Three Major Points HOW TO COUNTER A RACKETEER:

HOW TO COUNTER A
RACKETEER:
The Latest Tactics of Tobacco Companies &
How Young Adults Can Help Fight Them
Three Major Points
• The Problem & the Cause
• The Solution
• What You Can Do About It
Danny McGoldrick
VP, Research
Campaign for Tobacco-Free Kids
Denver, CO
March 22, 2007
Tobacco’s Toll in U.S.
• Tobacco is the leading preventable cause of
death, killing more than 400,000 each year
Tobacco’s Toll in U.S.
• 4,000 kids try their first cigarette every day
• Tobacco kills more people than from AIDS,
alcohol, car accidents, murders, suicides, and
fires combined
• Another 1,000 kids become regular daily
smokers every day; one-third will die from
smoking-related diseases
• Tobacco results in $96.7 billion in annual health
care costs
• 23% of high school students smoke, according
to CDC
• Nearly 90% of lung cancer cases, 1/3 of total
cancer deaths, and 1 in 5 deaths from heart
disease are tobacco related
• 28.4% used some tobacco product in the last
month
The Mission of Tobacco Control
Mission: Reduce Tobacco Use & Its Toll on
Health by:
–
–
–
–
Preventing youth from starting to smoke, dip, chew
Helping tobacco users quit
Protecting everyone from secondhand smoke
Reducing harm, if possible, to those who are unable
to quit
A Pitched Battle
• The forces of tobacco control and public health
whose bottom line is fewer users, less illness, less
death
VS
• The forces of tobacco companies whose bottom
line is more users, more sales, more profits –
regardless of the impact on public health
1
THE DARK SIDE
Still Marketing to Kids & Targeting
Young Adults
Still Lying About Their Products
and Introducing New Ones
Still Opposing Real Policy Change
Still Attacking Real Prevention
Programs and Promoting Phony
Ones
Dom estic Cig arette Ad vertising and
Prom otional Exp end itures 1 9 9 8 - 2 0 0 3
(thousands of dollars)
$15.15
Billion
$6.73
Billion
$8.24
Billion
$9.59
Billion
$11.22
Billion
$12.47
Billion
Includes
$10.8 Bill.
in price
discounts
Source: Federal Trade Commission Cigarette Report for 2003
The Tools of Tobacco
Companies
The 4 P’s of Marketing
• Price
• Placement
• Promotion
• Product
Impact of Price Discounts
• From 1997 to 2002, the average retail pack price of
cigarettes increased by nearly 91 percent, and youth
smoking rates declined by 26.8 percent among twelfth
graders and 44.8 percent among eighth graders.
• From 2002 to 2004, the avg retail pack price barely
increased at all (only two cents, or .5 percent) despite a 28
percent increase in state cigarette taxes, and youth
smoking declines slowed markedly - the decline was only
6.4 percent among twelfth graders and 14 percent among
eighth graders.
2
Price Discounting & Minorities
• Cigarette prices for premium brands like Marlboro and
Newport are LOWER in low-income communities and in
communities with higher percentages of AfricanAmericans. While some of this is clearly attributable to
differences in state tobacco taxes, these differences do
not explain all of the variation.
Point of Sale Marketing
• Three-fourths of teenagers visit convenience stores weekly
• Point of purchase promotions have increased in recent years.
Virtually all retail outlets have some form of tobacco
promotions, and the amount of marketing materials per store
has increased over time.
• There is more interior and exterior tobacco advertising in retail
outlets in low-income communities and communities with larger
African-American populations.
Washington DC, April 2006
• Tobacco advertising inside and outside retail outlets is greater
in states with comprehensive tobacco prevention programs.
This suggests efforts by the industry to counter the
effectiveness of these programs.
TARGETING YOUNG ADULTS
“Industry research indicates that progression to
confirmed smoker is accompanied by increases
in consumption “The 10 years following the
teenage years is the period during which average
daily consumption per smoker increases to the
adult level.”
March 31, 1981, Philip Morris Bates No.
1000390803.
3
Current Smoking Among Young Adults:
Current Cigarette Smoking By Age Group
Full-time College vs. Non-College, MTF
1991-2005 National Health Interview Survey
28.6%
24.4%
35.4%
24.1%
22.9%
23.8%
23.2%
Data are not available for 1996.
