Graphic Cigarettes Warnings Required

A bid by tobacco companies to overrule a court judgment that they must do corrective advertising about the dangers of smoking is getting a chilly response from a federal appeals court. The companies want District Judge Gladys Kessler's order overturned because a 2009 law gave the Food and Drug Administration authority over the industry, including power to require graphic cigarette warnings. In a Justice Department lawsuit, Kessler ruled in 2006 that America's largest cigarette makers concealed the dangers of smoking for decades.

Higher Taxes on Cigarettes and Fuel, Manitoba News

Manitobans will pay higher cigarette and fuel taxes and see the provincial sales tax applied to several new services in a budget that reduces overall spending or increases it, depending on your point of view. Smokers will pay 2.5 cents more per cigarette effective at midnight Wednesday while drivers will pay an extra 2.5 cents per litre to fill their vehicles' fuel tanks as of May 1. Meanwhile, the government will apply the PST to services such as manicures, pedicures, facials and haircuts that cost more than $50. Finance Minister Stan Struthers also announced the province would "modernize" Sunday shopping laws, although he provided few details. Currently, most major stores can only open their doors between noon and 6 p.m. on Sundays. Businesses have long called for the ability to set their own Sunday hours.

Altria Smokeless Tobacco Market

There are only three major players in the U.S. cigarettes and smokeless tobacco market due to regulatory barriers to entry and high legal costs related to this business. Altria Group (MO) controls about 50% of the market with the rest split between Reynolds American (RAI), Lorillard (LO), and a few minor cigarette manufacturers. I like Altria's dividend king status. It pays a $0.41 quarterly dividend for an yield of 5.3% which I think the company's cash flow and earnings can support and it is able to grow earnings despite declining cigarette sales. Altria, in addition to owning the best selling brand (Marlboro), is the leader in smokeless tobacco sales in the U.S. which has become more popular in recent years.

More Anti-tobacco Ads, New Smoking Fight

On Major League Baseball’s opening day, U.S. Senator Richard Blumenthal (D-CT) announced details of an historic rule restricting the use of smokeless tobacco by players, managers, and coaches on and off the field. He also called for more funding of new anti-tobacco ads, which began showing on March 19th as part of a national media campaign, which have doubled the numbers of people seeking help to quit smoking. He also urged parents to make sure their children see the ads. “This opening day is truly historic because children will no longer see their heroes – baseball’s stars, managers or coaches – with chewing tobacco products on or off the field,” Blumenthal said. “Major League Baseball heeded our request to do the right thing and voluntarily stepped up to the plate, leading by example and assuring that fewer kids will succumb to lifetimes of addiction and disease.