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SMOKE Magazine
Deccember
2002

Find a Tobacconist near you!
TOBACCO INDUSTRY NEWS

Florida Bans Smoking, RTDA Pulls Trade Show

Tallahassee, Fla. - Voters in Florida overwhelmingly approved a constitutional amendment to ban smoking in most workplaces, marking the first-ever passage of a smoke-free workplace measure in the U.S. by a state­wide referendum. In November, Delaware joined California with strict statewide smoke-free air laws that were also approved by lawmakers. Maine, Utah, and Vermont have also instituted statewide regulations.

Amendment 6, which was approved by nearly 69 percent of Florida’s voters in November elections, officially becomes part of the Florida Constitution on January 7, 2003. Responsibility for implementing legislation to enforce compliance now rests with the state Legislature, which must meet a July 1, 2003 deadline.

In the meantime, state officials are advising affected businesses to start preparing to comply with the amendment as soon as possible.

The amendment bans smoking in most indoor workplaces, including restaurants. The only exceptions are for private residences not used to provide commercial child care, adult care or health care; retail tobacco shops; designated smoking guest rooms at hotels and other public lodging establishments; and stand-alone bars.

For the Retail Tobacco Dealers of America, which was scheduled to hold its 72nd annual convention and trade show at the Gaylord Palms Hotel in Orlando beginning on August 10, 2003, there was no choice but to find a new site outside of Florida in order to accommodate a smoking convention. Over the past 10 years, three RTDA conventions had been held in Florida, more than any other state. The most recent convention there was held in 1999 in Tampa, once the heart of cigar manufacturing in the U.S.

The RTDA was able to reschedule the 2003 RTDA trade show within a week of the original dates at another Gaylord Hotels property, Gaylord Opryland in Nashville (see below).

Ted Clark, executive director of the Tobacconist’s Association of America (TAA), said at press time his association had no plans to change its own annual convention, scheduled to be held in St. Petersburg, Fla. in April 2003. Should enforcement of the ban come earlier than the expected July deadline, Clark says he would have to move the meeting.

“We’d be breaking the law,” he said, noting that the meeting’s site, the Don Cesar Beach Resort & Spa, is a very cigar-oriented facility. Clark says the smaller size of the TAA would enable more last-minute maneuverability than the RTDA. “We’re in a different league,” Clark noted, but said that anything could happen between now and April.


RTDA 2003 Now Back to Nashville

Nashville, Tenn. - It’s been five years since the Opryland Hotel in Nashville, Tenn. first hosted the annual RTDA convention. Thanks to the passage of Florida’s smoking ban and an 11th hour rescheduling, the facility - since renamed the Gaylord Opryland Resort & Convention Center - will now host the 2003 RTDA show on August 2-6.

Opryland has benefited from an $80 million capital improvement program recently that has upgraded the facility, the largest combined hotel and convention center under one roof in the country.

All 2,881 guest rooms have been renovated and upgraded with business-oriented improvements including cordless phones, in-room fax access, and Internet connections. There are also new food courts, retail shops, renovated ballrooms, and - thankfully - improved signage and map systems for navigating the facility.


ECCJ Cigar Trophy Winners Named in Vienna

The winners of the ECCJ Cigar Trophy 2002, pictured from left: Fernando Lopez, Cuba; Dr. Helmut Romé, publisher European Cigar Cult Journal; Heino Ferch, Cigar Personality of the Year; Hans Dibold, publisher, ECCJ; Dr. Reto Cina, Dominican Republic; Isabella Benda, business development manager, ECCJ; Jorge & José Padrón, Padrón Cigars; Onjeda Reyes-Diez, Honduras; Hagen von Wedel, Austria Tabak; and Alejandro Turrent, Nueva Matacapan Tabacos.
Vienna - The Austrian magazine European Cigar Cult Journal held its international awards banquet on October 18 in Vienna, announcing winners of its annual Cigar Trophy awards. A panel of judges evaluated premium cigars from top cigar-producing countries based on a variety of standards including flavor, aroma, balance, and construction.

The Dominican Republic Cigar of the Year was awarded to the Davidoff Millennium Blend Churchill, a medium strength cigar which features a hybrid Connecticut-Havana-seed Ecuador and Dominican filler and binder leaves.

The Honduran Cigar of the Year was awarded to the Maxima Reserve Robusto from Puros Indios. This light- to medium-strength cigar features a sun-grown Sumatra-seed wrapper and binder from Ecuador and a blend of Cuban seed filler tobaccos from Nicaragua and the Dominican Republic.

The Nicaragua award was presented for the Padrón Anniversary 1964 Torpedo, a 100% Nicaraguan leaf torpedo.

