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CAOInternationalandGeneralCigarMergeFightAgainstUnderageTobaccoSalesGainsStoresSurveyShowsMichigansSmoke-FreeLawsDidntPreventWorkplaceSmokingFDAWarnsRetailersofLightViolationsPatrickHurdToHeadVenturaCigarBecauseofamergerbetweenparentcompa-niesScandinavianTobaccoGroupandSwed-ishMatchABCAOInternationalInc.isnowapartofGeneralCigarCo.Asaresultproduc-tionofsomeCAObrandshasbeenmovedfromfactoriesinDanlHondurasandEstelNicaraguaknownasSTGDanlandSTGEs-tel.ThesetwofactoriespreviouslycombinedtoproduceeverynonavoredCAOcigarex-ceptfortheCAOVisionwhichwasrolledintheDominicanRepublicatAuroraS.A.thefactorybestknownforAuroraandGuillermoLencigars.ProductionattheDanloperationhasceasedandthecigarsmadetherearenowmadeatGeneralCigarsHondurasAmericanTabacoS.A.factoryinDanlwhichisbestknownformakingthePunchHoyodeMonter-reyDonTomsandHelixbrands.BothCAOInternationalandGeneralCigararenowhead-quarteredinRichmondVirginia.AccordingtoReutersthecompaniesthatownCircleKDairyMartandOntheRunstoresreachedanagreementwith39stateattor-neysgeneraltohelpclampdownontobaccosalestominors.Themultistateeffortwillpro-videtrainingforstoreemployeesanddriveindependentcompliancechecksinupto250stores.ThethreestoresjoinalistofpopulargasstationconveniencestoresandretailandpharmacychainssuchasConocoExxonMo-bilBPAmocoShellChevronKroger7-Elev-enWalgreensRiteAidCVSandWalmartthathavealreadysignedsimilaragreements.AccordingtoasurveyreleasedlastmonthbytheMichiganDepartmentofCommunityHealthMDCHMichiganssmokingbandidInanannouncementthatsuggeststheU.S.FoodandDrugAd-ministrationmaybegettingmoreaggressiveaboutcitingretail-ersforviolationstheFDAannouncedthatitissued11warninglettersinoneweekinMaytoonlineretailersforillegallymarket-ingtobaccoproductswithmisleadingorunsubstantiatedclaimsordescriptorsindicatingthattheproductscanbeusedtoreduceharmortheriskoftobacco-relateddisease.Thereisnoknownsafetobaccoproduct.Itisillegalforto-baccocompaniesorretailersincludingInternetsellerstomakeunsubstantiatedclaimsorstatementsthatimplytobaccoprod-uctsreducehealthriskssaidLawrenceDeytonM.D.directoroftheFDAsCenterforTobaccoProducts.FDAwillpursueenforce-mentactionstoprotectthepublichealth.TheFDAcitedtheonlineretailersforavarietyofillegalmarket-ingclaimsthatviolatetheFederalFoodDrugandCosmeticActincludinguseoftermssuchasLightLowMildLesstox-icorSafer.SuchclaimsarenotpermittedunlessacompanyhasreceivedanFDAorderallowingittomarketproductswithsuchclaimsbasedonscienticevidence.Todatetheagencyhasnotissuedanysuchorders.InadditiontothesemarketingviolationsotherviolationscitedbytheFDAincludedtheillegalsaleofavoredcigarettes.KretekInternationalInc.haschosenPatrickHurd36toheadnewlylaunchedVenturaCigarCo.Thenewcompanywasformedtwoyearsagoasapremiumim-portedcigargroupwithintheKretekorganizationseestoryp.16.PriortohisnewroleHurdservedasgeneralmanagerofKretekCanadathecompanysimportingandsalesgroupheadquar-teredinTorontoOntario.Inthatcapacityhewasinstrumentalindevel-opingthecompanysCanadiantobaccobusinessincludingpremiumcigars.HurdcreatedthehandmadeBravobrandexclusivelyfortheCanadianmarketandisnowcoordinatingtheintroductionofthenewVenturaBrandsthroughtheTorontoofcewithNicholasBrumwhoreplacesHurdasmanagingdirectorthere.HurdwillrelocatetothecompanysU.S.headquartersinVenturaCountyCalifornia.continuedonpage14TOBACCOOUTLETBUSINESSJULYAUGUST2011JULYAUGUST2011HigHligHts12NEWSTRENDSTheagencyisgettingmorevigilantaboutenforcement.