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New Smokeless Tobacco Products: Experiences of a Test Market State
1. New Smokeless Tobacco Products: Experiences of a Test Market State Kylie Menagh, MPH Oregon Public Health Division [email_address]
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6. Why Oregon? We have a best practices-based, policy-focused, comprehensive tobacco control program… but program cuts have reduced local capacity to monitor and respond
Picture is from Camel 7 Pleasures of the Exotic promotion in 2003
Since 1998, companies have given away over 2.5 million packs of cigarettes in Oregon. These cigarettes had a retail price of $8.86 million. Since 1999, companies have given away non-cigarette tobacco products with a retail price of $4.12 million. Methods Tobacco companies that give out free samples of tobacco products pay taxes on them. The Oregon Department of Revenue keeps quarterly data on taxes paid on tobacco products, and has a form for reporting gratis products. These data do not include in-store promotions (e.g., buy one get one free). Cigarette packs given away that carry Oregon tax stamps are not included in these data. Only promotional packs (often containing 5 cigarettes) that do not carry tax stamps are included. The tax is paid for each cigarette; the chart shows the number of packs that correspond to the number of cigarettes given away. Average pack price per year came from The Tax Burden on Tobacco, volume 43 (Orzechowski & Walker, 2008). Non-cigarette tobacco products are taxed at 65% of the wholesale price. From the amount of revenue collected, we can compute the wholesale price of the products given away. To compute retail prices, I use a standard retailer markup of 18%. That's because these are data on taxes paid by manufacturers. When packs of cigarettes are handed out that already have Oregon tax stamps, we can't distinguish them from packs sold at retail. If a tobacco company wants to hand out packs directly, however, they just report to DOR how many they handed out and pay the appropriate taxes. I've heard that these promotional packs often only contain 5 cigarettes, but I haven't verified that with anyone. (Packs with only 5 cigarettes would have to be reported by the manufacturers, since Oregon doesn't have a stamp for a 5 cigarette pack.)
We have a comprehensive, best practices-based program, but funding was cut in 2003 and has been limited since Despite some flat-lining during the cut, usage is on the decline among adults and youth The Indoor Clean Air Act covered most businesses since 2001, exempting bars until 1/1/09
Rural males primary users, the younger they are, the higher the prevalence 25-34 year old males: 9.7%, 35-44: 8.9%
WA law passed 2006
Aggressive, colorful, omnipresent marketing in stores, in newspapers, on storefronts, direct mail, discount coupons, promotional events
Aggressive, colorful, omnipresent marketing in stores, in newspapers, on storefronts, direct mail, discount coupons, promotional events
All this begs the question: Why us!?
Noticeable all over town because they were so heavy they dropped out of the paper. The newspaper stopped taking them and RJR went to a smaller version. But they were obviously working hard to create buzz and reposition smokeless tobacco.
What are the 3 reasons for riding a bike? You’re poor, you’re a kid, or you live in Portland!
With limited resources to conduct campaigns or robust monitoring, what can programs do?? Coordinated with Media Network through OSH to craft messages
In fact, I used coupons to purchase the product for Lois and the owner offered me free samples, saying the rep had told him to give them out for free.
U.S. Sen. Jeff Merkley, D-Ore., wrote an amendment to the Family Smoking Prevention and Tobacco Control Act requiring the newly created Tobacco Products Scientific Advisory Committee to study the health effects of dissolvable tobacco candy products and report its findings to the Food and Drug Administration
The FDA regulations do not include a ban on sampling smokeless tobacco, so we will most likely look at this again. We are continuing to monitor, to the best of our ability, the types of promotional activities, including Copenhagen events at rodeos, to build an evidence base.
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