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If retailers are feeling the heat from tobacco companies, the reasons are pretty clear. Trying to compensate for huge MSA-dictated payments and a steady decline in cigarette consumption--analysts are projecting another 2% drop in 2001--manufacturers have introduced five price hikes in the last two years. As a result, average wholesale prices are up 74% in the $50 billion U.S. tobacco industry. Each price increase opened the door a little wider for discount cigarette brands, whose market share crept up to 3.7% last year, according to the Maxwell Report.With the renewed pricing pressures, even category leader Marlboro is resorting to repeated discounts. "Marlboro never used to be on a reduced price for two months in a row," said one Midwest wholesaler." Now it''s on two months, off one, on two months and off ... I don''t think that hurts the strength of the brand because they can''t advertise like they could before, and the only way to grab market share is with price." Yet there''s an even more intense battle taking place: on the shelves. In the aftermath of the MSA, Philip Morris and RJR have increased cash rewards to retailers who give top shelf placement and prominent signage to their brands. Contracts often include extra "buydowns," cash manufacturers pay retailers for passing reduced prices on to consumers.

On p 362 Klein and St Clair present evidence indicating that some tobacco companies have allowed manufacturers of candy cigarettes (cigarette sweets) to use cigarette pack designs. Similar trademark infringement has been seen victorsinclairvintageboxpressedtorpedo for many other products targeted at children. For example, the Tricked Squirt Cigarettes, which have a striking resemblance to Marlboro packaging, are intended for ages "5 and up." Instructions on the package tell users how to fill the "cigarette pack" with water and how to squirt it "at your target." The product was made in Hong Kong and distributed in 1999 by Air Host Inc (Memphis, Tennessee) to airport victorsinclairvintageboxpressedtorpedo gift shops throughout file United States.Whenever they are asked about this kind of trademark infringement, cigarette companies deny involvement in it and claim that they are aggressive in protecting their trademarks and copyrights. These companies, which spend hundreds of millions of dollars defending themselves in lawsuits, certainly have the means to protect their trademarks and to punish those who would dare to expropriate their valuable images victorsinclairvintageboxpressedtorpedo and icons. Why, then, do so many companies fearlessly infringe on cigarette trademarks? Could it be that the cigarette makers'' claims about protecting their copyrights don''t hold water?

"We''re victorsinclairvintageboxpressedtorpedo being very careful about not rushing the scientific development," said evp and chief counsel Paul Perito. "We''re looking at the issue of proving that reduced exposure to toxin equals reduced risk. In the meantime, we''re very conservative and are recommending that other companies refrain from making health claims."Brown & Williamson contracted to buy 1.5 million pounds of the Star-cured tobacco, about half the expected harvest from this year''s growing season, ending in October. The No. 3 producer of Kool, Capri, Misty and GPC will have low-nitrosamine cigarettes on the market within a year. Other firms are buying smaller amounts, while R.J. Reynolds is field-testing its own process for reducing victorsinclairvintageboxpressedtorpedo tobacco toxins. Separately, Star this month will debut activated charcoal filters on all its brands.The focus on nitrosamines comes amid legislation pending victorsinclairvintageboxpressedtorpedo in Canada proposing to add more information on labeling about tobacco''s toxic constituents and specific warnings about nitrosamines being the most active cancer-causing agent in cigarettes. Also, a World Health Organization gathering in May recommended that cigarette brands unable to conform to a standard ceiling of nitrosamine content should be excluded from markets.

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