198 



Mr. McMillan. OK. And I think in some way to indicate if in 

 fact even there was one that had a slight elevation of the level of 

 nicotine, what that proportionately was. 



Mr. Sandefur. It was insignificant, but I'd be more than happy 

 to. 



Mr. McMillan. I think that's important. 



Mr. Sandefur. I think it is very important because at the end 

 of the day what we are talking about is what the consumer re- 

 ceives. 



Mr. McMillan. Well, exactly, and I think you are trying to reach 

 a level and in the production of a product that is pleasing to the 

 consumer. 



Mr. Sandefur. If I don't, then I won't be in business long. 



Mr. McMillan. And as has been asserted here, it is not ele- 

 vation of the level of nicotine to extraordinary levels because, num- 

 ber one, that's not what the consumer wants. 



Mr. Sandefur. That's correct. 



Mr. McMillan. You have outlined a number of agencies that 

 regulate the tobacco industry including the FTC. 



Mr. Sandefur. Yes, sir. 



Mr. McMillan. As I understand it, all producers of cigarettes 

 are required to file a statement that describes the nicotine content 

 in those cigarettes. 



Mr. Sandefur. That's correct. 



Mr. McMillan. Is that precise? 



Mr. Sandefur. As precise as the measurement will allow, yes, 

 sir, and we use the FTC methodology. 



Mr. McMillan. Is there a follow-up testing by the FTC or any- 

 one else? 



Mr. Sandefur. Congressman, I'm not familiar with the mechan- 

 ics of that today. I do know that, in the past, the FTC did their 

 own testing. It's my understanding that because of budget cuts that 

 were made by the government, FTC no longer does testing and that 

 the manufacturers do that testing, but I may be wrong, but that's 

 my impression. 



Mr. McMillan. You adhere to that standard and you have 



Mr. Sandefur. AJDsolutely. We have to. It is our obligation, yes, 

 sir. 



Mr. McMillan. And you have an interest in adhering to that, do 

 you not, because if the nicotine levels vary considerably, the 

 consumer is probably going to experience a taste difference. 



Mr. Sandefur. Yes, sir. The consumer will experience a taste 

 difference and, at the end of the day, that is the most important 

 thing to keep my consumers satisfied and pleased with the product 

 that they are bu3dng. But I have a monetary concern, and that's 

 if I print something in my ad that isn't true, I'm in for substantial 

 fines. 



Mr. McMillan. And above all, in this business, consumer brand 

 loyalty is most important, is it not? 



Mr. Sandefur. That is — ^that's the most important thing that we 

 have to do in terms that we, as marketing and sales people in the 

 tobacco industry, have to concern ourselves with. 



