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Cigarette maker Gallaher and retailers including Asda and Somerfield have been fined over £173m following a price-fixing investigation by the Office of Fair Trading.

A large proportion - £93m - will be paid by Gallaher, whose brands include Benson & Hedge and Silk Cut.

The fines follow a five-year investigation into price setting and the passing of sensitive information in the UK tobacco industry between 2000 and 2003.

The OFT said the size of the fines would be reduced to £132.3m if the companies, which had applied to the watchdog for leniency, continued to support the investigation.

The size of Gallaher’s fine, disclosed by its owner, Japan Tobacco, is based on the company benefiting from the leniency reduction.

The other retailers fined were First Quench, One Stop Stores and TM Retail. Sainsbury’s, the first company to apply for leniency, has escaped without a fine.

The OFT - which expects to close its case early next year - said the investigation into Co-Op, Imperial Tobacco, Morrisons, Safeway, Shell and Tesco was continuing.

Asda said: "Everyone at Asda is very sorry about what happened… though we can’t turn back the clock there are lessons to be learned and we will learn them."

A TOTAL of 52 participants including mall managers, restaurant and hotel managers, health professionals, legal experts, law enforcement agents and government officials recently attended a National Health Authority’s (NHA) workshop on Tobacco Law number 20 of 2002. Penalties for violating the law include fines of up to QR5,000, closure of establishment which violates the law and jail of up to six months. The aim of the workshop, which is one of the activities lined up for the commemoration of the ‘World No Tobacco Day’ was to discuss how to improve the implementation of the law among other things.
The theme for the year is ‘Tobacco-Free Youth’. The director of the Public health at the NHA, Dr Gail Fraser Chanpong, who declared open the workshop, said that tobacco is a major public health problem in the community and that urgent Marlboro cigarettes control efforts are needed.
Prof Ravinder Mamtani of the Weill Cornell Medical College in Qatar discussed the effects of tobacco and highlighted its effects, including cancer and heart diseases.
“Globally, tobacco kills approximately 5.4mn people annually, that is, one person every six seconds,” he said. Legal expert at the NHA Asmaa Abdel Halim highlighted parts of the law and also discussed how it organises and controls tobacco sale and smoking in public places.
She stressed the importance of collaboration between all governmental agencies, families, educational institutions and others to reach the goals set by the country.
Head of the Non-communicable Diseases section Adenike Ajani said legislation is one of many strategies that can be used for tobacco control, especially because of its special consideration for the youths. She added that the law prohibits the sale of tobacco to minors and advertisement that may encourage its use among youths. Ajani noted that tobacco in the law refers to all kinds of products including water-pipe (sheesha) and chewing tobacco (suwaikah), while adding that there is no safe form of tobacco.
Major Hamad al-Ansari of the Ministry of Interior said that law enforcement officials will continue to support the Marlboro cigarettes control efforts of the NHA, adding that official channels of collaboration need to be established to strengthen the role of the police officers in the tobacco control.

TOKYO, — Domestic cigarette sales fell by 4.3% to 258.5 billion cigarettes in the year ended March 31, marking a ninth straight year of decline, the Tobacco Institute of Japan said Thursday.
The decrease is attributed to the growing trend to quit smoking, as well as tighter smoking-related regulations. Last fiscal year’s sales figure is down 26% from the fiscal 1996 peak.
In fiscal 2007, sales of domestically produced cigarettes slid 4.1% to 167.8 billion, while imports sank 4.6% to 90.7 billion.
Japan Tobacco Inc. (TSE:2914) saw its market share edge up 0.1 percentage point to 64.9%, its first such gain since the company’s 1985 privatization.
As for the outlook, JT expects the market to "keep declining about 4-5% every year," according to Executive Vice President Mitsuomi Koizumi.
Asked about the impact, if any, of the age-verifying cigarette vending machines that have debuted in two Kyushu prefectures, Koizumi says: "More people are buying cigarettes at convenience stores for now, but there has been no impact on overall sales."