rotational health warnings for cigarettes (january 2016 to ... · crimson king box, crimson ioo's...

United States of America

FEDERAL TRADE COMMISSION

Washington, D.C. 20580

Division of Advertising Practices

MEMORANDUM

TO: Public Records

Office of the Secretary

FROM: Bonnie McGregor


DATE: September 8, 2017

SUBJECT: Rotational Health Warnings for Cigarettes

File No. P854505

Please place the attached documents on the public record in the above-captioned matter.

1. January 5, 2016 letter from Gary C. Sanden, Seneca Manufacturing Company to Mary Engle.

2. January 7, 2016 letter from Gary C. Sanden, Seneca Manufacturing Company to Mary Engle.

3. January 11, 2016 letter from Mary K. Engle to Gary C. Sanden, Seneca Manufacturing Company.

4. January 14, 2016 letter from Terri Albright, Premier Manufacturing, Inc. to Mary K. Engle.

5. January 15, 2016 letter from Mary K. Engle to Terri Albright, Premier Manufacturing, Inc.

6. January 12, 2016 letter from Eric F. Facer on behalfofGreat Swamp Enterprises, Inc. to Mary K. Engle.

7. February 3, 2016 letter from Mary K. Engle to Eric F. Facer on behalf of Great Swamp Enterprises, Inc.

8. · January 29, 2016 letter from Victoria Spier Evans, Vector Tobacco Inc. to Mary K. Engle.

Public Records September 8, 2017 Page 2

9. February 3, 2016 letter from Mary K. Engle to Victoria Spier Evans, Vector Tobacco Inc.

10. December 21 , 2015 letter from Rhondetta Walton, ITG Brands, LLC to Mary Engle.

11. February 4, 2016 letter from Mary K. Engle to Rhondetta Walton, ITG Brands, LLC.

12. February 4, 2016 letter from Neal N. Beaton on behalf of JT International U.S.A. , Inc., to William Ducklow.

13. February 4, 2016 letter from Mary K. Engle to Neal N. Beaton on behalf of JT International U.S.A., Inc.

14. February 11 , 2016 letter from Hoo Tjhiang Han, Kretek International, Inc. to Mary K. Engle.

15. February 11 , 2016 letter from Mary K. Engle to Hoo Tjhiang Han, Kretek International, Inc.

16. February 10, 2016 letter from Henry C. Roemer, III on behalf ofKretek International, Inc. to Mary K. Engle.

17. February 11 , 2016 letter from Mary K. Engle to Henry C. Roemer, III on behalf of Kretek International, Inc.

18. February 18, 2016 letter from Cameron Goodwin, Skookum Creek Tobacco Company, Inc. to Mary K. Engle.

19. February 19, 2016 letter from Mary K. Engle to Cameron Goodwin, Skookum Creek Tobacco Company, Inc.

20. February 23, 2016 letter from Mark Mansfield, Wind River Tobacco Company, LLC to Mary K. Engle.

21. February 25, 2016 letter from Mary K. Engle to Mark Mansfield, Wind River Tobacco Company, LLC.

22. February 2, 2016 letter from Karen E. Delaney, Goodrich Tobacco Company, LLC to Mary K. Engle.

23. March 8, 2016 letter from Mary K. Engle to Karen E. Delaney, Goodrich Tobacco Company, LLC.

Public Records September 8, 2017 Page 3

24. January 26, 2016 letter from Jay Chapman, Cousins Distributing, Inc. d/b/a Fresh Choice Tobacco to Bonnie McGregor.

25. March 11 , 2016 letter from Mary K. Engle to Jay Chapman, Cousins Distributing, Inc. d/b/a Fresh Choice Tobacco Company.

26. March 15, 2016 letter from David A. Scott, Cheyenne International, LLC to Mary K. Engle.

27. March 15, 2016 letter from Mary K. Engle to David A. Scott, Cheyenne International, LLC.

28. March 14, 2016 letter from Donna Woody, Sandia Tobacco Manufacturers, Inc. to Mary K. Engle.

29. March 16, 2016 letter from Mary K. Engle to Donna Woody, Sandia Tobacco Manufacturers, Inc.

30. March 23 , 2016 letter from Bhavani Parameswar, King Maker Marketing, Inc. to the Division of Advertising Practices, Federal Trade Commission.

31. March 24, 2016 letter from Mary K. Engle to Bhavani Parameswar, King Maker Marketing, Inc.

32. March 22, 2016 letter from Neal N. Beaton on behalf ofJapan Tobacco International U.S.A., Inc. to Mary K. Engle.

33. March 29, 2016 letter from Mary K. Engle to Neal N. Beaton on behalfof Japan Tobacco International U.S.A., Inc.

175 Rochester Street P.O. Box496

Salamanca, NY 14779SMC c o ..,, P -"" :... •r

Phone: (716) 945-4400\Fax (716) 945-4401 ...... Email: [email protected] I

January 5, 2016

Mary K. Engle, Associate Director

Division ofAdvertising Practices

Federal Trade Commission

600 Pennsylvania Avenue, NW

Washington, DC 20580

RE: Heron Cigarettes

Dear Ms. Engle:

Please consider this letter our annual compliance lett~r. Our plan for the simultaneous display of the Surgeon General's warnings on packaging and the quarterly rotation of the Surgeon General's warnings on advertising for Heron cigarettes was originally submitted to the Federal Trade Commission on December 17, 2007, and was approved on December 19, 2007.

We have removed 5 brand styles as we no longer manufacture those styles. The Heron cigarette brand will now be manufactured in the following varieties:

Red lOO's Soft Pack

Gold lOO's Soft Pack

Silver IOO's Soft Pack

Menthol IOO's Soft Pack

Menthol Gold IOO's Soft Pack

Red 100's Box Red King Box Gold IOO's Box Gold King Box Silver IOO's Box Silver King Box Menthol l OO' s Box Menthol King Box Menthol Gold 100 Box Menthol Gold King Box Crimson IOO's Box Crimson King Box No. 33 Black Red IOO's Box No. 33 Black Red King Box No. 33 Black Gold 1OO's Box No. 33 Black Gold King Box No. 33 Black Menthol lOO's Box No. 33 Black Menthol King Box

Non Filter King Box

Crafting & Manufacturing QUALITY TOBACCO products for a decade and still GOING STRONG.

mailto:[email protected]

FEDERAL TRADE COMMISSION MS. MARY ENGLE ASSOCIATE DIRECTOR RE: HERON CIGARETTES JANUARY 5, 2016 PAGE2

These cigarettes are pack~ed in 200 count cartons ("'Outer Carton"). Each Outer Carton contains ten (10) packs of twenty (20) cigarettes each ("pack"). The warnings will appear exactly as shown in samples provide to your office with our letters dated June 16, 2010, June 23, 2010, June 25, 2010, February 4, 2011, February 7, 2012.

Seneca Manufacturing Company's low sales volume of cigarettes fits the criteria for the alternative to quarterly rotation ofwarnings on packaging, provided for in Section 1333 (c)(2) of the Federal Cigarette Labeling and Advertising Act 15 U.S.C. 1331. The sales of each brand style that the company manufactured for the 2015 fiscal year (calendar year ending December 31 , 2015) are set out in Exhibit A along with anticipated 2016 sales. We do not import any cigarettes.

If this plan for the alternative to quarterly rotation of the warnings on the packaging is approved, the four ( 4) cigarette health warnings will appear on the packs and cartons of each Heron cigarette brand style an equal number of times for the one year period beginning on the date of approval of this plan:· · To ensure the· cigarette health warnings appear on the Heron cigarette brand styles an equal nwnber of times throughout the plan year, raw material packaging inventory will be stored and loaded into packaging machines alternating the health warnings. Seneca Manufacturing Company will maintain records of compliance with approved plan. We will continue to advertise according to our plan approved by the Federal Trade Commission on December 17, 2007.

If you should have any questions or require any further information, please feel free to contact our office.

Sincerely,

SENECA MANUFACTURING COMPANY

/ - ./ . r , •

/ -:;,:: .....· Gary C. Sanden

GCS/tnm Enclosures

Crafting & Manufacturing QUALITY TOBACCO products for a decade and still GOING STRONG.

Brand

Heron Black 33 Gold 100 Box

Heron Black 33 Gold King Box

Heron Black 33 Menthol 100 Box

Heron Black 33 Menthol King Box

Heron Black 33 Red 100 Box

Heron Black 33 Red King· Box

Heron Crimson 100 Box

Heron Crimson King Box

Heron Gold 100 Box

Heron Gold 100 SP

Heron Gold King Box

Heron Gold King SP

Heron Menthol 100 Box

Heron Menthol 100 SP

Heron Menthol Gold 100 Box

Heron Menthol Gold 100 SP

Heron Menthol Gold Ki ng Box

Heron Menthol Gold King SP

Heron Menthol King Box

Heron Menthol King SP

Heron Non-Fiiter King Box

Heron Red 100 Box

Heron Red 100 SP

Heron Red King Box

Heron Red King SP

Heron Silver 100 Box

Heron Silver 100 SP

Heron Silver King Box

Heron Sliver King SP

201 S Sales by Estimated 2016 Stick Sales by Stick

175 Rochester Street P.O. Box496

Salamanca, NY 14779 Phone: (716) 945-4400\Fax (716) 945-4401 SMC

~

,.. Email: [email protected]

January 7, 2016

FEDERAL TRADE COMMISSION MS. MARY ENGLE ASSOCIATE DIRECTOR 600 PENNSYLVANIA AVENUE WASHINGTON DC 20580

Re: Sands Cigarettes

Dear Ms. Engle:

Please consider this letter our annual compliance letter. Our plan for the simultaneous display of the Surgeon Generai's warnings on packaging and the quarterly rotation of the Surgeon General 's warnings on advertising for Sands cigarettes was originally submitted to the Federal Trade Commission on November 3, 2011. and was approved on November 8, 2011.

We ha·.;e rl!moved 10 brand styles as we no Jonger manufacture those styles. The Sands cigaretce brand ·will now be manufactured in the fo1lo~ing varieties:

Red :iOO's Box Red King Size Box Gold lOO's Box Gold King Size Box Silver 1OO's Box Silver King Size Box Menthol lOO's Box Menthol King Size Box Menthol Blue 1OO's Box Menthol Blue King Size Box

These cigarettes are packaged in 200 count cartons ("Outer Carton"). Each Outer Carton contains ten (10) packs of twenty (20) cigarettes each ("pack"). The warnings will appear exact~y as showi1 in samples provided to your office with our letter dated March 21, 2011.

