Altadis U.S.A., Tatuaje Cigars Announce Trademark Truce Washington, DC - Altadis U.S.A. and Tatuaje Cigars, Inc. jointly announced on November 19 that the companies had reached a "mutually-beneficial" agreement resolving trademark disputes which included the use of the fleur de lis mark - a longstanding component of the Montecristo brand - on Tatuaje packaging. "The confidential agreement dismisses all related actions pending in California and Florida. Both parties are pleased to have the issues resolved and look forward to focusing on their respective businesses." No further details were supplied. In August 2009, Altadis U.S.A. - a unit of British-based Imperial Tobacco PLC - notified Pete Johnson, owner of Tatuaje Cigar, Inc., of its objections to Tatuaje's "expanded use" of the fleur de lis design as a stand-alone "house mark" for its company and website; on cigar brands including Tatuaje, Cabaiguan, La Riqueza, and Ambos Mundos; and as a theme on ancillary goods such as clothing and tobacco-related accessories. The fleur de lis design used in white on a brown cigar band was "confusingly similar" to the Montecristo bands, Altadis contended. The cease request noted that Tatuaje Cigars had previously used a fleur de lis design in combination with other design elements such as tobacco leaves - a use that Altadis U.S.A. said it had not found objectionable and considered "sufficiently different" from their own use of the fleur de lis design featured prominently in its Montecristo trademarks. The brand was developed and first used in Cuba by Menendez y Garcia, which began selling the cigars worldwide in the 1930s. Cuban Cigar Brands, N.V., a subsidiary of Altadis U.S.A., traces its rights to the Montecristo brands with the fleur de lis and crossed sword design to 1936 when the trademark was registered in the U.S. Altadis further requested Tatuaje - launched in 2004 - cease all use of "Tabacalera Garcia" as a trade name, and requested an amicable resolution to avoid formal litigation. In January 2009, Altadis U.S.A. had similarly demanded that El Rey de Los Habanos, Inc. - manufacturer of Tatuaje Cigars - cease its use of the name Tabacalera Garcia S.A. for its Nicaraguan factory in light of Altadis' own factory, Tabacalera de Garcia, a trade name in use since 1975. Tatuaje subsequently filed a declaratory judgment action in California seeking relief from all allegations before Altadis U.S.A. filed its formal suit in the United States District Court for the Southern District of Florida.

Tobacco Control Fanatics Accuse Reynolds of Color Trickery Cambridge, MA - Harvard University researchers, along with specialists focused on tobacco control and educational efforts, allege R.J. Reynolds Tobacco Co. is using packages with lighter colors as a means to suggest a safer product in the face of the upcoming ban on certain words in cigarette marketing, The Boston Globe reported. Starting on June 22, 2010, the U.S. Food and Drug Administration will have the power to cite tobacco companies for using words such as "mild" and "light" when promoting their cigarette products. "These tricks are now well-established," fumed tobacco control specialist Stanton Glantz, regarding R.J. Reynolds' new lighter-color packages. "The real question for the FDA is, are they going to let them get away with these shenanigans?" R.J. Reynolds has rebranded Pall Mall Lights to Pall Mall Blues and Salem Lights to Salem Gold Box. "By using designations such as colors," said Reynolds spokesman David Howard, "that makes it possible for retailers and adult tobacco consumers to clearly identify the different styles moving forward."

