NAAAPI is pleased to introduce the "Intelligence Briefing" (Briefing). The Briefing is a NAAAPI report designed to provide you with in-depth information on a particular topic or event. These reports will be issued on an "as-needed" basis. The Briefing was inspired by the "Action Alerts", formerly produced by the Advocacy Institute, a national tobacco control advocacy organization. The Briefing is not intended to be a "Call to Action" or action alert by NAAAPI. Rather, it is to provide you with a basis for discussion and information among organizations. If you use the Briefing to take action on an issue, please advise NAAAPI so that activities can be recorded.

We encourage you to share information that may be used to generate future "Intelligence Briefings".
We hope you find the "Intelligence Briefing" useful in your work as together we seek to build a healthier society.

INTELLIGENCE BRIEFING
RE: LIQUID ZOO

The Product

• Liquid Zoo flavored cigarettes and Liquid Zoo flavored hemp rolling paper from Europe are tobacco products that have been blended with coconut, mint, vanilla and strawberry.
  
• Liquid Zoo cigarettes feature a sweet and aromatic tobacco blend of Virginia tobacco accented with a sweet filter tip. They are made and flavored in Holland.
  
• The rolling papers are regular size and feature a natural gummed edge with a peel-off sticker on each booklet.
  
• Liquid Zoo rolling paper was first introduced at the Retail Tobacco Dealers of America (RTDA) show in August, 2000 in San Antonio, TX.
  
• Liquid Zoo cigarettes were launched in August, 2001, a year after the introduction of the rolling paper.
  
• Liquid Zoo products are manufactured for Kretek International, Inc.
  
• Kretek International also distributes "bidis", a clove flavored cigarette made in India.
  
• Profit margins on the sale of specialty cigarettes are higher than on mainstream cigarettes.
  
• According to a 2001 interview in Tobacco Outlet Business Online, with Elliot Suied, vice-president, consumer product, "With Liquid Zoo, you get more of a sensory kick with the aroma of the flavors in it. Also, this is a less offensive product to people who don't enjoy the smell of cigarettes, which is a large part of the population." Interview is available here.

Kretek, International

• Kretek distributes over 500 brand names of imported cigarettes, cigars, pipe tobacco and other tobacco products from around the world. They are recognized in the specialty cigarette industry by distributors and retailers in the United States and Canada.
  
• Kretek is the exclusive importer of Djarum Clove cigarettes, Darshan Indian style flavored cigarettes, Dreams multi-colored and flavored cocktail cigarettes, Look Out Dutch Roll-Your-Own tobacco, Ecstasy herbal cigarettes and Herbal Indian Bidis as well as other flavored tobacco products.
  
• Kretek International, Inc is headquartered at 5069 Maureen Lane, Moorpark, CA 93021-1792. Phone numbers are 800-358-8100 and 805-531-8888. Fax number is 805-531-8899.
  
• Hugo Cassar is founder, president and CEO. Mark Cassar, son of Hugo, is the COO. Elliot Suied is vice-president of consumer products.

Financial Information

• Kretek, International began in California in 1981.
  
• In November 2001, Kretek became the exclusive distributor of all the Djarum brands for the U.S. and Canada. Produced in Indonesia by P.T. Djarum, Djarum clove cigarettes are the number one selling clove cigarette in the United States.
  Between sales year 1997 and 2001, sales of Djarum, Dreams and Darshan rose to 326%.

Useful facts

• According to a 2001 interview in Tobacco Outlet Business Online with Elliot Suied, Vice-president, consumer products, the demographics of a specialty cigarette smoker is that he/she is "typically a bit more upscale and better educated than the average cigarette smoker. They also usually smoke less. A clove smoker, for instance, will buy one to two packs a week as opposed to a regular cigarette smoker who will buy one or two packs a day." Interview is available here.
  
• Liquid Zoo cigarettes cost more than regular cigarettes. ( In a Philadelphia specialty tobacco shop, a pack cost $8.00.)
  
• According to the same interview with Elliot Suied, outlet merchants make a better profits margin even with the higher cost of specialty cigarettes like Liquid Zoo because the price tends to stay consistant. Also, the formula for payments into the Master Settlement Agreement provides a bigger profit margin to the merchants selling specialty cigarettes like Liquid Zoo than those that sell regular cigarettes.

Objectives
1. To eliminate the accessibility, advertising and promotion of Liquid Zoo to underage persons.
2. Stop the sale of cigarettes by mail.
3. Establish enforceable penalties for the sale of cigarettes to underage persons through the Internet.

Suggested Actions
1. Communities can write letters to the Post Master General of the United States Postal Service.
Contact:
John E. Potter
Postmaster General and Chief Executive Officer
475 L'Enfant Plaza, SW
Washington, DC 20260-0010
Email:pmgceo@email.usps.gov

2. Ask congress to schedule hearings regarding the sale of cigarettes by mail and establish enforceable penalties for the sale of cigarettes to underage persons through the Internet.