Seneca Manufacturing Company low sales volume of cigarettes fits the criteria for the alternative to quarterly rotation of warnings on packagmg, provided for in Section 1333 (c)(2) of the Federal Cigarette labeling and Advertising Act, 15 U.S.C. 1331. The sales for each brand style for the 2'015 fiscal' year (calendar year ending'Deccmber 31, 2015) are set out in Exhibit A along with anti Cipated 2016 sales. Seneca· Manufacturlng Company manli:facturers one other brand called Heron and there is a separate plan for that brand approved on July 13, 2012 ..

t>, : • ·~ •• I. . • . I • I • • • • • • - •

. t • . • . •

...


FEDERAL TRADE COMMISSION MS MARY ENGLE ASSOCIATE DIRECTOR RE: SANDS CIGARETTES JANUARY 7, 2016 PAGE2

If this plan for the alternative to quarterly rotation of the warnings on the packaging is approved, the four (4) cigarette health warnings will appear on the packs and cartons of each Sands cigarette brand style an equal number of times for the one year period beginning on the date of approval of this plan. To ensure the cigarette health warnings appear on the Sands cigarette brand styles as equal number of times throughout the plan year, raw material packaging inventory will be stored and loaded into packaging machines alternating the health warnings. Seneca Manufacturing Company will maintain records of compliance with approved plan. We will continue to advertise according to our plan approved by FTC on November 8, 2011 .

If you should have any questions or require anything further, please feel free to contact this office.

Sincerely,

SENECA MA4.::4=ANY Gary C. Sanden

GCS/tnm Enclosures

Brand

Sands Gold 100 Box

Sands Gold 100 SP

Sands Gold King Box

Sands Gold King SP

Sands Menthol 100

Sands Menthol 100 SP

Sands Menthol Blue 100 Box

Sands Menthol Blue 100 SP

Sands Menthol Blue King Box

Sands Menthol Blue King SP

Sands Menthol King Box

Sands Menthol King SP

Sands Red 100

Sands Red 100 Box

Sands Red 100 SP

Sands Red King Box

Sands Red King SP

Sands Silver 100 Box

Sands Silver 100 SP

Sands Silver King Box

Sands Silver King SP

2015 Sales by Estimated 2016 Stick Sales by Stick





January 11, 2016

Mr. Gary C. Sanden Seneca Manufacturing Company P.O. Box496

175 Rochester Street

Salamanca, NY 14 779

Dear Mr. Sanden:

The Federal Trade Commission has delegated to the Associate Director for Advertising Practices its authority to review cigarette health warning display plans submitted to the Commission pursuant to Section 1333(c) of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331-1341 ("the Cigarette Act"). Pursuant to that delegation, I have reviewed two revised letters dated January 5, 2016 and January 7, 2016, which constitute a plan filed by Seneca Manufacturing Company ("Seneca"), calling for simultaneous display (i.e., the alternative to quarterly rotation) of the four health warnings on packaging for certain varieties of the Heron and Sands brands of cigarettes.

Seneca's sales appear to qualify for the aforementioned alternative to quarterly rotation of the warnings on packaging, and the warnings on the sample packs and cartons submitted with Seneca's letters on the following dates continue to appear to meet the requirements of the Cigarette Act in force· as of the date of this letter for size and conspicuousness. 1

Date(s)

Heron June 16, 2010

June 23, 2010

June 25, 2010

February 4, 2011

February 7, 2012

Sands March 21, 2011

Seneca stated in its January 5, 2016 and January 7, 2016 letters that the four health warnings will appear exactly as shown on the packs and cartons submitted on these dates.

Mr. Gary C. Sanden January 11, 2016 Page 2

Accordingly, Seneca' s plan for simultaneous display of the four health warnings on

packaging for the following varieties is hereby approved:

• Twenty-four varieties of the Heron brand: Red Kings Box, Red 1 OO's (Box and Soft Pack), Gold Kings Box, Gold 1 OO's (Box and Soft Pack), Silver Kings Box, Silver 1 OO's (Box and Soft Pack), Menthol Kings Box, Menthol 1 OO's (Box and Soft Pack), Menthol Gold Kings Box, Menthol Gold 1 OO's (Box and Soft Pack), Crimson King Box, Crimson IOO's Box, No. 33 Black Gold Kings Box, No. 33 Black Gold lOO's Box, No. 33 Black Red Kings Box, No. 33 Black Red lOO's Box, No. 33 Black Menthol Kings Box, No. 33 Black Menthol lOO's Box, and Non-Filter Kings box; and

• Ten Box varieties of the Sands brand: Red (Kings and lOO's), Gold (Kings and lOO's), Silver (Kings and lOO's), Menthol (Kings and lOO' s), and Menthol Blue (Kings and lOO's).

Approval of the plan is contingent on its good faith im~lementation. We may ask for information demonstrating proper implementation of the plan. The Cigarette Act provides that any person who violates its provisions is guilty of a misdemeanor.

Please note that this letter only approves Seneca's cigarette health warning statement rotation plan with respect to the statutory requirements in force prior to the June 22, 2009 enactment of the Family Smoking Prevention and Tobacco Control Act ("FSPTCA") concerning the rotation, size, and conspicuousness of the warnings on Seneca's packaging. Moreover, it is not in any way an approval of any other design element, statement, or representation made on packaging or in advertising for Seneca's cigarettes. Nor does this letter purport to interpret or express any opinion about the adequacy of Seneca's packaging and advertising under the FSPTCA or any regulations that have been or might be promulgated by the Department of Health and Human Services under that statute, including but not limited to the Regulations Restricting the Sale and Distribution of Cigarettes and Smokeless Tobacco to Protect Children and Adolescents (published March 19, 2010).

Because the FSPTCA imposes additional legal requirements on the marketing and sale of cigarettes, you should ensure that you are in compliance with those requirements. For example, since September 22, 2009, the use of certain characterizing flavors (other than tobacco or menthol) in cigarettes has been prohibited. You can find additional information at www.fda.gov/TobaccoProducts/default.htm, and sign up for FDA email updates at www.fda.gov/TobaccoProducts/ResourcesforYou/ucm 176164.htm.

Knowingly and willfully making false statements to a federal government agency is a crime punishable by a fine and/or imprisonment. 18 U.S.C. § 1001.

2

www.fda.gov/TobaccoProducts/ResourcesforYou/ucmwww.fda.gov/TobaccoProducts/default.htm

Mr. Gary C. Sanden January 11 , 2016 Page3

This approval is effective on the date of this letter and runs through January 10, 2017, or until the authority to approve cigarette health warning statement plans moves from the FTC to the FDA, whichever comes first.

Ifyou have any questions regarding this approval, please contact Bonnie McGregor at (202) 326-2356.

Very truly yours,

·~;]{_~ Mary K.CJ:g,e · - · 0 ~ Associate Director

PREMIER

MANUFACTUR I NG. INC .

January 14, 2016

Mary K. Engle, Associate Director Federal Trade Commission Division of Advertising Practices 600 Pennsylvania A venue, NW Mail Drop NJ 3212 Washington, DC 20580

Re: Request for plan renewal and expansion to include the new Non-Filter Box Brand Styles

Dear Ms. Mary Engle:

Premier Manufacturing, Inc. is requesting approval to renew its plan for the simultaneous display of the four health warnings on certain varieties of the l st Class, the Ultra Buy, the Shield, the Wildhorse, the 1839 and the Traffic Brands and to expand its plan to include the display of the four health warnings on packaging of the l st Class Non-Filter King Box, Shield Non-Filter King Box, Wildhorse Non-Filter King Box and 1839 Non-Filter King Box. The warnings will appear exactly as shown on the sample packs and cartons that were enclosed in our March 11, 2015 and November 12, 2015 letters.

Premier Manufacturing will display the four health warnings an equal number of times on the packs and cartons for each of the brand styles listed below of the 1st Class, Shield, Wildhorse, Ultra Buy, Traffic and 1839 brands for the one-year period beginning on the date of approval of this plan. We will achieve equalization of the four warnings on the packs and cartons of each brand style listed below by having all four warnings printed simultaneously at the time of both pack and carton print runs. Premier will keep records demonstrating compliance with the plan. The warnings on all packs and cartons of each ofour Brand styles have been equalized to date.

• eleven varieties of Shield Brand: Red Kings Box, Red lOO's Box, Blue Kings Box, Blue lOO's Box, Menthol Green Kings Box, Menthol Green IOO's Box, Menthol Silver 100 Box, Silver Kings Box, Silver lOO's Box, Non Filter King soft pack and Non Filter King Box;

(1)

www.GoPremier.com 17998 Chesterfield Airport Road. a Chesterfield, Missouri 63005 • (636) 537-5348 o Fax (636) 537-3359 o email: [email protected]

mailto:[email protected]:www.GoPremier.com

PREMIER

MANUfACTURING. INC .

• eleven varieties of Wildhorse Brand: Red Kings Box, Red lOO's Box, Gold Kings Box, Gold lOO's Box, Menthol Green Kings Box, Menthol Green JOO's Box, Silver King Box, Silver lOO's Box, Menthol Silver lOO's Box, Non Filter King soft pack and Non Filter King Box;

• ten varieties of the 151 Class Brand: Red Kings Box, Red lOO's Box, Blue Kings Box, Blue lOO's Box, Menthol Green Kings Box, Menthol Green lOO's Box, Menthol Silver lOO's Box, Silver lOO's Box, Non Filter King soft pack and Non Filter King Box;

• nine varieties of Ultra Buy Brand: Red Kings Box, Red lOO's Box, Blue Kings Box, Blue lOO's Box, Menthol Green Kings Box, Menthol Green lOO's Box, Menthol Silver lOO's Box, Silver lOO's Box, and Non Filter King soft pack;

• twelve varieties of 1839 Brand: Red King Box, Red 100 Box, Blue King Box, Blue 100 Box, Silver King Box, Silver 100 Box, Menthol Green King Box, Menthol Green 100 Box, Menthol Blue King Box, Menthol Blue 100 Box, Non-Filter King soft pack and Non Filter King Box;

• nine varieties of Traffic Brand: Red King Box, Red 100 Box, Blue King Box, Blue 100 Box, Menthol Green King Box, Menthol Green 100 Box, Silver 100 Box, Menthol Silver 100 Box and Non-Filter King soft pack.

