Tobacco Reporter As Seen in the FUTURE the Future in Fueling Efficient Curing Barns of PLAIN Second Act the Return of and GRAPHIC July 2014Greek Flue-Cured

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YOUR TURN Share your views at the That other tobacco bug 2014 Global Tobacco Networking Forum A NEW GAMEHow secure is your industrial network? The sponsors Raising the flag Page 60 The speakers Page 34 America’s tobacco market after the RAI-LorillardINNOVATION deal The agenda Page 18 Delfortgroup’s The concept Page 12 Serving the Global Tobacco IndustryU.S. office Since 1873 Page 4 Tobacco’s bright spot? Spinning heads Page 44 Snapshot The comeback of The industry dokha tobacco in numbers Page 36 Tobacco Reporter As seen in THE FUTURE The future in fueling Efficient curing barns OF PLAIN Second act The return of AND GRAPHIC July 2014Greek flue-cured

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After the revolution Eastern Co. and The sham consultation the new Egypt Plain packaging Page 88 5/23/2012 11:40:22 AM Talking rubbish in the U.K. A frank discussion Page 50 about cigarette litter Page 72 2008

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ow does one go about identifying a “typical” tobacco industry executive—Tobacco Reporter’s core audience? “World traveler” comes to mind. Few other industries demand the pace of travel Hthat ours does. Production facilities consolidate operations and shift new volumes to Manila; a new source for raw materials emerges in Sofia; a meeting of industry researchers is scheduled in Santiago. We at Tobacco Reporter are challenged with the task of providing the latest relevant news and information to this highly mobile, plugged-in audience.

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2008 OCTOBER

October 2008 www.tobaccoreporter.com

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THE NEXT ASIA? Exploring opportunities in South America

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How do we do it? Just like our audience does—we stay on the go. Our editors and sales specialists travel to wherever tobacco news develops, and we report breaking news daily on tobaccoreporter.com. We interview company heads, factory managers, engineers, government officials. Simply put, we personally do what we have to do to bring the news to our readers because face to face matters. And we manage to enjoy every day of it. It’s all about the connections. No other tobacco trade publication provides the quality, frequency, variety and face-to-face marketing opportunities that Tobacco Reporter offers its audience— the tools that embrace personal interactions and build industry connections. tobaccoreporter n 2015 2 Golden Leaf Awards Nominate yourself, your company, your products or those of a company that you admire in the industry. The Golden Leaf Awards, presented by Tobacco Reporter and sponsored exclusively by BMJ, recognize excellence and innovation.

The Golden Leaf Awards are the only tobacco-industry awards program recognizing achievements and outstanding performance. Awards are granted to manufacturers and service providers directly involved in the global tobacco industry. To date, our Golden Leaf Awards banquets have been in Bali, Paris, Rio de Janeiro, Bangkok, Bangalore, Prague, Antwerp, Cape Town and White Sulphur Springs, West Virginia.

The banquet and presentation of the Golden Leaf Awards, now in their 10th year, will be the highlight of GTNF 2015. All Golden Leaf Award winners receive a coveted crystal trophy. Winners are profiled in the Tobacco Reporter November issue. The nomination period for the 2015 awards closes Aug. 14, 2015.

Tobacco professionals may submit nominations for their own companies as well as others in the tobacco industry. The awards are offered in five categories: • Most impressive public service initiative • Most promising new product introduction • Most exciting newcomer to the industry • Most outstanding service to the industry • BMJ Most committed to quality award

3 tobaccoreporter n 2015 tobaccoreporter n 2015 4 Tobacco Reporter Gives Your Media Investment MORE.

Since 1863, Tobacco Reporter has been the source for intelli- gence for the global tobacco industry. Both the magazine and tobaccoreporter.com provide manufacturers, distributors and suppliers with in-depth editorial, essential news and analysis on the issues, trends, people and companies shaping the tobacco industry.

