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Herbal Cigarettes Industry Contradictions At The Outset Of 2000s

In February 2000, in the monthly bulletin of news on policy abuses research carried out by Robert Wood Johnson Foundation, with reference to the Advocacy Institute, it was concluded that ‘herbal cigarettes are unsafe’, but popular among minors. The manuscript underlined that herbal cigarettes, marketed as a healthier alternative to tobacco and smoking cessation, are extremely attractive for young people. In the previous two years, the sales of such brands as Ecstasy rocketed to 350%. Ecstasy, Herbal Gold and the far-famed Magic ciggys come with ginseng, jasmine and heaps of other herbs in the composition, and therefore not subject to restrictions on sales to minors. Because teens tend to copy adults’ behavior, herbal cigarettes are a means to teach them to smoke, and the brand sophisticatedly promotes Ecstasy among teenagers.

On April 27 of same year, The Federal Trade Commission (FTC) of the United States issued a statement, indicating the nature of deceptive advertising of alternative cigarettes and required companies to designate herbal cigarettes harm to health.

In this statement, an official response to the actions of two businesses: Santa Fe and Alternative Cigarettes, in particular, states that manufacturers that produce alternative cigarettes, agreed to explicitly indicate ‘smoking herbal cigarettes is not safe for your health; the cigarettes are the source of tar and carbon monoxide’ signature on the packaging and advertising of herbal cigarettes. It should be noted that on some web pages touting herbal cigarettes, now the above-mentioned warning is also indicated.

Such instructions on the package may be excluded only if the data on research results showing that herbal smoking products do not cause any health risk is provided.

As stated by Jodie Bernstein, Office of Consumer Protection (FTC) director, this cigarettes type is promoted under the aura of ‘natural products’, but in fact they are neither healthier nor safer. Actually, there is no such thing as ‘safe smoke’; in the article on herbal cigarettes posted on (Natural Health Magazine) website, a digital herbal medicine treasury, boasting numerous articles on herbal medicine, it is argued that cigarette smoke, just like smoke of tobacco cigarettes , is a source of toxins, carcinogens, resins and carbon monoxide.

The outcomes of the affair

In addition, after FTC forced manufacturers to place warnings on cigarette packs and baned the packages indicating that ‘herbal cigarettes that do not cause a health risk that is associated with tobacco smoking’ as well as any other statements on health effects, until they are not supported by the research results, the initiative was supported by state authorities.

Following the FTC statement in May 2000, there have been reports that state legislatures began to unanimously put herbal cigarettes sales to minors under a ban.

In New York the Act on Prevention of adolescent tobacco use, in particular, in the 2002 version, says that salespeople do not have the right to sell tobacco or herbal cigarettes to persons under 18 years of age, otherwise they risk to be fined $2,500 and lose the certificate for trade in tobacco and herbal products, loss of license.

Scenario of the cigarette industry in India is unpredictable. Today the Indian market in tobacco use has the potential growth that could ignite interest in absolutely any manufacturer of tobacco products.

In India, only 14% of the total cultivated tobacco goes to the production of cigarettes, and the rest goes to the production of “bidi” (tobacco with the addition of the tobacco mixture of different spices) and chewing tobacco. Manufacturers still hope that with increasing wealth and urbanization, aktipnoy propaganda in the media and global trends in lifestyle cigarettes destined to change the way to “bidi”. Recently, India imposed a ban on “gutka” (kvazitabachnoe (smokeless) product made from a mixture of tobacco, betel and acacia), it also contributes to the growth of demand for cigarettes. The target audience for the production of tobacco products is a new generation. Despite the fact that the cigarettes in India occupy only 14% of the total tobacco consumption, namely cigarettes are a major source of income from the whole of the tobacco industry (over 90%). Farmers also profit from the supply of tobacco cigarette manufacturers.

Producers from abroad is not easy to compete with local Indian cigarette manufacturers. It’s such firms as: ITC and Godfrey Philips (GPI), they, in turn, so do not skimp on new innovative equipment and market development.

Also for manufacturers of tobacco products adversely affects the factor that was recently will introduce a ban on smoking in public places, mass anti-tobacco company and the restriction of advertising of tobacco products companies. Penetrate the Indian market counterfeit and contraband cigarettes, which also affects not the best way for the Indian tobacco industry. Another factor, the ban on “gutka” stimulated an increase in the number of small-scale producers of cigarettes. They do not need a license. Such tobacco again is a cheap, low-quality.

In the Indian market for the production of cigarettes, the company ITC significantly leader (about 70%). This company with relative success promoting its brand «Wills», and «Classic», later renamed the «Wills Classics». Just about the prospects of this company to extend its range. Next on the market the cigarette industry has taken its niche company GPI. She successfully promoted brands such as “555», «Marlboro» and «India Kings». Companies VST and GTC are 8% and 6% of the market.

Today, India glosses over second place in the world in the export of tobacco after China. More than 80 countries are purchasing Indian tobacco. 80-85% of the exports of raw tobacco occupies, and the remaining 15-20% – tobacco. Sort of “Virginia” thermal drying takes 75-80% of the total exports of tobacco. Prices of Indian tobacco are more able to compete than the prices of other producers. India does not yield and the main competitor – Brazil, paying attention to the quality of the exported tobacco.