Mighty Corp’s rival stopped the new cigarette variant by BIR

Last May 3, the rival company of Filipino-owned cigarette manufacturer Mighty Corp cancelled the error printing of their new cigar variant.

The said flavoured-cigar, Marlboro Flavor Code that the permit that was issued by BIR was been revoked without securing a prior permit. “Please be informed that upon verification and comparison of the approved label of the subject brand name against the commercial label being manufactured and distributed in the market, it was found out that the actual color scheme was not in conformity with the approved color scheme for the particular brand,” LTS Chief Alfredo Misajon said.

He added that “the  color of the approved sample label bears shade of dark gray while the color of the actual commercial label found in the market is black.”
Misajon’s letter added  PMFTC blatantly violated the condition of the permit (ELTRD-(T)-011-05-13-87598) it issued to the firm with an explicit prohibition that:

“No changes/alteration of the color scheme on the approved commercial label shall be made without prior approval from the Commissioner of Internal Revenue.”

The reason why the permit was revoked because it failed to meet the specifications as stated in its application like the color and other details to be put in the pack, or carton cover.

The sources said that the Lucio Tan’s owned company has already signified its intention to appeal the adverse decision, adding that the error was due to the kind of paper used which could not meet  the color specified in its permit application.

“If an applicant applies for a bright red or blue color he must come out with the right coloration, not a shade of red or blue,” she said. And the infringement of patent and unfair competition can be avoided as provided for under Revenue Regulations Nos. 3-2006 and 17-2012.

A manufacturer should not also ride on the popularity of a brand that was previously registered, the same official said.

Mighty Corp’s competitor has been trying to employ various schemes to regain its market dominance, including the attempt last January, to sell in Mindanao and elsewhere at P245.00 per ream or P1.23 per stick of the same label with a black shade of color which the BIR subsequently banned, claiming that they cannot sell low-priced Marlboro because it is classified as premium brand.

They sent a letter-request to the BIR on Nov. 25, 2013, the company claimed there was a need to introduce new cigarette brands to reverse the current decline in its sales due to stiff competition.

“What is more worrying, we expect the down-trading to continue, with the Marlboro volume further decreasing to 7.9 billion sticks in 2014,” PMFTC President Paul Riley said.
Meanwhile, Mighty Corp has been dedicated to the Filipino people on their CSR projects and boosting the livelihood of the tobacco farmers in the country.