WITCO, Philip Morris locked in battle for TT smokers

For years, WITCO dominated the local cigarette market.That may soon change. With the introduction of international brand Marlboro, WITCO faces some stiff competition. The company has thus far been able to fend off the competition.  Craven A tried and failed. Marlboro is the flagship brand of Philip Morris International and was introduced to the local market last month. WITCO is a division of British American Tobacco (BAT). WITCO’s managing director, Anthony Phillip said his company “was and is not afraid of competition and has never been.” He said he expected Philip Morris to comply with the International Marketing Standards it signed with BAT and Japan Tobacco.He is confident though that WITCO’s brands can stand up against any Philip Morris product. Sources say that WITCO is putting together a strategy to counter Marlboro’s foray into the market. Estuardo Ortiz, Caribbean Business Unit director, Marlboro is equally confident about his brand. At the recent launch of Marlboro to the TT market, Ortiz said he believes that the brand can become the number one selling brand in TT. “We are here for the long term and are always looking for trends and opportunities,” he said. Ortiz said TT is a cigarette market with lots of potential and citizens should have a choice. “We intend to comply with the local and international standards,” he said.     

Nevertheless, both WITCO and Philip Morris now face an uphill climb. There is  the threat of litigation from smokers and the Trinidad and Tobago Cancer Society who continues to snipe at WITCO. Health Minister Colm Imbert recently announced that legislation is currently being drafted by his Ministry which will ensure that foreign tobacco companies do not use TT as a refuge from the global anti-tobacco movement. Imbert said because these companies are getting so much pressure from the anti-tobacco movement and are being pushed out from first world nations like the United States and Canada, they are now turning their attention to third world nations. It is why, he said,  TT and 99 other nations signed an international convention against tobacco at the World Health Assembly which was held last May/June in Geneva. The proposed legislation will ban tobacco ads, the sale of tobacco to minors and institute strict controls regarding the use of tobacco. He said the arguments from these companies regarding the sale of tobacco is hardly convincing when one considers the attached health risks.

“It is poison,” he said in a recent interview. While Imbert is putting pressure on foreign tobacco companies, the Cancer Society led by George Laquis is redoubling its efforts. It has called on the country’s leading sportsmen, women and officials to boycott all future sports awards sponsored by the West Indian Tobacco Sports Foundation. This is the second time that Dr Laquis has tried to gain support for his cause against WITCO. In 1999, the Cancer Society embarked on a campaign to raise $1 million to file a class action suit against WITCO, however, after six months, it was only able to raise $30,000. The Rotary Club of San Juan contributed $10,000 while Emile Elias and Company donated $20,000. Dr Laquis eventually returned the money and wrote the sponsors a letter thanking them for their support. He also wrote a letter to the then Minister of Health, Hamza Rafeeq to join the battle against the tobacco industry. Dr Laquis also voiced his disappointment at Ansa McAl’s decision to enter the tobacco market by introducing Marlboro. He chastised the group for openly advertising Marlboro cigarettes. In defending its, Ansa McAl says its moveis a viable business opportunity. At a recent meeting to announce the Group’s half year profits, questions and concerns were raised by local stockbrokers as to why Ansa McAl would even consider getting into such a market when they know that it poses such a health risk.

Chairman and Chief Executive Officer (CEO) Ansa McAl Norman Sabga said while they were aware of the risks involved in cigarette smoking, many people chose to do it anyway. He said there is a very lucrative market for cigarettes in TT and they wanted to give people a choice. He said he believed that such a move will enhance the group’s overall profits. But Laquis disagrees. “It is indeed a sad day when a conglomerate such as Ansa McAl decides to shed its good corporate image, an image which they have worked so hard to build, to move into the cigarette industry.” He continued: “With all the facts about the scourge of cigarette smoking at its disposal, with the developed countries daily tightening the noose around the necks of the cigarette manufacturers, with millions around the world expected to die over the next few years from cigarette- caused lung cancer, Ansa McAl’s decision fascinates me.” Dr Laquis said he hoped good sense would prevail and the company’s directors in their infinite wisdom will reverse their decision and get out of the business. “We at the Cancer Society are very concerned that the day may very well come when the Ansa McAl Group rues its decision.” WITCO’s spokesperson, Keith Carter said this is not the first time that Dr Laquis has tried to gain support for his cause by trying to tarnish WITCO’s reputation.

