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12TOBACCOOUTLETBUSINESSMAYJUNE2010NEWSTRENDSMAYJUNE2010InMarchtheFoodandDrugAdministra-tionx18sFDATobaccoProductsScientifcAdvisoryCommitteebeganitsyear-longinitiativetoresearchtheeectsomentholincigaretteswithatwo-daymeeting.Thegoalothelong-termprojectistocometoadecisiononwhetherornottousetheFDAx19sregulatoryauthorityovertobaccotorestrictthesaleomentholtobaccoprod-uctswhichreportedlyaccountorap-proximatelyone-thirdotheroughly70billionU.S.cigarettemarket.Onthefrstdayothemeetinggov-ernmenthealthofcialspresenteddataonthehealtheectsomentholmuchowhichwasmixedaccordingtoareportinTheWallStreetJournal.AsananalystromConceptCapitalreportedx1cWedidnotseeadaggertotheheartomentholrevealedx14atleastnotondayone.x1dDuringtheseconddaytobaccocompa-niesx14includingAltriaGroupInc.x19sPhilipMorrisunitmakeroMarlboromentholproductsReynoldsAmericanandLo-rillardInc.x14toldthepanelthatmentholcigarettesarenx19tmoreharmulthantradi-tionalcigarettesanddonotlurepeopleintosmoking.x1cThisisnx19tthetobaccoindustryx19sspinthedataisthedatax1dsaidJonathanD.HeckoNewportcigarettemakerLorillardwhoalsoservesasoneothreenonvot-ingindustrymembersrepresentedonthepanel.TheFDAplansasecondmeetinglikelyinthesummerontheissue.ButinthemeantimewhilemanyremainconcernedabouttheFDAx19sultimatedecisionsev-eralindustryexecutivesandexpertshaveweighedintosaythatanFDAbanonmentholproductsishighlyunlikely.x1cWebelievetheweightothescientifcevi-dencedoesnotsupportaconclusionthatmentholcigarettesconvertgreaterhealthriskthannon-mentholcigarettesx1dMartinOrlowskyCEOoLorillardInc.reportedlytoldanalystsinaconerencecallaboutcompanyearnings.x1cWealsobelievethatthescientifcadvisorycommitteewillin-deedormitsconclusionsandrecommen-dationsbasedonthescientifcevidencebeoreit.WethereorecontinuetobelievethatthescientifcadvisorycommitteewillnotmakearecommendationtotheFDAthatitbanmenthol.x1dOrlowskyalsonotedthatabanonmen-tholproductslikelywouldcauseaspikeinillegalcigarettesales.x1cWebelieveitwouldleadtoamassiveblackmarketorcontra-bandmentholatedcigarettesandencour-agetheentryototallyunregulatedprod-uctsintothemarketplacethatwouldnotmeeteventhebasicstandardsorproductintegrityandqualityx1dhesaid.MoreeasiblethananoutrightbanisthepossibilitythattheFDAcouldre-quireharsherwarninglabelsormen-tholproductsorrequirethatmanuac-turersreducetheamountomentholintheirproducts.ButmanuacturersarehopeulthatitheFDAocusesonanobjectiveanalysisreasonwillprevail.x1cMentholobviouslyhasbeenusedordecadesinooddrinkcosmeticsandotherproductsx1dsaidDr.BillTrueseniorvicepresidentoLorillardinadvanceothemeeting.x1cAndthescienceisclearandcompellingthatthereisnodier-inghealthriskbetweenmentholandnon-mentholproducts.Withrespecttopublichealthusingthebestmethodsavailabletoscienceitisclearamentholcigaretteisjustanothercigaretteandshouldbetreatednodierently.x1dInMarchtheFDApublishedafnalruleonederalrequirementsregardingto-baccoretailthatstatedthatsel-servicedisplaysocigarettesRYOandsmoke-lesstobaccoproductswillcontinuetobepermisableoradult-onlyretailstores.TherevisionisamilestoneorthetobaccooutletchannelbecauseretailershavebeenconcernedaboutthepossibilitythatwithanFDA-reg-ulatedtobaccoindustrythebanonsel-servicedisplaysocigarettesandroll-your-ownandsmokelesstobaccoproductswouldextendtoadult-onlyretailstores.Atpresentthe1996banonsel-ser-vicedisplaysdoesnotincludepipeto-baccoorcigars.Anytypeoretailstoremayhavethoseproductsinsel-servicedisplays.FDAtoAllowSelf-ServiceinAdult-OnlyStoresAdult-onlystoreswillremainexemptfromtheFDAx19sbanonself-servicedisplaysofcigarettes.FDAInvestigatesMentholResearchhasbegunintowhethertheuseofmentholintobaccoproductsdemandsfurtherregulation.