Davidoff Patron Dr. Ernst Schneider, 88 Dr. Ernst Schneider died on Tuesday, October 13, 2009 at the age of 88 after a short illness. With his strong will and clear vision, Schneider developed the Oettinger Davidoff Group - manufacturer of Davidoff, Avo, The Griffins, and Camacho cigars - into a leading global player in the luxury goods sector. His entrepreneurial courage and foresight were particularly apparent in the acquisition and expansion of the Davidoff brand as well as in the development of new production areas. Schneider had planned his succession and handed over the business to his two older daughters a number of years ago. They, together with the board of directors and management, continue to run and develop the family business in line with his spirit and philosophy. Schneider was born and raised in Basel, Switzerland, the second-oldest of four children, attending school and completing his legal studies with a doctorate. He set out on his professional career in 1945 as a Red Cross aid representative in concentration camps, a mission that had great influence on the young lawyer for the rest of his life. In 1946, he joined the legal department of the then Federal Political Department in Bern, for which he worked until 1948. In 1948, Schneider married Annemarie Huppuch and joined Max Oettinger AG. The family company run by his father-in-law Georg Huppuch had been operating in the tobacco import-export business since 1875. In 1955, Schneider took on the management of the Ed. Laurens SA cigar factory in Geneva as a fresh challenge. In 1961, he returned to his wife's family's company as managing director and gradually expanded it through strategic acquisitions in the retail tobacco trade as well as in the tobacco and confectionery wholesale sector. In 1967, he became chairman and delegate of the board of directors of Oettinger Group. His big breakthrough in building the company to its current prominence and orientation came in 1970 when Zino Davidoff, an old acquaintance from his Geneva days, sold him his tobacconist's shop in Geneva. Schneider also acquired the rights to the Davidoff brand and systematically built it into a leading global brand, using "exclusiveness," "pleasure," and "joie de vivre" as his keywords. Zino Davidoff retained his association with Oettinger, the Davidoff brand, and his friend Ernst Schneider until the time of his death in 1994. Another momentous decision in Schneider's career was the relocation at the end of the 1980s of the production base from Cuba to the Dominican Republic, where Oettinger Imex AG built up and operates its own cigar manufacturing facilities. Schneider also served on the board of the Swiss Importers' and Wholesalers' Association (VSIG -Swiss Trade), the trade delegation.

California's Governor Schwarzenegger Vetos E-Cigarette Sales Ban Sacramento, CA - California Governor Schwarzenegger vetoed Senate Bill 400, which would have banned electronic cigarette sales in the state, protecting adult consumers' access to the alternative smoking devices. In his veto message, Governor Schwarzenegger reiterated the stance of the Electronic Cigarette Association (ECA) that strongly supports restricting access of electronic cigarettes to children under the age of 18. "We agree with the original intent of SB 400 to ban sales to those under the legal smoking age. And we support that on a national level as well," added Matt Salmon, president of the ECA. The Governor affirmed that this restriction should not apply to adult consumers: "If adults want to purchase and consume these products with an understanding of the associated health risks, they should be able to do so unless and until federal law changes the legal status of these tobacco products."

Swedish Match Sees Rise in Cigar, Smokeless Sales, Volumes in Q3 Stockholm, Sweden - Swedish Match AB, parent company of General Cigar Company and Swedish Match North America, reported that its cigar sales in the third quarter of 2009 were up 1 percent compared to the same period of the previous year, while operating profit declined by 5 percent. During the quarter, U.S. mass market cigar sales grew by 14 percent with volumes up by 8 percent compared to the same period in the previous year. U.S. premium cigar sales, which includes Internet and mail order, were down as were volumes as a result of timing of deliveries, with increased volumes to mail order and Internet retailers partially offsetting declines for traditional retailers. In the third quarter, a restructuring charge was recorded for the partial relocation of production of machine made cigars from the US to the Dominican Republic including a non-cash write-down of property, plant and equipment. Excluding this restructuring cost, spending returned to more normal levels in the quarter, while in the second quarter costs were unusually low due to temporary cost reductions. In the U.S., the company's smokeless sales increased by 12 percent during the third quarter. U.S. volumes measured in number of cans rose by 13 percent during the third quarter and were up 10 percent for the year to date period, led by strong growth for the Longhorn brand. During the quarter, the company began shipping Longhorn pouches, a lower priced alternative in the fast growing pouch segment of the market, to retailers. Swedish Match consumer volumes as measured by Nielsen for the year to date period through October 3 increased by 7.1 percent compared to the same period of the previous year, compared to market growth of 1.6 percent in the same period.