Young Adult (18-24) Smoking Prevalence
By Race/Ethnicity
TARGETING YOUNG ADULTS
2000-2003 National Health Interview Survey
28.2%
15.8%
• Special Products
• Bar Promotions – 4900 events
scheduled in California alone in ONE
MONTH
• Building Databases for Direct
Marketing
• Concerts/Contests
• On-Campus Events
Data for Asians and American Indians were unreliable.
4
GQ, August and
April 2006; Sports
Illustrated, February
17, 2006.
Courtesy of
trinketsandtrash.org
Rolling Stone, May 18-June
1, 2006.
Courtesy of trinketsandtrash.org
5
Latina
April 2005
Rolling Stone, October 20, 2005.
Courtesy of trinketsandtrash.org
The newest
InStyle, Cosmopolitan,
Elle, Marie Claire,
Vogue, January 2007;
Lucky, February 2007.
6
The Product is Critical
•
Manipulated from its rawest form through the entire manufacturing process all
the way to the packaging
•
Way more than tobacco leaves rolled in paper, put in pouches, etc.
•
Highly engineered and finely tuned Nicotine Delivery Devices
•
Every aspect thoroughly researched and controlled by the tobacco companies,
with no government oversight or even disclosure
•
Products designed to appeal to targets, sustain addiction, assuage health
concerns, create an image
•
Design decisions ultimately and exclusively based on tobacco company
bottom line
International Communications Research (ICR)
Nationwide survey of teens aged 12-17; Nationwide survey of adults
March 2007
Compounds released from filter pellet of Camel Twist




















α-linalool
p-menth-1-en-8-ol
Dodecane
Decanal
α-citronellol
citral
1-Decanol
p-Mentha-1(7),8(10)-dien-9-ol
Tridecane
Undecanal
α-Cubebene
Limonenediol
diacetin
Copaene
β-elemen
Tetradecanal
Dodecanoic acid, 1-methylethyl ester
Heptadecane
Nonadecane
Heptadecane, 2,3-dimethyl-


















Tetradecane
Caryophyllene
Dodecanal
β-Cubebene
ç-Elemene
α-Caryophyllene
γ-Muurolene
Valencene
α-Candinene
Pentadecane
β-Candinene
Hedycaryol
Caryophyllene oxide
Hexadecane
1,4-Methanobenzocyclodecene,
1,2,3,4,4a,5,8,9,12,12a-decahydroOctadecane
3,7,11,15-Tetramethyl-2-hexadecen-1-ol
Eicosane
*Based on high MS response of peak in chromatogram
7
Tin of Cherry Skoal (2007)
Percentage of Young Smokers* Who Tried Any
Camel, Kool, or Salem Flavored Cigarettes During
the Previous 30 Days, by Age – United States, 2004
A former UST sales representative revealed that, “Cherry Skoal is
for somebody who likes the taste of candy, if you know what I’m saying.”
“Juiced Up: How a Tobacco Giant Doctors Snuff Brands to Boost Their ‘Kick,’” The Wall Street Journal, 26
October 1994.
Source: National Youth Smoking Cessation 12-Month Follow-up Survey
* Ages 16-25 years old; n = 1,603
Tobacco Delivered Nicotine –
a Chemical Cocktail
• Acetaldehyde and MOAIs: synergistic addictive effects
• Ammonia and urea: increase speed and efficiency of nicotine
absorption
• Leuvenalic acid, chocolate and menthol: may increase ease of
inhalation and deep lung absorption
• Menthol: may also provide a cue for Pavlovian conditioning
• Physical engineering by particle physicists results in more rapid
and efficient absorption of nicotine and toxins
• Glycerin: can form particles to enable deep lung exposure
• Physical designs to beat FTC/ISO tests lead to exposure to higher
than expected doses
• Ventilation holes may increase free nicotine fraction
“For Decades, Defendants Have Recognized that
Controlling Nicotine Delivery, in Order to Create and
Sustain Smokers’ Addiction, Was Necessary to
Ensure Commercial Success”
“Defendants Researched, Developed, and Utilized
Various Designs and Methods of Nicotine Control
to Ensure that All Cigarettes Delivered Doses of
Nicotine Adequate to Create and Sustain
Addiction”
RJR document Identified the Specific
Characteristics to Be Used in
Developing "New Brands Tailored to
the Youth Market."
