The Tobacco IndustryThe Tobacco Industry

Presented by Lacey Presented by Lacey AdmoreAdmore

HistoryHistory Columbus, upon arriving in the Americas, was given tobacco leaves as 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 a gift from the natives. Uncertain of the nature of the plant, he threw it away. away.

1530: Tobacco makes its debut in Spain and is rolled into what will later 1530: Tobacco makes its debut in Spain and is rolled into what will later be known as a cigar.be known as a cigar.

Tobacco became popular in England in 1586 after several expeditions Tobacco became popular in England in 1586 after several expeditions to the Americas.to the Americas.

Around 1612, John Rolfe is the first settler of America to market tobacco Around 1612, John Rolfe is the first settler of America to market tobacco in England. in England.

1727: "Tobacco notes" become Legal Tender in Virginia. The notes are 1727: "Tobacco notes" become Legal Tender in Virginia. The notes are more convenient than the leaf itself, which had been used as money for more convenient than the leaf itself, which had been used as money for the past 100 years. the past 100 years.

History (Cont’d.)History (Cont’d.) In 1826,England is importing 26 pounds of cigars a year. The cigar In 1826,England is importing 26 pounds of cigars a year. The cigar

becomes so popular that within four years, England will be importing becomes so popular that within four years, England will be importing 250,000 pounds of cigars a year.250,000 pounds of cigars a year.

1828: In Spain, the cigarette becomes popular as a new way of 1828: In Spain, the cigarette becomes popular as a new way of smoking. smoking.

In 1860, the Census for Virginia and North Carolina list 348 tobacco In 1860, the Census for Virginia and North Carolina list 348 tobacco factories, virtually all producing chewing tobacco. Only 6 list smoking factories, virtually all producing chewing tobacco. Only 6 list smoking tobacco as a side-producttobacco as a side-product

1871: The federal income tax, instituted in 1862, is repealed, replaced 1871: The federal income tax, instituted in 1862, is repealed, replaced by liquor and tobacco taxes to finance the federal budget.by liquor and tobacco taxes to finance the federal budget.

Pall Mall brand is introduced in 1899 by Butler & Butler Tobacco Co. in Pall Mall brand is introduced in 1899 by Butler & Butler Tobacco Co. in New York. New York.

1901: CONSUMPTION: 3.5 billion cigarettes and 6 billion cigars are 1901: CONSUMPTION: 3.5 billion cigarettes and 6 billion cigars are sold. Four in five American men smoke at least one cigar a day. sold. Four in five American men smoke at least one cigar a day.

1902: In an end to the war, Imperial Tobacco (UK) and Buck Duke's 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 American Tobacco Co. (USA) agree to stay in their own countries, and unite to form a joint venture, the British American Tobacco Company unite to form a joint venture, the British American Tobacco Company (BAT) to sell both companies' brands abroad. (BAT) to sell both companies' brands abroad.

RJ Reynolds introduces Camels in 1913, claiming that they contain RJ Reynolds introduces Camels in 1913, claiming that they contain what he called the “American blend” of tobacco. They become the what he called the “American blend” of tobacco. They become the most popular cigarettes in America.most popular cigarettes in America.

1930:Federal tax revenues from tobacco products are over $500 1930:Federal tax revenues from tobacco products are over $500 million, 80% from cigarettes.million, 80% from cigarettes.

Marlboro’s Campaign: Marlboro’s Campaign: Marlboro ManMarlboro Man

1902: Philip Morris sets up a corporation on 1902: Philip Morris sets up a corporation on Broad St. in New York to sell its British Broad St. in New York to sell its British brands, including one named "Marlboro, " brands, including one named "Marlboro, " named after "Great Marlborough Street," named after "Great Marlborough Street," site of Philip Morris' original factory in site of Philip Morris' original factory in London. London.

In 1924, Philip Morris introduces Marlboro, a In 1924, Philip Morris introduces Marlboro, a women's cigarette that is "Mild as May“ in women's cigarette that is "Mild as May“ in America.America.

Marlboro man died of lung cancer in 1992 at Marlboro man died of lung cancer in 1992 at the age of 51. He attributed it to 30 years of the age of 51. He attributed it to 30 years of smoking. smoking.

1954: Marlboro Cowboy created for Philip 1954: Marlboro Cowboy created for Philip Morris by Chicago ad agency Leo Burnett.Morris by Chicago ad agency Leo Burnett.

Camel’s campaign: Joe CamelCamel’s campaign: Joe Camel

1921: R.J. Reynolds Co. spends 1921: R.J. Reynolds Co. spends $8 million in advertising, mostly $8 million in advertising, mostly on Camel and introduces the on Camel and introduces the "I'd Walk a Mile for a Camel" "I'd Walk a Mile for a Camel" slogan. slogan.

Newport’s Campaign: MentholNewport’s Campaign: Menthol

Newport cigarettes Newport cigarettes targeted the African targeted the African American crowd with the American crowd with the first ever menthol brand of first ever menthol brand of cigarettes.cigarettes.

Menthol is an organic Menthol is an organic compound commonly compound commonly found in mint plants.found in mint plants.

Menthol triggers the cold Menthol triggers the cold receptors on skin, receptors on skin, producing a cooling effect producing a cooling effect when inhaled or when it when inhaled or when it comes into contact with comes into contact with skin. skin.

Pall Mall “Mild” CampignPall Mall “Mild” Campign

When I interviewed When I interviewed Melinda McGreevy, Melinda McGreevy, she told me that she she told me that she perfers Pall Mall perfers Pall Mall because “they last because “they last longer. They have a longer. They have a fuller flavor and are fuller flavor and are much smoother in much smoother in texture.” texture.”

Some StatisticsSome Statistics

Approximately $36 Approximately $36 million is spent on million is spent on cigarette ads every cigarette ads every day.day.

In 2002, U.S. In 2002, U.S. consumers spent consumers spent about $88.2 billion on about $88.2 billion on tobacco products.tobacco products.

Nearly 64 million Nearly 64 million pounds of moist snuff pounds of moist snuff were sold in 2001. were sold in 2001.

Tax InformationTax Information In September of 2006, a In September of 2006, a

man in Minnesota says he man in Minnesota says he quit smoking Marlboro quit smoking Marlboro lights and in six months lights and in six months saved about $400.saved about $400.

In 2005, tobacco taxes In 2005, tobacco taxes contributed $13 billion to contributed $13 billion to state budgets. state budgets.

In April of this year, federal In April of this year, federal cigarette tax rose from 39 cigarette tax rose from 39 cents a pack to $1.01 a cents a pack to $1.01 a per pack per pack

More Tax InfoMore Tax Info

There is currently a There is currently a $2.75 cigarette excise $2.75 cigarette excise tax in New York tax in New York

Excise tax is a type of Excise tax is a type of tax charged on goods tax charged on goods produced within the produced within the country.country.