The four warnings that will be displayed are:

1. SURGEON GENERAL'S WARNING: Smoking Causes Lung Cancer, Heart Disease, Emphysema, And May Complicate Pregnancy.

2. SURGEON GENERAL'S WARNING: Quitting Smoking Now Greatly Reduces Serious Risks to Your Health.

3. SURGEON GENERAL'S WARNING: Smoking By Pregnant Women May Result in Fetal Injury, Premature Birth, And Low Birth Weight.

4. SURGEON GENERAL'S WARNING: Cigarette Smoke Contains Carbon Monoxide.

Premier will continue to comply with the advertising rotation plan previously approved.

Our sales for the last fiscal year (calendar year 2015) did not exceed -sticks for any one brand style. We also sell the Creston, Fact and Passport Brands. We do not anticipate sales to exceed -sticks for any one brand style of cigarettes that we manufacture during the oneyear period covered by this plan.

(2)

www.GoPremier.com 17998 Chesterfield Airport Road. o Chesterfield, Missouri 63005 o (636) 537-5348 ., Fax (636) 537-3359 o email: [email protected]

mailto:[email protected]:www.GoPremier.com

PREMIER

MANUfACTURING. INC .

We submit and confirm that the foregoing complies with the Act.

Please call me if you have any questions or require additional information.

Sincerely,

r --4~,. /7 •"--- ~ -Y e-Lv;lt.1

Terri Albright

Operations/Compliance Manager

Direct Phone: 636-537-6823

Fax: 636-530-1362

Email: [email protected]

(3)

www. GoPremier.com 17998 Chesterfield Airport Road. o Chesterfield, Missouri 63005 o j636~ 537-5348 o Fax (636) 537-3359 • email: [email protected]

mailto:[email protected]:Premier.commailto:[email protected]

FSC

NON-FILTER BOX

l. r !

I + I

20 CLASS A CIGARETTES

XO& ll3.11U·NON

S3113Hlf 910 If SSlf10 OZ

xoa: llll.'11.!l·NON

.asJoqpnJ\\

I Wildhorse

----- _J NON-FILTER BOX

Underage

Prohibited Sale

Wildhorse

·~

,_j

" .• .. m

0 ::: ;;

I PRODUCT IF USFARMER5°

•

FSC 00


Shield.

NON-FILTER KINGS BOX

L r

S3.ll. 3l:llt918 It SS\fl:) OZ:

..

w

::

X08 tl3.lll:j-NQN

xoa S~Nl>l l:l3ll l.:l·NON

.Pla!lls

Underage APRODUCT OF

Sale US FARMERS" Prohibited Shield.

NON-FILTER BOX

M- 1 2 3 4 5 6 1 8 9 10 11 12 - t't,~~ - Y - 15 16 17 18 m;:i

®e

I NON-FILTER BOX

20 0 CLA S S A CIG A R E TTES

J Stl .,. 0 00 ~ lnSURGEON GENERAL'S WARNING: Underage ~ShI.eId® ISmoking Causes lung Cancer, Heart Disease, Sale Emphysema, And May Complicate Pregnancy. Prohibited ~

I

A..NON-FILTER KINGS BOX f-.® co


S:lllHY!ll:l Y SSY 1:l OZ

+

::

_J

Underage I PRODUCT OF

Sale USFIR{llERS° Prohibited

M • 1 2 3 4 5 6 7 S 9 10 t1 12

Y- 15 16 H 11l ii

SURGEON GENERAL'S WARNING: Smoking By

Pregnant Women May Result in Fetal Injury,

Premature Birth, And Low Birth Weight. I

7 ""'089261163165""' 9

-- M - t 2 3 4 s e 1 a s 10 11 12 -- ii]Y - 15 16 17 18

SURGEON GENERAL:S WARNING:

Quitting Smoking Now Greatly

Reduces Serious Risks to Your Health.





January 15, 2016

Ms. Terri Albright Premier Manufacturing, Inc.

17998 Chesterfield Airport Road

Chesterfield, MO 63005

Dear Ms. Albright:

The Federal Trade Commission has delegated to the Associate Director for Advertising Practices its authority to review cigarette health warning display plans submitted to the Commission pursuant to Section 1333(c) of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331-1341 ("the Cigarette Act"). Pursuant to that delegation, I have reviewed a revised proposed plan filed by Premier Manufacturing, Inc. ("Premier") on January 14, 2016, calling for simultaneous display (i.e., the alternative to quarterly rotation) of the four health warnings on packaging for certain varieties of the 1839, 1st Class, Shield, Traffic, Ultra Buy, and Wildhorse brands of cigarettes.

Premier's sales appear to qualify for the aforementioned alternative to quarterly rotation of the warnings on packaging, and the warnings on the sample packs and cartons submitted with your letters dated March 11 , 2015 and November 12, 2015 appear to meet the requirements of the Cigarette Act in force as of the date of this letter for size and conspicuousness. 1

Accordingly, Premier's plan for simultaneous display of the four health warnings on packaging is hereby approved for the following varieties:

• Twelve varieties of the 1839 brand: Red Box (Kings and IOO's), Blue Box (Kings and lOO's), Silver Box (Kings and IOO ' s), Menthol Green Box (Kings and lOO's), Menthol Blue Box (Kings and IOO's), Non-Filter Kings Soft Pack, and Non-Filter Kings Box;

Premier stated in its January 14, 2016 letter that the four health warnings will appear exactly as shown on the sample packs and cartons submitted on March 11 , 2015 and November 12, 2015.

Ms. Terri Albright January 15, 2016 Page 2

• Ten varieties of the 1st Class Brand: Red Box (Kings and lOO's), Blue Box (Kings and IOO's), Menthol Green Box (Kings and IOO's), Menthol Silver lOO's Box, Silver IOO's Box, Non-Filter Kings Soft Pack, and Non-Filter Kings Box;

• Eleven varieties of the Shield Brand: Red Box (Kings and lOO's), Blue Box (Kings and lOO's), Menthol Green Box (Kings and lOO's), Silver Box (Kings and lOO's), Menthol Silver Box 1 OO's, Non-Filter Kings Soft Pack, and Non-Filter Kings Box;

• Nine varieties of the Traffic brand: Red Box (Kings and lOO ' s), Blue Box (Kings and IOO's), Menthol Green Box (Kings and lOO's), Silver IOO's Box (medium blue packaging), Menthol Silver IOO's Box (medium green packaging), and Non-Filter Kings Soft Pack;

• Nine varieties of the Ultra Buy Brand: Red Box (Kings and IOO's), Blue Box (Kings and lOO's), Menthol Green Box (Kings and IOO's), Menthol Silver lOO's Box, Silver IOO's Box and Non-Filter Kings Soft Pack; and

• Eleven varieties of the Wildhorse Brand: Red Box (Kings and lOO's), Gold Box (Kings and lOO's), Menthol Green Box (Kings and lOO's), Silver Box (Kings and IOO's), Menthol Silver lOO's Box, Non-Filter Kings Soft Pack, and Non-Filter Kings Box.

Approval of the plan is contingent on its good faith im~lementation . We may ask for information demonstrating proper implementation of the plan. The Cigarette Act provides that any person who violates its provisions is guilty of a misdemeanor.

Please note that this letter only approves Premier' s cigarette health warning statement rotation plan with respect to the statutory requirements in force prior to the June 22, 2009 enactment of the Family Smoking Prevention and Tobacco Control Act ("FSPTCA") concerning the rotation, size, and conspicuousness of the warnings on Premier's packaging. Moreover, it is not in any way an approval of any other design element, statement, or representation made on packaging or in advertising for Premier's cigarettes. Nor does this letter purport to interpret or express any opinion about the adequacy of Premier's packaging and advertising under the FSPTCA or any regulations that have been or might be promulgated by the Department of Health and Human Services under that statute, including but not limited to the Regulations Restricting the Sale and Distribution of Cigarettes and Smokeless Tobacco to Protect Children and Adolescents (published March 19, 2010).

Because the FSPTCA imposes additional legal requirements on the marketing and sale of cigarettes, you should ensure that you are in compliance with those requirements. For example, since September 22, 2009, the use of certain characterizing flavors (other than tobacco or menthol) in cigarettes has been prohibited. You can find additional information at


2

Ms. Terri Albright January 15, 2016 Page 3

www.fda.gov/TobaccoProducts/default.htm, and sign up for FDA email updates at www.fda.gov/TobaccoProducts/ResourcesforYou/ucm 176164.htm.

This approval is effective on the date of this letter and runs through January 14, 2017, or until the authority to approve cigarette health warning statement plans moves from the FTC to the FDA, whichever comes first.

Ifyou have any questions regarding this approval, please contact Connor Sands at (202) 326-3343.

Very truly yours,

~v}t~L~ . ~ary K En.;(,( ' - , 6 '---' Associate DMctor

www.fda.gov/TobaccoProducts/ResourcesforYou/ucmwww.fda.gov/TobaccoProducts/default.htm

LAW OFFICES OF ERIC F. F ACER, PLLC

I 025 CONNECTICUT AVENUE , N .W.

SUITE 1000

WASHINGTON, D.C . 20036

(202) 464-0400

[email protected]

January 12, 2016

Via First Class Mail and E-mail (s.s..chool s_{WJtc.gov;_wd1Jc;:[email protected]}

Ms. Mary K. Engle Associate Director Division ofAdvertising Practices Federal Trade Commission 600 Pennsylvania Ave., NW Mail Drop CC-10528 Washington, DC 20580

Re·: · Great Swamp Enterprises·, Inc. ·· ·. _: r . · Health Warning Rotation Plan.for the ·C_fil'JJ.ga Bra_rid of_Cigarettes

Dear Ms. Engle:

On behalf of Great Swamp Enterprises Inc. ("Great Swamp"), we hereby submit this Surgeon General's Equalization Plan (the "Plan") for Great Swamp as required under the Federal Cigarette Labeling and Advertising Act of1984, 15 U.S.C. § 1331 et seq. (1998), as amended (the "FCLAA") for eleven (11) styles of Cayuga cigarettes.