Tobacco Reporter is published monthly in print and digital editions. In fact, we publish twice as often as the nearest competitor. That’s twelve opportunities to impress tobacco industry decisionmakers, plus our annual Global Tobacco Industry Guide. And Vapor Voice magazine, a publication dedicated exclusively to the vapor industry, is a stand-alone supplement mailed with Tobacco Reporter six times a year. And we do it best. Tobacco Reporter has been recognized with numerous editorial awards and honorable mentions in the “feature category” award by TABPI (Trade Association Business Publications International). Look for our planned 2015 editorial coverage on pages 7 and 8. Read. Tobacco Reporter reaches global tobacco executives and decisionmakers. Link. Tobacco Reporter offers several online options to expand your brand visibility. Connect. Tobacco Reporter’s events, GTNF and TABEXPO, connect fellow industry professionals face to face and allow sponsors and exhibitors to showcase their brands and develop relationships with decisionmakers. In print, online and in person—Tobacco Reporter delivers. tobaccoreporter n 2015 4 TOBACCO REPORTERʼS GLOBAL TOBACCO INDUSTRY GUIDE 2010 GUIDE INDUSTRY TOBACCO GLOBAL REPORTERʼS TOBACCO

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Global Tobacco Industry Guide

Gain access to purchasing departments all over the world by advertising in Tobacco Reporter’s annual Global Tobacco Industry Guide (GTIG). Nothing connects buyers and sellers more directly. Tobacco Reporter invests with staff that is devoted solely to ensuring this is the best guide available. Updated and double-checked for accuracy for more than 25 years now, GTIG is the one-stop buying resource for finding suppliers, components, services and equipment

5 tobaccoreporter n 2015 tobaccoreporter n 2015 6 GLOBAL TOBACCO INDUSTRY GUIDE

GLOBAL TOBACCO INDUSTRY GLOBAL GUIDE TOBACCO INDUSTRY GUIDE

GLOBAL TOBACCO tobaccoreporter.com INDUSTRY GUIDE 2015

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meant to keep tobacco businesses running smoothly. More than 3,000 companies are included in our free listings, which include contact information, product descriptions and key personnel and titles. GTIG is available both in print and online; the digital edition is free. List and advertise your goods and services in the sourcebook the industry turns to for information—Tobacco Reporter’s Global Tobacco Industry Guide. Forms for listing your company are available on tobaccoreporter.com.

tobaccoreporter n 2015 6 JANUARY MARCH MAY

Cover story: e-cigarettes Cover story: illicit trade Cover story: leaf supply Market report: Southeast Asia Market report: South Market report: India Profile: Imperial Tobacco America Profile: BAT Updates in: logistics and Profile: independent leaf Updates in: cigarette making storage merchants and packing, leaf processing Who’s who: flavoring Updates in: filters, security Who’s who: RYO/MYO companies devices components/supplies GTNF 2014 overview Who’s who: e-cigarette companies

FEBRUARY APRIL JUNE The Green Issue

Cover story: corporate social Cover story: industry Cover story: harm reduction responsibility profitability Market report: oriental Market report: EU Market report: China, Africa tobacco Profile: CNTC Profile: PMI Profile: RYO/MYO Updates in: packaging, Updates in: kreteks, manufacturers flavorings infestation control Updates in: adhesives, tipping Who’s who: infestation Who’s who: packaging papers control, storage providers Pre-show GTNF issue Who’s who: primary processing machinery and suppliers

7 tobaccoreporter n 2015 tobaccoreporter n 2015 8 2015 Editorial Calendar

JULY SEPTEMBER NOVEMBER

Cover story: regulation Cover story: taxation Cover story: farmer viability Market report: USA Updates in: reconstituted Market report: CIS Profile: JT/JTI tobacco, tobacco research Profile: organic products Updates in: reconditioned TABEXPO show issue Updates in: lab testing equipment, noncombustibles equipment, flavorings Who’s who: leaf merchants Who’s who: 2015 Golden Leaf Pre-show TABEXPO issue Award winners 2016 GTIG Post-GTNF issue Global Tobacco Industry Guide