∗ Nicotine level of 1.0- 1.3
mg/cigarette;
∗ Nicotine absorption minimized “by
holding pH down”
Excerpts from U.S. v. Philip Morris USA, Inc., et
al., (Final Opinion) (August 17, 2006)
∗ Tar content of 12-14 mg/cigarette
to achieve desired taste and
"visible" smoke
* Bland smoke to address “low
tolerance for smoke irritation”
of “beginning smoker[s] and
inhaler[s]”
* Suggests 100 mm "to facilitate
lighting”
* “Reasonably firm" rod
8
“Lighter” cigs usually are more ventilated and
more readily enable compensatory smoking
UST’s “Graduation Strategy”
based on pH and nicotine control
COPENHAGEN
SKOAL
SKOAL
LONG CUT
LONG CUT
WINTERGREEN
MINT
HAPPY DAYS MINT
LONG CUT
SKOAL
BANDITS
WINTERGREEN
SKOAL
BANDITS
MINT
SKOAL/KEY
NATURAL
SKOAL
LONG CUT
MINT
HAPPY DAYS
SWEET
LONG CUT
SKOAL
BANDITS
SWEET
SKOAL
LONG CUT
NATURAL
HAPPY DAYS
NATURAL
LONG CUT
SKOAL
BANDITS
NATURAL
Maintenance
Products
High pH
GRADUATION PROCESS
GRADUATION PROCESS
SKOAL
WINTERGREEN
Source: Marsee vs. UST. UST Document No. 12017104. Court Exhibit No. 100.
Particle Size: Determinant of Tar & Nicotine
Lung Penetration
Too Large
.5 - 2 microns
Too Small
Starter
Products
Low pH
Philip Morris (1950s)
Paraphrase: Insofar as particle size is a
determinant of lung absorption of smoke, we
should explore this as a way to reduce lung
cancer risk
History shows they did the opposite – to
increase efficiency of nicotine absorption as
the priority concern over potentially
increased lung cancer
NATIONAL CANCER INSTITUTE REVEALS
THE LOW-TAR LIE
• Study found “light” and “low-tar” cigarettes
no less harmful than other brands
• Tobacco industry deliberately marketed
low-tar cigarettes to prevent smokers from
quitting
• “In effect, the Marlboro 85 smokers in
this study did not achieve any reduction
in smoke intake by smoking a cigarette
(Marlboro Light) normally considered
lower in delivery.” (Philip Morris --1975)
9
The Tools of Tobacco Control
• Tobacco Taxes
“[It] will not kill them as quick or as
much as other brands,”
Bennett LeBow, CEO, Vector,
Manufacturer of new Omni cigarettes.
-- USA Today 1/11/02
• Smoke-free Laws
• Comprehensive Prevention & Cessation
Programs
• Coverage for Smoking Cessation Services
• Media Advocacy
• Restraints on the Tobacco Companies
TO BRING ABOUT
• Social & Environmental Change
Recent Cigarette Tax Increases
CIGARETTE PRICES AND YOUNG
PEOPLE
WASHINGTON
202.5
OREGON
 YOUTH
118
A 10% Increase in Price Reduces Smoking Prevalence Among
Youth by nearly 7%
170
NORTH DAKOTA
44
57
80
69.5
COLORADO
84
CALIFORNIA
ARIZONA
200
A 10% Increase in Price Reduces Conditional Demand Among
Young Adults by another 5%
103
91
TEXAS
HAWAII
141
160
A 10% Increase in Price Reduces Smoking Prevalence Among Young
Adults by about 5%
17
98
IN
125
55.5
20
59
36
MARYLAND:100
VIRGINIA
DC:100
NORTH CAROLINA
TENNESSEE
ARKANSAS
MA:151
RI:246
CT:151
DELAWARE:55
30
55
30
NJ:258
135
WV
KENTUCKY
NH: 80
MA
CT
PENNSYLVANIA
OHIO
ILLINOIS
MISSOURI
79
NEW MEXICO
ALASKA
180
200
KANSAS
OKLAHOMA
150
MICHIGAN
136
64
UTAH
87
NEW YORK
77
153
NEBRASKA
200
VT
WISCONSIN
IOWA
NEVADA
Higher cigarette prices are associated with substantially reducing
adolescents’ probability of becoming daily, addicted smokers,
helping prevent moving from lower to higher stages of smoking.
