UNFILTERE D A revealing look at today’s tobacco industry Presented by [Add Your Name Here] This report was prepared by… Pop Quiz Question: Imagine that you are a major consumer products industry that is prohibited by law from advertising in traditional ways How do you continue to reach customers? Pop Quiz A Manipulate products to make them more addictive? B Redesign products/packaging to increase appeal? C Identify loopholes in laws and exploit them? D Positioning products as symbols of independence, cultural identity and freedom? E Give away free samples and merchandise? Pop Quiz Answer: If you are the tobacco industry, The answer is “G.” By the Numbers The tobacco industry spends more than $190 million in Minnesota every year to create new smokers and hold on to those it already has We All Pay the Price Here in Minnesota:  634,000 adults still smoke  28.4 percent of young adults (18-24) are tobacco users  85,000 middle and high school students smoke  More than 5,500 people die every year of diseases caused by tobacco use  Tobacco use = more than $2 billion in health care costs What is Unfiltered? A spotlight on a tobacco industry reinvented for the 21st Century *Unfiltered: A Revealing Look at Today’s Tobacco Industry is a project of ClearWay Minnesota What is Unfiltered? Unfiltered makes tobacco industry’s role part of the discussion: Reveal: new products, savvy marketing and image campaigns   Link: tobacco industry = tobacco use  Remind: public health priority  Highlight: tobacco costs too much  Create involvement: learn, look, talk, act Unfiltered Key Findings The tobacco industry is resilient and creative in the face of public health successes and despite public opinion against tobacco use The tobacco industry is actively working to counter health messages and increase tobacco use Target Marketing “Light and Luscious,” “Now Available in Stiletto" “For the Most FashionForward Woman”     - Camel No 9 slogans   “Welcome to the Brotherhood” - Skoal slogan Women Equality Independence Beauty, fashion and glamour Weight control Men    Strong/powerfu l Macho/rugged Sexually attractive Target Marketing  Racial and Ethnic Populations     Culturally specific images Popular music Lifestyle of affluent African Americans Gay, Lesbian, Bisexual and Transgender (GLBT) Individuals   40-70 percent more likely to smoke Placement of ads in GLBT publications We don’t smoke that sh*t, we just sell it We reserve the right to smoke for the young, the poor, the black and the stupid - R.J Reynolds executive, 1992 Target Marketing  Movies With Smoking, 20002009: Young People - targeting the psychological needs of adolescents  102 Dalmatians Agent Cody Banks 2  Curious George  The Fantastic Mr Fox The Incredibles Madagascar: Escape 2 Africa The SpongeBob SquarePants Movie  Popularity/peer acceptance Positive self-image Appealing flavors/packaging Pop culture (movies/games) Public Relations  Corporate sponsorships    Support events and social causes to get community support Use charitable giving to ward off regulations Image Campaigns:    Keep America Beautiful Operation Ranger Philip Morris USA QuitAssist In 1999, Philip Morris spent $100 million on a corporate image campaign to tout its charitable efforts – more than the $75 million it spent in actual donations Public Relations  A dangerous mixed message to kids: It’s wrong to smoke cigarettes, but it’s OK to take money from the very industry that is trying to addict you Kids - The most important image campaign of all  Hundreds of millions to youth groups  by an industry committed to selling addictive products to them  Why? The future of the tobacco industry depends on its ability to attract a generation of new customers Global Opportunism [Philip Morris International] stock is going to be a cash cow People in other countries smoke like chimneys This company sells an addictive product legally The dividends are high, profits are climbing What’s not to like? The Motley Fool investment website, July 2009  International Markets—A New Frontier   New Products for Overseas Markets:   The global marketplace = clean slate for methods outlawed in the U.S Products tailored for cultural integration Global Impact  The WHO estimates more than 1 billion deaths from tobacco in the 21st Century Point-of-Sale and Innovation Point-of-Sale It’s strategically important for manufacturers to hook smokers as early as possible The result: 80-90 percent of smokers start before their 18th birthday  Point-of-Sale Advertising and Promotion  83 percent of marketing budget   Most spent on price promotions (BOGO, “buy-downs”) Placement: child’s eye level, where teens shop, low socioeconomic neighborhoods Innovation Tobacco companies have more than quadrupled their advertising/ promotional spending for smokeless products, from $77 million to $354 million “Join the Snus Revolution”  Recent developments have changed the game for tobacco marketers:     Widespread knowledge of the dangers of cigarettes Record low smoking rates and less smoking in public places Release of documents exposing tobacco industry deceptions and knowledge of tobacco’s harms The industry must rely on product innovation to attract and retain tobacco users Innovation  Studies have shown that 17year-old smokers are three times as likely to use flavored cigarettes as smokers over the age of 25 Not Your Grandparents’ Cigarette    Americans gradually turning away from cigarettes Industry adding sweet flavors to appeal to younger palates “It Doesn’t Even Taste Like Tobacco”   Products have strong, sweet, artificial flavors Designed to appeal to “young adults” Innovation  “They’re Not Cigarettes”   Cigar manufacturers take advantage of FDA regulations by promoting “little cigars” Snus and Orbs, Sticks and Strips   Smoking bans = whole new generation of tobacco products “Your flight just got canceled friendly,” “ridiculously long conference call friendly” “fancy hotel friendly” “[Smokeless tobacco] is becoming more socially acceptable.” - Dan Butler, president of U.S Smokeless Tobacco Company, 2007 What can you do? Action and Engagement Website Activities: View interactive vignettes  Download the full report and supporting materials  Post comments and share stories of tobacco marketing  Upload photos of tobacco marketing from your community  Become a Facebook Fan of We All Pay the Price for Tobacco  www.unfilteredmn.org Contributing Partners The Association for Nonsmokers—Minnesota • Campaign for Tobacco-Free Kids Clarity Coverdale Fury • Giebink Design • Grassroots Solutions Himle Horner, Inc • Minnesota Tobacco Document Depository Richard Hurt, M.D., Mayo Clinic Nicotine Dependence Center • Julie Jensen Office of Tobacco Prevention and Control of the Minnesota Department of Health John Pickerill, Fredrikson & Byron • Public Health Law Center Robert Wood Johnson Foundation • Start Noticing Coalition • Sofia and Alison Stumpf Trinkets & Trash • Tunheim Partners • Olivia Wackowski Questions? ... What is Unfiltered? A spotlight on a tobacco industry reinvented for the 21st Century *Unfiltered: A Revealing Look at Today’s Tobacco Industry is a project of ClearWay Minnesota What is Unfiltered? ... Revealing Look at Today’s Tobacco Industry is a project of ClearWay Minnesota What is Unfiltered? Unfiltered makes tobacco industry’s role part of the discussion: Reveal: new products, savvy marketing... health priority  Highlight: tobacco costs too much  Create involvement: learn, look, talk, act Unfiltered Key Findings The tobacco industry is resilient and creative in the face of public health