AUGUST OCTOBER DECEMBER

Cover story: litigation Cover story: tobacco science Cover story: tobacco Market report: Middle East Market report: Asia machinery Profile: independent Profile: Universal Leaf Market report: Japan manufacturers Tobacco Co. Profile: PM USA, AOI Updates in: RYO/MYO, Updates in: spare parts, filters Updates in: papers automation and controls, Who’s who: making and Who’s who: 2015 TABEXPO cigars packing machinery, papers exhibitor retrospective Who’s who: GTNF sponsors GTNF show issue

tobaccoreporter n 2015 8 So how do you follow Vienna, Geneva, Barcelona, Paris and Prague for the staging of the one and only TABEXPO? You do it by choosing one of the most exciting cities in Europe, if not the world: London. Vibrant, exciting, utterly modern yet seriously historical. A leading business centre, jam-packed with top restaurants and head-spinning attractions. A “world in one city,” to quote Lonely Planet. To make this choice even better, we have secured a venue named in 2010 as winner of the World’s Leading Meetings & Conference Centre award: ExCeL. Situated in a stunning waterfront location, ExCeL is located in the heart of London’s Royal Docks, within easy reach of central London. It is five minutes by car or taxi from London City Airport, which offers direct access to over 30 European and U.K. destinations with 350 flights per day. Exhibitors. Visitors. Make sure you put a note in your diary: Oct. 20–23, 2015.

9 tobaccoreporter n 2015 tobaccoreporter n 2015 10 Filling Up Fast! It’s unsurprising, really. The combination of the industry’s premier event and London has captured the imagination of companies large, medium and small—from every corner of the world. The result is more, larger booths being reserved than ever before.

Here’s why TABEXPO London 2015 is so attractive: • The U.K. has major offices for all cigarette manufacturers. • The U.K. has major R&D investments. • The U.K. is a productive place to do business. • The e-cigarette sector will be well represented. • TABEXPO 2015 is the first major tobacco event in London. • Business will be done in every sector. • The event will attract truly global participants.

TABEXPO is—and has always been—the leading exhibition for our industry. Tobacco Reporter magazine is—and has always been—the No. 1 voice for our industry. See Page 13 for TABEXPO catalog and show daily rates.

Book soon to ensure your space! Visit www.tabexpo-london.com. tobaccoreporter n 2015 10 http://i.istockimg.com/file_thumbview_approve/15240808/2/stock-photo-15240808-modern-conference-room.jpg http://i.istockimg.com/file_thumbview_ approve/15240808/2/stock-photo-15240808-modern-conference-room.jpg http://i.istockimg.com/file_thumbview_approve/15240808/2/stock-photo-15240808- modern-conference-room.jpg

The Global Tobacco & Nicotine Forum (GTNF) is the tobacco industry’s foremost ideas exchange. Two days of powerful presentations and interactive workshops share breaking news and views on vital topics.

Unlike a traditional congress, where the audience “consumes” prepared presentations, the GTNF promotes interaction. Participants engage with the experts, making contacts and gaining insights in a more informal setting. And we don’t stop at industry insiders. Every year, our Forum attracts more influential voices from related fields such as public health, policymaking and international relations. The fresh perspectives they supply are sometimes challenging and always valuable.

The 2015 Global Tobacco & Nicotine Forum (GTNF) is slated to take place Sept. 15–17 (Tuesday, Wednesday and Thursday) at the Palazzo Re Enzo in Bologna, Italy. Built at the beginning of the 13th century, it combines the fascination of a beautiful monument with state-of-the-art amenities. Within walking distance of the train

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station, and 12 kilometers from the airport, Palazzo Re Enzo offers the perfect location for an all-inclusive GTNF event.

GTNF 2015 will build on the formula we have been refining since the event launched in Rio de Janeiro in 2008. Make plans now to attend; 2014 was sold out!

International Events Division

We can also make your next event even more successful. Conferences, workshops, meetings, product debuts or customer events; local or international audiences: Partner with Tobacco Reporter to promote and profit from them all. From event publishing, exhibitions and marketing to Web design, our in-house team of experienced specialists will deliver success, save you money and simplify your life.

