanwhile, the Saskatchewan government suggested Tuesday it might join Ontario's lawsuit.


Saskatchewan Health Minister Don McMorris said his government likely will decide in the next month whether to launch legal action.


"It is a huge deal," McMorris said of Ontario's decision.


"It is a huge case and the tobacco companies are well-defended and I think it would be very important that — if we decide to move forward — we move forward with a common voice with as many provinces as possible."


The previous NDP government in Saskatchewan passed enabling legislation that allows the province to sue tobacco companies. But Saskatchewan never launched a lawsuit because most large provinces — specifically Ontario — had shied away from legal action, making it too large a burden for Saskatchewan alone.


British Columbia introduced similar legislation in 2000, which was contested by Montreal-based Imperial Tobacco Canada Ltd.


In 2005, the Supreme Court of Canada upheld the B.C. law, allowing the province to seek health costs from tobacco companies dating back 50 years.


New Brunswick, Nova Scotia, Newfoundland and Labrador and Manitoba have also enacted tobacco-cost recovery laws.


In May, a similar bill was tabled in Quebec, where a health department study estimated the health-care costs of smoking in the province at $4 billion a year.