On February 27, the World Health Organisation (WHO) marked the 20th anniversary of the coming into force of its Framework Convention on Tobacco Control (FCTC), touted as one of the most widely embraced United Nations treaties in history. At an event to commemorate the milestone held in Geneva on that day and live streamed around the world, it was estimated that since the advent of the treaty in 2005, globally, some 118 million people and counting had quit tobacco use. However, given that the last available data (2022) showed that there were some 1.25 billion adult users – lower than the 1.36 billion in 2020, but still higher than 2019’s 1.14 billion – the world could hold off on the celebration for now. More so when one considers that there are also 37 million children aged 13 to 15 to be added to those users.
All of that is occurring even though because of the FCTC, 138 of the 183 countries that have signed on now have pictorial health warnings on cigarette packets, and over 66 countries have implemented bans on tobacco advertising in the media, as well as in promotion and sponsorship deals. WHO estimates that some 5.6 billion people in the world live in countries that have at least one tobacco control policy in place. Obviously, while there have been strides owing to the FCTC, there is still a tremendous amount of work to be done.
WHO Director-General Tedros Adhanom Ghebreyesus has called tobacco, “a plague on humanity [and] the leading cause of preventable death and disease globally”. The health agency has long noted, based on thousands of studies and overwhelming evidence, that tobacco use is one of the greatest threats to global public health and a major driver of noncommunicable diseases (NCDs). These include, but are not limited to heart disease; stroke; cancer of the lung, mouth, throat, bladder, and pancreas; chronic obstructive pulmonary disease; emphysema; chronic bronchitis, and pneumonia. Smoking tobacco also exacerbates other NCDs like diabetes and rheumatoid arthritis. It has been known to contribute to erectile dysfunction, premature birth and low birth weight, eye ailments and skin ageing. These illnesses, many of which cause premature death and disability, do not only affect smokers, but also individuals exposed to second-hand smoke. Furthermore, countries are forced to expend vast sums of money on tobacco-related afflictions that could otherwise be diverted to pressing issues such as poverty reduction, education and the environment.
One might wonder how it is that tobacco companies continue to operate with all of this knowledge readily available. The simple answer is that it is a matter of money. It is a numbers game and it would appear that it’s down to who has the wherewithal. At this stage, it’s the tobacco companies.
As a case in point, take a look right here in Guyana. The Demerara Tobacco Company Limited (Demtoco), which used to be a wholly local entity back when Guyana grew tobacco and produced cigarettes, is now a subsidiary of British American Tobacco (BAT), one of the companies referred to as ‘Big Tobacco’. It is traded on the Guyana Stock Exchange as DTC.
Despite fuming about challenges, including cigarette smuggling, Demtoco made a more than tidy after-tax profit of $2.27 billion for 2023, a 9.7% increase over 2022 and saw a 4.4% rise in revenue as well.
Demtoco basically markets BAT brands. These include Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport, Camel and Natural American Spirit cigarettes. For those who vape, there’s Vuse (Alto, Solo, Ciro and Vibe); nicotine pouches: Velo, Grizzly, Kodiak, and Camel snus, and Glo tobacco heating product. There is no data on local usage of these products and nary a peep from the Ministry of Health, the Medical Council of Guyana or doctors about the impact on NCDs. However, Demtoco’s profits tell the tale well enough.
Last month, the stock exchange announced in Bulletin 210 that DTC’s share register would be closed between March 11 and 14 to facilitate the payment of a fourth interim dividend for 2024 of $31.96 per share to its stockholders. Clearly 2024 was a good year. DTC’s first dividend was $2.40 per share, but its second and third were $28.39 and $23.17, respectively. A look back at past stock exchange publications reveals that last year’s final dividend was not only the highest DTC has paid, but it eclipsed other listed companies.
This gives just a glimpse of the lucre involved and reveals why Big Tobacco is determined to protect its bottom line. Big Tobacco has bullied, lied, lobbied and lawyered-up in the fight to prevent FCTC policies from being implemented and in some countries succeeded in slowing or halting them. Recently, tobacco company representatives were accused of either paying or bullying their way onto government teams attending an FCTC conference where they proceeded to filibuster the proceedings.
Blowing smoke, these companies have declared themselves committed to harm reduction, yet their e-cigarettes and other nicotine products are both highly addictive and can cause cancer. In addition, although they are now forced to admit that smoking causes serious risks to health, and in spite of the newer products, they are not producing fewer cigarettes. In 2024, the industry was expected to generate US$965.1 billion in revenue with 88% of sales coming from cigarettes. For this year, the total revenue is projected at US$988.4 billion, with cigarettes holding the largest share – US$872.8 billion. It is estimated that 10 million cigarettes are sold every minute.
Big Tobacco can clearly outspend the FCTC, and while individuals have to take steps to quit, governments should be about protecting their people’s best interests and ought not to be as susceptible as they currently appear to be. Heavy taxes on tobacco and nicotine products can be used to offset the expenses incurred when people are afflicted with NCDs. There is much work still to be done and countries must be encouraged to build on what has been achieved thus far, rather than what has not.