Choose from partnership-based offerings ranging from event development, planning, execution, coordination and management to content management. Contact our global events organizer, Elise Rasmussen, at [email protected].

tobaccoreporter n 2015 12 2015 Rate Card Guaranteed position premiums All guaranteed positions are noncancelable and include right of first refusal for the following year. Premium added to earned space and color charges. Inside front cover + 30% Opposite editorial + 15% Inside back cover + 20% Sequential placement + 25% Back cover + 50% Space rates Frequency earned on total number of insertions published during any 12-month period. Bleeds Bleeds are available for ad sizes 1/2 page and larger. Add $300 to the earned gross rate. Sizes indicated above are trimmed 0.25 inches around all bleeding sides. Please keep live type at least 0.5 inches away from trim size to ensure accurate reproduction of all copy.

Full Color 1x 6x 12x 14x 18x Full Page (1/1) 3700 3450 3250 3120 2950 2/3 page 3340 3150 2950 2740 1/2 page 2950 2770 2640 2480 1/3 page 2540 2430 2300 2190 1/4 page 2420 2320 2210 2080 1/6 page 2140 2090 2010 1940

2-Color 1x 6x 12x 14x 18x Full Page (1/1) 3415 3175 2975 2845 2675 2/3 page 3065 2875 2675 2465 1/2 page 2675 2495 2365 2205 1/3 page 2265 2155 2025 1915 1/4 page 2145 2045 1935 1805 1/6 page 1865 1815 1735 1665

B/W & 1-Color 1x 6x 12x 14x 18x Full Page (1/1) 2875 2625 2435 2310 2350 2/3 page 2520 2325 2130 1925 1/2 page 2125 1955 1825 1665 1/3 page 1725 1610 1485 1375 1/4 page 1605 1505 1395 1265 1/6 page 1320 1275 1200 1125

TABEXPO Catalog TABEXPO Show Daily (Per Issue) Full Page $3700 Full Page $2500 Half Page $2950 Half Page $1500

Ask your account representative about newsletter and digital edition sponsorships!

13 tobaccoreporter n 2015 tobaccoreporter n 2015 14 Print Advertisement Sizes

2 Page Spread Bleed Full Page (trim size) 17” x 11.125” Full Page Bleed 2/3 Page 8.5” x 11.125” 8.25” x 10.875” 432 mm x 283 mm 210 mm x 276 mm 4.5” x 10” 216 mm x 283 mm 114 mm x 254 mm

1/2 Page Vertical 1/2 Page Horizontal 1/2 Page Island 1/3 Page Box 3.25” x 9.75” 7” x 5” 4.5” x 7.5” 4.5” x 5” 83 mm x 248 mm 179 mm x 127 mm 114 mm x 191 mm 114 mm x 127 mm

1/3 Page Horizontal 1/3 Page Vertical 1/4 Page Horizontal 1/4 Page Vertical 7” x 3.25” 2.125” x 10” 7” x 2.5” 2.125” x 7.5” 179 mm x 83 mm 54 mm x 254 mm 179 mm x 64 mm 54 mm x 191 mm

1/4 Page Standard 1/6 Page Box 1/6 Page Horizontal 1/6 Page Vertical 4.5” x 3.75” 4.5” x 2.5” 7” x 1.5” 2.125” x 5” 114 mm x 95 mm 114 mm x 64 mm 179 mm x 38 mm 54 mm x 127 mm

Stand-out formats Inserts, gate folds, belly bands and special wraps are available—just ask! tobaccoreporter n 2015 14 Web Advertisement Sizes

Leaderboard Junior Leaderboard Brand Block 728 x 90 pixels 468 x 60 pixels 300 x 250 pixels Appears at the top Appears on the home Appears on the right- of every page. page below leaderboard. hand column Run of site. Run of site. of the home page. Run of site.

2015 Rate Card

Dimension Cost Leaderboard $2,495 Junior Leaderboard $1,595 Brand Block $1,875

15 tobaccoreporter n 2015 tobaccoreporter n 2015 16 Submission Guidelines

Cancellations—No cancellations accepted after published ad sales closing date. Short rates apply for canceled contracts.

