In July 2021, Red Flag acquired International Business-Government Counsellors, a US lobbying firm that specialises in “providing technical advice to large corporate companies on trade legislation.”²

Background

Founded in 2013 by Karl Brophy in Dublin, Ireland, it offers services such as coalition building and grassroots mobilisation, reputation management and political engagement.³⁴ Brophy was previously a partner in PR company Hume Brophy.⁵

Red Flag’s spending on EU lobbying in Brussels alone amounted to between EU€335,000 and EU€699,999 in 2022. As of April 2022, it has twelve EU lobbyists, six with European Parliament accreditation.⁶

In 2021, Red Flag acquired Washington lobbying firm International Business-Government Counsellors (IBC).⁷

Relationship With The Tobacco Industry

British American Tobacco (BAT) has been a client of Red Flag since at least 2017, according to the EU Transparency register.^8910116

The Consumer Choice Center (CCC), which has received funding from BAT among other tobacco companies, has been listed as a Red Flag client since 2020.¹⁰¹¹⁶

In 2018, Red Flag lobbied the Irish Government on behalf of PJ Carroll, an Irish BAT subsidiary, on e-cigarettes and smoking cessation.¹²¹³¹⁴

Red Flag maintained the World Vapers’ Alliance (WVA) website between December 2019 and April 2022. ¹⁵¹⁶ WVA was set up by, and receives funding from, CCC. According to an investigation by Le Monde and The Investigative Desk, Red Flag was involved in WVA’s “Back Vaping. Beat Smoking” campaign, which saw a branded van visiting major European cities including Geneva during the 9th Conference of the Parties (COP 9). The investigation describes Red Flag’s speciality as setting “up movements that seem to be grassroots-oriented, but are not.”¹⁷ In response, Karl Brophy told the Business Post in July 2022 that WVA was no longer a client of Red Flag, and the relationship had been brief.¹⁸

Relevant Links

• Red Flag website

TobaccoTactics Resources

• British American Tobacco
• Consumer Choice Center

References

The post Red Flag Consulting appeared first on TobaccoTactics.

In the UK, the tobacco industry has employed a tactic of using ex-Police officers to front its campaigns against the Point of Sale Display Ban and against plain packaging. This is a classic use of the third party technique.

Working for PMI

Image 1: PMI’s media messengers, PMI leaked powerpoint slide 2013

Since late 2011, Will O’Reilly, former Detective Chief Inspector with the Metropolitan Police, has been appearing in the press as a so-called “expert” working for Philip Morris International (PMI) tackling tobacco smuggling. O’Reilly is a director, along with his wife, of a company called WOR Consultancy Limited. ¹⁹
Sometimes press articles mention that O’Reilly is working for the tobacco company,²⁰ but at other times they do not.²¹²²

“Media Messenger”

In 2013, leaked internal tobacco industry documents, including powerpoints, revealed the extent of PMI’s anti-plain packaging campaign in the UK during the previous year. See also:

• PMI’s Anti-Plain Packaging Lobbying Campaign
• PMI’s Anti-PP Media Campaign

Under the headline, “Media messengers” were the initials “WOR.” Given that Will O’Reilly’s company is WOR Consultancy Limited, it shows that the ex-Policeman is an integral part of the company’s anti-plain packaging public relations campaign. (Image 1)

Active In Scotland

O’Reilly has not just been active in England. After the Scottish government announced in September 2013 that it would proceed with plain packaging, O’Reilly started appearing in many Scottish media outlets scaremongering about tobacco smuggling.^{2324 25 2627}
For more see:

• Scotland Plain Packaging: Scaremongering over Illicit Tobacco

Investigations in Australia and Ireland

In his submission to the UK Government’s Independent Review into Plain Packaging undertaken by Sir Cyril Chantler, O’Reilly wrote:

Since 2011 my role as a consultant for Philip Morris International has been to conduct extensive research into the illicit trade in tobacco products and to act as a spokesperson on the subject. I have studied the illicit trade across the UK including separate projects in England, Northern Ireland, Scotland and the Republic of Ireland … More recently I travelled to Australia to gain an insight of the situation there since the introduction of standardised packaging or plain packaging (PP) for tobacco products.²⁸

Other Ex-Policemen with links to the Tobacco Industry

• Peter Sheridan – Former Assistant Chief Constable and Head of Organised Crime and Murder Investigation;
• Roy Ramm – Former Commander of Specialist Operations at New Scotland Yard.

