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Hiển thị các bài đăng có nhãn Challenge. Hiển thị tất cả bài đăng

Thứ Tư, 8 tháng 5, 2013

Bolivia's challenge: Making coca palatable

VILLA TUNARI, Bolivia (AP) — Since taking office seven years ago, Bolivian President Evo Morales has tried to persuade the world that he has no tolerance for cocaine and that his country's thousands of acres of coca plants are dedicated to uses such as fighting off fatigue and even in whipping up wholesome treats such as sweet breads and coca puff snacks.

A longtime leader of a coca growers union, Morales has a personal stake in seeing the destigmatization of the crop. He and his fellow growers say they want to build a healthy market for coca-based products, despite the belief of U.S. officials that most of Bolivia's crop ends up as narcotics

Yet a stubborn problem keeps getting in the way of the president's grand plan: While coca tea is popular, most people seem to find other coca-based food unappetizing.

The processing plant he built in 2008 with a $900,000 donation from his late friend, Venezuela's Hugo Chavez, and other such endeavors have all failed.

The now-idle factory in Villa Tunari, in the heart of Bolivia's coca-growing Chapare region, churned out a million bags of baked coca treats in 2011 and 2012 and also made candies and liquors using the tough, bitter-tasting plant. To enhance edibility, workers added sweeteners, corn and cheese flavoring.

But to the chagrin of the government and the union that runs the plant, the coca food market refused to grow. Just about the only people who would eat the treats were 30,000 schoolchildren in the Chapare valley whose school districts bought cheese-flavored coca puff snacks from the plant and gave them away for free.

"The truth is, first they were hard," said 12-year-old Mario Justiniano, who had tried a coca puff. "The coca tasted a little strong, but a little later they got better and became tastier."

Eliseo Zeballos, the coca union leader in charge of the Ebococa factory that made the treats, said he had learned a rule of thumb about making tasty coca-based food: "It doesn't help putting in much coca."

For the 53-year-old Morales, championing legal coca cultivation has been a decades-long mission, beginning in his days as a union leader battling U.S.-funded eradication efforts in the low-lying Chapare.

Now, as president, he controls coca cultivation with government restrictions on the size of growers' plots. U.S. drug agents, whom he expelled in 2008 for allegedly inciting his political opponents, say that has hardly stemmed a vibrant narcotics trade.

Coca growers such as Morales point out that indigenous communities have long chewed coca to fight off the effects of altitude sickness and fatigue and use it in religious rituals.

A 1975 Harvard University study also found the leaves to have a surprisingly high nutritional value, rich in calcium, iron and vitamins A, B2 and E. However, it said the "toxic alkaloids" comprising 0.25 to 2.25 percent of the plant "could make the nutritious coca leaf undesirable as a source of nutrients."

U.S. counterdrug officials insist most of Bolivia's coca crop is dedicated to cocaine production and say the country has also become a haven for Colombian drug traffickers who also used Bolivia to refine coca paste imported from Peru.

Bolivia has the world's third-largest coca crop after Peru and Colombia, with more than 67,000 acres (27,000 hectares) under cultivation, according to the U.N. Office on Drugs and Crime. Unlike Colombia, however, most of its cocaine heads not to the United States but to Brazil, Argentina and Europe.

Producing just 1 kilogram (2.2 pounds) of cocaine requires about 370 kilograms (more than 800 pounds) of coca leaf, or more than two acres of land.

Often-violent confrontations between coca growers and U.S.-funded counterdrug police frequently wracked this deeply impoverished 10 million-person country, bolstering support for Morales and helping him win the presidency in 2006.

Morales has since crisscrossed the globe preaching the benefits of coca, including chewing its leaves during speeches before international drug control bodies.

This year, he scored a diplomatic win by securing Bolivia's readmittance to the 1961 Single Convention on Narcotic Drugs with an exemption that made coca leaf chewing legal in Bolivia under international law.

Morales claims his campaign has reaped greater consumption of coca abroad.

"I have seen coca tea in Ecuador, in Venezuela," Morales said a month ago. "Coca tea is arriving in South Africa from Peru."

Winning the battle at home, however, has proved tougher.

The Morales government has tried to promote coca foods at culinary festivals and offers incentives for private companies that produce the treats. He also built a second factory in the capital, La Paz, as part of his promise to help fellow coca growers produce everything from hand lotion to syrup. So far, all that's planned there is production of coca tea, with artificial sweetener.

That's a twist on a popular, traditional means of consuming coca: in tea to fight altitude sickness, as well as held between lip and gum, where it helps farmers and miners fight off fatigue.

