No. 3
2001 JULY
summary

Professional Informative Magazine ONLINE

  FOCUS  
  EXPERTS VERSUS COUNTERFEITERS
Report on testing of tobacco products by experts of the Moscow-based Centre for Criminalist Expertise attached to the Ministry of Internal Affairs which performs a full range of cigarette testing in the interests of investigation of crime including counterfeiting and forgery.
  NEIGHBOURS  
  UKRAINIAN CIGARETTE MARKET FROM EARLY 1990s TILL TODAY
  by Yevgeny Korneyev, SOVAT's legal counsellor, Valery Dombrovsky
Detailed statistics and analysis of the dynamics of cigarette manufacturing and consumption in Ukraine over the 1990s, and the most recent trends.
UKRAINIAN TOBACCO INDUSTRY IN 2001: GAINING MOMENTUM
Statistics on the Ukraine's cigarette manufacturing over the 5 months of 2001.
  EVENT  
  TRADE FAIRS MARKET IN TURMOIL
  by Svetlana Volodina
Review of the TABAK'2001 tobacco industry show in St-Petersburg and analysis of the situation in the Russian trade fairs as a whole.
  EVENT  
  NEW TABEXPO DATES
  after Tobacco Journal International
Announcement of the TABEXPO Coalition decision to postpone the show in Barcelona until November, 2003, due to the state of the cigarette industry - economically, politically and legally.
  INDUSTRY & SOCIETY  
  EU SHOCKS SMOKERS AND CIGARETTE MANUFACTURERS
  by Liubov Linkova
Comment on the EU ruling regarding cigarette packs and tar/nicotine contents. The legislation will force tobacco companies to print large health warnings about the dangers of smoking on cigarette packs. MEPs hope that pictures of stained and nicotined teeth, or diseased lungs on packets could shock people out of the smoking habit. The new legislation - which will come into force after September 2002 - also reduces tar levels. Eventually from 2003 it will reduce and forbid terms such as "light", "low tar" and "mild" because they are misleading and suggest some brands of cigarettes to be less harmful than others. By the end of September next year, tobacco companies are obliged to plaster packets with warnings. Manufacturers will have to cover 35% of the front of a packet and 45% of the back, with stark health warnings in black and white to maximise the effect.
  NEWS  
  STATE DUMA ADOPTS THE SECOND READING OF THE BILL ON RESTRICTION OF TOBACCO CONSUMPTION
 
  KNOW HOW  
  GROWING BURLEY-2
  by Rickard Seeds Ltd.
Practical advice on harvesting and curing of Burley tobacco.
  TRADE MARK  
  NEWS AND VIEWS ABOUT BRANDS
A selection of news items regarding marketing practice and legal formalities related to brands of consumer goods.
  SCIENCE & MANUFACTURING  
  METHODS OF CONTROL OF CHEMICAL COMPOSITION OF FINISHED PRODUCTS AT THE STAGE OF PRODUCTION PLANNING
  by I.Moisseyev, N.Puzdrova, Pogar Cigarette and Cigar Factory
 
  MARKETS & COMPANIES  
  BAT-YAVA ANNOUNCES 6 PER CENT OUTPUT INCREASE IN 2000
On June 1, 2001 JSC British American Tobacco - YAVA(Moscow) held its annual shareholder's meeting whereby Leonid Sinelnikov, General Director, announced performance results for the fiscal year of 2000.
Last year the factory produced over 19 billion sticks of cigarettes which is a 6 per cent increase vs.1999. The major growth falls on hinge lid production. In 2000, sales of Yava Gold amounted to some 16 billion sticks. In early 2000 JSC BAT-YAVA developed and launched a new brand Yava Gold Lights with a unique charcoal filter. Late 2000 saw completion of construction and commissioning of the on-site chemical laboratory that was accredited under the Russian Gosstandard system. According to Leonid Sinelnikov, this year is going to see implementation of the factory refurbishment program, development of the new supply chain management systems, introduction of operations efficiency programs, further optimization of planning and control systems and continued reduction of conversion costs. The company also aims at further growth of sales of Yava Gold and Yava Gold Lights.
  MONEY WORLD  
  TOBACCO MACHINERY SPARE PARTS: MATTER OF SOURCING
  by Vitaly Shpigor, OOO SPART SERVICE
Many Russian tobacco factories are now facing the necessity to optimize decisively their spares supply strategy, but the western approach to the problem of sourcing of tobacco equipment spare parts cannot be always applied to the Russian cigarette facilities. Not capable of financing purchases of original spare parts, many of them prefer to turn to alternative sources or manufacture spares in-house. Due to cheaper labor rates and materials, as well as eliminating import tariffs and duties considerable cost savings can be made. Being highly risky, this option often remains the only realistic one for the Russian factories, especially locally-invested ones. Vitaly Shpigor, Director General of an engineering company dealing in spares and machinery renovation dwells on methods to improve the spare parts supplying of Russian tobacco factories without affecting production quality and causing high working-capital costs. The first option implies original equipment manufacturers creating regional-based service centres, with spares stocks of their own and a consolidated data base. Such centres should be brought as close as possible to cigarette production facilities. Another option is to involve reliable local manufacturers in making spare parts by an agreement with a given OEM.
  FOCUS  
  HOW TO REDUCE RISKS WHEN SIGNING AN EQUIPMENT PURCHASE CONTRACT?
  by Aida Roushmanova, Whales Legal Law Firm
As a rule, the procedure of signing an equipment purchase contract takes a long time and is accompanied by inevitable pressure on the part of creditors, shareholders, members of the Board of Directors who are interested in having a project started as quickly as possible. Pressure is also exerted by perspective contractors who vividly describe the "bankruptcy-fraught expenses" they have already incurred to work out proposals for you, and who demand that the contract should be signed within the shortest time possible (or else they are going to quit and start working on another one). All these often compel a director to take hasty decisions and make mistakes.
Aida Roushmanova, Director General of the 'Whales Legal' Law Firm, analyses most common errors and explains the ways to avoid them. Among the discussed questions are: Should one trust a partner? What to start with when preparing a contract? How to achieve the precision of terms and avoid misinterpretation in your contract's text? How to reduce the risk of purchasing defective equipment? What do you have to know about payment by a L/C? How to design technical documentation? What needs to be specified in the contract in the software description? How to make use of the "Penalties" section? How to come to agreement with the partner on arbitration, applicable law and legal proceedings language?
  RESEARCH & MANUFACTURING  
  CIGARETTE PACKAGING: BRAND-BUILDER, BEARER OF PRODUCT INFORMATION, SHIELD AGAINST COUNTERFEITING
  after Tobacco Journal International
The fight against counterfeiters has become one of the main challenges for cigarette manufacturers as they face billions of losses in cigarette sales each year. In order to prevent forgers from copying branded products with ever-shorter time lags, security features need to be constantly improved. Tobacco Journal International offers a review of the most advanced technologies in the design of cigarette packs, printing, and new materials to provide sophisticated brand protection.
  FOREIGN TRADE & CUSTOMS  
  News and Documents: May-June 2001
Recent RF legislation on foreign trade and customs procedures

"Tobacco-REVIEW"

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