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Tobacco Industry Hot News 
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UPDATE 4-BAT eyes Asia boost from $494 mln Indonesia deal
British American Tobacco Plc bought a majority stake in a top Indonesian cigarette firm on Wednesday, lifting its share in the world's fifth-largest and fast-growing market as it looks to offset flat sales elsewhere.????BAT, maker of Dunhill and Lucky Strike cigarettes, said it paid $494 million for an 85 percent stake in PT Bentoel Internasional Investama, Indonesia's fourth-largest cigarette maker by volume, and would buy up the remaining shares by the end of August.????London-based world number-two cigarette maker BAT, like other major players, is looking to expand in growing emerging markets as western ones are hit by the effects of higher taxes, smoking bans and restrictions on advertising.????"The purchase... makes sense as Indonesia cigarette (market) is dominated with kretek (clove), which accounts for around 93 percent of total cigarettes consumed," said Jakarta-based analyst Ella Nusantoro of Citigroup in a note to clients.??
PNG businesses slam flourishing black market trade
Business groups in Papua New Guinea say they are alarmed at the amount of counterfeit goods being smuggled into the country from Indonesia.????They say that not only do sales of cheaper black market goods hurt PNG manufacturing, but the Government loses taxes, and some products may be unsafe for consumers.????There is a flourishing and lucrative trade in smuggled goods, including babies' nappies and cigarettes, at street markets in Papua New Guinea.????PNG's only cigarette maker and distributor, British American Tobacco (BAT), told Radio Australia's Pacific Beat program cigarettes made outside the country have been packaged to look like leading brands.????BAT corporate affairs manager George Panao says the cigarettes do not meet local standards and the Government is losing excise revenue that could go to development projects. . . .??????Police Inspector Sakawar Kasieng, of Vanimo's Sandaun province, says police believe the cigarettes are made in Indonesia
Indonesia?s Gudang Garam Names Wonowidjojo as Chief (Update2)
PT Gudang Garam named Susilo Wonowidjojo president today, as the second-largest cigarette maker in Indonesia battles with British American Tobacco Plc for market share.????Wonowidjojo replaced Djajusman Surjowijono, who resigned in February, Gudang Garam said today in a statement given out to reporters in Kediri, East Java.????The replacement comes as overseas rivals expand in the nation with the largest number of smokers after China and India. Companies including BAT and Philip Morris International Inc. are drawn to a market where tobacco companies are free to woo smokers by advertising and sponsoring sporting events as anti- smoking laws get stricter at home. Gudang Garam?s first-quarter profit more than doubled to a record, helped by cost-cutting.??
Indonesia's Pangestu Says U.S. Tobacco Bill Is Unfair: Video
Indonesian Trade Minister Mari Pangestu talks with Bloomberg's Haslinda Amin about Indonesia's reaction to U.S. legislation that may ban clove-favored cigarettes.??
Indonesia May Complain to WTO About U.S. Tobacco Legislation
Indonesia, the largest maker of clove cigarettes, may complain to the World Trade Organization about U.S. legislation that gives regulators expanded powers to regulate tobacco products, including possible bans on flavors made from the tropical spice.?????We?ll be having consultations,? Trade Minister Mari Pangestu said today in an interview on Bloomberg Television. ?If we feel that this is treated discriminately, we?ll of course take it to the normal processes in the WTO.?????The legislation, which was approved by the House of Representatives and Senate earlier this month, offers a concession on menthol, the most popular flavored cigarette in the U.S. Pangestu?s comments reiterate Indonesian objections made last month.?????We feel this is discriminating against cloves because menthol is not considered,? Pangestu said today from Jakarta
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