16
TOBACCO OUTLET BUSINESS
NOVEMBER/DECEMBER 2012
NEWS & TRENDS
The recently formed Smoke-Free
Alternatives Trade Association
(
SFATA) is rallying distributors,
manufacturers,
retailers
and
end users to address a variety
of consumer matters, including
tobacco regulation and its possible
extension to vaporizing devices.
SFATA argues that e-cigarettes
are vaporizing devices that do not
possess the same chemical and
physical characteristics as tobacco
products and, as such, should
not be portrayed or regulated as
tobacco products.
SFATA hopes to streamline
processes, impact free and fair
trade
through
self-regulation
and alleviate misinformation by
providing cohesive industry support
for consumer affairs. SFATA’s self-
regulatory goals are to:
•
provide the tools necessary for
regulators, industry specialists
and consumers to make informed
decisions;
•
increase interest, education and
advocacy for proposed and new
legislation and future Food and Drug
Administration’s (FDA) regulation;
and
•
improve testing and promote
uniform manufacturing procedures
and established guidelines for the
future of the industry.
new e-Cigarette Trade
association Pushes self-
regulation
The Smoke-free Alternatives Trade Association argues
that e-cigarettes should not be regulated as tobacco
products.
HigHligHts
omaha City Weighs seven
Percent Tobacco Product
“
occupation” Tax
In September, the Omaha City
Council held a public hearing on
a proposed ordinance that would
adopt an “occupational privilege tax,”
which would equal seven percent of
the gross receipts from the “sale of
tobacco products and any pipe or other
device intended for use in consuming
tobacco products.” Revenues from the
tax would support city government
functions, including dedicating $35
million over a 10-year period to help
fund the building of a $370 million
cancer center at the University of
Nebraska located in Omaha.
The ordinance defines tobacco
products as cigarettes, cigars, roll-
your-own tobacco, snuff, chewing
tobacco, any nicotine delivery device
providing for the ingestion of nicotine
into the body, and anything containing
tobacco suitable for chewing, smoking
in a pipe, or inhaling.
Retailers and NATO have teamed up
to oppose the tax by testifying at city
council hearings.
Blu eCigs are being promoted in a
national TV and print advertising
campaign called “Rise from the
Ashes,” starring actor Stephen Dorff.
In the ads, Dorff—who has been
smoking traditional cigarettes for 20
years—highlights the fact that “you
can smoke Blu virtually anywhere,” as
he says in the television commercial.
“
We’re all adults here. It’s about time
we take back our freedom. Come on
guys, rise from the ashes.”
Wells Fargo Securities LLC’s
Bonnie Herzog says the ads are a
coup for the company. “E-cig brand
Blu is emerging as a top player and
we believe it is just getting started for
the brand with a number of planned
initiatives,” she notes. “We expect
this new campaign to help drive
awareness and trial of Blu.”
Herzog predicts that Blu eCigs
could be a major driver for Lorillard,
which acquired the Charlotte, North
Carolina-based electronic cigarette
company this past spring for $135
million.
new Blue ads Making a splash
Lorillard has debuted a national campaign for its Blu e-cigarettes.