TO:           All Retirement Boards

FROM:     Thomas J. O’Donnell, Compliance Officer

RE:           Tobacco Company List

DATE:      December 8, 2016

On October 22, 1997 PERAC Memo #37/1997 informed you of the adoption of Chapter 119 of the Acts of 1997.  That statute prohibits retirement systems from making any new investments in stocks, securities, or other obligations of any company which derives more than 15% of its revenue from the sale of tobacco products.  On December 18, 1997 PERAC sent Memo #48 regarding the implementation of Chapter 119 and the first Tobacco Company List.

Enclosed please find a Tobacco Company List dated January 2017.  This list replaces any other Tobacco Company List previously sent to your board and is effective upon receipt by the retirement boards.  Most of these companies appeared on previous lists and such investments were prohibited from the time the companies first appeared on the list.  Please forward a copy to your investment advisors or inform them that this list is available on the PERAC Home Page under the Investment Unit’s 2016 Memo Index.  In communicating with your investment advisors, please inform them that the Tobacco Company List is only for their Massachusetts public fund clients and that any other use of the list is strictly prohibited.

As part of its audit process, PERAC will assess the portfolio of each board to determine compliance.  That review will determine if the board, after January 13, 1998, has purchased stock, securities, or other obligations of any company which derives more than 15% of its revenue from the sale of tobacco products.  In the event a portfolio is not in compliance, the board must bring the portfolio into compliance by divesting in a prudent manner.  Prior to taking any action, the board shall consult with PERAC.

In applying the statute to pooled funds, PERAC will assess the 15% rule against the entire pool as the board is purchasing shares in the pool not the individual holdings of the pool.  Thus a pooled fund, if in violation of this standard, will be included on the list.

If you have any questions, please contact this office.

Enclosure

Tobacco Company List as of January 2017

COMPANYCOUNTRY
  
22nd Century Group, Inc.United States
Alliance One International, Inc.United States
Altria Group, Inc.United States
AMCON Distributing CompanyUnited States
American Heritage International Inc.United States
Caesars Acquisition CompanyUnited States
Core-Mark Holding Company, Inc.United States
Electronic Cigarettes International Group, LtdUnited States
Gilla Inc.United States
Icon Vapor Inc.United States
Medigreen Holdings CorporationUnited States
Newgen Concepts IncUnited States
Philip Morris International Inc.United States
Reynolds American Inc.United States
Schweitzer Mauduit International, Inc.United States
Smokefree Innotec IncUnited States
Turning Point Brands, Inc.United States
Universal CorporationUnited States
Vapor Corp.United States
Vapor Hub International Inc.United States
Vector Group Ltd.United States
VPR Brands LPUnited States
Wee-Cig International CorpUnited States
  
Bangladesh Leaf Tobacco Co. Ltd.Bangladesh
British American Tobacco Bangladesh Co. Ltd.Bangladesh
  
Fabrika Duhana Sarajevo dd SarajevoBosnia & Herzegovina
  
Bulgartabac Holding ADBulgaria
Gotse Delchev Tabac AD Gotse DelchevBulgaria
Nicotiana BT Holding AD SofiaBulgaria
Pazardzhik BTM AD-PazardzhikBulgaria
Shumen Tabac AD ShumenBulgaria
Sila Holding PlcBulgaria
Slantse Stara Zagora Tabak AD Stara ZagoraBulgaria
Stara Planina Hold AD SofiaBulgaria
Yuri Gagarin AD PlovdivBulgaria
  
George Weston LimitedCanada
  
Kimree Inc.China
Mudanjiang Hengfeng Paper Co., Ltd.China
Shenzhen Jinjia Color Printing Group Co., Ltd.China
Shiner International IncChina
Xinjiang Bai Hua Cun Co., Ltd.China
  
Hrvatski Duhani ddCroatia
  
CTO PCLCyprus
  
Philip Morris CR asCzech Republic
  
Scandinavian Tobacco Group A/SDenmark
  
Eastern Co SAEEgypt
  
Christian Dior S.E.France
  
Karelia Tobacco Company Inc SAGreece
  
Century City International Holdings LimitedHong Kong
China Flavors and Fragrances Co Ltd.Hong Kong
Huabao International Holdings Ltd.Hong Kong
Shanghai Industrial Holdings LimitedHong Kong
Sheen Tai Holdings Group Co. Ltd.Hong Kong
  
Godfrey Phillips India LimitedIndia
Golden Tobacco Ltd.India
ITC LimitedIndia
NTC Industries Ltd.India
Sinnar Bidi Udyog LtdIndia
Virat Crane Industries LtdIndia
VST Industries LimitedIndia
  
PT Bentoel Internasional Investama TbkIndonesia
PT Gudang Garam TbkIndonesia
PT Hanjaya Mandala Sampoerna TbkIndonesia
Wismilak Inti Makmur Tbk PTIndonesia
  
Societe Ivoirienne des Tabacs SAIvory Coast
  
Carreras LtdJamaica
  
ITOCHU CorporationJapan
Japan Tobacco Inc.Japan
Mitsubishi CorporationJapan
  
Al-Eqbal Investment Company PSCJordan
Jordanian Duty Free Shops PSCJordan
Union Tobacco & Cigarette Industries Co PSCJordan
  
British American Tobacco Kenya LtdKenya
  
Tutunski Kombinat AD PrilepMacedonia
  
Press Corporation Ltd.Malawi
  
7 Eleven Malaysia Holdings BhdMalaysia
Bright Packaging Industry BhdMalaysia
British American Tobacco (Malaysia) BerhadMalaysia
  
Duvanski Kombinat ad Podgorica u stecajuMontenegro
  
British American Tobacco Holdings (The Netherlands) B.V.Netherlands
  
Khyber Tobacco Company Ltd.Pakistan
Pakistan Tobacco Company Ltd.Pakistan
Philip Morris (Pakistan) LimitedPakistan
  
Jerusalem Cigarette Co LtdPalestinian Territory
  
LT Group, Inc.Philippines
  
Kingdom Holding CompanySaudi Arabia
  
British American Tobacco Vranje ad VranjeSerbia
Coka Duvanska Industrija ad CokaSerbia
Duvanska industrija ad BujanovacSerbia
Philip Morris Operations a.d. NisSerbia
  
New Toyo International Holdings LtdSingapore
  
Hosken Consolidated Investments LimitedSouth Africa
  
KT&G CorporationSouth Korea
Nongshim Holdings Co., Ltd.South Korea
SK Chemicals Company, Ltd.South Korea
  
Miquel y Costas & Miquel, S.A.Spain
  
Ceylon Tobacco Company PLCSri Lanka
  
Swedish Match ABSweden
  
Taisun Enterprise Co. Ltd.Taiwan
Taiwan FamilyMart Co., Ltd.Taiwan
  
Tanzania Cigarette Company LtdTanzania
  
The West Indian Tobacco Company Ltd.Trinidad and Tobago
  
British American Tobacco UgandaUganda
  
Bizim Toptan Satis Magazalari ASTurkey
Haci Omer Sabanci Holding ASTurkey
  
Booker Group PlcUnited Kingdom
British American Tobacco PlcUnited Kingdom
Imperial Tobacco Group PlcUnited Kingdom
  
Cat Loi JSCVietnam
Cong ty Co phan Ngan SonVietnam
Kido Group CorpVietnam
  
British American Tobacco Zambia PlcZambia
  
British American Tobacco Zimbabwe Holdings LtdZimbabwe