Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Page 26
Page 27
Page 28
Page 29
Page 30
Page 31
Page 32
Page 33
Page 34
Page 35
Page 36
Page 37
Page 38
Page 39
Page 40
Page 41
Page 42
Page 43
Page 44
14TOBACCOOUTLETBUSINESSSEPTEMBEROCTOBER2009NEWSTRENDSSEPTEMBEROCTOBER2009OnJune22legislationgrantingtheU.S.FoodandDrugAdministrationauthoritytoregulatetobaccoproductswaspassedthatwillrestricttobaccoadvertisingbanx1avoredcigarettesandrequirelargegraphichealthwarningsoncigarettepackages.Thenewbanonx1avoredcigarettesistotakee--ectx1cwithinthreemonthsx1do-thebillx19spassageandalreadyconsumersareseekingwaystocontinuetoenjoytheir-avoritetobaccox1avorsreportretailers.Flavoredcigarettesalessurgedinthewakeo-thenewlawascustomersstockedupontheir-avoriteproductsbutx1cthatx19sawavewecanx19trideverylongx1dsaysaMidwestoutletownerwhoexpectsen-orcemento-thebantox1cbetricky.TheFDAhasalreadysaidthatitlacksthemanpowertocarryoutthisnewresponsibility.Iguesstheyx19recountingonmanu-acturerstosel--en-orce.x1dSeveraloutletretailerswhoattendedtheTobaccoPlusExpo2009x14wheretheconsensuswasthatFDAregulationwasinevitablex14reportedshoppingtheshowx1oor-orproductsthatwouldbeuse-ulundersuchaban.x1cI-oundx1avoreddropsthatpeoplecanusetoaddx1avortomake-your-owncigarettesx1dreportsLyndaSmitho-SmokeZoneIIinClevelandOhio.x1cIspentsometimescoutingoutx1avoredlittlecigarsx1dsaystheMidwestretailer.x1cIthinkwex19llseecustomersswitchingtothosetogettheir-avoritex1avor.Sowelooked-ortheclosestmatch.x1dWhilerelievedthatmentholcigarettesarenotincludedinthebanretailersalso-oundthatnuanceinthelawhypocritical.x1cThepoliticianssaidtheywantedtodoawaywithx1avorsthatenticeyoungpeopletosmokex1dnotesSmith.x1cButyoungkidsdonx19tcomeinheretobuy8packso-x1avoredimports.Theysmokementholx14whichwasnotincludedintheban.Itx19sinterestingthatourpresidentwhosignedthatbillintolawsmokesNewports.x1dMentholcigaretteswhichaccount-orapproximately28percento-allcigarettesalesandareparticularlypopularwithA-rican-Americansmokerswerereportedlyexempted-romthebanbecauseo-lobbyingbytheCongressionalBlackCaucus.Butretailersalsocreditthesupporto-HenricoVirginia-basedAltriaGroupwhichmakesthecountryx19ssecondmostpopularmentholbrandMarlboroMenthols-orthementholexemption.x1cTheygotinthereandlobbiedandplayedpoliticsx1dsaystheMidwestretailer.x1cAndnowtheyx19vegottenexactlywhattheywantedMakingitreallytough-orthesmallmanu-acturerstosurvive.x1dButSmithismoreoptimistic.x1cSmokersaresmokersandtheywillfndawaytogetaroundwhateverx19scomingx1dshesays.x1cAndIx19mstillhope-ulthatthegovernmentwillrealizethattheyx19vebittenthehandthat-eedsthemandwillpaydearlybylosingaloto-money.x1dFindingFlavorsConsumersarelookingx18orloopholesinthebanonx1avoredcigarettes.OklahomaSovereignChallengeDismissedFederaljudgedismisseslawsuitfledbytheMuscogeeCreekNation.AlawsuitfledbytheMuscogeeCreekNationMCNagainsttheOklahomaTaxCommissionOTCandtaxcommissionerswasdismissedbyU.S.DistrictJudgeTerenceKerno-theTulsaOklahoma-basedNorthernDistricto-Oklahoma.Thesuitsoughtthereturno-allegedlycontrabandcigarettesworthapproximately100000thatwereconfscated-romtribaldeliverytrucksbytheOTC.InseizingthecigarettestheOTCchargedthatthecigarettesdidnotbearataxstampandwerethere-oreillegaltosellinthestate.Saleo-thecigaretteswouldhaverepresented42000inlosttaxrevenuesaccordingtostateo-fcials.Thetribehoweverallegedthatthex1cstopandseizurehappenedwithoutawarrantwithoutthedriverx19sconsentandwithoutprobablecause.x1dInhisdecisiontogranttheOTCx19smotion-ordismissalo-thesuitKernwrotethatthetribechargedthatx1cpersonalrightsx1dwereviolatedintheseizureyetrepeatedlyinvokeditssovereignrightsinitsarguments.x1cDespiteMCNx19sattempttoclaiminoneportiono-itsbriefngthatthissuitdoesnotconcernitssovereignstatustheremaindero-MCNx19sbriefngdemonstratesthatMCNx19sclaimultimatelyinvokesMCNx19ssovereignrightsx1dhewrote.x1cTheCourtthere-orelooksbeyondMCNx19sassertionthatitismerelyseekingtovindicatex18personalrightsx19andfndsthattheinterestassertedbyMCNisonebasedonitssovereignstatusandonethatasimilarlysituatedprivatepartywouldnotenjoy.x1dUltimatelyheruledthetribalentitydoesnotconstituteax1cpersonx1dwhocanbringsuit.