Fire-Safe Compliant (FSC) cigarettes – The rising costs of compliance

Cigarette manufacturing profit margins are just about to get squeezed again in the developing Fire-safe cigarette debacle.

To start; fire-safe paper – aka LIP paper – costs 6-9 times as much as regular cigarette paper. This means in the range of $60 – $90 per bobbin. This assumes you can find a source.

Next comes the testing required to demonstrate compliance with regulations – Laboratory testing can run $8,000 and if your product doesn’t pass – the exercise needs to be repeated.

Last, and this one will become a major issue for the smaller independents, is annual registration and compliance fees levied by each State.

These fees vary considerably. Some are levied by brand others by SKU and are $250 – $3,000 per brand / SKU – depending on the State. For now this cost is around $500,000 if you have 4-5 brands and register them in those states requiring FSC cigarettes.

You can expect these fees to increase and become more consistent between States.  This will increase to several million dollars a year in registration fees.

The fees will increase the fixed cost of compliance and registration. Operating margins will be hit and for smaller operations this may be beyond their means – ultimately contributing to their demise or consolidation.

Fair? What do you think? What about competition?

56 comments ↓

#1 rodeo on 03.31.10 at 11:28 PM

I have been having severe allergic reactions over the past 10-12 months and have been to several different doctors ,treated with meds and creams,steroids and everything else. Nothing helped,I itched all over–scratching sores on my arms and legs.Nothing seemed to help,then I started getting sore,red edges on my lips as if they were irritated by something. I read about the FSC cigs and went and bought a make your own kit yesterday and haven’t smoked an FSC cig in 2 days. The itching has subsided,the sore lips are gone. This FSC is pure poison —don’t buy these cigs–they will kill you quicker than cancer. I can’t believe they were shoved down our throat and we are trully “test” rats. I would like to sue Big Tobacco and The Govt for trying to
kill me—it very nearly worked

#2 jimbo on 05.16.10 at 5:33 PM

what a bunch of shit the goverment is doing to us now,its bad enough we the consumer of cigarettes have to constantly pay the high rising costs for law suits charged to tobacco companys,when they get sued we pay for it now big brother sticks its nose in it to add this shit to the blend,just another chemical untill someone dies from it then you know what will happen,nothing except in increase in costs ,,thanks ass holes why dont you all just leave us alone,,,,

#3 Spencer on 06.04.10 at 1:08 PM

Hey, sue, you realize fsc is a state law right? That means that it’s not B.O’s fault. Do you’re research so you actually know who to fight. I don’t like him either but I hate all government.

#4 Cashish on 11.27.10 at 3:43 AM

Maybe what seems like an evil tactic on the surface is just an attempt to raise the vibration of the human race by getting a huge percentage of us to quit long-term suicide attempts? If you really want to make a difference, quit smoking. The tobacco companies will eventually lobby in favor of repealing the FSC act and by the time it’s reversed, you can be of clear mind when you decide whether or not to light up and knowingly poison yourselves again (albeit more flavor-fully/less painfully).

#5 BlackHeart on 02.12.11 at 11:18 AM

This amounts to government sanctioned genocide and since the Tobacco companies LOBBIED FOR THIS, I don’t feel sorry for them.

People Goggle Tobacco leafs and roll your own!
Fresh Choice!
Tobacco seeds!

Do not buy these toxic fuming death sticks!

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