National Smokeless Tobacco Company

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The National Smokeless Tobacco Company (NSTC) is a distributor of dipping tobacco in Canada. The company is an affiliate of the U.S. Smokeless Tobacco Company, a wholly-owned subsidiary of Altria Group, Inc.

## History

NSTC has been distributing smokeless tobacco products in Canada since 1913. Although headquartered in Quebec, all products are manufactured in the United States, at USSTC's Nashville, TN or Franklin Park, IL facilities.

Canadian tobacco regulations have resulted in several peculiarities with NSTC's products.

Canadian provinces impose higher rates of taxation on tobacco products, and do so by a different methodology than their American neighbors. For example, Ontario's cigarette tax was $0.18475 per cigarette, 56.6% of the taxable price for cigars, and $0.18475 per gram of other tobacco products, with no distinction made between RYO tobacco or moist snuff/chewing tobacco (effective March 29, 2018). A pack of 20 manufactured cigarettes thus would account for $3.695 per pack tax to Ontario. This is in addition to the Canadian federal tax of $22.56 per carton of 200 (or $2.256 per pack). Meanwhile, a 1.2 ounce (34.02 gram) can of moist snuff accounts for $6.29 in taxes to Ontario based on current rates. In addition, the federal government levies a $7.61824 tax "per 50 grams or fraction of 50 grams contained in any package" bringing the total tax paid on a can purchased in Ontario to just under $14. Furthermore, in a "Consultation" by NSTC regarding a plain packaging proposal, the average retail price was quoted as falling between $19.79 and $29.99 per can.

The tax per gram issue, discussed at length in the above section, is addressed as it led to a new product, Copenhagen and Skoal Custom, released in Alberta in the Fall of 2016. Unlike a standard can, it only contained 23.5 grams, and marketing materials suggested that the consumer add water and let the product sit for 12 hours. It was available as Copenhagen Snuff Custom and Skoal Long Cut Straight Custom.

Canadian provinces also have enacted tobacco display bans, however some exemptions are made, such as for tobacco-only outlets.

In April 2019, Canada announced a requirement for plain packaging of tobacco products; all manufactured products would be in plain packaging by November 9, 2019, although branded products would be allowed to remain for sale until February 7, 2020.

## Products

*The following list is all products manufactured as of January 31, 2017, listed in a press release at the time of a USSTC recall. Some products may no longer be available due to flavor bans.*

* Copenhagen Snuff
* Copenhagen Snuff Custom
* Copenhagen Long Cut
* Copenhagen Long Cut Wintergreen
* Copenhagen Long Cut Southern Blend
* Copenhagen Long Cut Straight
* Copenhagen Pouches
* Skoal Long Cut Mint
* Skoal Long Cut Cherry
* Skoal Long Cut Straight
* Skoal Long Cut Custom Straight
* Skoal Long Cut Citrus
* Skoal Long Cut Rich Blend
* Skoal Long Cut Crisp Blend
* Skoal Bandits Mint
* Skoal Pouches Straight
* Skoal Original Snus

## References

1. ↑ https://www.fin.gov.on.ca/en/tax/tt/rateincreases.html
2. ↑ https://www.thestar.com/news/canada/2018/02/27/ottawa-hikes-tax-on-cigarettes-in-federal-budget.html
3. ↑ https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/edn58/adjusted-rates-excise-duty-tobacco-products.html
4. ↑ http://nstco.ca/assets/pdf/Federal-Plain-Packaging-Submission%E2%80%93August-2016.pdf
5. ↑ http://www.nstco.ca/tobacco-product-issues.htm#plain-packaging
6. ↑ https://www.businesswire.com/news/home/20170131006503/en/National-Smokeless-Tobacco-Company-Voluntarily-Recalls-Smokeless