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38TOBACCOOUTLETBUSINESSNOVEMBERDECEMBER2009certainlythereorthetaking.Teycanx19tguaranteetohaltabillorstopnonsen-sicallegislationx14buttheydooferto-baccoretailersunwaveringandproactivesupportx14especiallypertinentnowwhenitx19sneededthemost.TobaccoOutletBusi-nessrecentlytalkedwiththeheadsokeyindustrygroupstolearnwhattheycur-rentlydoorthetradetheirviewsontheindustryandwhytheyx19restillpumpedorapositivetobaccooutletworld.TobaccoMerchanTsassociaTionTMaFarrellDelmanPresidentFoundedin1915thex1bMAisaworldwidecenteroinorma-tiononthetobaccoindustrysupportingtheollowingsec-torscigarettesci-garspipeandchew-ingtobaccosnuandleatobacco.Itcurrentlyhasmorethan150membersspanningallseg-mentsotheindustry.x1bhex1bMAisaverycomprehensivegroup.x1cWecovereverysectorinthetobaccobusinessx14largeretailerslargewholesalerslargeandsmallmanuac-turersleagrowersandevenothertradeassociations.Weproduce22reg-ularlyissuednewslettersallsentelec-tronicallybye-mailtoseveralthou-sandrecipientsx14representingthe158companiesthatarecurrentlymembersothex1bMA.Wealsoputouttwodailyexecutivesummariesx14ahigh-levelreviewowhathastakenplaceintheindustryintheU.S.andaroundtheworldinthelast24hours.x1cWehavethedeepestdatasetstolookateverystatex19slegislationandregulatoryactivitybacktothe1970s.Wetrackalltaxlegislationinallstates.Buttherex19smoretotheindustrythanjusttaxes.x1bhereareallsortsoregula-tionsassociatedwithilingtaxesandhowtheyx19reiledtheilingolicens-ingprovisionsetc.Sowex19vecreatedatobaccooutletcompliancecenterconsistingohundredsothousandsolicensesloadedontooursystem.Itwaspioneeredbycigarmanuacturerswhoarevigilantaboutmakingsuretheyshiponlytolicensedrecipientswholesalersandretailers.Westarteditmorethantwoyearsagoanditx19sawonderulsuccess.Alotooutletsthatordercigarsdirectlyareacedwithhavingtoaxlicensesbutwithusitx19sinadatabasesoweactasacentralizedclearinghouseodatamanagementortheindustry.Itwasstartedbytheci-garguysbutnowitx19soralltobaccoproducts.x1cBasicallywex19retheriendlyinor-mationprovider.Ourindustryhastoadapttoanewregulatedworldsoweprovidetheinormationmuscletolessenthecost.Wedelivertheactsthatreducethecostocompliance.x1cIx19mverypositiveaboutthetobaccooutletchannel.Ithasgreatopportuni-tytoleveragetheregulatorysituationgiventhatoutletsareoradultsonlyandshouldbeviewedduringtheFDAregulatoryprocessashavingspecialvaluetoadultconsumers.x1daMericanWholesaleMarkeTersassociaTionaWMaScottRammingerPresidentandCEOAWMAx19sdistributormembersrepresentmorethan85bil-lioninU.S.salesox1cconveniencex1dprod-uctswhichlargelyincludetobaccocan-dysnacksbeverageshealthandbeautycareitemsgeneralmerchandiseoodserviceandgroceries.Associatemem-bersconsistomanuacturersbrokersretailersandothers.Inadditiontoconveniencestoresconveniencedis-tributorsservicemanytobaccoshops.x1cForyearswehaveactivelyopposedthewholeideaoFDAregulation.x1bhenwhenthelawpassedweim-mediatelyswitchedgearsonhowwecanminimizetheimpactondistribu-torsandretailers.Sonowwex19vebeenextremelyactiveingatheringinorma-tionandtalkingtotheFDAprovid-ingallthatwecantoourmembersandtryingtogetaheadoit.x1cIntheFDAx18listeningsessionsx19weiledourcommentsthatwhatevertheydotheyshouldbemindulowhatishappeninginothercountries.Itx19seasyenoughtojustlookatCanadaandsomecountriesinEuropewheretheyx19veputsomesortogovernmentregulationinplace.InCanadanoworinstance40percentocigarettessoldarecontraband.Anyregulationcarrieswithitacost.Cigarettesareaproductthatareeasilymanuacturedinx1bhirdWorldcountriesallyouneedisaprimitivemachine.Wex19veseentheChineseareexcellentatmakingcountereitcigarettessomypointwasnottoputtheclamponsotightthatyouenduppenalizingeveryonewhox19stryingtodotherightthingx14thele-gitimateretailersthelegitimatedis-tributorsx14andmeanwhileamajorityocigarettesarebeingsoldoutothetrunkosomeguyx19scar.x1cObviouslynoneousknowsorsurewhatx19sgoingtohappenmovingorwardx14howtheFDAx19sgoingtoin-terpretanumberotobaccoissues.x1bheruleseveryonehasgonebymightbechangedabitmovingorward.x1bhatx19swhyitx19ssoimportantnoworretail-ersmanuacturersdistributorsandassociationstoallbetalkingandshar-ingwithoneanothersothatitcangoassmoothlyaspossible.Usuallywhenthegovernmentproposeslegislationtheyissueadvancenoticeotherule-makingthentheyproposethentherex19sacommentperiodwheretheygobackandtakesomeowhatwassaidintoconsiderationbeoretheypublishtheirinalregulation.x1bhisiswhereweallcomein.x1cBottomlinex1bhisisaveryresil-ientindustryandIx19msureitwillallbeFaithfulFriendsofTobacco