General Tobacco Ceases Operations

Source from:  Tobacco Reporter 09/06/2010

General Tobacco, America's sixth-largest tobacco company, plans to cease operations after failing to make payments due under the Master Settlement Agreement, reports The Wall Street Journal. Based in Mayodan, North Carolina, the company stopped producing cigarettes and other tobacco products several months ago and is said to be winding down operations. The maker of brands such as Bronco, Silver and GT, General Tobacco entered the market in 2000 and rapidly snatched market share from larger rivals. By 2004, it posted annual sales of $335 million and held a 2 percent market share. The company joined the MSA in 2004 and agreed to make payments for both ongoing sales and those recorded prior to joining. However, the combination of stiff competition and MSA obligations proved too much for General Tobacco. In 2008, General Tobacco sued many attorneys general and tobacco companies, alleging that the MSA gave competitors an unfair advantage. A judge in Kentucky dismissed the case. General Tobacco filed an appeal this year, which it continues to pursue. Enditem