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14
TOBACCO BUSINESS INTERNATIONAL
MARCH/APRIL 2015
NEWS & TRENDS
MARCH/APRIL 2015
Highlights
As Nat Sherman’s new national ac-
count director, Jeff Hansen will join
Vic Koons, national account direc-
tor, to provide an increased focus
on new business development
in the national chain store trade
class. Hansen’s focus will be on
the Western United States, specifi-
cally the Rocky Mountains to Cali-
fornia. Key accounts falling under
his purview will include Chevron,
Smoker Friendly, Core-Mark, Circle
K (Arizona) and COSTCO Business
Centers.
Hansen joined Nat Sherman in
2000 as a regional sales manager
for the West Coast region. Present-
ed with the challenge of expanding
Nat Sherman’s national footprint
to the West
Coast, Han-
sen thrived
in a very
competitive
market and
quickly rose
through the
ranks,
be-
coming regional sales director in
2004. “I couldn’t be more excited
for Jeff, who has consistently dem-
onstrated his passion and love for
our company and products,” says
Larry Sherman, executive vice
president of Nat Sherman Interna-
tional. “I know he will be success-
ful in sharing our story with a new
audience.”
Nat Sherman Names Jeff Hansen
National Account Director
Federal Tax Hike
Back on the Table
Aproposed$4 trillionbudget for fiscal year
2016 calls for a cigarette tax hike from just
under $1.01 per pack to $1.95 per pack
in addition to an increase on taxation of
other tobacco products. According to
the government, the funds would go to
the Children’s Health Insurance Program
(CHIP) that serves about 8 million children,
for which funding technically expires
September 30.
RJR and Lorillard Merger
Gets Green Light
Shareholders of Reynolds American and
Lorillard voted overwhelmingly in favor
of the $27.4 billion merger between the
companies during a special meeting in
February. More than 98 percent of voting
shares reportedly voted in favor of the
proposal, a number that represents
approximately80percentofalloutstanding
shares.
“I want to thank our shareholders for
their continued support of this transaction
whichwill not only deliver significant value
to Lorillard shareholders, but will also
benefit our customers, consumers and
employees,” stated Lorillard CEO Murray
Kessler.
Under the terms of themerger,Winston-
Salem, North Carolina-based Reynolds
American will buy Greensboro, North
Carolina-based Lorillard and keep the
Newport, True and Old Gold brands.
Imperial Shareholders
Approve Brand Acquisitions
Another piece of the Reynolds
American/Lorillarddeal fell intoplacewhen
shareholders of Imperial Tobacco Group
approvedacquisitionofseveralU.S.brands
fromthe twomerging companies. Imperial
Tobacco will pay Reynolds American $7.1
billion for the Winston, Kool and Salem
brands and will also purchase Maverick
and blu eCig brands from Lorillard. These
purchases will make Imperial the third
largest U.S. tobacco company.
Michigan Governor
Vetoes E-Cigarette Bills
Measures do not go far enough, says Gov. Rick Snyder.
In January, Governor Rick Snyder vetoed three bills relating to electronic cig-
arettes, arguing that the regulatory measures they would have provided for
would not be sufficient to protect consumers. The bills would have excluded
e-cigarettes from the definition of tobacco products and prohibited them from
being regulated as tobacco products under Michigan law.
“We need to make sure that e-cigarettes and other nicotine-containing devic-
es are regulated in the best interest of public health,” Snyder said. “It’s important
that these devices be treated like tobacco products and help people become
aware of the dangers e-cigarettes pose.”
Snyder’s letter vetoing the bills stated that the governor believes the best way
to ensure that e-cigarettes are regulated in the interest of public health is to re-
vise the existing definition of a tobacco product to make clear that e-cigarettes
and other nicotine-containing vapor products are tobacco products subject to
any restrictions generally applied to tobacco products under the Youth Tobacco
Act, including the minimum age law.