Tobacco Firms Argue Against Possible Menthol Cigarette Ban
January 10 2011 - 5:47PM
Dow Jones News
Major tobacco makers urged a federal advisory panel against
banning menthol cigarettes, arguing such a ban would likely create
an unregulated black market.
The Food and Drug Administration was given the authority to
regulate tobacco products in 2009. As part of the tobacco law, all
tobacco flavorings except for menthol were banned on concerns the
flavors enticed children and adolescents to start smoking.
The FDA is currently considering what, if anything, to do about
menthol and has charged its tobacco products scientific advisory
committee with writing a report about the public health impact of
menthol. The panel report is due in March. The panel is holding a
series of meetings as it considers what information to include in
the report, including a two-day meeting that started Monday.
The panel could recommend an outright ban of menthol or
marketing restrictions. The FDA isn't required to follow its
panel's decision, although the agency traditionally follows the
advice of its outside advisory panels.
One question is whether menthol masks the harshness of tobacco
and makes it easier to smoke cigarettes and harder to quit. The
tobacco industry has said there's no evidence that menthol in
cigarettes makes it more likely people will start smoking compared
to regular cigarettes. Another question the panel is considering is
whether there's an increased risk for disease among menthol smokers
compared to regular-flavored cigarette smokers.
Menthol cigarettes account for about 30% of total cigarette
sales in the U.S. The issue is of major importance to Lorillard
Inc. (LO), the maker of the leading menthol brand, Newport. The
product accounts for roughly 90% of Lorillard's sales.
Lorillard funded a study that was conducted by Compass Lexecon,
a Chicago-based economic consulting firm and was presented to FDA's
panel Monday. The report concluded that a "sizable black market"
would quickly emerge if menthol cigarettes were banned.
Jonathan Samet, chairman of the tobacco products scientific
advisory committee, said there would likely be some mention of the
"possibility" that a black market for menthol products would be
created in the menthol report.
Representatives from Lorillard and RJ Reynolds, part of Reynolds
American Inc. (RAI), who spoke at the meeting, said there's no
reason to regulate menthol cigarettes differently than regular
cigarettes. They also argued that banning menthol is unlikely to
bring down current smoking rates.
Altria Group Inc. (MO), the parent company of Philip Morris,
said in written comments provided to the committee that it's
"difficult to predict with absolute certainty what consumers would
do if menthol cigarettes were banned" but said a menthol ban "is
likely to significantly increase the total demand for illicit
cigarettes."
The company said it was possible that some people would quit
smoking, but others would likely smoke a non-menthol brand or
obtain menthol cigarettes from "unregulated sources or make their
own menthol cigarettes."
New federal survey data presented by the National Cancer
Institute at the panel meeting showed about 40% of current menthol
smokers said they would quit if menthol cigarettes were banned,
although it isn't clear if those who said they would quit would be
successful at doing so.
-By Jennifer Corbett Dooren, Dow Jones Newswires; 202-862-9294;
jennifer.corbett@dowjones.com
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