The winning entry from Mexico was the TeAmo Anniversario Vintage 1999, a light- to medium-strength cigar rolled with a Havana 2000 Mexican wrapper, a Mexican binder, and a blend of Mexican, Nicaraguan, and Dominican filler leaf.

The winning Cuban cigar was a Juan Lopez No. 2 Cabinet, a Cuban puro rolled entirely from Cuban tobaccos.


Group Offers Tools in Fighting Tax Hikes

Alexandria, Virginia - The National Association of Convenience Stores (NACS) has worked with several state associations and retailers to determine priority issues and establish effective resources needed to educate the public about the negative impact of tobacco excise tax increases. The association has collaborated to develop a new online resource toolkit, The Impact of Higher State Cigarette Taxes, which can be used to help educate lawmakers and the media about the impact of these legislative efforts.

According to some experts, these states are unlikely to see to significant long-term increases in their state revenues. Meanwhile, the increases provide incentives for tax evasion and criminal activity and jeopardize existing age-verification controls that are effectively practiced by convenience store retailers.

Cigarette tax increases will once again be on the legislative agenda in 2003. “Just as people are addicted to cigarettes, states are becoming addicted to cigarette tax revenues,” said New York Association of Convenience Stores executive director Jim Calvin.

The Impact of Higher State Cigarette Taxes toolkit incorporates suggestions from retailers and associations who have actively opposed state cigarette tax increases, as well as from those who are seeing the onerous impact that these higher taxes are having on their businesses. Incorporating their suggestions, the toolkit provides messages that stress that loopholes need to be closed and inequities need to be addressed; that tax increases provide incentives for tax evasion and criminal activity; that c-store retailers have responsible practices for tobacco sales, including age verification; and that additional federal regulation is not necessary and would take the focus away from what works.

“Even if you don’t face higher taxes now, it’s likely that your state will consider them in the future,” said Jeff Leonard, a NACS spokesperson. “Rest assured, they will also use their success with cigarette taxes as a model for additional taxes on other “sin” products sold in stores. However, by working to get lawmakers and the media, in particular, to understand the implications - and the impact on their community convenience stores - of higher cigarette taxes, the better we can work with them to find solutions to these budget shortfalls.”

National Association of Convenience Stores, Web: www.nacsonline.com.


Dismissal of Claims Brought Against Altadis by General Cigar is Upheld

Atlanta -The decision of the federal district court in Miami which dismissed all claims against Altadis, S.A., Altadis U.S.A. Inc., and Consolidated Cigar Holdings, Inc. brought by General Cigar Co. in November 2000, was affirmed in its entirety by the Court of Appeals based in Atlanta.

The federal district court’s decision dismissed, among others, the claim that the Court had personal jurisdiction over Altadis, S.A. and rejected General Cigar’s contentions that the Altadis companies had violated federal antitrust and trademark laws in the United States. Premium cigar manufacturer General Cigar had alleged that Altadis U.S.A. was forcing cigar wholesalers and retailers to buy its brands as a condition for future supplies of Cuban cigars once the Cuban embargo was lifted.

The Eleventh Circuit Court of Appeals agreed with the federal district court in Miami that plaintiff had failed to make a case either for illegal monopolization or tying in violation of the antitrust laws. The court also rejected General Cigar’s claims that Altadis U.S.A. employees had made false statements about General Cigar’s products in violation of federal trademark laws and dismissed General Cigar’s claims for actual, treble, and punitive damages.


CORPORATE BRIEFS

  • Specialty tobacco importer Kretek International, Inc. is doubling its space with construction of a new 80,000 sq. foot headquarters in Moorpark, Calif., slated for completion by year’s-end. Kretek says it has experienced a 326% increase in sales over the last five years.

  • Tabacalera Perdomo S.A. has entered into an exclusive agreement with Phillips & King International (800-532-4427) for the wholesale distribution of its line of premium cigar brands to retailers in California, Oregon, and Washington.

  • Philip Morris will start placing inserts in packs of all of its medium and light cigarette brands, warning people of the dangers of smoking. The inserts include statements that “low-yield” cigarettes are not proven to be safer than smoking full-flavored ones, and do not make quitting smoking easier. PM has also asked the government to issue new rules for the disclosure of the tar and nicotine content of low-yield cigarettes.

  • Cubatabacos and Davidoff & Cie have terminated a joint venture manufacturing agreement, according to El Universal. The two companies were producing Davidoff, Ambassadrice, and Aniversario cigars in Cuba for export to Europe.


  • SMOKESHOP - December 2002

    SMOKE Magazine's Cigar Reviewer Contest!