Scandinavian Tobacco Group A/S: French Authorities May Ban the Use of the Brand Name Café Crème for Cigars
January 30 2017 - 1:05PM
COMPANY
ANNOUNCEMENT
No. 3/2017
Copenhagen, 30 January 2017
French Authorities May Ban the
Use of
the Brand Name Café Crème for
Cigars
According to French media, the French Ministry of Health and
Ministry of Budget are expected to announce in the near future that
they consider the use of Scandinavian Tobacco Group's Café Crème
brand name for cigars to be a violation of the French Public Health
Code.
Scandinavian Tobacco Group has not been informed
that the French authorities have taken any such decision.
However, the company is aware that the French
Ministry of Health has conducted a review of all tobacco product
names in the French market following the French implementation of
the EU Tobacco Products Directive.
According to the French code, packaging for
tobacco products may not include elements that for instance make
reference to taste, smell or aroma or suggest life style benefits.
In consultation procedures, the French Ministry of Health has
referred to that it considers Café Crème a reference to the taste,
smell or aroma of the cigars. Scandinavian Tobacco Group has
maintained that this is not the case.
If the brand name is eventually banned in the
French market, Scandinavian Tobacco Group intends to appeal to the
French courts.
CEO Niels Frederiksen says:
"A ban would be unjustified. The Café Crème brand
name is not a reference to the taste or smell of the cigars which
don't taste or smell of coffee. French cigar smokers won't quit
smoking because we change the brand name Café Crème. If the
Ministry of Health and Ministry of Budget issue a ban, they would
deprive us of our trademark rights in a global cigar brand for no
legitimate reason. Such a ban would go far beyond what is required
to protect the public against the risks associated with
smoking.
Café Crème cigars have been sold on the French
market since the early 1970's. We have contingency plans in place
and will continue to sell Café Crème cigars in France - if needed
with a new name. However, we intend to use the means required to
defend our Café Crème brand name".
Café Crème is the Group's most widely distributed brand with sales
to close to 100 markets. Its most significant markets are France
and the United Kingdom. The sales of Café Crème in France represent
close to 4% of the Group's net sales.
If the brand name is banned, tobacco products
carrying the brand name Café Crème can still be sold in the French
market for the coming 12 months.
France is the only country where Scandinavian Tobacco Group has
learned about potential objections to its Café Crème brand name
based on the new EU Tobacco Products Directive.
For further information, please
contact:
For media enquiries:
Kaspar Bach Habersaat, Director of Group Communications, phone: +45
7220 7152
or kaspar.bach@st-group.com.
For investor enquiries:
Torben Sand, Head of Investor Relations, phone: +45 7220
7126
or torben.sand@st-group.com.
STG Company announcement no 3
30.1.2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Scandinavian Tobacco Group A/S via
Globenewswire
Stonepath (AMEX:STG)
Historical Stock Chart
From Apr 2024 to May 2024
Stonepath (AMEX:STG)
Historical Stock Chart
From May 2023 to May 2024