Great Swamp's first equalizati"on planwas approved by the Federal Trade Commission (the "FTC") on March 10, 2011. Further, the company has renewed its plan annually since that time. The effective date of its current plan runs through February 4, 2016 as noted in the enclosed letter from your office dated February 5, 201S.

There has been no material change in -Great Swamp's operations since the submission of its most recent equalization plan, as summarized below.

Great Swamp is the manufacturer of the Cayuga Brand. Its manufacturing facility is located at 61 Ovid Street, Seneca Falls, NY 13148 (Tel: 315/568-5880). Ms. Crissy Murphy is the General Manager. It currently manufactures a single brand of cigarettes-the Cayuga Brand-bu't it does not import or export any cigarettes.

http:the�C_fil'JJ.gamailto:s.s..chools_{WJtc.gov;_wd1Jc;:kJQw@ftcmailto:[email protected]

Ms. Mary K. Engle January 12, 2016 Page 2

The fiscal year for Great Swamp is the calendar year. During 2015, Great Swamp's actual sales of all brand styles of the Ca u a Brand to tale

the company for the exemptions sales for 2016 are approximately

sticks, which should qualify of the FCLM. Its projected

sticks.

Cayuga Brand cigarettes are sold in eleven (11) hard box brand styles. Great Swamp requests that the following eleven (11) styles be included in the Plan:

Cayuga Dark Green Kings, Cayuga Medium Green Kings, Cayuga Red Kings, Cayuga Blue Kings, Cayuga Gold Kings, Cayuga Dark Green lOO's, Cayuga Medium Green lOO's, Cayuga Light Green lOO's, Cayuga Red lOO's, Cayuga Blue lOO's, Cayuga Gold lOO's.1

These are the exact same brand styles that were the subject of the equalization plan submitted on February 3, 2015, as approved by the FTC on February 5, 2015; Great Swamp does not manufacture any cigarettes beyond these eleven (11) brand styles.

The warnings will appear exactly as shown on the samples of Cayuga packaging submitted with our letter to the FTC dated February 18, 2011. Great Swamp is aware that the Food and Drug Administration (the "FDA") may assume jurisdiction, at any time during 2016, for warning label compliance. Great Swamp has devised a rotation plan that is intended to ensure the equalized use of the four health warnings on all packs and all cartons for each brand style covered by the Plan for the one-year period beginning on the date of approval of this Plan. Specifically, it will accomplish this objective by ordering packaging materials containing an equal number of the four health warnings. It will then employ its packaging inventory in such a way as to ensure the equalized use and rotation of the four health warnings on all packs and all cartons of each brand style of the Cayuga Brand. Based on the above, Great Swamp requests approval to use the rotation option provided in Section 1333(c)(2) of the FCLAA (i.e., the alternative to quarterly rotation). Great Swamp will keep records demonstrating compliance with this Plan.

Although Great Swamp does not advertise its products on the Internet, it does use print advertising to promote the Cayuga brand. On December 5, 2012, Great Swamp submitted a revised proposed plan for the quarterly rotation of the four health warnings in print advertising up to 720 square inches in size for the Cayuga brand of cigarettes. Great Swamp's advertising rotation plan was approved by the FTC on December 11. 2012.

Although colors are used in the name of each Cayuga brand style, those names are not printed on any cigarette packaging. For example, the words "Light Green" do not appear on the packaging of "Light Green Kings." However, the color used for each bra nd style's packaging does conform to the color used in its name.

i


We submit that the foregoing complies with the requirements of the FCLAA, and request expedited approval of this request. Should you require any additional information in order to review and approve the health warning rotation plan of Great Swamp Enterprises, Inc. for the Cayuga brand, please feel free to contact me at any time. Please fax the approval of the Plan to me at 202/464-0404 (F); alternatively, you may email it to me at: [email protected]. Thank you for your assistance.

i/?rrEric F. Facer

Enclosure





Division of Advertising Prae1icl-S

February 5, 2015

Eric F. Facer, Esq.

1025 Connecticut Avenue, N.W.

Suite l 000 Washington, D.C. 20036

Dear Mr. Facer:

The Federal Trade Commission has delegated to the Associate Director for Advertising Practices its authority to review cigarette health warning display plans submitted to the Commission pursuant to Section 1333(c) of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331-1341 ("the Cigarette Act"). Pursuant to that delegation, I have reviewed a revised proposed plan filed on behalfof Great Swamp Enterprises, Inc. ("Great Swamp"), on February 3, 2015, calJing for simultaneous display (i.e., the alternative to quarterly rotation) of the four health warnings on packaging for eleven box varieties of the Cayuga brand of cigarettes.

Great Swamp's sales appear to qualify for the aforementioned alternative to quarterly rotation of the warnings on packaging, and the warnings on the sample packs and cartons submitted with your letter dated February 18, 2011 continue to appear to meet the re~uirements of the Cigarette Act in force as of the date of this letter for s ize and conspicuousness. Accordingly, Great Swamp's plan for simultaneous display of the four health warnings on packaging is hereby approved for the following eleven box varieties of the Cayuga brand: Dark Green (Kings and JOO's), Medium Green (Kings and IOO's), Red (Kings and lOO' s), Blue (Kings and lOO's), Gold (Kings and IOO's), and Light Green IOO's.2

Great Swamp stated in its February 3. 2015 letter that the four health warnings will appear exactly as shown on the san1ple packs and cartons submitted on February 18, 2011.

As set forth in its February 3, 2015 letter, Great Swamp is using colors to identify its cigarette varieties (e.g.• "Light Green 1OO's ..). We note that the color names are not printed on the packaging (e.g., the words ''Light Green" do not appear on the packaging of the "Light Green I oo·s·' variety); however, the color used for a variety's packaging does conform to the color used in its nam e.

2

Eric F. Facer, Esq. February 5, 2015 Page 2

Approval of the plan is contingent on its good faith iml?lementation. We may ask for infonnation demonstrating proper implementation of the plan.~ The Cigarette Act provides that any person who violates its provisions is guilty of a misdemeanor.

Pkase note that this letter only approves Great Swamp' s cigarette health warning statement rotation plan with respect to the statutory requirements in force prior to the June 22, 2009 enactment of the Family Smoking Prevention and Tobacco Control Act ("FSPTCA") concerning the rotation, size, and conspicuousness of the warnings on Great Swamp's packaging. Moreover, it is not in any way an approval of any other design element, statement, or representation made on packaging or in advertising for Great Swamp's cigarettes. Nor does this letter purport to interpret or express any opinion about the adequacy of Great Swamp's packaging and advertising under the FSPTCA or any regulations that have been or might be promulgated by the Department of Health and Human Services under that statute, including but not limited to the Regulations Restricting the Sale and Distribution of Cigarettes and Smokeless Tobacco to Protect Children and Adolescents (published March 19, 2010).

Because the FSPTCA imposes additional legal requirements on the marketing and sale of cigarettes, you should ensure that you are in compliance with those requirements. For example, since September 22, 2009, the use ofcertain characterizing flavors (other than tobacco or menthol) in cigarettes has been prohibited. You can find additional information at www.fda.govffobaccoProducts/default.htm, and sign up for FDA email updates at www.fda.gov/TobaccoProducts/ResourcesforYou/ucm 176164.htm.

This approval is effective on the date of this letter and runs through February 4, 2016, or until the authority to approve cigarette health warning statement plans moves from the FTC to the FDA, whichever comes first.

If you have any questions regarding this approval, please contact William Ducklow at (202) 326-2407.

Very truly yours,

· f1A_ r ~. --rrl ;,,-~/





February 3, 2016

Eric F. Facer, Esq.

1025 Connecticut A venue, N. W.

Suite 1000


Dear Mr. Facer:

The Federal Trade Commission has delegated to the Associate Director for Advertising Practices its authority to review cigarette health warning display plans submitted to the Commission pursuant to Section 1333(c) of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331-1341 ("the Cigarette Act"). Pursuant to that delegation, I have reviewed a proposed plan filed on behalf of Great Swamp Enterprises, Inc. ("Great Swamp"), on January 12, 2016, calling for simultaneous display (i.e., the alternative to quarterly rotation) of the four health warnings on packaging for eleven box varieties ofthe Cayuga brand of cigarettes.

Great Swamp's sales appear to qualify for the aforementioned alternative to quarterly rotation of the warnings on packaging, and the warnings on the sample packs and cartons submitted with your letter dated February 18, 2011 continue to appear to meet the re~uirements ofthe Cigarette Act in force as of the date of this letter for size and conspicuousness. Accordingly, Great Swamp's plan for simultaneous display of the four health warnings on packaging is hereby approved for the following eleven box varieties of the Cayuga brand: Dark Green (Kings and IOO's), Medium Green (Kings and IOO' s), Red (Kings and lOO's), Blue (Kings and lOO's), Gold (Kings and lOO's), and Light Green lOO's.2

Great Swamp stated in its January 12, 2016 letter that the four health warnings will appear exactly as shown on the sample packs and cartons submitted on February 18, 2011.

As set forth in its January 12, 2016 letter, Great Swamp is using colors to identify its cigarette varieties (e.g., "Light Green lOO's"). We note that the color names are not printed on the packaging (e.g., the words "Light Green" do not appear on the packaging of the "Light Green IOO' s" variety); however, the color used for a variety' s packaging does conform to the color used in its name.

2

Eric F. Facer, Esq. February 3, 2016 Page 2


Please note that this letter only approves Great Swamp's cigarette health warning statement rotation plan with respect to the statutory requirements in force prior to the June 22, 2009 enactment of the Family Smoking Prevention and Tobacco Control Act ("FSPTCA") concerning the rotation, size, and conspicuousness of the warnings on Great Swamp's packaging. Moreover, it is not in any way an approval of any other design element, statement, or representation made on packaging or in advertising for Great Swamp' s cigarettes. Nor does this letter purport to interpret or express any opinion about the adequacy of Great Swamp's packaging and advertising under the FSPTCA or any regulations that have been or might be promulgated by the Department ofHealth and Human Services under that statute, including but not limited to the Regulations Restricting the Sale and Distribution ofCigarettes and Smokeless Tobacco to Protect Children and Adolescents (published March 19, 2010).

