News Release

April 2, 2008
News Release Contacts:
Virginia ABC, Becky Gettings - (804) 213-4419
Altria Client Services, Bill Phelps (804) 484-8897
Lorillard, Michael Shannon (336) 335-7720
E-mail: pubrel@abc.virginia.gov

Virginia ABC Partners with Philip Morris USA and Lorillard To Prevent Youth Access to Tobacco Products

Preventing youth access to tobacco products by curbing underage sales at point of purchase is the mission of a new partnership between the Virginia Department of Alcoholic Beverage Control (ABC) and manufacturing giants Philip Morris USA and Lorillard Tobacco Company. Philip Morris USA and Lorillard will be withholding merchandising and promotional benefits from retailers who have violated state law prohibiting tobacco sales to underage purchasers, based on retail compliance check information provided by state tobacco enforcement entity Virginia ABC.

Philip Morris USA reviews compliance information about retail stores and then imposes penalties against violators that are called on by the company's field sales force. A spokesperson for the cigarette manufacturer says this provides an added incentive for retailers to ensure that their employees are following the law and checking government-issued photo identification in appropriate circumstances before making tobacco sales.

"We hope that this effort will encourage more universal and vigilant checking of identification at retail and thereby help reduce youth access to tobacco products," said Jennifer Hunter, Altria Client Services' vice president, Youth Smoking Prevention and Corporate Responsibility Programs (Philip Morris USA is a unit of Altria Group). "Philip Morris USA believes the public expects tobacco companies to help prevent underage persons from smoking or using tobacco products, and as the largest tobacco manufacturer in the United States, we believe we should take a lead in this effort."

Lorillard Tobacco Company, the nation's third largest tobacco company and the oldest continuously operating tobacco company in the United States, agrees that tobacco companies should take a lead in preventing youth access to their products.

"Lorillard Tobacco Company is committed to significantly reducing youth smoking by supporting meaningful initiatives designed to prevent youth access to cigarettes," said Michael Shannon, Lorillard Director, External Affairs Department. "To underscore our commitment to full compliance with state age verification laws, we suspend promotional support of retailers cited for selling cigarettes to minors."

Virginia ABC Bureau of Law Enforcement conducts between four and five thousand retail tobacco compliance checks each year. The program is part of substance abuse prevention and treatment block grant from the federal government to the Virginia Department of Mental Health, Mental Retardation and Substance Abuse Services. The ABC Tobacco Underage Buyer Program receives some funding from this grant and from the Virginia Tobacco Settlement Foundation. ABC also offers retail training on how to sell alcohol and tobacco products responsibly and in compliance with the law.

"Most retailers do sell responsibly," said ABC Commissioner Esther H. Vassar, who oversees prevention and education efforts for the agency. "The retail compliance rates for fiscal year 2007 indicate that 89 percent of tobacco retailers checked by our program did not sell to the underage buyer. Our goal, however, is one hundred percent compliance. We are pleased to partner with tobacco manufacturers in a commitment to this goal. It is imperative to the control arm of our mission, which encompasses enforcement, training, education, prevention and public safety."