 YOUNG ADULTS (College Students)
149.3
60
MAINE
VT:179
MINNESOTA
SOUTH DAKOTA
WYOMING
A 10% Increase in Price Reduces Conditional Demand Among
Youth by over 6%
• 10% price increase reduces probability of any initiation by about 3%, but
reduces probability of daily smoking by nearly 9% and reduces probability
of heavy daily smoking by over 10%
MONTANA
IDAHO
35
SOUTH CAROLINA
7
MS
ALABAMA
GEORGIA
18
42.5
37
LOUISIANA
FLORIDA
States that have not passed tax increases
since before 2001
33.9
States that have recently passed or
implemented a cigarette tax increase
(since 1/1/2002)
AZ’s tax rate is effective 5/1/07. Upcoming increases: AK increase to 200 cents per pack on 7/1/07; HI’s increase to 180
cents per pack on 9/30/07; VT increase to 199 cents per pack on 7/1/07.
March 2007
Smoke-Free Laws
Effects of Smoke-free Laws
• Protect everyone from secondhand
smoke
• Prompt more smokers to try to quit
• Increase the number of successful quit
attempts
• Reduce the number of cigarettes that
smokers consume
• Discourage kids from starting
• Do NOT hurt business
Restaurants & Bars
Restaurants
* Arizona law effective 5/1/07; New Mexico law effective 6/15/07
* The Montana and Utah laws extend to bars in 2009.
March 2007
10
Funding for Tobacco Prevention & Cessation
Policy & College Students
• Price affects both prevalence and level of
smoking
• Community and State Smoke-Free Laws impact
level of smoking
• Campus Smoke-Free Policies (if comprehensive)
affect level of smoking -- but community needs
to be smoke-free also
States that have funded tobacco prevention programs at a level that
meets the CDC’s minimum recommendation.
States that have committed minimal amounts for tobacco prevention
programs (less than 25% of CDC minimum).
States that have committed substantial funding for tobacco
prevention programs (more than 50% of CDC minimum).
States that have committed no tobacco settlement or tobacco tax
money for tobacco prevention programs.
States that have committed modest amounts for tobacco prevention
programs (25% - 50% of CDC minimum).
FY 2007 Tobacco Money for
Tobacco Prevention
December 5, 2006
Adult Smoking Trends
1992 - 2004*
$ 21.7 Billion
$7.0 Billion
Adult Smoking Rate
Tobacco Settlement
Revenues
$14.7 Billion
Tobacco Tax
Revenues
$1.6 Billion
N/A
$597.5 Million
Year
* Data are from the National Health Interview Survey
Youth Smoking Trends 1991 - 2005*
Momentum Continues in 2007
Watershed Year for State Tobacco Control Efforts
34.8% 36.4%
Youth
Smoking
Rate
27.5%
30.5%
34.8%
28.5%
21.9%
19% decline
34% decline
37% decline
Year
* Data are from the Youth Risk Behavior Surveillance Survey (1991-2005)
23.0%
• Tax proposals in MD, ME, IN, WI, OR, TN,
SC, MS & others
• Smoke-free Efforts in NM,NH,PA,MD, VA,
TX, TN, OR, WI, MN,AL,NE,IL and localities
• Funding Initiatives in OH, WI, IN, OR, KS,
NM, VT, NE via variety of sources
11
Key Components of
FDA Regulation
The Need for FDA Regulation
•
States can impact price through tax increases, minimum pricing laws, etc. and
can affect placement through regulation of the sale and distribution of tobacco
products, BUT
•
The product that kills the most is regulated the least. Food, cosmetics, drugs,
and even dog food are regulated, but not tobacco
•
Tobacco companies are free to manipulate the product at will without regard to
health and without disclosing changes
•
Health claims are virtually unregulated as evidenced by recent spate of
“reduced risk” products
•
States are currently preempted by FCLA from regulating the time, place, and
manner of tobacco advertising, so they cannot act
•
States have the authority to regulate the tobacco product, but few if any have
the resources or scientific capabilities it would take to oversee regulation of
tobacco products
• Regulating the marketing of tobacco products
• Regulating the product itself
• Using a “Public Health” standard, which takes into
account not just the impact on the individual
smoker but on encouraging initiation and
discouraging cessation
Marketing Restrictions
Product Regulation
Requires that the FDA’s 1996 Rule take effect within one year of enactment
but also gives FDA flexible authority to regulate marketing.
