Tobacco Project


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Tobacco Project

  1. 1. The Tobacco Industry Presented by Lacey Admore
  2. 2. History <ul><li>Columbus, upon arriving in the Americas, was given tobacco leaves as a gift from the natives. Uncertain of the nature of the plant, he threw it away. </li></ul><ul><li>1530: Tobacco makes its debut in Spain and is rolled into what will later be known as a cigar. </li></ul><ul><li>Tobacco became popular in England in 1586 after several expeditions to the Americas. </li></ul><ul><li>Around 1612, John Rolfe is the first settler of America to market tobacco in England. </li></ul><ul><li>1727: &quot;Tobacco notes&quot; become Legal Tender in Virginia. The notes are more convenient than the leaf itself, which had been used as money for the past 100 years. </li></ul>
  3. 3. History (Cont’d.) <ul><li>In 1826,England is importing 26 pounds of cigars a year. The cigar becomes so popular that within four years, England will be importing 250,000 pounds of cigars a year. </li></ul><ul><li>1828: In Spain, the cigarette becomes popular as a new way of smoking. </li></ul><ul><li>In 1860, the Census for Virginia and North Carolina list 348 tobacco factories, virtually all producing chewing tobacco. Only 6 list smoking tobacco as a side-product </li></ul><ul><li>1871: The federal income tax, instituted in 1862, is repealed, replaced by liquor and tobacco taxes to finance the federal budget. </li></ul><ul><li>Pall Mall brand is introduced in 1899 by Butler & Butler Tobacco Co. in New York. </li></ul>
  4. 4. <ul><li>1901: CONSUMPTION: 3.5 billion cigarettes and 6 billion cigars are sold. Four in five American men smoke at least one cigar a day. </li></ul><ul><li>1902: In an end to the war, Imperial Tobacco (UK) and Buck Duke's American Tobacco Co. (USA) agree to stay in their own countries, and unite to form a joint venture, the British American Tobacco Company (BAT) to sell both companies' brands abroad. </li></ul><ul><li>RJ Reynolds introduces Camels in 1913, claiming that they contain what he called the “American blend” of tobacco. They become the most popular cigarettes in America. </li></ul><ul><li>1930:Federal tax revenues from tobacco products are over $500 million, 80% from cigarettes. </li></ul>
  5. 5. Marlboro’s Campaign: Marlboro Man <ul><li>1902: Philip Morris sets up a corporation on Broad St. in New York to sell its British brands, including one named &quot;Marlboro, &quot; named after &quot;Great Marlborough Street,&quot; site of Philip Morris' original factory in London. </li></ul><ul><li>In 1924, Philip Morris introduces Marlboro, a women's cigarette that is &quot;Mild as May“ in America. </li></ul><ul><li>Marlboro man died of lung cancer in 1992 at the age of 51. He attributed it to 30 years of smoking. </li></ul><ul><li>1954: Marlboro Cowboy created for Philip Morris by Chicago ad agency Leo Burnett. </li></ul>
  6. 6. Camel’s campaign: Joe Camel <ul><li>1921: R.J. Reynolds Co. spends $8 million in advertising, mostly on Camel and introduces the &quot;I'd Walk a Mile for a Camel&quot; slogan. </li></ul>
  7. 7. Newport’s Campaign: Menthol <ul><li>Newport cigarettes targeted the African American crowd with the first ever menthol brand of cigarettes. </li></ul><ul><li>Menthol is an organic compound commonly found in mint plants. </li></ul><ul><li>Menthol triggers the cold receptors on skin, producing a cooling effect when inhaled or when it comes into contact with skin. </li></ul>
  8. 8. Pall Mall “Mild” Campign <ul><li>When I interviewed Melinda McGreevy, she told me that she perfers Pall Mall because “they last longer. They have a fuller flavor and are much smoother in texture.” </li></ul>
  9. 9. Some Statistics <ul><li>Approximately $36 million is spent on cigarette ads every day. </li></ul><ul><li>In 2002, U.S. consumers spent about $88.2 billion on tobacco products. </li></ul><ul><li>Nearly 64 million pounds of moist snuff were sold in 2001. </li></ul>
  10. 10. Tax Information <ul><li>In September of 2006, a man in Minnesota says he quit smoking Marlboro lights and in six months saved about $400. </li></ul><ul><li>In 2005, tobacco taxes contributed $13 billion to state budgets. </li></ul><ul><li>In April of this year, federal cigarette tax rose from 39 cents a pack to $1.01 a per pack </li></ul>
  11. 11. More Tax Info <ul><li>There is currently a $2.75 cigarette excise tax in New York </li></ul><ul><li>Excise tax is a type of tax charged on goods produced within the country. </li></ul>