Commissions—15 percent of gross billing allowed for recognized agencies for all Tobacco Reporter publications. No commission charges allowed on any incurred production charges or advertisements that require production work. No commission charges allowed on any incurred late fees.

Invoices and payments—Invoices are submitted electronically, unless otherwise indicated, with accompanying .pdf files to verify publication, and are issued the month of publication. All invoices must be paid in full in U.S. dollars within 30 days of receipt. Late fees accrue at a rate of 1.5 percent per month on unpaid balances after the first 45 days.

Payment methods—Payments originating outside the U.S. should be made in U.S. dollars through wire transfer. PAYMENT MUST INCLUDE THE ACCOUNT AND INVOICE NUMBER. Wire transfer to Branch Banking and Trust (BB&T) with instructions found on your invoice and credit to SpecComm International Inc. Contact your sales representative for account number. Domestic payments should be made on checks drawn on a U.S. bank made payable to: SpecComm International Inc. 3101 Poplarwood Court, Suite 115 Raleigh, NC 27604 USA Tel: +1 919 872 5040 Fax: +1 919 876 6531 Visa and MasterCard payments accepted with 3% surcharge.

Special positions—Ordered cover positions are NONCANCELABLE. Add position fee to total earned gross rate. Special positions include right of first refusal for the same position in the same issue(s) the following year.

tobaccoreporter n 2015 16 Inserts—Inserts may not exceed the trim size of the publication. Maximum paper weight: #80 text. Contact your sales representative for required quantity per issue. Quantity will include 10 percent waste. 1 page/1 side – space + $625 1 page/2 sides – space 2 pages/1 side – space +$1,200 2 pages/2 sides – space Preprinted inserts must be received at the printer no later than the ad materials due date per issue. Inserts should be shipped to Publishers Press, 100 Frank E. Simon Ave., Shepherdsville, KY 40165, USA, Tel: +1 919 627 5801. A copy of the insert should be directed to Kay O’Neill at the Tobacco Reporter office in Raleigh, North Carolina, USA.

Printing specifications—Printing method: Web offset, Program: Adobe InDesign CS6, Trim size: 8 ¼” x 10 7/8” (210 mm x 277 mm) Safety: ¼” (6 mm), Binding method: perfect, Colors: CMYK (RGB color will be converted to CMYK), 4-color process, matched, 4A/MPA

Paper—Tobacco Reporter is printed on paper provided by delfortgroup.

Ad materials—Ad materials must be received in electronic format. Preferred file: .pdf (high-resolution, actual size) .pdf files can be compressed and emailed to [email protected].

Material submission—When submitting ad materials, contact Kay O’Neill at [email protected] for material submission information.

Subscriptions—Annual airmail subscriptions are available at a rate of $125 ($60 within the U.S.) and include free access to Tobacco Reporter’s digital editions, available with a login and password on www.tobaccoreporter. com. To order a subscription, please visit www.tobaccoreporter.com/ subscribe. Copies of our Global Tobacco Industry Guide are available for $96 ($78 within the U.S.) and can be ordered on our subscription page.

17 tobaccoreporter n 2015 tobaccoreporter n 2015 18 Meet our staff

Elise Rasmussen Candas Carmen Publisher International Sales Consultant Global Events Director [email protected] [email protected] +1 404 509 5520 +44 (0) 1252 878 619 Austria, Germany, Switzerland, Global Sales: Central and South America, Western Europe (Benelux, Middle East, China, Southeast Italy, Iberian Peninsula), Asia, Pacific Rim, Canada, Mexico Mediterranean, Scandinavia, United Kingdom, Africa, India, Taco Tuinstra Central and Eastern Europe, Editor in Chief Baltic States, CIS, Australia [email protected] +1 919 875 9964 Kay O’Neill USA Associate Publisher Sales Specialist & George Gay Sales Coordination European Editor [email protected] [email protected] +1 919 872 4780 +44 (0) 1737 240 523 USA Timothy S. Donahue Assistant Editor [email protected] +1 352 262 8642

SpecComm International Inc. 3101 Poplarwood Court, Suite 115 Raleigh, NC 27604 USA tel +1 919 872 4213 | fax +1 919 876 6531

tobaccoreporter n 2015 18 From seed to shelf ...

