SS June 2016

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12 SMOKESHOP June 2016 NEWS >>>TRENDS & TRENDSETTERS IN TOBACCO RETAILING Retailing > A new research paper by Oxford University Press ( enti- tled "Reducing the Density and Number of Tobacco Retailers: Policy Solutions and Legal Issues" published in Nicotine & Tobacco Research, concludes that U.S. courts are likely to reject constitutional chal- lenges to carefully crafted laws that reduce the number of tobacco retailers, given that there is an evidentiary basis linking the density of tobacco retailers to smoking rates in a community. > The FDA has expanded its "The Real Cost" youth tobacco prevention cam- paign in April to target young men and their use of smokeless tobacco, and in May launched a separate public eductation campaign titled "THe Free Life" aimed at preventing and reducing tobcaco use among LGBT young adults aged 18–24 years. > The majority of Canadian vape outlets and con- venience stores refused to sell e-cigarettes to underage youths who tried to buy them during a four-month period last year, a draft report for Health Canada has found, although compliance var- ied widely by province. The study of 4,000 stores was undertaken to test how easy it was for youths 15–17 years old to buy nicotine e-cigarettes. Retailing Bits&Pieces chicago—In late May, a coalition of indus- try interests comprising Chicago retailer Iwan Ries & Co.; Northbrook, Ill. wholesaler Aragno Cigar Co.; and trade associations NATO, Cigar Association of America, the Illinois Association of Wholesale Distributors, the Illinois Retail Merchants Association, and the International Premium Cigar and Pipe Retailers Association sued the City of Chicago seeking a preliminary and permanent injunc- tion against the imposition and enforcement of Mayor Rahm Emmanuel's March 16 OTP tax increase. The plaintiffs argue that the tobacco tax violates Illinois's home rule stat- ute, and the city hedged its bets, incorporat- ing the possiblity that the tax could be struck down by the courts right into the regulation. If that were to happen, minimum floor prices would instead become effective for each of the OTP categories. But before the emergency preliminary injunction hearing was scheduled to be heard on June 23, all parties entered an "Agreed Order" which delays the collection and pay- ment of the new excise tax on OTP to 60 days after the Circuit Court of Cook County judge issues a decision on whether the OTP tax is pre-empted by state law. Other portions of the extensive tobacco regulations, which include raising the pur- chase age from 18 to 21, banning all coupons and discounts, requiring products to be sold in their original factory package (exempting cigars and pipe tobacco), and stiffer violations for violating the city's single stick cigarette sales ban, were not contested in the lawsuit. Several tobacco trade associations had joined Chicago retailers, wholesalers, and major tobacco man- ufacturers including R.J. Reynolds and Altria in attempting to fight back the OTP tax increases entire- ly, which had been under consideration since January. While unsuccessful in preventing their passage, the industry was able to pressure Emmanuel into reducing many of the rates. Large cigars would tentatively be taxed at $.20 per cigar (versus $.90 per cigar proposed) as will little cigars (versus $.15 per cigar proposed). Pipe tobacco would be taxed at $.60 per ounce (down from $6.60 per ounce proposed), while smoking tobacco (RYO) would be taxed at $1.80 per ounce (versus $$6.60 per ounce proposed). Smokeless Tobacco would be taxed at $1.80 per ounce, the same as origi- nally proposed. Industry Sues Chicago Over New OTP Taxes Citing State Law Pre-Emption; Purchase Age Moves to 21 on July 1st > Greenbrier, Tenn. native and former Marine Chase Lyle is preparing to open Primings Cigar Lounge & Bar, a high-end cigar lounge and cocktail bar, in downtown Nashville's SoBro neighborhood. Designed as a "quiet, mellow place to just go and hang out," according to the owner, the roughly 3,000 square foot business is housed in an historic two-story building with exposed brick walls and will feature several walk-in humidors and a full-service bar serving high- end cocktails with a focus on local brewers and distillers. The bar's first level will be open to the public, while the plush, leather furni- ture-upstairs will be reserved for members and feature private cigar lockers, and a high- tech business media center and conference room where members can host meetings. > Indianapolis-based luxury cigar lounge Blend Bar with Davidoff Cigars opened its second location, a 2,700 square-foot upscale cigar bar and lounge is in the heart of down- town Nashville, Tenn., extending the original location's luxury appointments, state-of-the- art ventilation system, proprietary entertain- ment network, and premium cigars and spirits. It's the first of several planned expansions. New&Notable WARNING It Is A Violation Of The Law For Cigarettes Or Other Tobacco Products Or Tobacco Accessories To Be Sold To Any Person Under The Age Of 21. Any Person Who Violates This Law Is Subject To A Fine And Possible Imprisonment.

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