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    PHA Taming Industry 8-15a

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    Sasa Stankovic
    The document discusses the problems with the tobacco industry, including its power to resist regulation, influence in developing countries, and ability to corrupt governments. It also examines trends like industry consolidation, the growth of China's tobacco market, and new nicotine products. Solutions proposed include strengthening international tobacco control laws and their implementation and changing public perceptions of the industry.

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    PHA Taming Industry 8-15a

    Uploaded by

    Sasa Stankovic
    15 views17 pages
    The document discusses the problems with the tobacco industry, including its power to resist regulation, influence in developing countries, and ability to corrupt governments. It also examines trends like industry consolidation, the growth of China's tobacco market, and new nicotine products. Solutions proposed include strengthening international tobacco control laws and their implementation and changing public perceptions of the industry.

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    The document discusses the problems with the tobacco industry, including its power to resist regulation, influence in developing countries, and ability to corrupt governments. It also examines trends like industry consolidation, the growth of China's tobacco market, and new nicotine products. Solutions proposed include strengthening international tobacco control laws and their implementation and changing public perceptions of the industry.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    15 views17 pages

    PHA Taming Industry 8-15a

    Uploaded by

    Sasa Stankovic
    The document discusses the problems with the tobacco industry, including its power to resist regulation, influence in developing countries, and ability to corrupt governments. It also examines trends like industry consolidation, the growth of China's tobacco market, and new nicotine products. Solutions proposed include strengthening international tobacco control laws and their implementation and changing public perceptions of the industry.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 17

    Taming the monsters

    Tobacco industry corporations:


    Problems, trends and solutions

    September 7, 2015
    PHA conference, Dunedin

    George Thomson,
    Nick Wilson
    Louise Delany
    University of Otago, Wellington, NZ
    The problem of the industry includes:

    1.Its power to resist effective regulation


    2.Its reach into developing countries, and
    3.Its capacity to corrupt government processes
    Tobacco industry business model

    1.Use $ billions to associate positive values with


    tobacco brands
    2.Recruit people under 25
    3.Customers kept by nicotine addiction
    4.Use top lawyers and PR to obscure the above
    5.Use $, top lobbyists and PR to prevent laws,
    treaties and legal action to deal with 1-4
    Trends within the world tobacco industry

    • Products
    • Concentration
    • The relative growth of China Tobacco
    New tobacco and nicotine products
    Tobacco industry investment in the production and
    marketing of:
    •E-cigarettes: Increasingly dominated by industry
    •Smokeless tobacco

    US marketing spending 1998-2012


    Concentrated power
    • In 2000 top 5 companies’ had 68% of cig market
    • In 2014: 83%

    2014 data
    Why fewer and larger?
    • Efficiency of larger cigarette making machines
    • The ability to dominate the tobacco leaf-buying
    environment
    • Cost-effectiveness of world-scale marketing
    • Better access to capital
    • Ability to buy smaller companies

    Marketing to Russian women


    Plus effects of globalisation
    • Globalisation has helped tobacco companies
    • Trade/investment treaties help industry to enter
    countries and resist regulation
    • Cigarette production and sales are moving to
    Asia, Eastern Europe, and Africa
    • Over 80% of smokers are in ‘developing’
    countries
    Case study: China Tobacco
    • Growing: From 2002 to 2013, China’s share of
    world production rose from 30% to 43%
    • Govt owned: regulator (State Tobacco Monopoly)
    and the marketer (CNTC) same
    •

    • CNTC contracts manufacturers


    • Premier’s brother was deputy CNTC CEO 2003-15

    • Crucial $: Provides 7% of all state revenue


    • In 2010 only 1% of production exported
    Chinese brands are increasingly important globally
    Solutions
    • Law
    • Implementing law
    • Hearts and minds – reframing the industry
    • Allies within China
    – President Jinping’s wife ‘Anti-Smoking Ambassador’ from 2009
    – In 2012, none of the Politburo Standing Committee a smoker. Only
    five (20%) of Politburo smokers, & rarely smoked in public
    – 2013: Party circular: leaders banned from smoking in public
    Law
    International law can be used to control industry activities
    •Framework Convention for Tobacco Control (FCTC)
    •Convention on the rights of children (UNCROC)
    •UN Political Declaration on NCDs 2011 (soft law)
    •Health law seen as part of international human rights law
    •Trade and investment law more clearly recognise
    important of public health and other values
    FCTC
    • First treaty to control a non-communicable disease
    disaster
    • Needs to be strengthened and more widely
    implemented: eg,
    – to exclude the industry from international and country-
    level policymaking
    – to address issues about e-cigarettes,
    – to ensure that industry cannot invoke WTO law, or
    provisions in free trade agreements

    • NZ could lead at World Health Assembly & WHO


    Implementing law
    Hearts and minds (changing political
    agendas)
    • Framing the tobacco industry as an under-regulated
    and criminal killer:
    – Denial of nicotine addiction, marketing to children
    – Found by US courts to conspire to lie, deceive
    – BAT admitted smuggling (2001)
    Summary
    • The industry is increasingly dominated by very
    large and powerful global companies
    • A stronger globalised tobacco industry requires
    a stronger international legal response
    Further reading

    Thomson G, Wilson N. (2015). The Global


    Tobacco Industry. In: Reference Module in
    Biomedical Sciences. Waltham, MA, Elsevier.
    http://www.sciencedirect.com/science/article/pii/B9780128012383032013/pdfft?md5=99337dbde932e23c6915
    95e092644d4f&pid=3-s2.0-B9780128012383032013-main.pdf

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