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Scandinavian Tobacco Group reports possible ban of brand name by French Authorities.

NORDIC BUSINESS REPORT-January 31, 2017-Scandinavian Tobacco Group reports possible ban of brand name by French Authorities

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Scandinavian Tobacco Group A/S (CPH:STG), a producer of cigars and traditional pipe tobacco, announced on Monday the possible ban by the French Authorities of the use of the brand name Cafe Creme 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 Cafe Creme brand name for cigars to be a violation of the French Public Health Code.

According to the company, it 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.

Under 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 Cafe Creme a reference to the taste, smell or aroma of the cigars. Scandinavian

Tobacco Group has maintained that this is not the case.

In the event that the brand name is eventually banned in the French market, the company intends to appeal to the French courts.

Cafe Creme cigars have been sold on the French market since the early 1970's. Cafe Creme is the company's most widely distributed brand with sales to close to 100 markets. Its most significant markets are France and the UK. The sales of Cafe Creme in France represent close to 4% of the group's net sales.

Also, France is the only country where Scandinavian Tobacco Group has learned about potential objections to its Cafe Creme brand name based on the new EU Tobacco Products Directive, the company added .

Scandinavian Tobacco Group also produces fine-cut tobacco and sells tobacco-related accessories.

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Publication:Nordic Business Report
Date:Jan 31, 2017
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