• No outdoor tobacco advertising within 1,000 feet of schools and playgrounds
• No tobacco brand sponsorships of sports and entertainment events
• No free giveaways of any non-tobacco items with the purchase of a tobacco
product or in exchange for coupons or proof of purchase
• No free samples and the sale of cigarettes in packages that contain fewer
than 20 cigarettes
• Limits any outdoor and all point-of-sale tobacco advertising to black-andwhite text only
• Limit advertising in publications with significant teen readership to black-andwhite text only
• Restrict vending machines and self-service displays to adult-only facilities
• Require retailers to verify age for over-the-counter sales and provide for
federal enforcement and penalties against retailers who sell to minors.
Get INVOLVED !!!!
•
Public Health Standard
•
FDA can command changes in existing products to reduce harm
•
No new products can be made without pre-market approval; must show no
harm to public health
•
Modified risk products must show positive impact on “public health”
•
Claims cannot lead to increased initiation or decreased cessation that
outweighs any reduced risk to individual
•
Agency regulates claims
On Campus
• On Your Campus
• Tobacco-Free Campuses
• With National Groups
• Divestment Campaigns
• In Your Community/State
• Stop Tobacco Funding of Research or other
College Functions
• As a CTFK E-Champion
• In Political Campaigns
• Smoking Cessation Services
• Peer to Peer Education
12
Community/State Coalitions
With National Groups
• Contact state/local tobacco control coalition
(TFK can help locate)
• Identify Issues
• Work on local/state policy campaigns
• Get Information
– Tobacco taxes
– Smoke-free workplace laws
– Funding for tobacco prevention/cessation
programs
• Get Event/Organizing Ideas
• www.ignitegeneration.org
• Work with state/local tobacco prevention &
cessation program
13
Senate rejects smoking ban, 12-11
Supporters vow to make it election issue
By ERIC MOSKOWITZ – April 7, 2006
If You Can’t Change the Policy Makers’ Minds
Change the Policy Makers
The Senate defeated a smoking ban for restaurants and bars by one vote yesterday. The ban passed in the House
last month and had support from the governor, but Senate Republicans rejected the idea, calling it anathema to the
state's "Live Free or Die" motto and tradition of limited government.
Twelve Republicans voted against the ban, while three joined the Senate's eight Democrats in supporting it.
Backers of the smoking ban called it a matter of public health, not partisan politics, and said the ban would
protect restaurant and bar workers and patrons from secondhand smoke. . .
After the ban failed, supporters pledged immediately to make it a campaign issue next fall. "When the
people will lead, the leaders will follow," said Lori Fresina, of the Campaign for Tobacco-Free Kids. "The leaders
didn't follow today, but I think they severely underestimated the will of the voters in this state."
State Democratic Party Chairwoman Kathy Sullivan called the vote a Republican move to put ideology above
public safety. "Frankly, I think voters will hold their senators accountable for this vote in November, and we will
see enough seats change in the fall elections that it will pass smoothly next session," Sullivan said in a statement.
Senate Majority Leader Bob Clegg all but dared the Democrats to campaign on the issue. "Geez, I hope
so," he said. "I hope people realize that there is a group (of senators) who think the people out there are too
stupid to make choices for themselves. The Democrats, inch by inch, want to take away every right that people
have." . . .
Where there's smoke . . .
By ERIC MOSKOWITZ - September 3. 2006
Last session, the House passed a smoking ban for restaurants and bars by 33 votes, citing the hazards of secondhand
smoke, wide public support for the ban and the presence of similar bans in neighboring states. But the Senate defeated
the bill by one vote, calling it an infringement on the state's "Live Free or Die" tradition.
Ban supporters warned at the time that voters would remember in November. Senate Majority Leader
Bob Clegg responded by daring them to make it an issue. That way, he said, voters could see that "Democrats, inch
by inch, want to take away every right that people have."
