LOUISVILLE, Ky.--(BUSINESS WIRE)--
Turning Point Brands, Inc. (NYSE:TPB), parent company of North Atlantic
Operating Company (NAOC), the exclusive licensee of the iconic Zig-Zag®
brand of cigarette papers in North America, today announced that police
from the city of Yiwu in Zhejiang Province in China have commenced a
coordinated set of actions in multiple Chinese cities targeting what
appears to be the country’s biggest networks supplying counterfeit
cigarette paper products to the United States.
Police have disclosed that investigations, raids and detentions have
already taken place against manufacturing facilities, packaging
suppliers and trading companies in Yiwu and other cities. The police
have discovered that the counterfeiters have been copying virtually
every major international cigarette paper brand, including the Zig-Zag
brand for the United States.
The actions have been supported with information and other assistance
from the Yiwu Tobacco Monopoly Bureau and the enforcement support team
at Alibaba.
It is expected that the police investigations will be completed by
mid-2018, after which prosecutions may be brought against the key
individuals behind the network. It is also expected that information
identifying those companies and individuals in the United States
purchasing counterfeit cigarette papers will be supplied.
According to James Dobbins, Senior Vice President and General Counsel of
NAOC:
“North Atlantic Operating Company has a zero-tolerance policy with
respect to counterfeiting of its products. The company’s brand
protection team has investigated distributors of fake papers for several
years, filing legal actions wherever possible in the United States. We
anticipate taking actions against those in the United States who are
identified and revealed in these investigations.
"The latest actions by the Chinese police clearly demonstrate the
resolve of the Chinese government to address the problem at its roots.
"To date, we are informed that the Yiwu police have seized several
hundred thousand booklets of counterfeit cigarette papers of many
popular brands, packaging materials sufficient to produce millions of
additional units, sophisticated production equipment, and extensive
production and sales data.
"We have offered Chinese authorities any and all further assistance they
may need to investigate the current counterfeiting network, as well as
others that are understood to be operating in China.”
Mr. Dobbins additionally noted:
"The Company has devoted substantial resources to pursue investigations
and enforcement actions throughout the United States, targeting internet
sellers, bricks-and-mortar distributors and retailers. While this has
increased administrative expense, we believe it has also increased our
sales of Zig-Zag cigarette papers in the United States. We expect to
continue these activities for the foreseeable future."
About NAOC and Turning Point Brands, Inc.
NAOC is an indirect, wholly-owned subsidiary of Turning Point Brands,
Inc. NAOC is the exclusive licensee and distributor of Zig-Zag brand
cigarette rolling papers and accessories, as well as nicotine vapor
products, in the United States and Canada. It also is the owner of the
Zig-Zag brand for cigars and make-your-own cigarette and cigar products.
Louisville, Kentucky-based Turning Point Brands, Inc. (NYSE: TPB) is a
leading U.S. provider of Other Tobacco Products. TPB, through its three
focus brands, Stoker’s® in Smokeless Products, Zig-Zag®
in Smoking Products, and the VaporBeast® distribution engine
in NewGen Products, generates solid cash flow which it uses to finance
acquisitions, increase brand support and strengthen its capital
structure. TPB does not sell cigarettes. More information about the
company is available at its corporate website, www.turningpointbrands.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements may
generally be identified by the use of words such as "anticipate,"
"believe," "expect," "intend," "plan" and "will" or, in each case, their
negative, or other variations or comparable terminology. These
forward-looking statements include all matters that are not historical
facts. By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on circumstances
that may or may not occur in the future. As a result, actual events may
differ materially from those expressed in or suggested by the
forward-looking statements. Any forward-looking statement made by TPB in
this press release speaks only as of the date hereof. New risks and
uncertainties come up from time to time, and it is impossible for TPB to
predict these events or how they may affect it. TPB has no obligation,
and does not intend, to update any forward-looking statements after the
date hereof, except as required by federal securities laws. Factors that
could cause these differences include, but are not limited to, (i)
unexpected developments and difficulties in the investigations and
anticipated prosecutions and (ii) the results of the investigations may
differ from the results currently anticipated.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180220006503/en/
Mozaic Investor Relations, Inc.
Terry McWilliams, president
502-774-9238
ir@tpbi.com
Source: Turning Point Brands