"We've had difficulty maintaining coca products in the market," said Javier Valda, director of a government office that organizes indigenous economies. "There's no distribution or mass promotion. People don't easily accept environmental products and they prefer hamburgers, coffee."

A prime opportunity appeared two years ago, when two coca-based soft drinks, Coca Brynco and Coca Colla, were launched. History was in their favor: The U.S. brand Coca-Cola has long included coca leaf extract in its recipe. Paul Gootenberg, in his book "Andean Cocaine," says cocaine itself was removed from the soft drink in 1903.

This time around, both soft drinks failed to generate sales and promptly disappeared from Bolivian store shelves.

"At first, it wasn't very accepted because of its slightly bitter flavor," said Victor Ledezma, who launched Coca Colla in 2010 with a $250,000 investment and 15 employees. "But I'm improving the formula and thinking of returning to the market."

Alan Garcia, Peru's president from 2006 to 2011, had been a coca booster, even suggesting tossing coca leaves into salads. That never went anywhere.

Bolivian businesswoman Heidy Quisbert is not deterred, though, by the evidence that coca leaf may not be cut out for anything other than chewing, tea and cocaine.

She's spent nine years working on her coca-based pastries, playing with essences and recipes while fighting off public health officials who insist she move her bakery out of a rented house and to more sanitary quarters.

Lately, Quisbert has come to the same conclusion as Zeballos about what it takes to make coca food palatable despite its "spicy and bitter flavor."

The secret? Minimal coca.


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Thứ Hai, 6 tháng 5, 2013

Cuba launches challenge to Australian tobacco laws at WTO

GENEVA (Reuters) - Cuba has launched a legal challenge to Australia's tobacco packaging laws at the World Trade Organization, the Geneva-based trade body said in a statement on Monday.

Cuba has never before launched WTO litigation. Its challenge follows similar complaints about Australia's tough tobacco packaging rules by Ukraine, Honduras and Dominican Republic.

By taking the first step in a dispute, Cuba has triggered a 60-day window for Australia to try to resolve the problem in talks with Cuba. After that Cuba could ask the WTO to appoint a panel of adjudicators to judge its complaint.

Australia's law came into force last December, banning cigarette logos and requiring packets to be plain olive green with graphic health warnings. It was seen as a precedent for others considering a similar move, including the European Union, India, Norway, South Korea, New Zealand and Canada.

To bring in the world's toughest rules on tobacco packaging, Australia had to win a court fight against cigarette makers British American Tobacco, Imperial Tobacco, Philip Morris and Japan Tobacco.

It was not immediately clear why Cuba took more than a year to follow Ukraine, which launched its complaint in March 2012. The three existing complainants could press ahead with their cases at any time in the future, but unless they do so their challenges will remain inactive on the WTO's books.

(Reporting by Tom Miles; Editing by Janet Lawrence and Pravin Char)


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Thứ Sáu, 3 tháng 5, 2013

Hedge fund faces challenge in Tim Hortons shakeup bid

By Euan Rocha and Jessica Toonkel

TORONTO/NEW YORK (Reuters) - Highfields Capital, a U.S. hedge fund agitating for change at Tim Hortons Inc, may have a hard time convincing institutional investors that the chain that says it sells eight out of every 10 cups of coffee in Canada needs a wake-up call.

The Boston-based activist investor, with an about 4 percent stake in the company, wants Tim Hortons to boost shareholder returns by taking on new debt to buy back its stock.

It is also pushing Tim Hortons to scale back its U.S. expansion and focus more closely on its thriving Canadian business. The fund, which also outlined a second tier list of demands, wants Tims to spin off or sell its distribution business, create a real estate investment trust to house its property assets and bring in new directors with more financial experience.

On Wednesday, Highfields confirmed an earlier exclusive Reuters report about the proposals, and said it currently owns 6.1 million shares of Tim Hortons. The fund said the company is studying its proposals and it looks forward to continuing a dialogue with Tim Hortons.

But the proposals may not be so easy to sell to long-term investors, according to some money managers and investors.

"This business ain't broke and needs no fixin'," said Barry Schwartz, a portfolio manager at Baskin Financial, which owns roughly 130,000 shares in Tim Hortons, according to Thomson Reuters data.

"The company is shareholder-friendly and has rewarded long-term investors with rising dividends and share buybacks, plus the stock performance since the IPO has been terrific," he said.

The shares have more than doubled in value since an IPO in March 2006, when Wendy's Co spun off Tim Hortons.

The proposals from Highfields represent the latest attempt by a U.S. hedge fund to shake up a Canadian company.

