TI DIGEST sumer awareness rises due to retail signage, direct mail, website information and emails. Winston Black will be available in king size and 100s in a cork filter tip. Packaging features an embossed texture and a sleek honeycomb pattern that should stand out on shelves, with a striking black-and-red color scheme. Since ITG began selling it in 2015, the Winston brand has grown across the United States, the company says. It introduced another new member to the brand family in April of 2017, when it introduced Winston Select.
Altria Discontinues Several Reduced Risk Products RICHMOND, VA.—Altria
Group, Inc. announced in early December that it would discontinue production and distribution of all MarkTen and Green Smoke e-vapor products along with Verve oral nicotine-containing products. The decision was based upon the current and expected financial performance of these products, coupled with new regulatory restrictions that burden Altria’s ability to quickly improve these products, the company said in a statement. The first of several MarkTen varieties was rolled out nationally in the U.S. in 2014. The company said it will refocus its resources on more compelling reduced-risk tobacco product opportunities. “We remain committed to being the leader in providing adult smokers inno-
Altria Group announced the abrupt discontinuation of its entire MarkTen and Green Smoke e-vapor products, as well as its Verve oral nicotine-containing products.
vative alternative products that reduce risk, including e-vapor,” said Howard Willard, chairman and c.e.o. of Altria Group, Inc. “We do not see a path to leadership with these particular products and believe that now is the time to refocus our resources. We recognize the impact this decision has on our employees and business partners, which we do not take lightly.” Altria’s subsidiaries will begin working with their retailers, wholesalers, contract manufacturers and suppliers to ensure an orderly process. MarkTen cig-a-likes are currently in distribution at retail and through e-commerce. Green Smoke is primarily available on e-commerce with limited retail presence. Verve is in limited distribution at retail and e-commerce. As a result of this decision, Altria expects to record one-time pre-tax charges of approximately $200 million in the fourth quarter of 2018, the majority of which would be non-cash asset impairment charges. These charges will be excluded from Altria’s adjusted results.
Menthol Ban Proposal Draws Industry Fire WASHINGTON, D.C.—When
the American Food and Drug Administration announced in November that it will seek a ban on menthol tobacco products, it elicited a host of responses. “When the FDA first examined menthol in 2013, the published science did not support regulating menthol and non-menthol cigarettes differently and the published science since then has not changed this situation,” said Imperial Brands in a statement. “While some consumers may prefer menthol cigarettes, the science has not demonstrated that menthol leads to higher levels of initiation, greater dependence, reduced ability to quit or increased health risk. “Any regulation of menthol in cigarettes must be done through the estab-
14 TOBACCO INTERNATIONAL DECEMBER 2018
lished comprehensive rule-making process and must be based on a thorough review of the science while considering the unintended consequences of any rule. Failing to do so would mean any such action would not withstand judicial review.” Worse yet, if menthol cigarettes are regulated any differently than non-menthol cigarettes, the illegal market will increase, fueling more criminal activity [and] adding further challenges to criminal and social justice issues. Further, if an illegal market in menthol cigarettes increases, youth smoking access will also. Imperial Brands questioned the apparent haste in FDA’s announcement. “The FDA’s proposals regarding menthol cigarettes and flavored cigars… would need to be supported by the relevant science and other evidence,” it said in a statement. “Such proposals are likely to require a multi-year process, in which we will be fully engaged.” Altria believes that a total ban on menthol cigarettes or flavored cigars would be an extreme measure not supported by the science and evidence, said Murray Garnick, executive vice president and general counsel. “We expect that establishing product standards on menthol cigarettes and flavored cigars will be a multi-year, deliberative process, and we will be fully engaged throughout. The senior Senator from North Carolina, Richard Burr also weighed in November, commenting that FDA’s proposal seemed to favor states that ignore federal drug laws. “This is not the first time the FDA has tried to ban menthol, but these efforts have been unsuccessful in the past,” said Burr, a Republican. “It is troubling, however, that an Administration that pledges to put America first is targeting legal, American-made products instead of focusing its attention on states that flout federal drug laws. “If the United States continues down this path, we will be following in Canada’s footsteps, banning menthol
