Tobacco

Navigating the Flavor Ban

Tobacco companies working to determine, clarify which products affected

WASHINGTON -- U.S. Food & Drug Administration (FDA) officials have warned tobacco companies to think twice about circumventing a new ban on certain flavored-cigarettes by introducing similar products like little cigars, said The Wall Street Journal. The ban affects cigarettes with fruit, candy or clove flavors. Although such productsprimarily made by small, private firms or imported into the United Statesaccount for a tiny segment of cigarettes smoked in the United States, the ban is the first major step taken by the FDA since the agency was given jurisdiction over the tobacco industry [image-nocss] in June.

The ban does not apply to menthol cigarettes, but the FDA said its "examining options" for regulating menthol cigarettes as well as other tobacco products such as smokeless tobacco products that are also available in several flavors.

Lawrence Deyton, the director of FDA's Center for Tobacco Products, said the federal definition of a cigarette includes "any roll of tobacco wrapped in paper," suggesting certain cigars could immediately fall under the tobacco law and the flavored-cigarette ban. In a memo to industry, the FDA said the tobacco law applies to all tobacco products that meet the definition of a "cigarette" even if they are not labeled as cigarettes or "are labeled as cigars or some other product."

An FDA lawyer said the FDA would look at "little cigars" and similar products on a "case-by-case basis."

The three biggest U.S. tobacco companies said they do not produce any flavored cigarettes other than menthol varieties. (In 2006, tobacco-maker R.J. Reynolds agreed to stop marketing flavored Camel cigarettes as part of an agreement with state attorneys' generals.)

"We do not believe any of the cigarettes that we manufacture have a characterizing flavor that is banned by this provision," David Howard, a spokesperson for Winston-Salem, N.C.-based R.J. Reynolds Tobacco Co., the second-largest producer, told Bloomberg News.

Altria Group's Philip Morris USA, Richmond, Va., the maker of the top-selling Marlboro brand, sells no cigarettes covered by the ban, David Sylvia, an Altria spokesperson, told Bloomberg News.

In a statement, New York City-based Altria said, "The Family Smoking Prevention & Tobacco Control Act...does not ban the use of particular ingredients or additives. Rather, the law prohibits cigarettes in which ingredients or additives impart 'a characterizing flavor' other than tobacco or menthol to the cigarette or its smoke. Cigarettes may continue to contain additives and ingredients that do not impart 'characterizing flavors'."

It added, "The ban does not affect any of Philip Morris USA's cigarettes, cigarette tobacco and smokeless tobacco products, U.S. Smokeless Tobacco Co.'s smokeless tobacco products, or John Middleton's cigars and pipe tobacco products. All of their products currently offered for sale will remain available for ordering after Sept. 22, 2009."

Greensboro, N.C.-based Lorillard Inc., the third-largest cigarette producer, does not sell any cigarettes covered by the ban, spokesperson Hannah Sloane also told Bloomberg News.

Concerning cigars and tobacco papers, National Tobacco Co. has issued a notice clarifying that its Zig-Zag Cigar Wraps are a cigar product and not affected by the FDA's ban on flavored cigarettes or flavored cigarette papers, according to a statement obtained by the National Association of Tobacco Outlets (NATO).

Louisville, Ky.-based National Tobacco manufactures and distributes chewing tobacco, cigarette papers, cigarettes and make-your-own tobacco products.

Republic Tobacco LP, Glenview, Ill., issued a statement saying that because of the FDA ban on flavored cigarettes, it "has immediately ceased the sale of...Golden Wrap Flavored Tobacco Wraps...Top Flavored Papers [and] Wildfire Flavored Papers."

It added, "We urge all of our customers to comply with this ban immediately and discontinue all sales of these products. Any of these products in your possession may be returned for full credit of the purchase paid price. Returns must be completed no later than Oct. 30, 2009, and will not be accepted after such time. No restocking fees, charges or credits will be accepted on returns."

Republic Tobacco is wholly owned by Republic Group, which also includes the manufacturer affiliates of Top Tobacco, Republic Technologies (JOB Cigarette Papers), Altesse GMBH (filter tubes), H.T.H. Tabak (cigarettes, snuff, and tobacco) and Productos Technologicos Catalanes (smoking accessories), representing a combined sales and distribution presence in more than 90 countries.

Kretek International Inc., which imports Djarum-brand tobacco products from Indonesia, imports cigars similar to the size of a cigarette that contain flavors like clove and vanilla that remain on the market for now, amid confusion about whether the law applies to cigars, the Journal added.

John Geoghegan, Kretek's director of product development, told the paper that the company has imported clove-flavored cigars for several years but "because of the banning of market shipments of Djarum cigarettes, distributor and retailer focus on Kretek's cigars has taken on additional prominence." He said the Treasury Department's Tobacco Tax & Trade Board classified the products as cigars under federal law in 2007.

The company has filed a request for declaratory judgment against the FDA in federal district court to prevent the FDA from moving against Kretek's cigar products. (Click here for previous CSP Daily News coverage.)

Moorpark, Calif.-based Kretek International is a privately held importing and marketing company with business concentrated in the specialty tobacco and OTP ("other tobacco products") categories. Kretek is the exclusive importer of Djarum cigars, Borkum Riff wood-tipped cigars and DjEEP lighters. It also imports Dreams cigars and Merci European style cigarettes, as well as Samuel Gawith, MacBaren and Dan pipe tobaccos.

And Bowling Green, Ky.-based Commonwealth Brands Inc. issued a statement saying "cigarette papers sold separately do not meet the definition of 'cigarette' [under the Tobacco Control Act]... All cigarette papers can continue to be sold as individual sales units. In addition, none of Commonwealth Brands Roll Your Own tobacco blends have a 'characterizing flavor' that would make the product adulterated as defined in the FDA legislation."

Commonwealth Brands makes USA Gold, Davidoff, Fortuna, West, Montclair, Sonoma, Malibu and Rave cigarettes. It is the exclusive domestic distributor of Bali Shag, McClintock, Premier and Rave smoking tobaccos, as well as a range of rolling papers, cigarette tubes and tube-filling machines.

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