Stick Appeal Stubbed Out?

Effective 1 December, cigarettes can only be sold in olive-brown packs; these will feature graphic health warnings; brands will be in generic fonts.

It’s a sign of things to come. New Zealand, the UK, France, South Africa and China are ready to follow Australia.
The repercussions were felt in India, too. Shares of cigarette makers ITC, VST Industries and Godfrey Phillips India fell on Thursday, the day an Australian court approved a ban on logos on cigarette packs.

Big Tobacco is unhappy with the decision. While a total ban may well be some time away, the move in all likelihood will reduce the appeal of various brands jostling for the smokers’ attention. You may have to pay more in other ways as well. Mark Fitzgibbon, CEO of insurer NIB, said insurers should be allowed to load premiums of smokers. The butt has got a kick Down Under.

Strictly Business
The US Department of Agriculture has slashed its forecast for corn production from last month’s 13 billion bushels to 10.8 billion bushels. It has also predicted a price rise due to drought and heat wave destroying much of the crop.

(This story was published in Businessworld Issue Dated 27-08-2012)