Attorney General Kelly Ayotte announced today that Vibo Corporation of Miami, Florida, has joined the tobacco Master Settlement Agreement, or MSA, as a Participating Manufacturer. Vibo, which does business as General Tobacco, sells a number of cigarette brands such as Bronco, GT One, Silver and Champion.

The MSA was originally entered into between 46 States and the major tobacco companies in November 1998. Since that time, more than 40 other companies have joined the MSA.

Participating Manufacturers under the MSA are bound by a wide array of restrictions on the advertising, promotion and marketing of cigarettes, including outright bans on targeting youth, outdoor advertising, and distribution of any merchandise advertising a cigarette brand. Since the MSA took effect, youth smoking rates nationally have dropped by more than 25% and overall smoking has declined nearly 20%. Participating Manufacturers also make substantial payments to the States, and as a result of today’s agreement Vibo will make an immediate payment of $78 million to the MSA States, and make full payment of its ongoing obligations in each succeeding year. Vibo agreed to make quarterly payments of these obligations to the States.

Vibo’s decision to join the MSA is especially significant because the company represents by far the largest tobacco product manufacturer remaining outside the MSA. Vibo is the exclusive US importer of cigarettes from Protabaco, S.A., of Bogota, Colombia, and today’s agreement binds Protabaco to sell all of its cigarettes in the U.S. through Vibo and in accordance with the MSA.

Attorneys General Lawrence Wasden of Idaho and Tom Miller of Iowa, co-chairs of the Tobacco Committee of the National Association of Attorneys General, which coordinates State enforcement of the MSA, said: “Vibo’s agreement to join the MSA is a very important indicator of a growing recognition by companies outside the agreement that it is in their interest to observe the public health restrictions of the MSA. Persuading the largest cigarette company outside the MSA to join the Agreement represents a great achievement for the MSA States.”

Furthermore, as one provision of the MSA requires, each Participating Manufacturer makes regular payments to the states to reimburse the states for their costs related to tobacco use by their citizens. Vibo’s entry into the MSA means more money will be coming to the states. “Because of this development, New Hampshire will receive as a payment this year of over $500,000 in additional funds. And because Vibo is now a participating manufacturer, it will add to the amount New Hampshire receives in its annual tobacco payments,” Attorney General Ayotte explained.