He said Dr Laquis has tried before to get local sportsmen and women to stop supporting the West Indian Tobacco Sports Awards. He said it is very unfortunate that Dr Laquis takes such a position against WITCO. “It was and still is our view that right thinking individuals who examine our behaviour as a corporate citizen and the significant contribution we have made to society over the many years, would find it difficult to accept any attempts to demonise the company.” Carter noted that, it is WITCO’s view that along with the pleasures of cigarette smoking, come real risks of serious diseases such as lung cancer and respiratory and heart disease. He added that the company also recognises that for many people, smoking is difficult to quit. He said the company has employed and supports several programmes which will prevent and reduce smoking especially among teenagers. Two years ago, WITCO launched an under-age smoking prevention programme. The programme took approximately 18 months to develop and was launched at two levels, a retailer access programme and a media campaign.

The retailer campaign, the pilot for which was being conducted in key supermarket chains, consists of warning posters in the outlets, informing them that there is a penalty for selling cigarettes to minors. The company also placed campaign stickers on all their cigarette dispensers and a brochure entitled: Tips on Talking to Your Kids about Not Smoking. On its website, Philip Morris said it also has an important role to play in preventing youth smoking. “We have a dedicated Youth Smoking Prevention department that supports youth programmes, produces advertising for parents and conducts ongoing research, all with the sole purpose of helping to prevent youth smoking.” But Dr Laquis chastised WITCO for its “anti-smoking campaigns” saying that is was a “big joke.” He explained that while WITCO tries to prevent smoking on one hand, it is also encouraging both teenagers and adults to smoke with their press and television ads. The same goes for Marlboro. “Those ads are portraying young and sexy people who are smoking. It makes you look good. If you want to be a He-man or glamorous woman you have to smoke. That is what these ads are saying,” he argued. “Tobacco companies target the illegal smoker, those under the age of 18. That is their biggest market. They do not target older people.”

Carter reiterated that WITCO does not want children to smoke and as such its advertising campaign is targetted to minors. He said research has shown that the major causes of smoking by minors include peer pressure, personal problems and adult smokers in the household. He noted that WITCO’s advertising is governed by a specific bureau of standards called Advertising Standard Regulations for Tobacco. “We go beyond this regulation with our own voluntary advertising code, which is more stringent than the legal requirements of the advertising regulations. For instance we do not advertise on television before 9 pm and the models used in our ads are over 25 years of age. Billboards are not placed less than 100 metres from schools.” “I hope people competing against us respect how we market in TT and behave accordingly. On advertising codes, Phillip said that he expects Phillip Morris to comply just as WITCO does.

Philip Morris said, “we have our own internal responsible marketing standards that govern our advertising, marketing and promotional practices.
Our marketing programmes are designed to enhance brand awareness, recognition and loyalty among adult smokers, while honouring the company’s commitment to responsible marketing.” “Smoking kills people and we continue to lose talent in the workplace. How can you be a good corporate citizen while you kill people and destroy society ?” Laquis said. On the US lawsuits, Laquis said it will show the local and international cigarette companies that people are paying more attention to their health and that the industry should back down. On the question of lawsuits against WITCO, Carter said, “The US, as you are aware is a very litigious society. “The solutions being applied to deal with smoking and health issues in the US are being conducted in a unique justice system, which we believe is not applicable to TT.” He said WITCO is quite aware that the threat of litigation is ever present and noted that should it come to pass, the company will vigorously defend its right to conduct its business.