Campaign season is here, and ban supporters are living up to their word. The Tobacco-Free Kids Action
Fund in Washington has launched a direct-mail campaign targeting Boyce, a Republican who faces a
Senate primary in his Lakes Region district against Rep. Jim Fitzgerald, a Laconia Republican who voted
for the ban.
The action fund's first brochure contains a doctored "Live Free and Die" highway sign. The second brochure shows smoke
wafting over a mother and small child in a café. Both say "Robert Boyce stands in the way of a healthier New Hampshire." Both
encourage people to vote no for Boyce and yes for "a healthier New Hampshire."
The action fund is not affiliated with any candidate. Spokeswoman Jen Friedman said the group is still considering its options
about which Senate candidates to target for the general election. Gatsas said he's not afraid of the attention. He expects to be back
in the Legislature to vote against a smoking ban for the foreseeable future. Gatsas insisted that the free market should determine
whether businesses go smoke-free, not the Legislature. Main Street provides all the evidence he needs, he said, counting
Margarita's, the Barley House and even the Gaslighter as newly or soon-to-be smoke-free establishments. "When the Gaslighter
has gone smoke-free, you know that businesses are making the right decisions," he said.
14
Fitzgerald unseats Boyce
By ERIC MOSKOWITZ - September 13. 2006
Former Laconia High School football coach Jim Fitzgerald unseated Sen. Robert Boyce in a Republican primary yesterday,
earning nearly twice as many votes as the incumbent from Alton.
Boyce, who compiled the most conservative voting record in Concord during two terms in the House and three in
the Senate, attributed the loss to the vote he cast last session against a smoking ban in restaurants and bars. A
Washington-based anti-smoking group launched a massive mail-and-telephone campaign that targeted Boyce for
standing "in the way of a healthier New Hampshire."
The Tobacco-Free Kids Action Fund urged Lakes Region voters to pick Fitzgerald, a two-term state representative who voted to
support the smoking ban in the House last spring. In the general election, Fitzgerald will face Democrat Kathy Sgambati of Tilton,
who was not challenged in a primary. . .
Over three terms, Boyce was the Senate's resident contrarian. . . . But Boyce's most significant vote wasn't one he cast as a lone
dissenter. Instead, it was his participation with the Senate Republican majority to kill the smoking ban, which died in the Senate
by one vote after passing the House.
"What I was thinking about (then) is what I thought about on every vote I made: Was it right for the people of the state?" Boyce
said. He felt lawmakers should leave the smoking/non-smoking debate to the free market: "If you don't want to work in a place
that is a smoking establishment, you don't have to, you can work somewhere else. If you don't want to eat some place that's
smoking, then don't. Vote with your feet," he said.
Boyce said last night that he thought the anti-tobacco group that targeted him had violated state law by failing to register as a
political action committee with the secretary of state. "Of course, nobody in the attorney general's office cares enough about that
to pursue that," he said. "But that sounds like sour grapes, so I don't want to say any more about that."
Mission Accomplished:
Healthy New Hampshire- 3 Big Tobacco- 0
The Tobacco-Free Kids Action Fund was successful in
unseating three incumbent state senators who were
roadblocks to a statewide smoke-free law.
“Despite his opposition, Letourneau said he ‘can almost
guarantee’ the ban will pass in the next few months.”
“‘I think it will be because they’ve got the people elected
that they wanted elected, and now they’ve got the votes
to see this through,’ he said.”
“Smoking ban passes in Senate”
“After the Senate rejected the ban last year, the Tobacco-Free Kids
Action Fund set out to educate voters on which candidates supported the
bill. William Corr, the group’s executive director, took yesterday’s vote as
evidence that the mailings and phone calls were effective.”
“‘Today’s vote shows that New Hampshire’s leaders are heeding the loud
and clear message voters delivered at the ballot box last year when they
replaced three state senators who had opposed the smoke-free law with
three supportive senators,’ Corr said in a statement.”
State Senator Robert Letourneau, staunch opponent of smoke-free laws
- Eagle-Tribune , 1/ 7/ 2007
- Concord Monitor, 2/ 23/ 2007
Danny McGoldrick
Vice President, Research
Campaign for Tobacco-Free Kids
(202) 296-5469
dmcgoldrick@tobaccofreekids.org
www.tobaccofreekids.org
15