TobaccoTactics Resources

• Third Party Techniques
• Hiring Independent Experts
• (APPG) on illicit trade

TCRG Research

The following study provides details on how the tobacco industry has manipulated media coverage of the illicit tobacco trade in the UK and over-estimated the size of the illicit market:

• Tobacco industry manipulation of data on and press coverage of the illicit tobacco trade in the UK, A. Rowell, K. Evans-Reeves, A. Gilmore, 2014, Tobacco Control, 23(e1), e35-e43, doi:10.1136/tobaccocontrol-2013-051397

Visit Tobacco Control Research Group: Peer-Reviewed Research for a full list of our journal articles of tobacco industry influence on public health policies.

References

The post Will O’Reilly appeared first on TobaccoTactics.

ECAT dissolved in 2016.

Links with the Tobacco Industry

ECAT received membership fees from Philip Morris International (PMI). A sustainability report published on PMI’s website³⁰ revealed that ECAT was among a list of organisations and third parties that the company used to engage indirectly with policy makers:

“At this time we do not engage directly with policy makers from a corporate perspective but do engage locally with respect to specific initiatives and we engage indirectly through third parties (including non-governmental organizations (NGOs)) and company memberships which include:

* US Chamber of Commerce

* National Association of Manufacturers

* United States Council for International Business

* National Foreign Trade Council

* Emergency Committee for American Trade

* US – ASEAN Business Council

* Council of the Americas/Americas Society

* TransAtlantic Business Dialogue

* Executive Council on Diplomacy”

Against Plain Packaging

In joint statements with other business organisations in Australia, the UK and New Zealand ECAT voiced its opposition to plain packaging in countries considering its implementation. ³¹³²³³

Australia, UK and New Zealand

With the National Foreign Trade Council, the US Chamber of Commerce the TransAtlantic Business Dialogue (TABD), , the National Association of Manufacturers (NAM), and the United States Council for International Business (USCIB), ECAT issued joint statements in response to announcements that Governments were to consult on plain packaging proposals in Australia in 2011,³¹ and both the UK³⁴ and New Zealand in 2012.³³

In these statements the business associations argued that:

* the tobacco industry’s brands are protected by intellectual property laws and treaties

* maintaining intellectual property is fundamental to businesses, the economy and jobs

* there are likely to be serious unintended consequences such as increases in illicit trade which ‘robs the government of revenue, undermines public health objectives, impairs legitimate business and enriches organised crime.’

* there is no evidence that public health objectives of the policy will be realised and that there are legitimate alternatives available

* this policy would pave the way for others stating, ‘although presently this effort is only confined to tobacco products, we see this as a systemic threat to rules which intellectual property and the trading system is dependent upon.’³³

Cited by JTI and BAT in their Submissions to the UK Consultation on Plain Packaging 2012

ECAT’s 2012 joint statement with the US Chamber of Commerce, TABD, NFTC, NAM, USCIB and NFTC was also cited by Japan Tobacco International (JTI) in its submission to the UK plain packaging consultation. In this submission, JTI did not mention whether any of these organisations had connections with tobacco companies.

JTI stated that “EU and UK law concerns regarding plain packaging have been expressly recognised by both Governments and expert bodies” before proceeding to quote the business organisations’ joint statement:

“We believe it is important to make clear our serious concerns with the prospect that the UK Government may mandate the destruction of an industry’s legitimate trademark protection and branding – rights long protected under law and treaties…The rule of law and legal certainty are not just very important for the business community. They are vital to ensure that innovation is encouraged and rewarded and meaningful jobs are created.”³⁵

In its submission British American Tobacco (BAT) made the following statement and listed ECAT in as one of the trade associations in a subsequent footnote:

“Leading trade associations around the world have also expressed their serious concern over the incompatibility of plain packaging measures with obligations under the WTO World Trade Organization Agreements, including TRIPS on Trade-Related Aspects of Intellectual Property Rights and the TBT Barriers to Trade Agreement.”³⁶ BAT did not mention that ECAT received membership fees from PMI.

New Zealand

When plain packaging was discussed in Parliament in 2014, the same six American business groups issued what the press called “a thinly-veiled warning to the New Zealand Government” that plain-packaging laws for cigarettes could affect New Zealand’s exports. Plain packaging had cross-party support, but the Government decided it would not implement the law until legal battles over plain packaging in Australia had been settled – something the American industry lobby had suggested.³⁷

Cited by PMI in its Submission to the New Zealand Consultation on Plain Packaging 2011

The opposition of ECAT along with the US Chamber of Commerce, TABD, NAM, USCIB and NFTC was cited by Philip Morris International (PMI) in its submission to the New Zealand plain packaging consultation.
The organisations were cited to support PMI’s statement that “significant international concern has been expressed at plain packaging.”³⁸³⁹

In this submission, PMI did not mention whether any of these organisations had connections with tobacco companies.

