Despite the SCHIP tobacco taxes that hit on April 1, 2009, cigar sales continue to persevere. The federal taxes on large cigars rose from 20.719% of the wholesale price with a tax cap of 4.875 cents per cigar to 52.75% of the wholesale price with a tax cap of 40.26 cents per cigar. The tax [...]
Kretek International Inc., importer and marketer of Djarum clove cigars has withdrawn its lawsuit against the U.S. Food and Drug Administration (FDA), regarding the distribution and sale of clove cigar products. In light of statements made by the FDA, Kretek in September of 2009 filed a complaint in the U.S. District Court for the District [...]
TOP PERFORMERS Altria Sales & Distribution (John Middleton) Swisher Swedish Match HONORABLE MENTIONS Altadis USA Republic Tobacco The SCHIP tobacco tax rates that hit in April 2009 are costing cigar smokers more, but sales continue to persevere. As of April, the federal taxes on large cigars rose from 20.719% of the wholesale price with a [...]
Flavored products including cigarettes, RYO and loose tobaccos and rolling papers are no longer legal in U.S. stores; administration said it would look at “little cigars” and similar products on a “case-by-case basis.” The smoking lamp on the majority of flavored tobacco products sold in convenience stores has been extinguished, but the ruling has ignited [...]
As if the turbulent economy, rising state taxes and local anti-smoking regulations hadn’t rendered the retail cigar landscape dangerous enough, enter the U.S. Food and Drug Administration (FDA), which wants to significantly reshape that landscape, but so far hasn’t told anyone—most notably the retailers that will be selling the products—how. Some background: The law granting [...]
Since the onset of the April SCHIP tax increase, tobacco retailers have been turning to puffed or extended tobacco to help customers deal with the skyrocketing costs of cigarettes, especially as more customers are turning to the roll your own (RYO) category in an attempt to save dollars. Republic Tobacco’s Gambler is the market leader [...]
The SCHIP tobacco tax rates that hit on April 1 are costing cigar smokers more, but sales continue to persevere. As of April, the federal taxes on large cigars rose from 20.719% of the wholesale price with a tax cap of 4.875 cents per cigar to 52.75% of the wholesale price with a tax cap [...]
Despite the SCHIP bill and mounting state taxes, smokeless tobacco products have experienced a strong year packed with innovation, new flavors and increased consumer demand. According to the NACS 2009 State of the Industry report, smokeless tobacco sales surged 6.1% to $2.96 billion last year. The average c-store totaled $1,703 per month in smokeless sales [...]
The war over tobacco taxes to pay for an expansion of the State Children’s Health Insurance Program (SCHIP) ended on February 4 when Congress passed the Senate’s version of the bill and new President Barack Obama signed it into law. What that means for c-store operators who sell cigars in an era of a rough [...]
TOP PERFORMERS Swisher International Inc. Swedish Match Altadis USA HONORABLE MENTIONS John Middleton (Philip Morris USA) Royal Blunts (New Image Global) PrimeTime Cigars New insights on the cigar category reveal that retailers who manage the tobacco segment more strategically benefit from accelerated growth and a larger share of the market. “Retailers focused on offering a [...]
Not surprisingly, convenience store industry operators identified the future of tobacco as one of their top five concerns heading into 2010. And with good reason. Operators have entered a period of unprecedented challenges when it comes to selling cigarettes, which means they must find new and innovative ways to market and merchandise this essential product [...]