Author Archives: Kirk VandenBerghe

The Smoke Economy – How Big Tobacco Keeps Growing

Fewer people are smoking – that means tobacco companies are making less money, right? Unfortunately, according to this infographic from purplebox; tobacco companies are pulling in record profits despite lower sales. It is, of course, fantastic that the number of cigarettes being sold in the U.S fell by 37% between 2001 and 2016, but since 2006, the operating profits of US tobacco manufacturers have increased by 77% to a massive $18.4 billion.

Tax on Cigarettes

The tax on cigarettes in the U.S is 42% and this is actually quite low relative to places like the UK who tax cigarettes at 82%. Interestingly, both California and New York are looking to increase the tax on cigarettes. It will likely be the customer who foots the bill here as if you’re addicted to smoking; you simply have to pay whatever price is being charged.

Smokers Increasing

When you consider the world as a whole, the number of smokers is actually going to increase from 1 billion right now to 1.64 billion by 2025. Tobacco companies are always willing to pivot and they can target new markets if they feel others are starting to wane.

For example, one big name is British American Tobacco and they have recently been targeting the less educated African markets. They are currently facing lawsuits related to past and future health care costs related to smoking.

Expensive Habit

The tax will likely continue to go up on cigarettes but unfortunately, an addiction is powerful and people can’t simply quit when the price of a pack goes up by $2. They will generally make cutbacks in other areas of their lives to pay the extra cost. Tax on cigarettes is a good thing but for the smokers left behind; it can turn into an extremely expensive habit to feed.

Read more about how the smoke economy continues to grow in the following infographic:

The Smoke Economy

Raising the Smoking Age, Black Market Cigs & 4 Billion for Health Care

This week the news reported several tobacco related stories.

As the senate passes a bill to protect young Americans from the effects and dangers of smoking, smokers are red hot over the recent tax hikes and smoker’s helplines are getting busier by the day.

Also, Big Tobacco is feeling a little pain this week after paying their annual settlements.

Associated Press Reports on Bill SB 1049

The house will soon review a smoking age bill the Senate voted on and passed on April 15th to raise the smoking age from eighteen to nineteen years old.

The goal of this bill is to reduce the number of youth smokers by keeping tobacco products away from high school students.

The Senate vote was twenty-five for, and five against. In the same story it was reported that in the State of Texas alone roughly one-fourth of the high school students smoked cigarettes in 2006.

If this bill passes, the tobacco supply aimed at eighteen year old smokers would not be available legally.

Big Tobacco Yearly Annual Settlements

Also in the news, Philip Morris USA made its annual tobacco payment of four billion dollars as part of the 1998 Master Settlement Agreement which is paid to reimburse states for smoking-related health care costs.

In total, Big Tobacco agreed to make about $206 billion in annual payments over more than two decades.

However, not all states are using the funds as specified.  The American Cancer Society in New England reported that only a small percentage of funds targeted for tobacco prevention programs were allocated. This lack of responsibility is putting children and youth at risk for taking up the nasty tobacco habit.

Red Hot Over Cig Tax Creates Busy Helplines

The tobacco tax in Arizona was only thirty-nine cents a pack a few weeks ago.

With the new government tax add on of a little over a dollar, the Arizona Tax Revenue department is worried about their share of the taxes being undercut due to smokers seeking alternative ways to buy their smokes.

With cigarettes at just under seven dollars a carton in Mexico, black market tobacco products may soon be infiltrating the area along with the resale of cigs purchased at the Indian reservations.

At the same time, calls to the Arizona stop smoking help line are up, as reported by the Tuscon Citizen news.

The Arizona Smoker’s Helpline is web based and offers a test for smokers. It is designed to provide a score on each of six factors that describe individual smoking behaviors. They understand that people phase in and out of wanting to quit and they know how to support smokers in taking the next step to really quit for good.

First learn why you smoke. Is it …

  1. Stimulation – If you smoke for stimulation, try a brisk walk, dance around the room, change your state in another way.
  2. Handling – If you like the way a cigarette feels then try other things to keep your hands busy. Take up a hobby
  3. Increasing Sensation of Pleasure –  Create some new activities in your life that are stimulating and enjoyable without being destructive.
  4. Reducing Negative Feelings – If smoking is a crutch for coping with emotions there are many great programs designed to bring emotional highs and lows into balance.
  5. Cravings or Psychological Addiction – Try products like NicoDrops, nicotine gum or patches to remove your focus on cigarettes while incorporating hobbies and other activities to divert your attention.
  6. The Habit – Begin noticing every cigarette you smoke and ask yourself if you really want it.

Get Free of CigarettesThese six factors are more extensively explained at the Arizona Smoker’s Helpline and offer a way for becoming more conscious about your reasons for smoking. If you are just thinking about quitting their free web-based smoker’s helpline is really worth checking out.

Once you have a better understanding of why you light up, you may be more inclined to know what steps to take to stop your nasty tobacco habit.