Last year, Bill Ackman's Pershing Square won big change at Canadian Pacific Railway after a bitter public battle. Earlier this year, fertilizer company Agrium Inc fended off an attempt by its biggest shareholder, U.S. hedge fund Jana Partners LLC, to break up the company and defeated Jana's slate in a hard fought proxy battle.

SIMILAR DEMANDS

Highfields has made demands that are similar to those put forth by Jana in its fight at Agrium. The fund wanted Agrium to spin off or sell its retail arm and add people with more experience in retail to its board.

But David Baskin, the head of Baskin Financial, sees big differences between the situation facing Highfields and Ackman's successful proxy fight at CP Rail, which resulted in a sweep for his slate.

"Canadian Pacific had a tired board with weak management, chronic underperformance and restive shareholders," he said. "None of that applies to Tim Hortons, which I think is still widely liked by institutional holders."

Tim Hortons' stock has rose about 60 percent over the last five years, while the Toronto Stock Exchange's S&P/TSX composite index has fallen roughly 13 percent over the period.

That said, shares of some of Tim Hortons' U.S.-based rivals have outpaced the Canadian chain.

McDonald's Corp shares have climbed about 70 percent over the same period, while Starbucks Corp has nearly quadrupled in value.

"Tims' performance has been somewhere between good and very good, given economic conditions in a hyper-competitive sector. So I would guess it will be hard for these guys to get traction but maybe the stock will respond anyway," Baskin said.

The shares closed up 4 percent at $56.32 on the New York Stock Exchange on Wednesday, while Tims' Toronto-listed shares rose by a similar margin to C$56.77.

TOUGH LANDSCAPE

Despite its growth and strong performance, analysts concede that the Canadian coffee chain faces strong headwinds.

Analysts have questioned whether the brand - which arguably trails only hockey and the maple leaf as a symbol of Canada - can continue to grow at home.

Tim Hortons - with some 3,400 company-owned and franchised stores in Canada - has virtually saturated the market. At the same time, U.S. rivals such as McDonald's and Starbucks have also stepped up their presence north of the border, limiting Tim's organic growth potential.

"We don't view either player as an immediate threat to Tim Hortons' scale and strong brand perception," said R.J. Hottovy an analyst at Morningstar. "But we believe competition will become increasingly fierce in the decade to come, leading to more aggressive price wars."

Highfields may have some success in building a case for spinning off Tim Hortons' real estate assets into a new publicly traded REIT - a path that other players have taken. Canada's top food retailer, Loblaw Cos, said earlier on Wednesday that it plans to complete the initial public offering of its REIT in early July.

"Canada is a more conducive market than the U.S. right now, when it comes to REIT conversions," said Hottovy, noting that a company spinning off the assets can still maintain a controlling interest in a REIT in Canada.

Tim Hortons in the past has panned the REIT idea, as it owns only 20 percent of its retail real estate assets. The company declined to comment beyond saying it remains focused on creating shareholder value.

"(We) always welcome constructive dialogue with our shareholders. We don't comment on specific conversations," said Tim Hortons spokesman Scott Bonikowsky.

BUYBACK PLAN

Highfields also faces a tough task convincing long-term investors that a debt-funded share buyback is a sound plan.

John Goldsmith, deputy head of equities at Montrusco Bolton, a firm that owns nearly 260,000 Tim Hortons shares, questions whether the strategy makes sense over the long term, even though low interest rates have made it more attractive for activists to push companies to take on cheap debt to fund buybacks.

"This might temporarily add value per share mathematically, the question is does this create sustainable value add or simply a one-time pop?" he said.

RBC Capital Markets analyst Irene Nattel said layering on $3.4 billion in debt to fund a buyback might add to earnings. But it puts Tim's investment-grade rating at risk, potentially raising borrowing costs and moderating any earnings per share gains for the company.

Tim Hortons is being advised by Citigroup Inc and RBC Capital Markets - both banks declined to comment.

(Additional reporting by Solarina Ho and Allison Martell; Editing by Frank McGurty, Bernard Orr)


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Thứ Tư, 17 tháng 4, 2013

West's mores, China imports challenge the burqa

KABUL, Afghanistan (AP) — The homespun Afghan burqa is under siege from east and west these days — cut-price competition from China, and Western influences that are leading many urban women to exchange the full-body cloak for a simple headscarf.

The decline is most noticeable in Kabul, the capital, where women began joining the work force and adopting Western dress soon after the 2001 U.S.-led invasion that ousted the puritanical Taliban. Demand for burqas appears strongest in the provinces, where family pressures and the power of conservative warlords continue to enforce a stricter Islamic code.