Because the FSPTCA imposes additional legal requirements on the marketing and sale of cigarettes, you should ensure that you are in compliance with those requirements. For example, since September 22, 2009, the use of certain characterizing flavors (other than tobacco or menthol) in cigarettes has been prohibited. You can find additional information at www.fda.gov/TobaccoProducts/default.htm, and sign up for FDA email updates at www.fda.gov/T obaccoProducts/Resourcesfor Y ou/ucm 176164 .htm.


Ifyou have any questions regarding this approval, please contact William Ducklow at (202) 326-2407.

Very truly yours,

Mary K.

Associate Director


3

www.fda.gov/Twww.fda.gov/TobaccoProducts/default.htm

~,

Vector Tobacco Inc.

Victoria Spier Evans Tel 919-990-3590 Corporate Counsel Fax 919-990-3505

[email protected]

January 29, 2016

BYFEDEX

Ms. Mary K. Engle Associate Director, Division of Advertising Practices Federal Trade Commission 600 Pennsylvania A venue, NW Mail Code CC-10528 Washington, DC 20580

Re: Vector Tobacco Inc. Application to Renew Warning Rotation Plan for Eagle 20's, Silver Eagle, and USA Cigarette Brands and Brand Styles

Dear Ms. Engle:

Vector Tobacco Inc. ("Vector Tobacco") hereby applies to renew its cigarette warning rotation plan ("Plan") pursuant to the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. § 1331 et seq. ("Act"). Except for the one brand style of Eagle 20's identified below, Vector Tobacco requests simultaneous rotation of the four required warnings in accordance with 15 U.S.C. § 1333(c)(2) for all Vector Tobacco brand styles of the Eagle 20's, Silver Eagle, and USA cigarette brands, as listed on Exhibit B to the Anson Affidavit. In support of this application, enclosed is an affidavit of Nicholas P. Anson, Vice President-Finance of Vector Tobacco with attached Exhibits A and B ("Anson Affidavit"). This application is for a one-year period beginning on the date of approval of this application.

Vector Tobacco's current rotation plan was approved on February 3, 2015 and will expire on February 2, 2016. Vector Tobacco requests renewal of its Plan with respect to all brand styles of the Eagle 20's, Silver Eagle, and USA cigarette brands, as listed on Exhibit B to the Anson Affidavit. Through the date of this application, the Surgeon General 's warnings on the packages for all Eagle 20's, Silver Eagle, and USA brand styles have been equalized, in accordance with Vector Tobacco's current Plan. Vector Tobacco box and soft pack labels are printed in such a way that all four warnings are printed with each revolution of one printing cylinder. For the cartons, two printing cylinders are alternated during the printing process to achieve equal warnings within a single pallet of packaging. Materials are palletized containing all four warnings on each pallet of packs and cartons. On a pallet, the box packs and cartons are stacked in bundles of 500 containing a mix of the four warnings and for the soft pack labels rolls each

3800 Paramount Parkway• Suite 250 •Post Office Box 2010 •Morrisville, NC 27560 •Tel 919·990-3500 • Fax 919-990·3501


Ms. Mary K. Engle January 29, 2015 Page2

containing a mix of the four warnings. In the manufacturing process, packaging is taken from the pallet and loaded into the packaging equipment as it is removed from the pallet, in the order that it is on the pallet, without any attempt to adjust or control that order. Accordingly, as the pallets of packing are used in the manufacturing process, the cigarettes produced using that packaging from those pallets will bear each of the four warnings in equal numbers, subject to limitations to the commercial printing and manufacturing practices.

One brand style - Eagle 20's Red lOOs Box - no longer qualifies for simultaneous warning rotation because its unit sales volume in Vector Tobacco's most recent fiscal year (calendar year 2015) exceeded one-quarter of one percent of the total United States cigarette market. Accordingly, Vector Tobacco is applying for quarterly rotation of the four warnings for packaging of the Eagle 20's Red 1 OOs Box brand style. The four warning will be rotated quarterly in the following sequence, which is the same sequence used for Eagle 20's advertising, as set forth in the Plan:

1st Calendar Quarter: Warning 4: SURGEON GENERAL'S WARNING: Cigarette Smoke Contains Carbon Monoxide.

2nd Calendar Quarter: Warning 1: SURGEON GENERAL'S WARNING: Smoking Causes Lung Cancer, Heart Disease, Emphysema, And May Complicate Pregnancy.

3rd Calendar Quarter: Warning 2: SURGEON GENERAL'S WARNING: Quitting Smoking Now Greatly Reduces Serious Risks to Your Health.

4th Calendar Quarter: Warning 3: SURGEON GENERAL'S WARNING: Smoking By Pregnant Women May Result in Fetal Injury, Premature Birth, And Low Birth Weight.

Packaging for the Eagle 20 's Red lOOs Box brand style, effective as of the date of the approval letter, will bear applicable warning for the quarter in which such cigarettes are manufactured, regardless of the dates on which such cigarettes are distributed or sold.

The enclosed Anson Affidavit sets forth the relevant information on total U.S. and Vector Tobacco cigarette sales in calendar year 2015, which is the most recent fiscal year of Vector Tobacco preceding the submission of this application. The Anson Affidavit shows that all Vector Tobacco brand styles qualify for simultaneous rotation, except for the Eagle 20's Red 1OOs Box brand style, as discussed above.

Except for the Eagle 20's Red lOOs Box brand style, which will be subject to quarterly warning rotation as discussed above, the warnings required by the Act will be printed on the packs and cartons of all other Vector Tobacco brand styles an equal number of times within the one-year period beginning on the date of approval of this application. The four warnings required by the Act will be printed on the packs and cartons of each brand style of the Vector


Tobacco brands (except Eagle 20's Red lOOs Box) an equal number of times within the one-year period beginning on the date of approval of the Plan. The warnings will appear exactly as shown on the pack and carton packaging samples provided with my letter of January 13, 2014. This will confirm that Vector Tobacco, in the ordinary course ofbusiness, maintains records of compliance with the Plan.

The information contained in this letter and in the enclosed affidavit and exhibits is confidential and proprietary business information of Vector Tobacco. Vector Tobacco requests that this information be kept confidential by the FfC, pursuant to its applicable rules and procedures.

Thank you for your attention to this matter. Please let me know if you have any questions.

Very truly yours,

Vt.{~.}(..,(, S~UA_ r; l 1. )W Victoria Spier Evans

STATE OF NORTH CAROLINA

COUNTY OF WAKE

AFFIDAVIT OF NICHOLAS P. ANSON

Nicholas P. Anson, being duly sworn, deposes and says:

1. I am Vice President - Finance of Vector Tobacco Inc. ("Vector Tobacco"), a corporation organized and existing under the laws of the Commonwealth of Virginia.

2. I submit this affidavit in support of the application to renew the Vector Tobacco Inc. Consolidated Rotation Plan for Eagle 20's, Silver Eagle and USA Cigarette Brands and Brand Styles, which is being filed contemporaneously herewith (the "Plan").

. 3. Under 15 U.S.C. § 1333(c)(2), the Surgeon General's Warnings on the packaging ofa particular brand style of cigarettes may be rotated on a simultaneous basis if: (a) the number of cigarettes of such brand style sold in the fiscal year of Vector Tobacco preceding the submission of this application was less than one-fourth of one percent of all cigarettes sold in the United States in such year; and (b) more than one-half of the cigarettes sold by Vector Tobacco in the United States were packaged into brand styles that meet the foregoing requirement. Vector Tobacco's most recent fiscal year was calendar year 2015.

4. Attached to this affidavit as Exhibit A is a copy of the Management Science Associates, Inc. CRA Shipment Data Report for calendar year 2015. This report shows that approximately~ttes were sold in the United States during calendar year 2015. One-fourth of one percent of -cigarettes is approximatel~cigarettes.

5. Attached to this affidavit as Exhibit Bare the sales figures for calendar year 2015 for all Vector Tobacco cigarette brand styles. Exhibit B shows that in 2015 all but one Vector Tobacco cigarette brand styles had unit sales of less than one-fourth of one percent of the total United States cigarette market. One brand style - Eagle 20's Red lOOs Box - had unit sales in calendar year 2015 of more less than one-fourth of one percent of the total United States cigarette market.

6. Accordingly, for all except the Eagle W's Red lOOs Box brand style, Vector Tobacco is eligible to apply for simultaneous rotation of the required warnings as provided in 15 U.S.C. § 1333(c)(2), and all Vector Tobacco brand styles except the Eagle W 's Red lOOs Box brand style are eligible for simultaneous warning rotation.

7. For the Eagle 20's Red lOOs Box brand style, the fou required warnings will be rotated oi:i a calendar-quarter basis, as set forth in the letter dated Janua 26, 016 from Victoria Spier Evans that

accompanies this affidavit. ~ ic; _.:__.:..-1-.+-~~~~~~~~~~~~

Nichol

Sworn to and subscribed before me, this 26th day of January, 2016.

Kimberly Howe Notary Public, Stat My commission expires: January 5, 2018

Vice President - Finance

Kimberly Howe

Notary Public

Alamance County, NC

EXHIBIT A

MANAGEMENT SCIENCE ASSOCIATES, INC. 6565 Penn Avenue

Pittsburgh, PA 15206-4490

Date: January 4th 2016

To: CRA Shipment Clients

From: Steve Berger

Phone: 412-924-3190

Preliminary Data on Industry Shipments

Year Ending December 31st 2015

11 months ofactual CRA Shipment data plus Preliminary December volumes

Company Total (000) Total Share Premium Brands

(000)

Premium Brands Share

(of category)

Discount Brands (000)

Discount Brands Share

(of categoty)

•A11 Other (A/O) Manufacturwr data projected by MSA based on CRA dab month of Nowmber 2015

NOTICE

The information contained in this message is intended only for the use of the Individual or entily to which nis addressed and may contain information that is privileged, confidential. and 8Xllfl'1ll from disclosure under applicable law. If the reader of this notice ls not the iltended reopient or the GfTl'loyee or agent responsible tor delivering the message to !he Intended recipien~ you are hereby noblied that any dissemination, dlStribution or copy ofthis communication Is stnc:Uy prohibited If you have received !his communication 1n error, please notify us by telephone and return the or1ginal rressage to us at the eboYe address via first dass mail.

