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	<title>Comments on: Altria takes aim on the cigar industry</title>
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	<link>http://www.tobaccotoday.info/2009/10/11/altria-takes-aim-on-the-cigar-industry/</link>
	<description>Information on the Tobacco industry</description>
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		<title>By: Bill Godshall</title>
		<link>http://www.tobaccotoday.info/2009/10/11/altria-takes-aim-on-the-cigar-industry/comment-page-1/#comment-2008</link>
		<dc:creator>Bill Godshall</dc:creator>
		<pubDate>Tue, 13 Oct 2009 23:06:05 +0000</pubDate>
		<guid isPermaLink="false">http://www.tobaccotoday.info/?p=408#comment-2008</guid>
		<description>The news article exposing Altria&#039;s support for (and drafting key clauses of) proposed DC cigar marketing restriction bill is at:
http://www.washingtonexaminer.com/local/Tobacco-giant-makes-its-mark-on-D_C_-smoking-legislation-8315941-62717957.html

Among the provisions I suspect Altria supports are:
- ban the sale of single cigars, except in tobacco shops;
- set weight-based requirements for the number of cigars per package;
- require all tobacco products be sold from behind the counter.

While health groups have long advocated the latter provision, and while former Baltimore Health Commissioner Josh Sharfstein (who is also former Waxman staffer and now Deputy Commission at FDA who misreprestented health hazardous of electronic cigarettes) first proposed a single cigar sales ban, it appears that these provisions also benefit Altria at the expense of other cigar manufacturers.

Regarding comment by OTP Kid, Altria encouraged PA legislative leaders (if they were going to tax smokeless) to support Rendell&#039;s more modest weight based tax for smokeless instead of taxing it as a percentage of wholesale price that CTFK, ACS, AHA, ALA were advocating.

Taxing smokeless by weight imposes the same tax on Altria&#039;s premium priced Skoal and Copenhagen brands as discount moist snuff brands (e.g. Reynolds Conwood Grizzly) and at a slightly lower rate than heavier and declining chewing tobacco (which Swedish Match has leading market share), I support weight based tax on smokeless because it is a fairer tax (than a price based tax) for all snuff products, for lower risk snus and new lower weight dissolvable tobacco products. 