Submission to the Consultation on Plain Packaging in Australia

In 2011, ECAT submitted comments on the Tobacco Plain Packaging Bill, urging the Government to reject the proposal. Apart from the arguments cited above, the comments focused on international trade and copyright agreements under the header ‘Plain Packaging Violates Longstanding International Obligations of Importance to Australia.’ ECAT also argues that plain packaging is not required or recommended by the Framework Convention on Tobacco Control, stating that the ‘FCTC’s non-binding Guidelines for implementation of Articles 11 and 13 (“Guidelines”) recommend that the Parties “consider” plain packaging, but do not require it as a (sic) obligation. ⁴⁰

• To view counter arguments to the aforementioned please visit: Countering Industry Arguments against Plain Packaging.

Ireland

Overview of contacts between lobbyists and Irish Foreign Office, no. 1

Overview of contacts between lobbyists and Irish Foreign Office, no.1

A Freedom of Information request asking for all correspondence regarding plain packaging proposals between the Department of Foreign Affairs and Trade in Ireland and the six aforementioned business organisations shows that ECAT made several efforts to access the Irish Embassy in Washington. ⁴¹

Against Excluding Tobacco from Free Trade Deals

Transatlantic Trade and Investment Partnership

The Transatlantic Trade and Investment Partnership (TTIP) is a proposed free trade agreement between the European Union and the United States of America. Its proponents argue that the agreement will facilitate economic growth while its critics are concerned that it will increase the power of corporations and inhibit governments to implement regulations in the public interest, including tobacco control measures.⁴²

ECAT sits on the Steering Committee of the Business Coalition for Transatlantic Trade where Stephen Schaefer co-chairs the Working Group on Procurement and Investment, with Marjorie Chorlins of the US Chamber of Commerce.⁴³

The Business Coalition joined forces with the European Services Forum (ESF) – an influential lobby group banding together global service players such as Deutsche Bank, The CityUK, and Telefónica. According to the ESF website the aim to be “the voice of the European services industries in international trade negotiations.” The European Services Forum (ESF) is a network of representatives from the European services sector committed to actively promoting the liberalisation of international trade in services. ESF’s main field of activity are the WTO GATS negotiations, the Plurilateral Trade in Services Agreement (TiSA) negotiations and the EU’s bilateral trade negotiations on services and investments. ESF, The voice of the European services industries in international trade negotiations organisation website, main page, accessed 13 Feb 2015[/ref] and BusinessEurope, the European employers’ federation and one of the most powerful corporate lobby groups in Brussels.

A meeting report released under the EU’s Freedom of Information law, revealed that the US Business Coalition for Transatlantic Trade (BCTT) also raised concerns with EU investment negotiators in December 2013 ‘that TTIP negotiations would lead to a lowering of the level of protection… which would be not only an unwelcomed consequence in the bilateral context, but also a bad precedent’ for future treaties.⁴⁴.
In 2013, ECAT was part of a large group of businesses who opposed the Obama administration’s attempt to protect the authority of nations to enact tough regulations to reduce smoking without fear of litigation brought by other countries as a result of international trade agreements.⁴⁵

Trans Pacific Partnership

In October 2014, ECAT co-signed a letter with other US business and agriculture groups urging Pacific trading partners not to exclude tobacco from investment protection rules in negotiations for another international free trade deal, the Trans Pacific Partnership. The letter argued that excluding tobacco from investor-state dispute settlement, or ISDS, provisions in the Trans-Pacific Partnership, would set a bad precedent arguing that:

“Such carve-outs undermine the trade and investment rules-based system and its objectives of encouraging investment, trade, innovation, and jobs.”⁴⁶

Excluding tobacco would close of the route of using investment treaties to fight further regulation of smoking. Philip Morris International, for instance, is challenging Australia’s plain packaging laws, which ban branded cigarette packs, under the country’s investment treaty with Hong Kong, arguing the laws breach intellectual property rights.⁴⁷

Relevant Links

• Myron Levin, Protest by Tobacco State Politicians, Business Groups May Snuff Out Obama Administration Trade Move, FairWarning.org, 23 August 2013 and Long version, published at Salon.com, 13 August 2013, with more detail on links between international business organisations and the tobacco companies.
• Corporate Europe Observatory, TTIP: debunking the business propaganda over investor rights, 3 July 2014.

TCRG Research

• ‘It will harm business and increase illicit trade’: an evaluation of the relevance, quality and transparency of evidence submitted by transnational tobacco companies to the UK consultation on standardised packaging 2012, K. Evans-Reeves, J. Hatchard, A. Gilmore, 2015, Tobacco Control, 24(e2), e168-e177.

