Because of taxes and bans How tobacco companies are realigning themselves

Status: June 8th, 2021 4:00 p.m.

The big tobacco companies still make billions in profits with cigarettes. But after decades of success, BAT, Altria & Co. are slowly turning around in the face of increasing bans and rising tobacco taxes. They are still running an extremely lucrative business. But the revenues and profits of the large tobacco companies are likely to come under further pressure in the coming years. New restrictions could reduce profits, higher taxes are supposed to increase government revenues in the Corona crisis and will further increase the prices for the “blue haze”. The first increase in tobacco taxes since 2015 is due in Germany. In the spring the governing parties CDU, CSU and SPD agreed on the framework conditions for tax increases . This should generate additional revenues of 11.3 billion by the end of 2025. A good half of this should be collected more through the classic tobacco tax, e-cigarettes should generate tax revenues of three billion euros and less harmful products in the industry should also contribute almost two billion euros. These include tobacco heaters that manufacturers had brought onto the market in recent years. The tax increases are to start gradually from 2022.

“Smoke-free Germany” called for

This is another turning point for tobacco companies after the sale of menthol cigarettes was banned in the EU in mid-2020. But the tax hike does not go far enough for health organizations. Significantly higher taxes are necessary to get people to stop smoking, according to a statement from the German Cancer Research Center (DKFZ). On the occasion of World No Tobacco Day on May 31, the non-smoking alliance and the German Society for Pneumology and Respiratory Medicine (DPG) called for a “smoke-free Germany” by 2040. There should still be a long way to go until then. Tobacco consumption fell by around 30 percent between 2011 and 2020. However, just under a quarter of adults in Germany still smokes.

Billions in income from cigarettes

The tobacco companies, for which Germany is an important but not a decisive market, have been changing direction for years, but Altria, Philip Morris International and British American Tobacco (BAT) continue to make good money with traditional cigarettes. BAT, for example, earned around £ 6.4 billion net last year, a large part of which was paid out to shareholders in the form of a dividend. And the current business forecast for the first half of the year, which was published today, does not read badly from the company’s point of view: The group expects growth of more than five percent for the current financial year. This also exceeds the previous forecasts. According to BAT, products of “new categories” such as e-cigarettes and tobacco vaporizers are more important. According to earlier information, the tobacco giant intends to win around 50 million customers for the vaporizer in the next ten years; the total customer base is currently 150 million. Big competitors Altria and Philip Morris are also well represented in the e-cigarette and tobacco vaporizer business. But without writing off the classic cigarette. Philip Morris Germany, for example, recently increased production at the Dresden plant. Due to temporarily closed borders in the pandemic, the demand for cigarettes from domestic production even increased. The company also saw higher demand for “fine-cut” tobacco. It is used for rolling cigarettes – smokers are increasingly looking for inexpensive alternatives to cigarettes from the pack.

Tobacco vaporizers and cannabis products

The coming years will show how quickly the tobacco companies can change course strategically. Some of the manufacturers want to offer new products without nicotine, but with caffeine. They also work on cannabis products. Further legalization of cannabis could open up new billion-dollar revenue streams for them. However, the pressure on the classic cigarette from the state is likely to accelerate and at the same time burden this process of change on the part of providers. This applies above all to the world’s most important sales market for tobacco multinationals, the USA: According to media reports, the new US government under Joe Biden wants to reduce the nicotine content of cigarettes to such an extent that they should no longer be addictive. In addition, menthol cigarettes could also face a ban in the USA.