I also support a piece based tax on cigars because it isn&#039;t fair to tax a $10 cigar at 25 times the rate of a $.40 cigar.  The primary impact of taxing cigars by price is to encourages premium cigar smokers to switch to cheaper cigars.  Also, several of the worlds largest premium cigar internet retailers are based in PA, and threatened to move to Florida if cigars were taxed.  While it is doubtful that they would have relocated if Rendell&#039;s $.036/cigar tax was enacted, they would almost certainly relocate if a 59% (or even 30%) of wholesale price tax was enacted.</description>
		<content:encoded><![CDATA[<p>The news article exposing Altria&#8217;s support for (and drafting key clauses of) proposed DC cigar marketing restriction bill is at:<br />
<a href="http://www.washingtonexaminer.com/local/Tobacco-giant-makes-its-mark-on-D_C_-smoking-legislation-8315941-62717957.html" rel="nofollow">http://www.washingtonexaminer.com/local/Tobacco-giant-makes-its-mark-on-D_C_-smoking-legislation-8315941-62717957.html</a></p>
<p>Among the provisions I suspect Altria supports are:<br />
- ban the sale of single cigars, except in tobacco shops;<br />
- set weight-based requirements for the number of cigars per package;<br />
- require all tobacco products be sold from behind the counter.</p>
<p>While health groups have long advocated the latter provision, and while former Baltimore Health Commissioner Josh Sharfstein (who is also former Waxman staffer and now Deputy Commission at FDA who misreprestented health hazardous of electronic cigarettes) first proposed a single cigar sales ban, it appears that these provisions also benefit Altria at the expense of other cigar manufacturers.</p>
<p>Regarding comment by OTP Kid, Altria encouraged PA legislative leaders (if they were going to tax smokeless) to support Rendell&#8217;s more modest weight based tax for smokeless instead of taxing it as a percentage of wholesale price that CTFK, ACS, AHA, ALA were advocating.</p>
<p>Taxing smokeless by weight imposes the same tax on Altria&#8217;s premium priced Skoal and Copenhagen brands as discount moist snuff brands (e.g. Reynolds Conwood Grizzly) and at a slightly lower rate than heavier and declining chewing tobacco (which Swedish Match has leading market share), I support weight based tax on smokeless because it is a fairer tax (than a price based tax) for all snuff products, for lower risk snus and new lower weight dissolvable tobacco products. </p>
<p>I also support a piece based tax on cigars because it isn&#8217;t fair to tax a $10 cigar at 25 times the rate of a $.40 cigar.  The primary impact of taxing cigars by price is to encourages premium cigar smokers to switch to cheaper cigars.  Also, several of the worlds largest premium cigar internet retailers are based in PA, and threatened to move to Florida if cigars were taxed.  While it is doubtful that they would have relocated if Rendell&#8217;s $.036/cigar tax was enacted, they would almost certainly relocate if a 59% (or even 30%) of wholesale price tax was enacted.</p>
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		<title>By: Cigar Retailer</title>
		<link>http://www.tobaccotoday.info/2009/10/11/altria-takes-aim-on-the-cigar-industry/comment-page-1/#comment-2006</link>
		<dc:creator>Cigar Retailer</dc:creator>
		<pubDate>Tue, 13 Oct 2009 20:29:19 +0000</pubDate>
		<guid isPermaLink="false">http://www.tobaccotoday.info/?p=408#comment-2006</guid>
		<description>It is incredible that Altria has no understanding of the cigar industry!  Single-sell cigars are as old as the industry itself.  Cigars are a completely different buiness than the cigarette industry.  However,
they seem to want it to be the same, and it is just not working for them or the industry.  
On another front;
Is it true they no longer will take back outdated/or unwanted Middleton products off my shelf and give me credit because they will not take back old product from my wholesaler?  If the answer is yes; forget about trying new Black and whatever products.  
True or not true?</description>
		<content:encoded><![CDATA[<p>It is incredible that Altria has no understanding of the cigar industry!  Single-sell cigars are as old as the industry itself.  Cigars are a completely different buiness than the cigarette industry.  However,<br />
they seem to want it to be the same, and it is just not working for them or the industry.<br />
On another front;<br />
Is it true they no longer will take back outdated/or unwanted Middleton products off my shelf and give me credit because they will not take back old product from my wholesaler?  If the answer is yes; forget about trying new Black and whatever products.<br />
True or not true?</p>
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		<title>By: OTP Kid</title>
		<link>http://www.tobaccotoday.info/2009/10/11/altria-takes-aim-on-the-cigar-industry/comment-page-1/#comment-2005</link>
		<dc:creator>OTP Kid</dc:creator>
		<pubDate>Tue, 13 Oct 2009 17:53:53 +0000</pubDate>
		<guid isPermaLink="false">http://www.tobaccotoday.info/?p=408#comment-2005</guid>
		<description>Word is Altria pushed for the OTP tax in Pennsylvania.  Thanks boys!</description>
		<content:encoded><![CDATA[<p>Word is Altria pushed for the OTP tax in Pennsylvania.  Thanks boys!</p>
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		<title>By: Jersey Boy</title>
		<link>http://www.tobaccotoday.info/2009/10/11/altria-takes-aim-on-the-cigar-industry/comment-page-1/#comment-2001</link>
		<dc:creator>Jersey Boy</dc:creator>
		<pubDate>Mon, 12 Oct 2009 16:30:50 +0000</pubDate>
		<guid isPermaLink="false">http://www.tobaccotoday.info/?p=408#comment-2001</guid>
		<description>I&#039;m wondering if anyone could help me understand how I can as a retailer market lower price cigarettes. I see some larger retailers have low price cigarette offers and get away with it. I mean I struggle to keep my customers but find that I&#039;m told I&#039;d be violating my contracts if I marketed lower price cigarettes. Would appreciate the help! I know this post was about cigars but I need help!</description>
		<content:encoded><![CDATA[<p>I&#8217;m wondering if anyone could help me understand how I can as a retailer market lower price cigarettes. I see some larger retailers have low price cigarette offers and get away with it. I mean I struggle to keep my customers but find that I&#8217;m told I&#8217;d be violating my contracts if I marketed lower price cigarettes. Would appreciate the help! I know this post was about cigars but I need help!</p>
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		<title>By: jancascade</title>
		<link>http://www.tobaccotoday.info/2009/10/11/altria-takes-aim-on-the-cigar-industry/comment-page-1/#comment-2000</link>
		<dc:creator>jancascade</dc:creator>
		<pubDate>Mon, 12 Oct 2009 04:21:14 +0000</pubDate>
		<guid isPermaLink="false">http://www.tobaccotoday.info/?p=408#comment-2000</guid>
		<description>I kicked PM to the curb years ago.  I wish more retailers would wake up and do the same.  Who needs PM when they go behind the backs of their retailers and patrons and screw them?</description>
		<content:encoded><![CDATA[<p>I kicked PM to the curb years ago.  I wish more retailers would wake up and do the same.  Who needs PM when they go behind the backs of their retailers and patrons and screw them?</p>
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		<title>By: luck-e-strike e-cigarettes</title>
		<link>http://www.tobaccotoday.info/2009/10/11/altria-takes-aim-on-the-cigar-industry/comment-page-1/#comment-1999</link>
		<dc:creator>luck-e-strike e-cigarettes</dc:creator>
		<pubDate>Mon, 12 Oct 2009 03:41:10 +0000</pubDate>
		<guid isPermaLink="false">http://www.tobaccotoday.info/?p=408#comment-1999</guid>
		<description>I don&#039;t know why anyone should be surprised, chewing tobacco is next.</description>
		<content:encoded><![CDATA[<p>I don&#8217;t know why anyone should be surprised, chewing tobacco is next.</p>
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		<title>By: Patriot</title>
		<link>http://www.tobaccotoday.info/2009/10/11/altria-takes-aim-on-the-cigar-industry/comment-page-1/#comment-1997</link>
		<dc:creator>Patriot</dc:creator>
		<pubDate>Sun, 11 Oct 2009 18:19:12 +0000</pubDate>
		<guid isPermaLink="false">http://www.tobaccotoday.info/?p=408#comment-1997</guid>
		<description>Wow finally a posting that deals with the hidden agenda. Simply put from my perspective PM is always hiding behind it&#039;s so called civic responsibility. As a retailer I get tired of PM hiding behind it&#039;s contracts that manipulate the industry. Retailers unfortunately have just stood back and allowed this to happen. It still irks me that they never paid me back for the off-invoice allowance many years ago!</description>
		<content:encoded><![CDATA[<p>Wow finally a posting that deals with the hidden agenda. Simply put from my perspective PM is always hiding behind it&#8217;s so called civic responsibility. As a retailer I get tired of PM hiding behind it&#8217;s contracts that manipulate the industry. Retailers unfortunately have just stood back and allowed this to happen. It still irks me that they never paid me back for the off-invoice allowance many years ago!</p>
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