References

The post Emergency Committee for American Trade appeared first on TobaccoTactics.

Background

The tobacco industry knows that cigarette packs are a powerful form of tobacco advertising. In 1994, Philip Morris executive Mark Hulit stated: “In the absence of any other marketing messages, our packaging – comprised of the trademark, our design, color (sic) and information – is the sole communicator of our brand essence.”⁴⁸ Evidence based on consumer tracking reports and tobacco company presentations also suggest that pack innovations increase market share.⁴⁹

Plain Packs

On 20 May 2016, both the European Union Tobacco Products Directive and the UK standardised packaging legislation, came into force at the same time. The EU Directive imposes pack size restrictions – cigarettes must be sold in a minimum of 20 and hand-rolling tobacco in a minimum of 30g, the Directive also mandates a minimum health warning size of 65% of the pack surface. In addition, the Directive permits member states to implement plain packaging if they do so wish. The UK did so, mandating the sale of tobacco in unbranded packs in a drab green colour (Image 1).
From May 2016 , in order to run down branded stocks and packs that do not meet the new minimum pack size requirements prior to the full implementation of both laws on 20 May 2017, tobacco companies were not permitted to manufacture any new packets.⁵⁰
Also see Plain Packaging in the UK

Smaller Packs

In addition to pack branding, pack size is important. Research has revealed that packs of 10 appeal to children and the price conscious.⁵¹ Furthermore, tobacco companies admit that increasing the price of cigarettes reduces smoking rates, especially amongst young people.⁵² Therefore, by abolishing packs of 10 and increasing the minimum size of roll your own packs to 30g, the EU Tobacco Products Directive aimed to reduce the affordability of cigarettes.

Philip Morris International (PMI)

Marlboro 10 Pack Tins in UK

In April 2017, more than 6 months after the legislation came into force, consumers in Bath and Bristol were able to purchase packs of 10 Marlboro cigarettes in tins (Image 2). Packs of 20 were not sold in tins.⁵³ To be legal, these tins would have had to been manufactured prior to May 2016. These tins allow cigarettes to be decanted into a branded packet after the implementation of the plain packaging law. In addition by only producing tins for packs of 10 cigarettes and not 20s, Philip Morris International is conceivably attempting to prolong its relationship with those 10 pack customers who smoke packs of 10 for reasons other than price.

Japan Tobacco International (JTI)

Benson & Hedges, Camel and Mayfair in Limited Edition Tins in Ireland

Similarly, in the month before the plain packaging legislation came into force in Ireland (also 20 May 2017), Japan Tobacco International (JTI) introduced limited edition tins for its 20 packs of Benson & Hedges, Camel and Mayfair brands (packets of 10 have been prohibited in Ireland since 31 May 2007⁵⁴). Benson & Hedges and Mayfair tins mirrored the branding of their usual cigarette packs. The tins containing Camel cigarettes were new innovations in “multi-coloured designs”. Health advocates criticised this move arguing that JTI were attempting to undermine plain packaging.⁵⁵

Imperial Tobacco

Promotional Price Stickers

A whistleblower from Imperial Tobacco recently suggested that the company had strategised ways of subverting standardised packaging legislation. According to the whistleblower, Imperial Tobacco allegedly employed a separate agency called Clipper to add promotional price stickers to the packets’ cellophane wrappers. ⁵⁶ However, to date no plain packs have been observed in price marked cellophane wraps.

Tobacco Tactics Resources

• Plain Packaging
• Plain Packaging in the UK
• Marlboro Bright Leaf: The Pack is Important
• Be Marlboro: Targeting the World’s Biggest Brand at Youth

External Links

R. Davies, Marlboro maker accused of using branded tins to sidestep plain packaging rules, The Guardian, 19 May 2017.

References

The post Tobacco Packaging: Tobacco Industry Marketing appeared first on TobaccoTactics.

In April 2019, the media reported that BAT was seeking a new Chairman to succeed Burrows.⁵⁸ In October 2020, BAT announced that Burrows would be stepping down after the 2021 AGM, to be replaced by Luc Jobin.⁵⁹⁶⁰

Background

Burrows began his career with Irish Distillers where he was Chief Executive from 1978 to 2000. He was Co-Chief Executive at Pernod Ricard in Paris, from 2000 – 2005.  Before joining the BAT Board, he was the Governor of the Bank of Ireland.⁵⁷

Board Memberships

He also served on the Board of Craven House Capital PLC (up to October 2018), Rentokil Initial plc (up to May 2019) and Carlsberg A/S.⁵⁷⁶¹

TobaccoTactics Resources

• British American Tobacco

References

The post Richard Burrows appeared first on TobaccoTactics.