140Years 1873 - 2013 Reporting on the Tobacco Industry

September/October 2011 March 2014 US $6

Retailers train on FDA compliances as more states begin random inspections Official Publication of the IPCPR since 1990 June 2014 Tobacco retailers are continuing to spend products in smaller quantities “low,” “mild” or similar descriptors that Tdollars and man hours to train staff * remove any promotional items in were manufactured before June 22. members on how to comply with all the the retail environment that violate The FDA has created media campaigns FDA’s regulations that went into effect regulations, such as self-service and promotional materials on the this summer. And the FDA currently has displays and certain ads and labeling consumer end and developed guidelines, signed annual contracts with local agencies * not sell cigarettes with certain workshops and tutorials for the retail in more than 30 states, as well as the characterizing flavors community. In addition to what retailers District of Columbia, to conduct random have been doing all along to prevent store inspections and to ensure that States currently awarded FDA tobacco the sale of tobacco products to minors, retailers are complying with the new rules. enforcement contracts include Alabama, manufacturers and trade associations On June 22, FDA regulations Arkansas, Arizona, California, Colorado, caution retailers to keep informed of the restricting the sale, distribution, and Connecticut, Delaware, Idaho, Illinois, FDA’s regulations and guidelines and promotion of cigarettes and smokeless Indiana, Kansas, Kentucky, Louisiana, to continue to train personnel to ensure tobacco products went into effect to Maine, Maryland, Massachusetts, the stores are in full compliance with the make these products less accessible and Michigan, Minnesota, Mississippi, new laws. less attractive to kids. Retailers have Missouri, New Hampshire, New Jersey, Additional information, webinar long followed guidelines and self- North Carolina, Pennsylvania, Rhode training and regular updates can enforcement measures to ensure that Island, Tennessee, Texas, Virginia, be found at: http://www.fda.gov/ tobacco products are sold only to adults. Washington, West Virginia and TobaccoProducts/ResourcesforYou/ However, the new FDA guidelines call Wisconsin. Washington, D.C., has also ForIndustry/Retailer/default.htm. CTS for a number of additional checkpoints contracted for FDA enforcement. and measures on the part of the retailer. Orlando: Please don’t smoke This includes: Descriptors In addition, on June 22, a new law went Stopping short of banning outdoor * check identification of all individuals into effect that prohibits manufacturers smoking—because the city does who are under age 27 from producing any tobacco products Snot have the authority to do so—the * not sell cigarettes or smokeless tobacco labeled or advertised as “light,” “low” or Orlando City Council passed a to anyone younger than age 18 “mild,” or similar descriptors. As of July resolution in September asking * sell cigarettes or smokeless tobacco 22, manufacturers may not distribute for smokers to avoid lighting up in public only in a face-to-face exchange, sale any of these products. parks and other outdoor venues where except in adult-only facilities These new legal restrictions apply only children may be present. * not break open any cigarette or to manufacturers. Retailers may continue The resolution originally went one smokeless tobacco package to sell selling tobacco products with “light,” step further and included sidewalks and public plazas, but that wording was deleted, according to an article in THE ORIGINATOR the Orlando Sentinal. Meet Herbert Gilbert, the man who patented smokeless cigarettes The resolution further asks the Florida Legislature to grant cities the authority to impose outdoor smoking

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or more than 140 years, the publications of SpecComm International have covered industry innovations and reported them across all areas of tobacco—from farmers and manufacturers to distributors, retailers and consumers. This positions us as the ideal company to provide the background and context you need to succeed in this industry.

FSpecComm International, 3101 Poplarwood Court, Suite 115 • Raleigh, NC 27604 • 800.346.7469 • www.speccomm.com

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