By GEOFF DALE
“If we had a contract price for export tobacco right now, we’d have a good possibility of moving 2.5 million pounds of quality tobacco and 10-million pounds of low-end in short order,” says Jerry DeCarolis, the president of the Langton-based North Shore Tobacco Canada Inc.
In the meantime he admits the bold move into the marketplace for the 10 producers that own the company is a steep learning experience – costly in time and money and filled with risks.
But he adds they are eager to take the necessary steps to bolster the sagging fortunes of the region’s once economically dominant tobacco industry.
Earlier this month about 15 outlets throughout Southwestern Ontario tobacco country began selling the product with its blue-grey filter and distinct packing featuring a scene of a tobacco field.
At a cost in the range of $60 per carton, DeCarolis says what consumers are acquiring is a 100 percent Canadian premium cigarette at value prices. High range product comes in at $80-$85 while the lower-end cartons are $58-$62.
“We’re not encouraging smoking,” he says. “This is simply a venture aimed at helping producers, then the community-at-large that hasn’t been treated that well. All the regulations have been met and all the tobacco is from Ontario leaf bought through the board on the auction.”
One local MPP is singing the praises of the producers’ entrepreneurial spirit.
“This sets up a direct line between the producers and consumers,” says Oxford MPP Ernie Hardeman. “This is a way for growers to make money for their hard work and is really no different than other commodities.”
He also notes this arrangement could help lessen the disparity between what the product sells for and what growers get.
Linda Vandendriessche, chair of the Ontario Flue-Cured Tobacco Growers Marketing Board, says the board admires the producers’ efforts and “wishes them well” with what she described as “an uphill battle.”
Turning to the tobacco quota buyout, she says discussions with the government are ongoing but nothing has been resolved. “With this industry in decline, it’s only fair tobacco producers be treated the same way other agricultural commodities in crisis are,” she says. “Government helped the beef industry, so it should be the same for us.”
Federal and provincial regulatory bodies say they can’t comment specifically on the venture but note they’re focused on reducing tobacco consumption.
“The ministry doesn’t have a policy on brands per say, simply tobacco,” explains Gary Wheeler, promotions spokesperson for the Ontario Ministry of Health. “We’re committed to helping Ontarians break the cycle of tobacco addiction – with our focus on preventing youth from starting the smoking habit.”
A senior media relations advisor with Health Canada, Paul Duchesne says the federal government does not comment on manufacturers’ intentions, but notes all new tobacco products must abide by Tobacco Act restrictions. “Any cigarette that is used as intended can lead to serious health consequences,” he says. “The only safe cigarette is an unlit cigarette.”
DeCarolis says his group, while watching their margins steadily drop, has been working on the project for the past four years. “Everything about this is local,” he explains, noting the tobacco is blended locally and the product is manufactured in Montreal. “None of this is cheap and we don’t want to go at this too quickly because any mistake can sink you in a moment.” He says once “we get our feet wet,” the group plan to hire marketers.
As for the potential of securing export markets, he says setting a reasonable price for the domestic product is the first priority and after that they will focus on exports. “The bottom line is we want to make money at this,” he says. “We’re not in the business of working for nothing.” BF
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