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ENDNOTES

[1] Report written by Rick Kropp, Executive Director for the Nor th Bay Health Resources Center and Director for the Stop Tobacco Access for Minors Project (STAMP), December 28, 1996. [back]

[2] In addition to the sixteen cities listed in this report, STAMP's comprehensive youth access ordinance has been enacted and implemented in the following jurisdictions: [back]

Marin County: Unincorporated Marin County, Ross, Corte Madera

Sonoma County: City of Sonoma, Windsor and Unincorporated Sonoma County

Napa County: Calistoga, Unincorporated Napa County and Yountville

Mendocino County: Unincorporated Mendocino County

[3] In 1993, cigarette companies spent $6.03 billion to advertise and promote their products. Over two-thirds of these expenditures are spent on different types of retail level marketing. On the other hand, the proportion of overall cigarette industry spending on billboard, newspaper and magazine advertising has decreased.

In 1994, tobacco industry spending on advertising and promotion declined almost 20% to $4.84 billion. This was the first reported decrease in cigarette advertising expenditures since 1986. This decrease may be attributed to several factors:

1) cigarette price reductions in 1993 reduced cigarette company revenue, thus reducing advertising expenditures for 1994;

2) refinement of cigarette marketing strategy consisting of spending advertising dollars in relatively few, but highly effective categories;

3) political and public attention on cigarette advertising and its effects on teen smoking; and

4) decline in cigarette advertising expenditures may be industry ploy to show that attacks on cigarette advertising are overblown and government restrictions, such as the FDA regulations, are unnecessary.

In terms of 1994 expenditures on retail level cigarette marketing, there were sharp reductions in spending on coupons, multi-pack promotions ("buy one, get one free") and retail value added promotions such as t-shirts and baseball caps with brand name logos that are given away at point-of-sale with purchase of cigarettes.

However for the first time since 1985, promotional allowances (money paid to retailers for shelf and counter space for placing, advertising and promoting cigarettes in their stores) were the largest single expenditure in 1994, accounting for 34.7 percent of all cigarette advertising and promotion expenditures in 1994. [Source: Federal Trade Commission] [back]