Apparently STG wants to focus on the booming international cigar market. Jeremy generally refers to the problems a large, publicly-traded pipe tobacco producer faces complying with US FDA regulations for any “new” products not grandfathered (on the market as of February 15, 2007.)
But, cigars are defined as “tobacco products” too, just as much as pipe tobacco is, and as anyone who has ever been in a cigar store humidor knows, there are thousands of of “new” cigar blends every year.
STG has a market capitalization of around $7 billion but is it willing to spend the dollars necessary to obtain approval for every “new” cigar blend it sells in the US that may be subject to the deeming rule if it is enforced?
The tiny pipe tobacco industry may have to ride the coattails of the cigar industry if a lobbying and litigation fight ensues.