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January/February 2008

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AGs Attack RJR Ads

Attorneys general sue R.J. Reynolds over Camel ad.

A group of state attorneys general announced plans to file a lawsuit charging that an R.J. Reynolds’ Camel cigarette ad in the November edition of Rolling Stone violates the company’s promise not to use cartoons to sell cigarettes. "Their latest nine-page advertising spread in Rolling Stone, filled with cartoons, flies in the face of their pledge to halt all tobacco marketing to children,” said Pennsylvania Attorney General Tom Corbett, referring to an MSA provision against using cartoons in advertisements

However, the ads themselves did not contain illustrations, but appear within an editorial section that did include cartoons—a section produced by Rolling Stone, not RJR, pointed out R.J. Reynolds representatives. “Had we been aware of the graphics prepared by Rolling Stone, we would not have advertised adjacent to the gatefold,” David Howard, spokesman for R.J. Reynolds, said in response to the suit. While the company was surprised and concerned by Rolling Stone’s illustrations, R.J. Reynolds bore no responsibility for it, he added.

The publisher of Rolling Stone, Ray Chelstowski, supported Howard’s assertion, calling the lawsuit “farfetched” and noting that R.J. Reynolds had no knowledge that the magazine’s pages would be illustrated, and added that the Camel ads tout the music web site rather than cigarettes.

States, however, are seeking restitution for the purported offense—fines of $100 per magazine distributed within their borders, as well as $100 per visit on the related R.J. Reynolds Web site: www.thefarmrocks.com.

Other states participating in the suit reportedly include Pennsylvania, California, Illinois, New York, Ohio, Washington, Maryland, and Connecticut. “They agreed not to do these kinds of things ever since Joe Camel,” stated California Attorney General Jerry Brown, commenting on the suit. “We have to call them to task.”

Additional states are reviewing the issue with an eye to joining the fracas. Should all 46 involved in the MSA join the suit and it proves successful, estimates suggest that fines could exceed $100 million. RJR could also be asked to remove the images from all web sites and promotions and fund anti-smoking ads by R.J. Reynolds considered equal to the cost of the Rolling Stone advertisement.

Previously, RJR had been under fire for the Camel No. 9 ads in fashion magazines that appeared to target young women. Ironically, even before the latest controversy over the Rolling Stone ad, RJR had announced it would no longer advertise in newspapers or consumer magazines as of 2008.

Promotions at Smoker Friendly

A new structure seeks to smooth communications.

Changes in the management structure of Boulder, Colorado-based Smoker Friendly International LLC and its Cigarette Store Corp. aim to streamline communication within the company and its company-operated stores, says Terry P. Gallagher Jr.. president.

Dan Gallagher, who assumed the post of vice president of operations, is now the point person for all cigarette-manufacturer contacts and senior team leader of all operational, promotional, and contract decisions in the chain’s 100 company-operated stores.

Jeremy Weiner, formerly area manager, is now sales and marketing manager, where he will lead all other manufacturer and vendor relationships outside of major-brand cigarettes. His responsibilities will include buying, planning, promotional activity, planograms, marketing, and advertising of roll-your-own and make-your-own products, domestic cigars, premium cigars, premium, luxury, and import cigarettes, accessories, liquor, wine, beer and all general-merchandise products.

At Smoker Friendly International LLC, Mary Szarmach is now vice president of trade marketing. Szarmach’s responsibilities include overseeing existing private-label products and development of product line extensions and directing the annual SFI Conference and Tobacco Festival and annual SF catalog.

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Happy Birthday, Swisher!

Swisher Sweets contest celebrates 50 years.

Swisher International Inc. recently celebrated the 50th birthday of its popular brand, Swisher Sweets.

To commemorate this milestone, Swisher International Inc. unveiled a new booth at the National Association of Convenience Stores (NACS) Conference which took place in Atlanta, Georgia, on November 7, 8, and 9 under the theme “Yesterday, Today and Tomorrow.”

“Our anniversary year was launched at the NACS Conference,” commented Jane Green, vice president of marketing. “As part of our anniversary celebration, we commissioned the creation of a new booth, reflecting state of the art technology depicting our new marketing direction,” she adds. “In addition, during 2008 we will be giving away $100,000 over a 50-week period via our 50th Anniversary $50,000 Trivia Game ($1,000 to be given away weekly) where both our consumers and trading partners can participate. Millions of Swisher Sweets five-packs will carry the details on how to play and win $1,000 weekly. All in all, this promises to be a very exciting year.”

Founded in 1861 by David Swisher, Swisher International grew from a small cigar business to one of the leading cigar manufacturers in the world. Launched in 1958, Swisher Sweets now come in a variety of flavors, shapes, and sizes and are sold in five-packs, boxes, and impulse displays.

Its other cigar products include King Edward, Optimo, and BlackStone, among others. In addition, Swisher manufactures a wide range of smokeless tobacco, including brands Lancaster, Mail Pouch, Chattanooga Chew, and Starr chewing tobacco, and Kayak, Silver Creek, and Redwood moist snuffs.

“We certainly want to thank our trading partners and suppliers for their support in helping us to get to where we are today,” notes Tom Ryan, president of Swisher International Inc. “As Swisher Sweets begins its next 50 years, rest assured that we will stay focused on the business of manufacturing and marketing quality cigars and smokeless tobaccos. We will continue to build on our history of achievement for the benefit of our trading partners, our consumers and our community.”