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Washington, DC, United States (AHN) – Advocates have welcomed a recommendation from a Food and Drug Administration panel to ban menthol cigarettes to benefit public health. Cigarette companies remain optimistic the FDA will rule in their favor after a full federal review of the effects of the product.

The American Heart Association praised the Tobacco Products Scientific Advisory Committee for “‘do[ing] exactly what Congress directed when it enacted the 2009 law granting the FDA authority over tobacco products.” The group urged the FDA to “act expeditiously and implement the committee’s recommendation.”

The statement was issued jointly with the Campaign for Tobacco-Free Kids and the American Lung Association.

Legacy, an anti-smoking group established following the 1998 settlement of Medicaid lawsuits against American tobacco companies by 46 states, likewise applauded the panel for “recognizing menthol for what it is – a tool to soothe the throat and ease discomfort associated with smoking.”

“By eliminating [menthol cigarettes], we can go a long way toward preventing our nation’s youth from being recruited as ‘replacement smokers’ for those who quit smoking or who lose their lives to tobacco-related disease,” the group’s president and chief executive, Cheryl Healton, said in a statement.

The FDA committee concluded last Friday that menthol cigarettes increase the number of minors who smoke.

Citing studies, the panel said the proportion of youth smokers who use menthol cigarettes is higher than that of adult smokers. It found that younger teen smokers have a higher proportion of menthol cigarette smokers than older adolescent smokers.

According to the committee, “menthol cigarettes are marketed disproportionately to younger smokers.”

The panel concluded there is evidence that new smokers have a greater prevalence of menthol cigarette use than regular smokers. It added that a proportion of menthol cigarette use among youth smokers is increasing while non-menthol cigarette use is decreasing or remains flat.

But Lorillard, the nation’s third largest cigarette manufacturer, said the committee issued its recommendation “despite the fact that they found there was no difference in disease risk between smokers of menthol cigarettes and smokers of non-menthol cigarettes.”

The company called the conclusions “unsubstantiated” and maintained that a complete FDA review would result in the product remaining in the market.

R.J. Reynolds Tobacco Company issued a terse statement that it “looks forward to participating in further review of menthol cigarettes by FDA.”

Philip Morris USA emphasized the panel’s report is non-binding and would have no direct effect on the availability of menthol cigarettes. The company sad it would provide the FDA with “science-and evidence-based information” this week.

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Use a healthful diet to fight disease.

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The European Commission today proposed a five year ban on the use of cloned animals in food production within the European Union (EU) and the sale of such food. Meanwhile, further assessments will be made about its safety and ethics, especially as regards animal welfare.

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New award program highlights the use of rigorous research in developing successful corporate practices

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From a conventional stand point restaurant loans are taking the worst of it as the credit crisis has seemed to have worsen. Special use properties such as restaurants are always the first to feel the tightening as the process to sell the facility in case of borrower default is more difficult that your typical general use property that will have a wider pool of buyers.

Conventional financing for restaurants, meaning loan issued directly by the funding banks, without any guarantee by the SBA or other such institutions, are getting very conservative. Loan to values are hover at 55% on refinances and 60% on purchases. Debt coverage ratios have tightened as well from a 1.25 to a 1.3 and with some banks a 1.4. Meaning that for every $1 of proposed mortgage debt the borrower would still have $.40 left over after all expenses and proposed mortgage have been paid.

In addition, the cap rates have really been taking a beating with conventional sources. For example, I recently spoke to a bank loan officer that said they are putting on a minimum 10% capitalization rate on all restaurants regardless of the market.

The solution is to think non conventional for either purchase or refinance money. For example it’s still possible to get 85% financing on purchases on a 5 year fixed 25 year amortization loan, if you work through the right sources.

One loan program that deserves mention is the SBA 7a loan as it was designed for niche building types like restaurants, motels, etc. They can go as low as a 1.1 debt coverage ratio, and business projection can be used to supplement cash flow if it’s too low to meet the guidelines. Which in a cash business like restaurants, where most owners understate there income is very important.

CMBS sources are still out there though on a limited basis. For example, a 30 year fixed rate mortgage at 80% financing is still available. Primary benefit of course is that the borrower doesn’t have to worry about their rate fluctuating.

Author: Jeff Rauth
Article Source: EzineArticles.com
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