_ __ _

--

-- - - -

Exhibit B

Vector Tobacco Inc.

Application to Renew Cigarette Warning Rotation Plan

January 26, 2016

Brand , - Current Brand ;tyle ~am~

~ fEAEAEA-- --~G~LLLEE 22~000:sss . ·jg:~ ~a:.~:. ~- ~~ --~-_· ~ ~ . 3 fl _ !Menthol 9~~J_OO~ _Box 4 __ t-~~!::E 20's -- 1~e_nt~~LGolt! ~~_g_s Box 5 tEAG_LE__2_0'.~ _ _ _ ~on-Filter Kings Box

~ ~ ~------- -1g~=~~= kf~:~~B~x ________1] ~~~~~~:

8 EAGl:-E 20's 9 EA~!::E ?O's 10 _rl,EAGLE 20's 11 EAGLE 20's

l lTOTAL EAGLE 20's

j 1 SILVER EAGLE 2 SILVER EAGLE 3 -!SILVER EAGLE 4 [SILVER EAGLE 5 'SILVER EAGLE 6 SILVER EAGLE 7 j ~ILVE~ -~





February 3, 2016

Ms. Victoria Spier Evans Corporate Counsel Vector Tobacco Inc. 3 800 Paramount Parkway Suite 250 P.O. Box 2010

Morrisville, NC 27560

Dear Ms. Evans:

The Federal Trade Commission has delegated to the Associate Director for Advertising Practices its authority to review cigarette health warning display plans submitted to the Commission pursuant to Section 1333(c) of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331-1341 ("the Cigarette Act"). Pursuant to that delegation, I have reviewed a revised proposed plan filed by Vector Tobacco Inc. ("Vector") on January 29, 2016, calling for: (1) simultaneous display (i.e ., the alternative to quarterly rotation) of the four health warnings on packaging for certain varieties of the Eagle 20's, Silver Eagle, and USA brands of cigarettes, and (2) quarterly rotation of the four health warnings on packaging for the Eagle 20's Red 1 OO's box variety of cigarettes.

Vector's sales appear to qualify for the aforementioned alternative to quarterly rotation of the warnings on packaging with the exception of the Eagle 20's Red lOO's box variety, and the warnings on the sample packs and cartons submitted on January 13, 2014 continue to appear to meet the requirements of the Cigarette Act in force as of the date of this letter for size and

. 1conspicuousness.

Accordingly, Vector's plan for simultaneous display of the four health warnings on packaging for the following varieties is hereby approved effective on the date of this letter through February 2, 2017, or until the authority to approve cigarette health warning statement plans moves from the FTC to the FDA, whichever comes first:

• Ten varieties of the Eagle 20's brand: Non-Filter Kings box, Blue lOO's box, Blue Kings box, Menthol Gold lOO' s box, Menthol Gold Kings box, Orange lOO's box, Orange Kings box, Red Kings box, Menthol Silver lOO' s box, Menthol Silver Kings box;

Vector stated in its January 29, 2016 letter that the four health warnings will appear exactly as shown on the packs and cartons submitted on this date.

Ms. Victoria Spier Evans February 3, 2016 Page 2

• Eleven varieties of the Silver Eagle brand: Full Flavor Kings box, Full Flavor lOO's box, Gold Kings box, Gold 100's box, Blue 100' s box, Menthol Full Flavor Kings box, Menthol Full Flavor 1 OO's soft pack, Menthol Kings box, Menthol 1 OO 's soft pack, Blue Slims 120's box, and Menthol Slims 120's box; and

• Fourteen varieties of the USA brand: Kings (Full Flavor) box, lOO' s (Full Flavor) box, 1OO's (Full Flavor) soft pack, Blue Kings box, Blue lOO's soft pack, Blue 1 OO's box, Silver 1 OO's soft pack, Menthol 1 OO's (Full Flavor) soft pack, Menthol Kings (Full Flavor) box, Menthol 1 OO's (Full Flavor) box, Menthol Silver 1 OO's soft pack, Menthol Silver lOO's box, Silver lOO's box, and Menthol Silver Kings box.

Vector' s plan for quarterly rotation of the four health warnings on packaging for the Eagle 20 ' s Red lOO's box variety is also approved.

Approval of the plan is contingent on its good faith implementation. We may ask for information demonstrating proper implementation of the plan. The Cigarette Act provides that any person who violates its provisions is guilty of a misdemeanor.2

Please note that this letter only approves Vector's cigarette health warning statement rotation plan with respect to the statutory requirements in force prior to the June 22, 2009 enactment of the Family Smoking Prevention and Tobacco Control Act ("FSPTCA") concerning the rotation, size, and conspicuousness of the warnings on Vector's packaging. Moreover, it is not in any way an approval ofany other design element, statement, or representation made on packaging or in advertising for Vector' s cigarettes. Nor does this letter purport to interpret or express any opinion about the adequacy of Vector's packaging and advertising under the FSPTCA or any regulations that have been or might be promulgated by the Department of Health and Human Services under that statute, including but not limited to the Regulations Restricting the Sale and Distribution of Cigarettes and Smokeless Tobacco to Protect Children and Adolescents (published March 19, 2010).

Because the FSPTCA imposes additional legal requirements on the marketing and sale of cigarettes, you should ensure that you are in compliance with those requirements. For example, since September 22, 2009, the use of certain characterizing flavors (other than tobacco or menthol) in cigarettes has been prohibited. You can find additional information at www.fda.govIT o baccoProducts/ default.htm, or www.fda.gov/TobaccoProducts/ResourcesforYou/Forlndustry/default.htm, and sign up for FDA email updates at www.fda. gov /TobaccoProducts/Resourcesfor Y ou/ucm 176164 .htm.

Knowingly and willfully making false statements to a federal government agency is a crime punishable by a fine and/or imp~sonment. 18 U.S.C. § 1001.

2

www.fda.gov/TobaccoProducts/ResourcesforYou/Forlndustry/default.htmhttp:www.fda.gov

Ms. Victoria Spier Evans February 3, 2016 Page 3


Very truly yours,

December 21, 2015

Ms. Mary Engle Associate Director Division ofAdvertising Practices Federal Trade Commission Mail Drop CC-10528 600 Pennsylvania Avenue Washington, DC 20580

RE: ITG BRANDS, LLC ADVERTISING PLAN EXPANSION REQUEST TO INCLUDE INTERNET ADVERTISING FOR WINSTON AND KOOL

Dear Ms. Engle:

On June 12, 2015, in correspondence to Rhondetta Walton, you advised that ITG Brands' June 11, 2015 plan for the display of the four health warnings in all its advertising for the Winston, Salem, Kool, and Maverick brands had been approved. The June 11, 2015, advertising plan did not include a plan for display of the warnings in internet advertising and ITG Brands hereby requests approval to expand its advertising plan to include internet advertising for the Winston and Kool brands.

The URL for Kool is www.kool.com. Regarding the Winston brand, ITG Brands plans to utilize the following four (4) URLs, each of which will direct adult smokers to the same branded Winston site:

insidewinston.com (previously used)

winstoncigarettes.com (new)

winston-cigarettes.com (new)

winstoncigarette.com (new)

However, the primary URL is www.winstoncigarettes.com.

W amings will be displayed in an unavoidable manner on every web page where it may be viewed without scrolling and shall not be accessed through hyperlinks, pop ups, interstitials or other similar means. ITG Brands will use the warning format that was submitted with the 1985 plans of the five leading cigarette manufacturers and the size of the warnings shall be proportionate to those warning formats. The warnings will be rotated quarterly according to the advertising schedule set out in the attached Exhibit A.

Corporate Office: Mail to: 714 Green Valley Road P. 0 . Box 10529 Greensboro, NC 27408 Greensboro, NC 27404-0529

http:www.winstoncigarettes.comhttp:winstoncigarette.comhttp:winston-cigarettes.comhttp:winstoncigarettes.comhttp:insidewinston.comhttp:www.kool.com

The information attached as Exhibit B provides information to access the sites for FTC review purposes.

Thank you and please advise ofany questions or ofadditional information needed.

Sincerely,

1?~~ Rhondetta Walton Sr. Legal Counsel

EXHIBIT A

December 2015

ITG BRANDS, LLC

ADVERTISING ROTATION PLAN

QUARTER IN WJilCH WARNING NOTICE UTILIZED ADVERTISING MATERIALS ARE PRODUCED

RAVE 1st Q (Jan -Mar) A 2nd Q (Apr. -June) B 3rd Q (July - Sept.) c 4th Q (Oct. - Dec.) D

MAVERICK WINSTON SALEM KOOL

1st Q (Jan -Mar) A B c D 2nd Q (Apr. -June) B c D A 3rd Q (July - Sept.) C D A B 4th Q (Oct. -Dec.) D A B c

MULTIPLE BRANDS/ NON-BRAND SPECIFIC

1st Q (Jan -Mar) A 2nd Q (Apr. -June) B 3rd Q (July - Sept.) C 4th Q(Oct. - Dec.) D

A - SURGEON GENERAL'S WARNING: Smoking Causes Lung Cancer, Heart Disease, Emphysema, And May Complicate Pregnancy.

B - SURGEON GENERAL'S WARNING: Quitting Smoking Now Greatly Reduces Serious Risks to Your Health.

C - SURGEON GENERAL'S WARNING: Smoking By Pregnant Women May Result in Fetal Injury, Premature Birth, And Low Birth Weight.

D- SURGEON GENERAL'S WARNING: Cigarette Smoke Contains Carbon Monoxide.

EXHIBIT B

ITG BRANDS, LLC QA LINK TESTING LOGIN INFORMATION

WINSTON http ://qasite.winstoncigarettes.com/

KOOL http ://qasite. kool.com

TESTING LOGIN CREDENTIALS:

Usemame Password

http:http://qasite.kool.comhttp:http://qasite.winstoncigarettes.com





February 4, 2016

Ms. Rhondetta Walton, Esq.

