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February 23, 2005

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

By: Thomas A. Briant, Executive Director

During the recent NATO Conference and Expo, more than 90 tobacco stores joined the association putting the total number of NATO member retail tobacco stores above the 2,000 mark. This is a significant milestone for NATO since the association was created just three years ago. As NATO continues to grow, the association and its members will have an even greater impact on tobacco legislative issues.

NATO Legislative Scorecard: While state legislators are rushing to adjourn their 2004 legislative sessions, final action has been taken on some key bills. Below is a chart that lists the final outcomes of state legislative battles on excise taxes, smoking bans and self-service displays that NATO and its members have been fighting this year:

Currently, there are numerous bills pending in other states that seek to increase excise taxes, ban smoking in hospitality establishments and prohibit self-service tobacco displays. The NATO legislative staff continues to work diligently with association members to respond to these legislative threats. In addition, Project S.T.O.P. alerts have been sent to consumers in Alabama, Arkansas, Colorado, Connecticut, Iowa, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, New Jersey, New Mexico, Pennsylvania, Tennessee, Texas and Virginia. NATO also extends a special thanks to government affairs specialists with U.S. Smokeless Tobacco Brands for their assistance in amending the Oklahoma self-service display ban to exempt tobacco stores and to Conwood Sales Co., L.P. for their on-going assistance in opposing significant excise tax increases in Texas.

Federal Legislative Update: The proposal by the Department of Health and Human Services to increase the federal cigarette tax to $2.00/pack to fund a smoker’s quitline has not gathered any support. A bill passed by the U.S. Senate that would ensure state excise taxes are being paid on cigarettes and tobacco products sold over the Internet has not yet come up for a vote in the House. The bill granting the Food and Drug Administration power to regulate the manufacture and sale of cigarettes and tobacco products has not moved forward in Congress. Attempts to link the FDA bill with a buy-out of tobacco farmer subsidy programs have not gained momentum.

The Campaign Trail: During a campaign stop in Kentucky this week, Senator John Kerry, the presumptive Democratic nominee to challenge President George W. Bush in the November elections, announced that he supports a buy-out of the tobacco-quota program provided that it is linked to granting the FDA regulatory power over the manufacture and sale of cigarettes and tobacco products.

NATO Member Survey Results: The results of the first NATO Retail Tobacco Outlet Survey are in and the NATO board of directors has appointed a committee of retailers to review the results and make recommendations for the association to take to assist tobacco store members. Below is a chart which lists in order of importance the primary concerns of retailers on legislative issues and retailing matters:

NEW: Manufacturer Promotion Program: Beginning July 1st, NATO retail members will be offered exclusive, special promotions each quarter by NATO manufacturer members. The promotions will apply to each order placed with that manufacturer and may include percent off purchases, special displays, product bundling or free shipping. Watch for the quarterly promotions to be published in the NATO Monitor Newsletter. This promotion program is another benefit for retail members of the association.

2004 Is An Election Year: Vote! NATO’s primary purpose is to take a pro-active approach to educate elected officials on legislation that would impact the tobacco outlet industry and to protect the individual rights and freedom of choice of the adult customers that are served by NATO retail members. Since 2004 is an election year with most state and federal officials up for election, including the president, NATO urges all NATO members to exercise their right and vote this coming November.

NATO Board Appoints Committees: The NATO board recently appointed committees to work on specific issues being addressed by the association. A Membership Marketing Committee is now at work on ways to increase retail membership in NATO. Also, a Retail Survey Committee has been appointed to recommend what action NATO should take based on the important concerns voiced by NATO members. NATO members who would like to participate on a NATO committee can contact Executive Director Thomas Briant toll-free at 1-866-869-8888.

2004 Membership Dues Reminder: In April, those NATO members (retailers, wholesalers and manufacturers) who had not yet renewed their membership in NATO for 2004 were mailed reminder statements for payment of annual membership dues. If your dues are outstanding, please remit your payment to the NATO office so you can continue to benefit from the association’s services and programs.

Welcome New Manufacturer Members: NATO welcomes Csonka Worldwide and Torano Cigars as new NATO manufacturer members.

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