Illustration. Tanned skin is a favorite of many women, but sun exposure causes skin damage no matter how much you use sunscreen or skin care to sunbathe. However, you must also remember to periodically exfoliate weekly or else the tan will discolor or cause skin discoloration. Foods that make skin dark To maintain smooth, white, natural skin without wrinkles, you should limit sweets, sugar, and grease. And should actively supplement vitamins A, C, E from green vegetables, soup to make the skin smooth, full of vitality. Food does not catch the sun in the summer Green tea In addition to the often mentioned slimming, laxative, and diuretic properties, green tea is also an antioxidant known as a sunscreen agent. According to a study conducted in the US in 2011, drinking 2 to 6 cups of green tea per day for 12 weeks reduces the likelihood of sunburn by 25%. Thus, green tea protects our skin from the harmful effects of ultraviolet (UV) radiation and improves the overall appearance of the skin. Sweet potato Sweet potatoes are rich in beta carotene. This is an antioxidant pigment that strengthens the skin’s resistance, prevents ultraviolet rays, destroys free radicals – excess cells that are harmful to the skin, prevents cancer… To change the menu, we can also replace sweet potatoes with broccoli, carrots, apricots, peaches… foods that also stimulate immunity and contribute to cell regeneration. seafood The benefit of seafood lies in its selenium content. This trace element protects the skin from sunburn, against harmful external factors, gives a pinkish, soft appearance to the skin, and at the same time allows us to sunbathe comfortably without fear of skin darkening. . However, a small amount will not be able to make a noticeable effect, so you need to consume quite a bit of this guy daily. But that’s not why we choose all fish, shrimp, snails, mussels, must combine a diet full of meat and green vegetables! You should also pay attention to a few things: Avoid going out in the sun from 10 am to 3 pm, because during this time UV rays cause the most damage to the skin. – Whenever you go out in the sun, remember to wear long clothes to limit the sun’s exposure to your skin. Hats are our “companions” on hot days. In addition, the umbrella is also a good means of avoiding the sun every time you walk.

1. Public rolls The peacock’s spring rolls are made from the skin and flesh of a peacock. The meat of this species is said to be very nutritious, can help to purify toxins in the body. Another special feature is that people do not cook public meat, but cook it by fermentation with galangal, garlic, pepper … for 3 days. The ancient people called this bird a giant, they live on high hills or dense bamboo forest, so it is difficult to catch. (Photo: Internet) 2. Phoenix ball Cha pho is a dish made from the meat of a bird of the poultry family, usually pheasants. Because this bird has a pretty color and a long tail, people often mistakenly think it is a phoenix. The preparation of this dish is very meticulous, from cutting blood to plucking raw hair without boiling water, wrapping banana leaves to steam and frying with chicken fat … The preparation of this dish is very sophisticated. (Photo: Internet) 3. Rhino skin Ancient rhinoceros are rhino today, to make this dish, ancient people used only skin in the armpit because it was the thinnest skin of this animal. Skin is sun-dried, heated for 100 days, then soaked in alcohol for a month and then dried, stored in a gold or silver box. When you want to process, you must soak in herbal water for 7 days and nights, wash them, then steam them in a water bath, and slice them to eat like spring rolls. 4. Bear’s hand In ancient times, the forelimbs of the bear species were considered to have obtained enough yin-yang from heaven and earth, so they were great, often offered to the king to eat to “increase strength”. Before stewing with herbs and tonics, this part of the limb will be fatized 100 times to clean the hair and soften the meat. Bear hands with the desire to become ‘mighty warrior’. (Photo: Internet) 5. Veil of deer Venison is just a general ingredient, there are many types of processing to turn into delicious food. Deer thighs will initially be stripped and softened, followed by splitting, ribbed tendons. The venison removed soaked in salt water mixed with vinegar to make it white and soft. When processing, people often stew with other nutritious spices. This dish is said to help people eat healthy, not old forever. The dish is believed to help ‘never grow old’. (Photo: Internet) 6. Orangutan lips Catching the dangerous orangutan, the hardship is no less than catching the merits or phoenix. According to old books, skilled hunters have to rely on the behavior of this species to lure them to … get drunk until tired to catch them. The orangutan lips are the most precious part, only for offering the king “chop chopsticks”. (Photo: Internet) 7. Elephant feet In ancient times, elephants were the means of transportation of the king, as well as being powerful “warriors” in the battlefield. So the ancients only made elephant meat when they died. The soft tendon meat below the elephant’s feet is considered the most precious, processed into a delicacy to offer to the king. This is a very effective remedy for tendonitis. (Photo: Internet) 8. Nests Told as “white gold” in the culinary world, Salanganes’Nest is one of the nutritious Vietnamese bowls that can still be found and bought today. Bird’s nest nests are made from the saliva of the bird’s nest when they saliva into a nest on the high cliffs. Photo: Internet

Bearing the hallmarks of a traditional craft village, the five-story house has walls surrounded by Bat Trang ceramic bricks. This work is the work of famous architect Vo Trong Nghia. Located in the heart of the famous pottery village, Bat Trang pottery house inherits traditional values ​​and modern development through impressive architecture. With a total area of ​​740 m2, the house has 3 layers of ventilation system: ceramic brick wall layer, green tree layer and glass door layer. The house is not only the living space of a family of 3 generations, but also a showroom of the family’s pottery business. Behind a layer of ceramic bricks is a green tree with tall trees reaching out through the foliage and shading through the large windows. With the main task of air conditioning, dust prevention, the green tree cushion plays an important role in reducing heat into the living space. In addition, the green tree factor is also a balance between modern comfortable life and friendly life with nature. Serving as the first ventilation layer in the passive ventilation system of the house, the ceramic tiles are arranged into small to large openings. Completed in 2020, the ceramic house is cool in summer but warm in winter.

