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February 28, 2005

A Newsletter of the National Association of Tobacco Outlets, Inc.

By: Thomas A. Briant, Executive Director

NATO retail members can now take advantage of exclusive, special promotions offered by NATO manufacturer members every quarter. For the quarter beginning July 1, 2004 and ending September 30, 2004, NATO retail association members are eligible to receive special percentage discounts, free merchandise with each purchase, free display racks or free shipping. The NATO manufacturer members that are offering one or more of these special promotions were listed in the version of the July, 2004 NATO Monitor mailed to each NATO Member. This special promotions program is made possible by the manufacturers which are extending these offers to NATO members. By taking advantage of these promotions, retail members further enhance the value of their association membership. Any other manufacturers that would like to consider offering a promotion in future quarters should contact NATO Executive Director Thomas Briant at the NATO offices (toll-free 1-866-869-8888).

Retail Survey Committee Works With
RJR on Promotions for Outlet Stores

One of the top concerns mentioned by NATO retailers in the association’s recent retailer survey was the need for more product promotion programs for tobacco outlet stores. In response to that concern, the NATO Retail Survey Committee had several meetings with a representative of R.J. Reynolds Tobacco Company to encourage the company to offer additional programs to tobacco outlet stores. The meetings and dialogue have acted as a catalyst for RJR to announce a nationwide program for cigarette and tobacco stores of $2.00 off specially marked cartons of Winston brand cigarettes. The $2.00 off per carton Winston promotion will be offered for the months of September, October and November, 2004. In addition, RJR is working on other brand promotions for tobacco outlet stores. NATO retailers should ask their local RJR sales representative about these new promotions.

Besides working on product promotions, the NATO Retail Survey Committee is (1) extending invitations to other NATO manufacturers to meet and discuss the possibility of promotions for tobacco stores, (2) requesting that each NATO manufacturer provide the name of a key contact person that NATO members can be referred to if they have a question about a company’s products or programs and (3) dedicating space on NATO’s website to list the members of the Retail Survey Committee and to allow members to send in questions or concerns to the committee members. If you would like to speak directly with a Retail Survey Committee member, you can contact Committee Members Velma Hartley at 706-569-8711, Joan Livingston at 254-791-0876 or Shon Ross at 806-785-0208.

NATO Retail Membership Development Drive Underway

A new NATO retail membership drive is underway as a result of a proposal by the NATO Membership Committee. The membership drive involves the sales representatives of fourteen manufacturer and wholesale NATO members delivering special NATO membership flyers and application forms to their local retail tobacco store accounts and urging them to join the association. The NATO members offering their support for this membership drive are Altadis, U.S.A., Amundson Cigar and Candy Co., Arango Cigar Co., Csonka Worldwide, Cusano Cigars, Doyle Wholesale, H.J. Bailey Company, Klafters, Inc., M & R Holdings, Nat Sherman Company, National Tobacco Company, Robert Burton Associates, Royal Crown Custom Leathers and Swisher International. 

2004 NATO Legislative Wrap Up

Most state legislatures have adjourned for the 2004 legislative and Congress is also in recess for the Fourth of July. On the state level, proposed cigarette/tobacco tax increases were defeated, postponed indefinitely or not enacted in nineteen states. Four states enacted tax increases into law, Oklahoma residents will vote on a proposed tax increase in the November elections and a Rhode Island tax increase is awaiting action by the state’s governor. Below is a chart that lists the outcomes of state legislative tax battles that NATO and its members have opposed this year (in the middle column of the chart below, the first dollar figure is the amount of the proposed cigarette tax increase and the second figure would be the resulting per pack tax rate):

In Congress, it appears that a bill passed by the U.S. Senate to require the collection of state excise taxes on cigarettes and tobacco products sold over the Internet or by mail order will not come up for a vote on the floor of the U.S. House. At the same time, the House did pass as a part of a larger tax bill a tobacco buy-out program for tobacco farmers which did not include any provisions granting the Food and Drug Administration the power to regulate the manufacture and sale of cigarettes and tobacco products. Although the Senate did consider FDA regulatory legislation, the action by the House not to link FDA regulation with the tobacco buy-out legislation means that the FDA bill should not advance in Congress this year.

Welcome New Manufacturer Members: NATO welcomes Villiger North America Corp. and North Atlantic Cigarette Company as new NATO manufacturer members.

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