British American Tobacco (BAT) Germany and its subsidiary Brinkmann Tabakfabriken GmbH will leave the German smoking tobacco assocation, Verband der deutschen Rauchtabkindustrie (VdR).

BAT said it was leaving the VdR effective at the end of 2011 because of, "different opinions," between BAT and VdR on the taxation of fine-cut tobacco products. "We are convinced that we need an integrated approach for the taxation of all tobacco products," said CEO Ad Schenk. "We think a disproportionate preferential treatment of fine-cut tobacco compared to cigarettes is wrong."
VdR comprises 19 mainly mid-sized companies which manufacture  and/or distribute fine-cut tobacco, pipe tobacco, chewing tobacco, snuff, cigars or cigarillos. 
BAT and Brinkmann also ended their membership in the Cigar Coalition Europe e.V. on 30 June 2012 because filter cigarillos will lose their preferential tax status at the end of 2014. Because of this change in status – according to EU-Directive 2010/12, filter cigarillos will be taxed in the same way as cigarettes – the production and distribution of this product category will no longer be viable, says BAT, which is why it will cease production by the end of 2014. Brinkmann Tabakfabriken, which employs 120 people, will therefore be closed down.
The companies' membership in the European Smoking Tobacco Association (Esta) is not affected. BAT also remains a member of the German cigarette association, Deutscher Zigarettenverband (DZV). (pi)