Tobacco factory of BAT (British American Tobacco) – Vinataba Joint Venture Company in Dong Nai Previously, the National Assembly passed the Law on Environmental Protection in 2020, with additional regulations on minimizing, reusing, recycling and treating plastic waste; restrict the use of disposable plastic products and persistent plastic bags; encourage the production of environmentally friendly products to replace traditional plastic products. This is an important legal basis for Vietnam to strengthen the management, reuse, recycling, treatment and reduction of plastic waste in the coming time as well as promote international cooperation in this field. In parallel with the solution in terms of policy, with the role of state management on environmental protection, ministries, agencies, especially the Ministry of Natural Resources and Environment have actively coordinated with localities and organizations. politics – society, businesses organize propaganda to raise community awareness about waste and sustainable development. BAT has provided more than 26 million seedlings free of charge to farmers in Cao Bang, Lang Son, Gia Lai, Tay Ninh, Dak Lak and Dong Nai provinces, on an area of ​​more than 11,300 hectares. Up to now, the awareness of enterprises, especially related to production and business, on measures to reduce waste, protect the environment and become responsible corporate citizens has been raised. Large manufacturing companies, both at home and abroad, such as Saigon Paper, Vinamilk, HEINEKEN Vietnam, Nestle Vietnam, May 10, Unilever Vietnam or BAT Vietnam … are showing their responsibility for sustainable development. me. For example, Saigon Paper, over the years, has applied automation technology – saving energy and raw materials – fuel to expand production at its factory, building wastewater treatment systems. for the whole factory. Or HEINEKEN Vietnam is continuing to apply the circular economic model in facilities across the country. By 2019, 5 out of 6 factories of this business have used 100% renewable heat, 100% of bottles and kegs after being released to the market will be returned to the factory, 100% of beer cans. Recyclable, more than 2,000 tons of CO2 emissions are also cut from optimization of logistics and distribution. Besides, p Sustainable development is always the top goal of British American Tobacco (BAT) in the world as well as in the British American Tobacco Vietnam (BAT Vietnam). Activities to conserve natural resources such as saving water, being active in protecting forest resources, avoiding soil erosion, maintaining soil fertility, managing energy … are all important factors. that BAT wants to create a sustainable agriculture. The tobacco factory of BAT (British American Tobacco) – Vinataba Joint Venture Company in Dong Nai has always been the leading unit in implementing these activities. Waste sources such as medicinal steam from the drying system, production wastewater … have not been discharged into the environment but are reused, committing that no waste will be buried. Not only that, the company also actively collects and uses rainwater instead of source water. Along with the A standard, the wastewater system of the BAT-Vinataba plant has been used for the deodorizing system and other water-saving activities of the plant. Thereby, the BAT-Vinataba joint venture has saved an annual amount of water, from 2.2 m3 / ton of product (2014) to 1.82 m3 / ton of product (2020). According to the Environmental, Social and Governance – ESG 2020 report of BAT, during the past 18 years (2002-2020) in Vietnam, BAT has provided more than 26 million seedlings for free to farmers in Cao Bang, Lang Son, and Gia provinces. Lai, Tay Ninh, Dak Lak and Dong Nai, on an area of ​​more than 11,300 hectares. These contributions contribute to the greening of cultivated land and barren hills as well as bringing economic benefits to farmers in participating localities. These are remarkable efforts of this business. BAT also actively supports many programs on afforestation, biodiversity and environmental conservation, with 14 projects in 9 countries, by the end of 2020. In 2020, BAT has installed and used solar energy in factories in eight countries, including Brazil, South Africa and Pakistan. BAT plans to expand the installation of two more locations in 2021. In its ESG 2020 report, BAT stated that the Group’s goal is to increase the number of users of non-flammable (smoke-free) products to 50 million people, commitment to environmental protection, carbon neutralization by 2030; In the next 5 years, BAT will move to eliminate plastic packaging, use recyclable or compostable packaging; BAT will also increase the amount of water reused to 30% and 100% of the production sites will be free of landfill waste and fully renewable energy use.