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Asia's Most Profitable Cigarette Maker Faces Cheap Cigar Flood Ceylon Tobacco says tax increases to narrow profit margins Smokers seen switching to leaf-rolled products like beedis British American Tobacco Plc ’s unit in Sri Lanka says it’s poised to lose its dominant position in the market to leaf-rolled cigars made by small local rivals. Ceylon Tobacco Co. ’s profit margin will continue to narrow as an increase in levies on cigarettes prompts some smokers to switch to the cheaper alternative, said Emma Ridley, finance director of the Colombo-based BAT unit. The company’s operating profit margin , the highest among listed Asian peers, narrowed to 64 percent in 2016 from 67 percent a year earlier in a cigarette market estimated at about $1.1 billion. The gap between the price of cigarettes and beedis, cheap tobacco wrapped in a coarse leaf, has widened after the government raised excise duties and slapped a 15 percent value-added tax last year. The lowest-priced offering sold by Ceylon Tobacco -- the only licensed manufacturer of cigarettes -- is about four times more expensive than leaf-rolled products, which are produced by a segment of the industry that’s relatively less regulated and has seen smaller increases in levies. “In 2017, we foresee the beedi industry capturing at least half the tobacco market, posing a serious threat to the legal cigarette industry,” said Ridley. “As the affordability of legally manufactured cigarettes continues to diminish, more consumers are expected to downgrade to this cheaper alternative.” Beedis accounted for about 44 percent of the total tobacco market last year, up from 20 percent in 2007, Ridley said. The share of smuggled cigarettes is expected to rise to about 8 percent this year from 2 percent in 2016, according to the company. The numbers for the market share shift being claimed for beedis are exaggerated, said Health Minister Rajitha Senaratne.

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6, 2016-- Philip Morris International Inc. (“PMI”) (NYSE / Euronext Paris: PM) on Dec. 5 submitted a Modified Risk Tobacco Product (MRTP) application for its electronically heated tobacco product with the U.S. Food and Drug Administration’s (FDA) Center for Tobacco Products. This is consistent with the company’s stated goal of submitting its MRTP application in 2016. PMI anticipates the FDA taking a minimum of 60 days to complete an administrative review to determine whether to accept the application for substantive review. Philip Morris International Inc. (PMI) is the world’s leading international tobacco company, with six of the world's top 15 international brands and products sold in more than 180 markets. In addition to the manufacture and sale of cigarettes, including Marlboro, the number one global cigarette brand, and other tobacco products, PMI is engaged in the development and commercialization of Reduced-Risk Products (“RRPs”). RRPs is the term PMI uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking cigarettes.

Right now, there are 73 designated smoking areas at Cal Poly. Student Ellie Vutova says too many students smoke. She believes the new policy is a good idea. "Hopefully it will curb their bad habits but honestly, I'm sure they might just smoke anyway," said Vutova. We came across several smokers who did not want to be on camera but said they do not agree with the policy and think it should be their own choice whether they want to smoke. In a statement to KSBY, the university said, in part: "If compliance remains a challenge after an extensive education and outreach program, the university reserves the right to institute fines under Assembly Bill 795." Smoking, vaping, and the use of tobacco will also be prohibited in all personal vehicles on campus property, sidewalks and campus residences. "It's nice that there's such a big push to end smoking," Vutova concluded. "Healthier for everybody around, actually. No more second-hand smoke," Cuellar added.

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