ITG Brands, LLC

P.O. Box 10529

Greensboro, NC 27404

Dear Ms. Walton:

The Federal Trade Commission has delegated to the Associate Director for Advertising Practices its authority to review cigarette health warning display plans submitted to the Commission pursuant to Section 1333(c) of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331-1341 ("the Cigarette Act"). Pursuant to that delegation, I have reviewed a revised proposed plan filed by ITG Brands, LLC ("ITG") on December 21 , 2015, calling for quarterly rotation of the four health warnings in Internet advertising for the Winston and Kool brands of cigarettes.

ITG' s plan for rotation and display of the four health warnings in the aforementioned advertising for the Winston and Kool brands of cigarettes is hereby approved. Approval of the plan assumes that the plan is implemented in good faith. With respect to the question of whether it is legal to advertise cigarettes on the Internet, Section 1335 of the Cigarette Act prohibits advertising cigarettes on any medium of electronic communication subject to the jurisdiction of the Federal Communications Commission. The enforcement of that provision is the responsibility of the Department of Justice and you should contact them directly (Lashanda Freeman at 202-307-0052) to determine whether such advertising on the Internet is permissible.

Please note that this letter is not an approval of any statement or representation made in advertising for ITG' s cigarettes. Nor does this letter purport to interpret or express any opinion about the adequacy ofITG's advertising and packaging under the Family Smoking Prevention and Tobacco Control Act ("FSPTCA") or any regulations that have been or might be promulgated by the Department of Health and Human Services under that statute, including but not limited to the Regulations Restricting the Sale and Distribution of Cigarettes and Smokeless Tobacco to Protect Children and Adolescents (published March 19, 2010).

Because the FSPTCA imposes additional legal requirements on the marketing and sale of cigarettes, you should ensure that you are in compliance with those requirements. For example, since September 22, 2009, the use ofcertain characterizing flavors (other than tobacco or menthol) in cigarettes has been prohibited. You can find additional information at www.f da. gov IT obaccoProducts/ default.htm, or

Ms. Rhondetta Walton, Esq. February 4, 2016 Page 2

www.fda.gov/TobaccoProducts/ResourcesforYou/Forlndustry/default.htm, and sign up for FDA email updates at www.fda.gov/TobaccoProducts/ResourcesforYou/ucml 76164.htm.


Very truly yours,

~~-~ Associate Director

www.fda.gov/TobaccoProducts/ResourcesforYou/ucmlwww.fda.gov/TobaccoProducts/ResourcesforYou/Forlndustry/default.htm

Holland &Knight

31West52ndStreet I NewYork, NY10019 I T 212.5133200 I F212.385.9010 Holland & Knight LLP I www.hklaw.com

Neal N. Beaton

(212) 513-3470

[email protected]

February 4, 2016

VIA FEDERAL EXPRESS

Mr. William Ducklow Bureau of Consumer Protection Division of Advertising Practices Federal Trade Commission 600 Pennsylvania A venue, NW Mail Drop CC 10528 Washington, D.C. 20580

Dear Mr. Ducklow:

JT International U.S.A., Inc. ("JTI") is planning to introduce four brand styles within its "LO by L. Ducat" brand family, namely Red (king size), Red IOOs, Menthol lOOs and Blue lOOs (all of which are hard packs). We enclosed under cover of our letter dated January 15, 2016 individual packages and cartons utilizing each of the four health warnings for these brand styles.

The warnings will appear on the packaging exactly as shown on the materials submitted under cover of our letter dated January 15, 2016. In all other respects, JT International U.S.A., Inc. will maintain compliance with the approvals dated April 2, 2015 and July 30, 2015 and the submittals on which they were based.

In support of JTI's application for extension of Federal Trade Commission approval of its simultaneous display plan for packages and cartons to cover those packaging varieties, JTI affirms that:

(a) the cigarettes sold by JTI in the U.S. continue to comply with the two-tiered test in Section 4(c)(2) of the Act. The total number of cigarettes imported by JTI and sold in the United States during JTI' s last fiscal ear ended December 31, 2015 of its highest volume brand style was less than and therefore (i) each brand style of cigarettes which JTI imported and sold accounted for less than one-fourth of one percent ofall cigarettes sold in the United States during the most recent completed year and (ii) more than one-half (i.e. all) of the cigarettes imported by JTI for sale in the United States are packaged into brand styles which meet the requirements of clause (i);

(b) the statutorily mandated warnings will appear exactly as shown on the sample individual packages and cartons (or bundles) submitted to and approved by the Federal Trade

Anchorage i Atlanta I Austin I Boston IChicago I Dallas I Denver I Fort Lauderdale ! Jacksonville I Lakeland ILos Angeles

Miami New York INorthern Virginia I Orlando I Portland I San Francisco I Tallahassee I Tampa IWashington, D.C.

West Palm Beach I Bogota I Mexico City

mailto:[email protected]:www.hklaw.com

Mr. William Ducklow February 4, 2016 Page 2

Commission unless and until revised sample individual packages and cartons are submitted to the Federal Trade Commission on JTI's behalf and approved by the Federal Trade Commission; and

(c) JTI will equally display the four warning labels specified in Section 4(a)(l) of the Act on packages and cartons of cigarettes for each of the four brand styles within its "LD by L. Ducat" brand family for which packaging is being submitted under cover ofour letter dated January 15 ~ 2016 for the one year period beginning on the date ofapproval for the Plan and JTI will keep records demonstrating compliance with the Plan.

JTI will import and sell packages and cartons of each such brand style in equal numbers ofeach warning label throughout the one-year period after this application is approved as set forth on the Attachment 1 hereto. As a result, if requirements for new warnings were to become effective on any date, the current warnings will have been utilized in equal proportions prior to then on such brand styles.

We confirm, as requested, that this brand will not be utilized in advertising unless and until it is

covered by a revised rotational warning schedule submitted to and approved by the Federal

Trade Commission.

Please confirm that this packaging is approved. Our client would appreciate it if this review

could be handled as promptly as possible. We enclosed a Federal Express airway bill under

cover of our November 5, 2015 letter which can be utilized to send an approval to me.

Thank you in advance for your kind and prompt consideration.

Very truly yours,

Enclosure

Attachment 1

Export 'A'

Export 'A' is printed using the gravure method. Rotation of warnings is based on percentage on each sheet ofpackaging printed. With four health warnings, equal distribution is 25% of the sheet per warning.

Export A 72 Slide and Shell Pack:

The shell of Export 'A' slide and shell format is printed using a 24-ups cylinder configuration. The cylinder prints one sheet per rotation; one sheet contains 24 packs. Warnings A, B, C and D each comprise 25% of the sheet. Each warning appears 6 times per sheet.

Export 'A' 72 Slide and Shell Bundle:

Export 'A' uses a paper-foil bundle rather than a standard carton. The bundle is printed using two sets ofcylinders, each configured with 3 ups. The two cylinders print one full sheet per rotation; one sheet contains 6 bundles. Warnings A and Bare printed on one cylinder and Warnings C and Dare printed on the other. Each warning comprises 50% of the cylinder and 25% of the total sheet. Each warning appears 3 times per sheet.

Wave/Wings/LO by L. Ducat

Wave, Wings and LD by L. Ducat are printed using the offset method. Rotation ofwarnings is based on percentage on each sheet ofpackaging printed. With four health warnings, equal distribution would be 25% of the sheet per warning. All packaging is preprinted and supplied to the factory where it is made into final consumer packaging.

Wave/Wings/LD by L. Ducat/Round Corner KS/lOOs Box:

The round corner box utilizes two printing plates, each configured with 22 facings. The two plates are rotated so that they are used equally and collectively have 44 ups in a rotation. Each warning is printed at 11 times per set of two sheets in a rotation, comprising 25% of the sheets.

Wave/Wings Soft Pack KS/lOOs:

Soft pack styles are printed using a plate with 16 total facings. Each sheet contains 16 ups and is printed in one rotation. Warnings A, B, C and D each comprise 25% of the sheet. Each warning is printed 4 times.

Wave/Wings/LD by L. Ducat/Cartons KS/lOOs:

All round corner box and soft pack styles share the same carton printing configuration. These cartons are printed using plates with 4 facings. Each sheet is printed with 4 ups per rotation. Warnings A, B, C and D each comprise 25% of the sheet, appearing once.

#38550798_vl

Selected packaging samples from those

submitted with the plan.

II

+

D I D D D D D

o;i -. ~ o~

1:0 APROOUCTOF JTIHTERNATIONAL 20Cl.ASSA CIGAAETTES

United States ofAmerica




February 4, 2016

Neal N. Beaton, Esq. Holland & Knight, LLP 31 West 52nd Street New York, NY 10019

Dear Mr. Beaton:

The Federal Trade Commission has delegated to the Associate Director for Advertising Practices its authority to review cigarette health warning display plans submitted to the Commission pursuant to Section 1333(c) of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331-1341 ("the Cigarette Act"). Pursuant to that delegation, I have reviewed a revised proposed plan filed on behalfof JT International U.S.A., Inc. ("JTI"), on February 4, 2016, calling for simultaneous display (i.e., the alternative to quarterly rotation) of the four health warnings on packaging for four box varieties of the "LD by L. Ducat" brand of cigarettes.

JTI's sales appear to qualify for the aforementioned alternative to quarterly rotation of the warnings on packaging, and the warnings on the sample packs and cartons submitted with your letter dated January 15, 2016 appear to meet the re~uirements ofthe Cigarette Act in force as of the date of this letter for size and conspicuousness. Accordingly, JTI's plan for simultaneous display of the four health warnings on packaging is hereby approved for the following four box varieties of the "LD by L. Ducat" brand: Red Kings, Red IOO' s, Menthol lOO's, and Blue IOO's.


Please note that this letter only approves JTI's cigarette health warning statement rotation plan with respect to the statutory requirements in force prior to the June 22, 2009 enactment of the Family Smoking Prevention and Tobacco Control Act ("FSPTCA") concerning the rotation, size, and conspicuousness of the warnings on JTI's packaging. Moreover, it is not in any way an approval of any other design element, statement, or representation made on packaging or in advertising for JTI's cigarettes. Nor does this letter purport to interpret or express any opinion about the adequacy of JTI's packaging and advertising under the FSPTCA or any regulations that

JTI stated in its February 4, 2016 letter that the four health warnings will appear exactly as shown on the sample packs and cartons submitted on January 15, 2016.

