PACT Act [peaceful discussion, please.]

[aj01]

PACT Packaging heads-up

One potentially unforeseen effect of PACT will be the requirement of snus companies to adapt to US duty-paid labeling requirements.

In effect, this means the the rotating verbal warnings on the label itself (not on the bottom), weight in ounces, and the 'Tax Class M" note.

If this happens, here are some potential changes:

1. Swedish Match will turn off all sales to the US from Sweden, and focus exclusively on distributing from the USA. Since the Swedish-labeled product will be illegal for duty-paid (post PACT) sales, they will stick with top sellers only unless they decide to label a few cans as such during production.

2. Second-tier manufacturers (Skruf/BAT/JTI) will most likely choose not to label their products for the US, and, if so, they may become unavailable. It's not worth the extra cost of special cans or labels, and reduced machine efficiency.

3. Third-tier (V2, Gotlands, Taboca) who count on the US for mail-order volumes will invest in the US labels. Small batches are part of the V2 business model. Gotlands will do it as well. Taboca will not.

What brands would (maybe) disappear? Apart from Skruf, Knox, Taboca, Granit, LD, Level and Gustavus, I would ask Swedish Match what their plans are.

Another thing to potentially stress out about.

[Judge Faust]

That is a very good point your honor with only one detail that leans in our favor: Monte Cristo is one tin...not the whole damn inventory

Somewhat true. These are just 2 brands... but not insignificant ones.

RRK is interested in buying them. I am interested in buying them. I would wager that many more US-based snus users would be interested in buying them as well.

So, why do the Swedish sellers choose to forgo those profits? They're corporations - they're in it for the money. Why give up even a small chunk of the revenues if there is no compelling reason to do so?

[sagedil]

I don't know. Perhaps cause they know that there is a chance that customs will seize it?? Then the US based customer will be mad and the vendors don't want to risk that ill will?

not enough profit to make it worth their while I suspect., at least for the big boys. Reason why *some* vendors will ship it. but they are all tiny compared to the big two.

[PsychoHazard]

I would also think that it might be too much hassle on the customer service end as well. Remember, there's still a trade embargo on cuban tobacco, which means that if US Customs decides to inspect that package, and they happen to notice that those cans contain cuban tobacco, it gets seized. Probably the whole package, not just those cans. Who do you think the average person is going to blame? US Customs? Probably not. They're going to complain to, and about, the retailer. It's probably just a whole lot less hassle to not ship the stuff in the first place.

[GoVegan]

PACT Act

Do you honestly think that the snus manufacturers are going to forget about a growing market with the potential to make enormous profits? Why do you think that so many of these tobacco companies are pushing for the PACT Act? They don't want the little buyers like us who order a few cans off the net every once in a while. They want their little snus fridges in every convenience store and gas station that will take them. I really think that what the tobacco companies are trying to do is legitimize snus use here, cut off the internet stores and then sell their products through normal channels. I am also guessing that those snus warehouses that are currently based in the US will become distribution points for wholesalers. Why would these companies spend millions of dollars to get a warehouse, set up a marketing system and heavily promote their products only to see something like the PACT Act wipe them out? Snus will be here in the future. The only change you will see is that you will have to shell out more money when you buy a can of it at the convenience store.

[Bigblue1]

Re: PACT Act

Do you honestly think that the snus manufacturers are going to forget about a growing market with the potential to make enormous profits? Why do you think that so many of these tobacco companies are pushing for the PACT Act? They don't want the little buyers like us who order a few cans off the net every once in a while. They want their little snus fridges in every convenience store and gas station that will take them. I really think that what the tobacco companies are trying to do is legitimize snus use here, cut off the internet stores and then sell their products through normal channels. I am also guessing that those snus warehouses that are currently based in the US will become distribution points for wholesalers. Why would these companies spend millions of dollars to get a warehouse, set up a marketing system and heavily promote their products only to see something like the PACT Act wipe them out? Snus will be here in the future. The only change you will see is that you will have to shell out more money when you buy a can of it at the convenience store.

+1+1+1 Cigarettes are dead, Swedish Match is already using Phillip Morris distribution channels, Our choices will be whittled down and we will pay more, Eventually....

[Kvlt]

Wait, I thought we dodged the bullet?

[sagedil]

That is not sure yet. There is talk of one more committee meeting tis year, although it s not showing on their schedule. Until the Senate adjourns for the session, we are not entirely out of the woods.

[rkh3]

PACT update?

[groverthesnake]

Yeah, I've been curious about this too.
Does anyone think that they'll get around to PACT before the session is up? There's a lot going on right now with all the health care debate.

[GoVegan]

If we ignore it, maybe it will go away. I think they are too busy screwing with health care care and the economy right now to play with snus. The bill itself is pretty far down on the agenda. Also, the Seneca Indians are also fighting this bill heavily and have been in the press lately. We are probably safe for a little while longer but I do have a feeling that this Act will go through eventually, even if it is in the next session.

[sagedil]

All I know is the Senate is in session today on a Saturday to talk about the health bill. That says where their priorities are right now.

[skruf_mcgruff]

Is it safe to assume I'll at least be able to load up on snus this christmas with money given to me from my anti-tobacco relatives?

[sagedil]

Even once passed, the bill gives the Postal Service 180 days to put rules in place. We all will have plenty of time to see what shakes out IF that happens.

[PsychoHazard]

I wouldn't really expect PACT to be put on the calendar for a vote until after the holidays. Right now they're just going to deal with the highly visible bills, since those are the ones that they are having the most pressure put on them about. Besides, if PACT is supposed to fund the Children's Health bill, they need to get that one passed first so they can railroad PACT through with the "think of the children" line.