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12TOBACCOOUTLETBUSINESSNOVEMBERDECEMBER2010NEWSTRENDSNOVEMBERDECEMBER2010FDATextCampaignLaunchedTheFDAwilldelivermessagestoretailersx19mobilephones.TheFDAx19sCenterforTobaccoProductslaunchedasix-monthtextmessagingcampaigntodeliverimportanttipsandeducationalmessagesaboutFDAtobac-coproductregulationstoretailersx19mobilephonesinSeptember.Thecampaignbe-ganwithplanstosendeducationalmes-sagesonMondaysandWednesdaysandaweeklytobaccolegislationquizcontesteachFriday.Thewinnerofeachquizcon-testwillhavetheopportunitytobefea-turedontheFDAx19sbiweeklypodcastse-riesx1cTobaccoControlActWhatRetailersNeedtoKnow.x1dAftertherstmonthofthreemessagesperweektheFDAplanstodistributeonemessageperweekforthenextvemonths.Whilethereisnochargeforparticipatingintheprogramstandardtextmessaginganddataratesfromwirelesscarriersmayapply.Retailerswhowanttoparticipateintheprogramcansignupbytextingx1cBreak-Chainx1dtonumber87000fromtheirmobilephones.TheNationalAssociationofConve-nienceStoresseestheU.S.FoodandDrugAdministrationx19sCenterforTobac-coProductsx19considerationofabanonmentholcigarettesasilladvised.NACSbelievestherewouldbemanyunintend-edconsequencesifsuchabanwereputinplacemostnotablythecreationofablackmarketformentholproducts.LyleBeckwithseniorvicepresidentofgovernmentrelationsforNACSisquotedonNACSOnlineassayingthatx1cfanningthe2amesonablack-marketeconomyissomethingwex19reverycon-cernedaboutnotonlyfromaviability-of-the-storeperspectivebutalsofromapublichealthperspective.x1dBeckwithequatesthepossibleimpactofthebantotheimpactalcoholprohibitionhadinthe1920sx14spawningbothunregulatedproducersoftheseproductsandcrimi-nalsalesofproductsthatwillnolongerbegoingthroughanyFDAregulationorabidingbyanystateorfederallaws.x1cThepotentialforunderageconsumerstoobtainaccesstothesecigaretteswillbehigherbecausenoblack-marketsellerscheckidenticationx1dstatesanNACSOnlinereportonthetopic.x1cNACSstronglycautionstheFDAinmakinganyquickdecisionsonamentholbanx1dtheNACSOnlinereportasserts.x1cThemarketneedstobereviewedandconsiderationsforcriminalactivityandthepotentialforanincreaseinaccesstoyouthmustbetakenintoaccount.x1dWhiletheissueisbeingdebatedbytheFDAx19stobaccopanelmanufactur-ersappeartobebracingforthepossi-bilityofaban.Lorillardthethird-largestcigarettecompanyintheU.S.planstolaunchanon-mentholvarietyofits2ag-shipNewportmentholbrandinNovem-ber.ThebrandiscurrentlyNo.2inthementholmarketplace.NACSArguesAgainstMentholBanAbanwouldspurblack-marketactivitysaysassociation.GeneralTobaccoamakeroflow-pricedcigarettesthatwasoncethesixth-largestU.S.tobaccocompanyisshuttingdownhavingfailedtomakepaymentsitowedtostatesundertheMasterSettlementAgree-mentMSA.AccordingtoareportinTheWallStreetJournaltheMayodanNorthCarolina-basedcompanystoppedproduc-ingcigarettesandothertobaccoproductsincludingbrandssuchasBroncoSilverandGTOneseveralmonthsagoandiswindingdownoperations.J.RonaldDenmanGeneralTobaccoex-ecutivevicepresidentandgeneralcoun-selreportedlytoldTheWallStreetJournalthatthecompanystruggledagainstintensecompetitionfromothervalue-pricedmanu-facturersuntilitwasunabletomeetitsobligationstostatesundertheMSA.Afterseveralstatesbanneditfromsellingwithintheirbordersthecompanystoppedpro-ducingcigarettes.Itisnowwindingdownoperationsbysellingoffinventoryinforeignmarkets.Foundedin1997GeneralTobaccopostedannualsalesof335millionin2004butitsmarketsharesubsequentlydwindledx14inpartcompanyofcialshaveassertedbecauseofcompetitiveadvantagespeersinthemarketgainedundertheMSA.GeneralTobaccosuedseveralattorneysgeneralandtobaccocompaniesin2008allegingthattheMas-terSettlementAgreementviolatedfed-eralantitrustandconstitutionallawsbutaU.S.judgeinKentuckydismissedthecase.DespiteitsnancialtroublesthecompanyplanstocontinuetopursuethecasereportedTheWallStreetJournal.GeneralTobaccoClosesItsDoorsHeightenedcompetitionandMSAissuesextinguishedthevalue-pricedmanufacturer.