FDA oversight of tobacco to benefit big brands-Fitch

[Old Coot]

Source: Reuters

NEW YORK, June 10 (Reuters) - Fitch Ratings on Wednesday said legislation pending in the U.S. Senate that will place regulation of the tobacco industry in the hands of the U.S. Food and Drug Administration will likely benefit the big established brands.

Compliance costs will hurt smaller players, while planned changes to tobacco advertising will cement the market position of bigger companies, the agency said in a statement.

"Looking further ahead as more restrictive advertising limits are imposed on all tobacco products, not just cigarettes, the brands with larger market share will maintain those shares," it said.

The Senate bill passed a procedural vote on Wednesday clearing the way for final passage. A final vote could come as soon as Thursday. The Senators will than have to work out differences with a similar bill passed in the U.S. House of Representatives before forwarding it to President Barack Obama for signature.

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