Chapter 29 The tobacco Industry

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The tobacco Industry: General

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"I'll tell you why I like the cigarette business. It costs a penny to make, it sells for a

dollar, it's addictive, and there's fantastic brand loyalty."

Warren Buffett, Salomon Brothers (The Economist, May 16, 1992, p. 21)

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An internal Brown and Williamson Tobacco Company memorandum in 1990 showed

that the company had stockpiled two million pounds of the Y-1 tobacco it had

developed with very high nicotine levels, and was planning to test it on smokers. In

1994, the company denied to Federal investigators that it had developed high nicotine

tobacco, but later in the year admitted that it had imported five million pounds of Y-1

tobacco into the United States and used some of it in five cigarette brands.

New York Times, January 9, 1998, p. A12, and January 8, 1998, p. A17

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Brown and Williamson has avoided "legal discovery proceedings by funneling the

most damaging material in its files to legal departments, where company lawyers

claimed the material was protected from disclosure by the attorney-client privilege and

as attorney work product. That is fraud..."

The Nation, January 1, 1996, p. 18

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"...the tobacco industry is unique among American and worldwide industries in its

ability to forestall effective government regulation and to hold effective public health

action at bay while marketing its lethal products. The industry manages this, despite

the overwhelming scientific evidence that tobacco products kill, through a combination

of skilled legal, political, and public relations strategies designed to confuse the

public and to allow it to avoid having to take responsibility for the death and disease it

inflicts."

The Cigarette Papers, p. xvii

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Monday, July 24, 2000

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