Knowingly and willfully making false statements to a federal government agency is a crime punishable by a fine and/or imprisorunent. 18 U.S.C. § 1001 .

2

Neal N. Beaton, Esq. February 4, 2016 Page 2

have been or might be promulgated by the Department of Health and Human Services under that statute, including but not limited to the Regulations Restricting the Sale and Distribution of Cigarettes and Smokeless Tobacco to Protect Children and Adolescents (published March 19, 2010).

Because the FSPTCA imposes additional legal requirements on the marketing and sale of cigarettes, you should ensure that you are in compliance with those requirements. For example, since September 22, 2009, the use ofcertain characterizing flavors (other than tobacco or menthol) in cigarettes has been prohibited. You can find additional information at www.fda.gov/TobaccoProducts/default.htm, and sign up for FDA email updates at www.fda.gov/TobaccoProducts/Resourcesfor Y ou/ucm 176164.htm.



Very truly yours,

~le\~~ Mary K.~gle . 0 Associate Director

www.fda.gov/TobaccoProducts/Resourcesforwww.fda.gov/TobaccoProducts/default.htm

r ' 1 •: ] ~ r.... l ~ I I.

Ms. Mary K. Engle, Associat1~ Director

Federal Trade Commission

600 P1:nnsylvania A venue ~W Mail Drop CC- I 0528 Washington, DC 20580

February 11 , 20 16

Dear Ms. Engle:

Re: Request for Approval of Health Warning Rotation Plan for DREAMS Brand Familv of Cigarette~

On October 22, 2009, Krctek International ("Krctek") received approval from the Federal Trade Commission ("FTC'') for its health warning rotation plan ("'the Plan'') for the Dreams cigarettes styles listed below. Late in 2009, for various reasons, Kretek voluntarily ceased offering for sale its DREAMS brand family of ci.garcttcs in the US market.

It is Kretek's intention to once again offer for sale imported DREAMS cigarettes styles that do not have a charnctcril ing flavor (other than tobacco or menthol). Those styles will be in king-size, clam-shell style hard packs and will include California Dreams, Midnight Dreams, Mentho l Dreams, Naturnl Dreams, and Pink Dreams.

The heal th wainings on the packaging for these live (5) brand styles will appear exactly as shown on lhe packagin3 labcls that were sent to you on January l3. 2016. In addition, Kretek has suumitted to the Secretary of the Department of Health and lluman Services a list of the ingredients added to tobaccos in the manufacture of the cigarette!>.

Kretck will di splay the 1~ health warnings an ~qua! number of times on the packs and cartons of each brand style of the DREAMS brand for tlte next one year period, beginning on the elate of approval of the Plan. Each shipment of DRE/\ MS cigarettes that is impo1 ted by Krctek shall contain an equal numhcr of warni ngs on each of the styles listed above. Krelek will keep records lo demonstrate compliance wi th this Plan.

Each year, Kretek will resubmit this equalized health warning stat ement plan for your review and approval. Kretek uses a cal enda1·-bnsec! fi scal year tltat runs from fanuary through December. Krctck should qualify to equalize the warniugs on its packs and cartons during fisca l year 20 l 6, since no single brand style of cigarettes imported by

'. I • I 1 ii: ,,,. I Ill I.

V"

K i .' ' ·~K . '

f\..rd ck had sales of morG than - sticks during lt ::;cal year 2015. Krct0k cutrcnll y only imporls 1 AJ \t1AIIA L Jnd LAGLJ NJ\S brand l'.nnilics of cigtt,dlcs.

Krctck docs not intend lv engage in con:;umcr advertising for the DREA:Vl~ cigardtc brands, but will submit n proposed ndvcrti'>i ng rot1tion plun for Hppr0v·il to the FTC iCth al change.s.

In view of the above pradices, Krctck asks that its health warning disp lay plan be appnwcd for the upco111ing year.

Sincerely.

;' lllI II/. I . . , /

I V /

Hoo "r:jhiang Han Director, Tobacco Tax & Legal Compl iance Krclek Intl:rnational, Inc.

) ' I jJ• I , • )

Selected packaging samples from those

submitted with the plan.

.,

'

Natural Dreams are madefrom the world's.finest blend of select all-natural tobacco With its mild taste and exceptionally smooth finish, this cigarette offers pure smoking enjoyment.

SURGEON GENERAL'S WARNING: Smoking Causes Lung Cancer, Heart Disea~e. Emphysema, And May Complicafe Pregnancy.


FEDERAL TRADE CbMMISSION



February 11, 2016

Hoo Tjhiang Han Kretek International, Inc.

5449 Endeavor Court

Moorpark, CA 93021

Dear Mr. Han:

The Federal Trade Commission has delegated to the Associate Director for Advertising Practices its authority to review cigarette health warning display plans submitted to the Commission pursuant to Section 1333(c) of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C §§ 1331-1341 ("the Cigarette Act"). Pursuant to that delegation, I have reviewed a revised proposed plan filed by Kretek International, Inc. ("Kretek"), on February 11, 2016, calling for simultaneous display (i.e., the alternative to quarterly rotation) of the four health warnings on packaging for certain varieties of the Dreams brand of cigarettes.

Kretek's sales appear to qualify for the aforementioned alternative to quarterly rotation of the warnings on packaging, and the warnings on the sample packs and cartons submitted with your letter dated January 13, 2016 appear to meet the re~uirements of the Cigarette Act in force as of the date of this letter for size and conspicuousness. Accordingly, Kretek's plan for simultaneous display of the four health warnings on packaging is hereby approved for the following five king-size, clam-shell hard pack varieties of the Dreams brand: California, Midnight, Menthol, Natural, and Pink.

Approval of the plan is contingent on its good faith im~lementation . We may ask for information demonstrating proper implementation of the plan. The Cigarette Act provides that any person who violates its provisions is guilty of a misdemeanor.

Please note that this letter only approves Kretek's cigarette health warning statement rotation plan with respect to the statutory requirements in force prior to the June 22, 2009 enactment of the Family Smoking Prevention and Tobacco Control Act ("FSPTCA") concerning the rotation, size, and conspicuousness of the warnings on Kretek's packaging. Moreover, it is

Kretek stated in its February 11 , 2016 letter that the four health warnings will appear exactly as shown on the sample packs and cartons submitted on January 13, 2016.

Knowingly and willfully making false statements to a federal government agency is a crime punishable by a fine and/or imprisonment. 18 U.S.C. § 1001 .

2

Hoo Tjhiang Han February 11 , 2016 Page 2

not in any way an approval of any other design element, statement, or representation made on packaging or in advertising for K.retek 's cigarettes, including, but not limited to, "natural." Nor does this letter purport to interpret or express any opinion about the adequacy of Kretek's packaging and advertising under the FSPTCA or any regulations that have been or might be promulgated by the Department of Health and Human Services under that statute, including but not limited to the Regulations Restricting the Sale and Distribution of Cigarettes and Smokeless Tobacco to Protect Children and Adolescents (published March 19, 2010).

Because the FSPTCA imposes additional legal requirements on the marketing and sale of cigarettes, you should ensure that you are in compliance with those requirements. For example, since September 22, 2009, the use of certain characterizing flavors (other than tobacco or menthol) in cigarettes has been prohibited. You can find additional information at www.fda.gov/TobaccoProducts/default.htm, and sign up for FDA email updates at www.fda.gov/TobaccoProducts/ResourcesforY ou/ucm 176164.htm.

Please note that Section 802 of the Tariff Suspension and Trade Act of2000 prohibits the importation of cigarettes unless at the time of entry the importer presents a sworn statement signed by the original cigarette manufacturer stating that the manufacturer has submitted and will continue to submit the list of ingredients to FDA.

This approval is effective on the date of this letter and runs through February 10, 2017, or.until the authority to approve cigarette health warning statement plans moves from the FTC to the FDA, whichever comes first.


Very truly yours,

www.fda.gov/TobaccoProducts/ResourcesforYwww.fda.gov/TobaccoProducts/default.htm

l ... ,\ \\' {)Ji't•'ICJ•;S 01"

li'lNGEl{, HOKMEl~. BHOWN & 1\llAHJANI, L.L.F'. J.O:! \:VJ•~s·.1 1 TlllHIJ S•r1.:J·:w1'. SV J'I'•·~ :.?OO 1 ~~ . J...t l HJ \ Y J ..J•:V 1·:1.

n·V\11NsTON~S.1\LJ~~~1. Nc.1J.:•rt• < ;:\ )~OL)N.A 27.1.0l

'l"l•; 1 ~t·:PllONJ•: ta~HH 72:·1-:l·::SlJ.

P

llcnr)•@hcrocrncrlaw.com

r•t•·~ h! FJ•'ICJ•.: :

.O. Box 8 A.NIH;: ).;\\' G ..Bl?OWN

~iAl{IJ\NIJ'g•]1)~l\: J~ .

February l 0, 2016

Via FedEx

Ms. Mary K. Engle Associate Director Federal Trade Commission 600 Pennsylvania Avenue, N.W. Mail Drop CC-I 0528 Washington, DC 20580

Re: Requestfor Renewal of Approved Warning Statement Rotation Plan for packaging and advertising for the brand LAGUNAS (international-size, hard-pack style: Smooth Select and Menthol Select)

Dear Ms. Engel:

I am writing this letter on behalf of Kretek International, Inc. ("Kretek"), the importer for the above indicated products.

In a letter from you dated February 9, 2015, the Federal Trade Commission approved a certain health warning rotation plan for packaging and advertising on behalfof Kretek (the "Existing Plan").

It is our desire to renew the Existing Plan for an additional year (the "Renewed Plan"). The Existing Plan (which we are herewith seeking to renew and extend) calls for equalizing the use of the warnings for Lagunas brand cigarettes (international-size, hard-pack style: Smooth Select and Menthol Select).

As provided for by Section 1333(c)(2) of the Cigarette Labeling and Advertising Act (the "Act"), Kretek qualifies for a renewal of the equalization alternative because during fiscal year 2015: (1) each oft~les of all of the cigarettes manufactured or imported by Kretek accounted for less than - sticks, and (2) Kretek

rotational health warnings for cigarettes (january 2016 to ... · crimson king box, crimson ioo's...

Documents