International Deathmatch - Corporate Wars

British American Tobacco vs Rachel Reynolds

15 Oct 2004 - It's all in the numbers.

Tobacco companies target teens and females with millions of dollars worth of advertising. So, what chance would an average teenage girl have against one of them?

Background

For decades, tobacco companies have focused marketing efforts on teens. Why? Because companies want to replace older smokers who die from tobacco-related illnesses. As a 1981 Philip Morris document said, "Today's teenager is tomorrow's potential regular customer, and the overwhelming majority of smokers first begin to smoke while in their teens."

Some tobacco company ads say they don't want underage smoking. The ads' hidden message is that smoking is a "grown-up" thing to do. But nothing could be further from the truth. This is manipulative because teens want to do some things they perceive as being grown-up.

The tobacco industry has also developed potent lures for adolescent girls. The industry uses women's magazines to sell cigarettes with ads linking smoking to fashion, beauty, and slimness.

Research has linked a sharp increase in smoking initiation by teenage girls in the late 1960's and early 1970's to soaring sales of widely advertised cigarettes for women.

Enough hot air for now. Let's meet the contestants!

In the blue corner - British American Tobacco

British American Tobacco (BTI) is an international tobacco group. The Company has an active business presence in 180 markets and its group companies carry out thousands of cross border transactions each year. British American is engaged in the harvesting, curing, processing, manufacturing, trade marketing and distribution of tobacco products. The Company has had over 300 brands in its portfolio, including such brands as State Express 555, Lucky Strike, Pall Mall, Benson & Hedges, John Player and Kent. It has operated 87 factories in 66 countries, and, in 2003, processed approximately 660 million kilos of leaf and produced approximately 792 billion cigarettes.

From their website:

"In the more than 100 years of British American Tobacco’s existence, our Group of companies has traded through the turbulence of wars, revolutions and nationalisations – as well as all the controversy surrounding smoking.
Our brands, whether international, regional or local, are what drive British American Tobacco. The maxim of British American Tobacco founder Buck Duke – “Develop a superior product” – is as relevant today as it was then."

In the red corner - Rachel Reynolds

In 1988, nine months after relocating their headquarters to the outer Adelaide metropolitan suburb of Happy Valley, Suzanne & Tim Reynolds (incorporated under Australian law in 1987) announced a spin-off venture named 'Rachel'.

"Rachel's research and development costs were huge." said joint-CEO Tim Reynolds at an AGM on Christmas Day at the Reynolds family farm in Burra. "But we gathered significant learnings, and applied them in our second spin-off entity, Max, in 1988."

Rachel achieved positive cash flow for the first time in 2003, entering into a supply contract with the Hub McDonalds for Australian dollars in exchange for manning the fryer. After weeks of tantrums and door-slamming, Rachel agreed to cede 25% of operating profits to her parent company.

This move frees significant resources, allowing Suzanne & Tim Reynolds to concentrate on 'core business' and plan future spin-offs, according to Tim Reynolds. Joint-CEO Suzanne Reynolds made no comment, but could be seen rolling her eyes and crossing her legs.

Rachel is currently seeking Year 12 Certification, while pursuing side ventures in hockey and netball. Depending on prevailing conditions, Rachel will choose between expansion into Medical research or TAFE hairdressing. Rachel's comment on long term outlook: "Ummmmm, I'on'know."

Round One - Population/Employees

British American Tobacco (BTI) Rachel
86,941 2*
BTI has been criticised for its attitude toward the environmental impacts of tobacco growing, namely: deforestation and soil-degradation. Reynolds family insiders consider Rachel's room an environmental 'disaster area.'
Christian Aid also attacked BTI for the treatment of farmers in Brazil. *Rachel uses child slave labour  (Max Reynolds, 13) when throwing dolly tea parties, and testing makeup. When confronted with allegations of these and other human rights abuses (i.e. locking Max in his closet) Rachel was unrepentant, responding with, "You always believe that gross little hobbit!"

Being tough on industrial relations and the environment is the mark of a fast company. You don't get tougher than indentured slavery. BTI puffs hard, but the round goes to Rachel!

Round Two - Economy

2004 Estimates BTI Rachel
GDP/Revenue (USD) $53.04 billion $3,500
Growth 18% 20.39%
Market Cap $29.89 billion $768 (Commonwealth Bank Account)

Rachel has nowhere near the fiscal muscle of BTI, who can spend in one advertising campaign more money than she will make in her lifetime.

Surprisingly, Rachel does not know that she is being pursued by tobacco companies. Considering her ignorance and the size disparity, there seems every chance that she will consider smoking as a lifestyle choice.

BTI breathes a little easier after firmly winning this round.

Round Three - Aggression

How high do they aim? And how low will they go to get there? 

BTI Rachel
Years Established: 100+ Years Established: 16

BTI has known for decades that 'light' cigarettes are just as harmful as regular cigarettes, but branded them with the aim of providing false reassurance to smokers concerned about health.

 Rachel has known for years that mother and Joint-CEO Suzanne Reynolds has been making 'goo-goo-eyes' at Mr Marks, her Phys. Ed teacher. It is rumoured Rachel will disclose this information to 'Dad' when it is politically expedient.

BTI also obfuscates the health effects of tobacco smoke on its website:

"Cigarette smoke is probably one of the world's most complex mixtures and one that has been extensively studied. Like any natural substance, tobacco contains thousands of different constituents (approximately 2,500 have been identified in tobacco). Approximately 4,000 constituents are formed when the tobacco burns, at varying temperatures with varying concentrations of oxygen. Many of these are found in very low concentrations."
 Rachel obfuscates her desire for classmate and cricketer Jordan Pocock by describing him on her blog as 'kinda dorky but cool'. While chatting with him on ICQ, Rachel steers the topic to Pocock's girlfriend (Eve Seidel, Rachel's best friend and colleague) and her admittedly thick ankles.
BTI was found by an Australian court to have deliberately shredded documents to deny justice to victims of smoking-related disease. Rachel was found to have deliberately shredded the family phone bill to cover-up the $1734.53 worth of mobile calls she made one month.

BTI was part of a deceitful campaign to undermine the work of the International Agency for Research on Cancer; it participated in the infiltration and undermining of WHO; and wielded excessive and inappropriate influence with senior politicians in Europe.

 Rachel has conducted deceitful campaigns to undermine the reputations of her English Teacher, Ms Harroway and little brother Max Reynolds, consistently referring to them as 'Ms Slaggoway' and 'Gaylord' respectively.

Okay, how do I put it nicely? One is big evil, one is little evil.  (One hand:) Thousands of people lied to or crushed to exploit millions of others. (Other hand:) a little deception here and there. Big ... small. 

I'm sorry, Rachel. You're just not eeevil enough.

The round goes to British American Tobacco!

Smmmmokin'!

Rachel, an average teenage girl, has proven that she has the hunger, the techniques, and the principles (or lack thereof) to take on British American Tobacco.

Unfortunately, what she doesn't have are the resources to mount any serious challenge, or even to fend off the simple addictions they peddle at her from every angle.

In fact, with Big Tobacco's big money, it's amazing that the rest of us don't still consider smoking healthy.

Against these odds we find most teens don't smoke. The US CDC's National Youth Tobacco Survey for 2000 found that only 11 percent of middle school students and 28 percent of high school students currently smoke cigarettes. Much smaller numbers used other tobacco products. In short, teen tobacco users are a minority.

Just a spark of hope in a true deathmatch where the stakes are indeed life - or a slow, painful death.

Sources:

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