In light of statements made by the FDA, Kretek in September of 2009 filed a complaint in the U.S. District Court for the District of Columbia seeking a declaration that the recently enacted ban on flavored tobacco products applied to cigarettes rather than to cigars. On Dec. 23, 2009, the FDA placed a Q&A on its website discussing [image-nocss] how it would regulate flavored tobacco products. The Q&A makes it clear that FDA will only be taking enforcement actions against tobacco products that meet the legal definition of a cigarette.
Because the U.S. Department of Treasury has already determined that Djarum clove cigars meet the legal definition of a cigar, the FDA's Q&A has provided Kretek with the assurances it was seeking through its lawsuit. As a result, Kretek has decided to drop its legal action while reserving its option to re-file at some future date.
"FDA's Q&A will benefit the entire industry," said Kretek CEO Mark Cassar. "We did not want to see three years of cigar product development negated by a hasty interpretation of the ban on flavored tobacco products, and I am pleased that the agency has not only taken the time to get this issue right, but has also decided to share its views with the entire industry."
Kretek discontinued selling clove flavored cigarettes in advance of the ban to allow its distributors and retailers time to return product for destruction. Kretek also voluntarily assisted the FDA during the fall of 2009 by issuing reminder warnings to tobacco distributors and retailers of the cutoff date for interstate commerce and sale of flavored cigarettes.
Moorpark, Calif.-based Kretek is a privately held importing and marketing company with business concentrated in the specialty tobacco and other tobacco products (OTP) categories. Kretek is the exclusive importer of Djarum cigars, Borkum Riff wood-tipped cigars, and DjEEP lighters. It also imports Dreams cigars and Merci European style cigarettes, as well as Samuel Gawith and MacBaren pipe tobaccos. The company is a Subsequent Participating Manufacturer to the Master Settlement Agreement (MSA).
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