Alim Nazery, who has traded in burqas in Kabul for 27 years, remembers selling at least 50 burqas a day when the Taliban were in charge. Now he says he sells 20 a day, mostly to women from the provinces.

On one wall of his store in the Old Town market hang Afghan-made burqas costing from 1,000 to 3,000 Afghanis (about $20-$60), and on the other wall Chinese-made robes for 500-800 Afghanis ($10-$15).

"We are selling more Chinese burqas because they are cheaper and people can buy more of them," Nazery said, taking a break from haggling with a burqa-clad pregnant woman as her husband waited outside. Another woman emerged from a fitting room screened off by a row of burqas, asking for something with less embroidery.

In the countryside, where kidnapping and rape are a constant threat, a burqa gives its wearer the safety of anonymity.

But in Kabul, say clothiers, demand is declining as young women go to school and take office jobs — pursuits that were impossible during the five years that the Taliban ran the country. But women's rights activists caution against reading too much into the burqa situation.

They say it's the least of their problems as they continue to battle such issues as domestic violence and forced marriages.

"The current progress and the current achievements for Afghan women are very cosmetic and anything gained can be lost easily," said Selay Ghaffar, executive director of the Humanitarian Assistance for Women and Children of Afghanistan (HAWACA), a non-governmental group. She said she herself wears a burqa when traveling in insecure areas.

"Freedom from ... the burqa does not mean the real liberalization of women. I should have rights according to the law. I should be equally treated in the main society," she told The Associated Press.

The traditional burqa is sewn from cloth produced in Afghanistan, the embroidery stitched by seamstresses and the cap made by hand to render each garment unique — a touch of individuality for women otherwise indistinguishable beneath the robes.

Colors vary by region — light blue in the Kabul area, white up north in Mazar-i-Sharif and brown and green in Kandahar down south.

Haj Hussain, a 75-year-old dyer, says his biggest business nowadays is coloring men's clothes. "We get fewer burqas," he said. The reason is that most women are now going around with bare faces ... it's not in fashion anymore."

He said he dyed 80 burqas a day during Taliban rule and now is down to 30.

There are no official statistics for burqa sales.

China's entry into the market in recent years makes a dramatic change. Even Afghan manufacturers are buying material from China or Pakistan, in part because it's easier to pleat. Chinese burqas come pre-embroidered, leaving only the cap and veil in the hands of Afghan seamstresses.

"The Chinese have taken the market and there's much less business for handmade burqas. That means less work for many poor women," said Adila Sultani, a tailor in Mazar-i-Sharif.

Lal Mohammad Hemat, 58, who owns two burqa stores in the northern city, said demand is rising there as security deteriorates, and he sells about 1,500 burqas per month. "But Chinese-made burqas have cut into the Afghan-made business by about 60 percent," he said.

In the southern city of Kandahar, the birthplace of the Taliban, store owners tell the same story: more sales, lower prices.

And if Mariam Ahmadi gets her way, the burqa may eventually be in even bigger trouble.

She donned her first burqa at 14 under family pressure. Now she can't imagine leaving home without it. But she hopes she never has to buy one for her 8-month-old daughter.

"Now things are getting modern and I don't want my daughter to wear the burqa," Ahmadi said. "I want her to go to school and be educated."

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Associated Press writers Amir Shah in Kabul and Mirwais Khan in Kandahar contributed to this report.

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Follow Kim Gamel on Twitter at https://twitter.com/kimgamel


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Thứ Năm, 21 tháng 3, 2013

Challenge to Australian prime minister evaporates

CANBERRA, Australia (AP) — Julia Gillard remains Australia's prime minister after she threw her job open to a leadership ballot but no one from the government was willing to run against her.

Her predecessor Kevin Rudd, whom Gillard ousted in an internal party coup in 2010, had been expected to attempt to replace her. But at the last moment announced he would not contest the ballot on Thursday.

Senior minister Simon Crean brought leadership unrest to a head earlier Thursday by calling on his government colleagues to sign a petition to force a ballot if Gillard refused to call one.


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Challenge to Australian prime minister evaporates

CANBERRA, Australia (AP) — Julia Gillard remains Australia's prime minister after she threw her job open to a leadership ballot but no one from the government was willing to run against her.

Her predecessor Kevin Rudd, whom Gillard ousted in an internal party coup in 2010, had been expected to attempt to replace her. But at the last moment announced he would not contest the ballot on Thursday.

Senior minister Simon Crean brought leadership unrest to a head earlier Thursday by calling on his government colleagues to sign a petition to force a ballot if Gillard refused to call one.


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