Dealing with the Long Arm of Government

The onslaught continues. It never ceases to amaze me that why, in these trying economic times, lawmakers insist on introducing legislation that costs retailers sales opportunities. Virtually every chain I’ve covered over the past 15-plus years in this industry has counted on earnings and profits to reinvest in the business. That means buying more real

cigarettes2

Ontario Fights Contraband Cigarettes

“Cigarette butt studies conducted in London, Ontario show the consumption of contraband cigarettes at 20% and at local high schools, as many as 35% of cigarettes smoked by youth were illegal,” says CEO of OCSA. The Ontario Convenience Stores Association (OCSA) is pleased to recognize the work and support of all members of the London

cigarettes

Cigarette Tax Changes Proposed For Rhode Island

State lawmaker looks to reduce cigarette tax to keep smokers shopping inside Rhode Island. Rhode Island Representative Robert Philips is calling on the state to slash its cigarette tax by $1 to encourage smokers to shop local instead of crossing state borders to buy smokes in neighboring Massachusetts and Connecticut, thus keeping tax dollars in

cigarettesmoney

New York RYO Business Shut Down

Giving customers access to tobacco and RYO machines is akin to selling untaxed cigarettes, lawsuit insists. Two New York-based roll-your-own tobacco stores run by Island Smokes—one in Chinatown and one in Staten Island—have agreed to close their doors by Feb. 1, following a lawsuit settlement, according to city officials, the New York Post reported. Island

dollarcig

Maintaining Cigarette Sales

Despite taxation and regulation, convenience store retailers remain optimistic about this lucrative category, though a potential ban on menthol products is looming. By John Lofstock, Editor. In an era in which the sports page sounds like the business page, talk of selling cigarettes inevitably sounds like political rhetoric. When c-store operators talk cigarettes these days

NY Cigarette Taxes To Hit $4.35 A Pack

On Monday night, June 21, 2010, the New York Legislature narrowly agreed to increase the state’s tax on cigarettes. The tax is now set to grow by an additional $1.60-to a national-high $4.35 a pack, the New York Daily News reported.   When adding in city and federal taxes, the tax charged on one pack

Managing Tobacco’s Four Tier War

A Closer Look at Who’s Trading Down According to Mintel International, 80% of smokers polled said it’s worthwhile to have a quality cigarette, which is contributing to sales of premium cigarettes. Other factors influencing sales include: • 51% of smokers have one preferred brand they always like to buy. • Less than 2% of smokers

Kansas Debates Higher Sin Taxes

The Kansas Senate Assessment and Taxation committee had a hearing Wednesday to hear all sides before ruling on the legislature’s proposed tax increases on cigarettes, liquor and fuel that would cover an estimated $400 million budget shortfall, the Kansas Reporter reported. Tom Palace, executive director of the Petroleum Marketers and Convenience Store Association of Kansas,

Cigarette Excise Tax, Ohio Cigarette Tax Changes Bring Higher Prices

An Ohio coalition refutes the findings of a recent report claiming that increasing Ohio’s cigarette tax by $1 per pack would bring the state $299.7 million per year. The report released yesterday, entitled, Tobacco Taxes: A Win-Win-Win for Cash-Strapped States is based on national and state surveys of registered voters. “Any economist will tell you

New Sin Taxes For New York City?

New sin taxes are being proposed for New York City, and would be aimed at soft drinks and cigarettes under a spending plan for 2010-11 unveiled by Gov. Paterson this morning that would also cut $1 billion in education funding and raise health care taxes, the New York Post reported. “There are no more easy

Turning to the RYO Category

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

Cigars Enhance Flavor Profile

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

New Products Power the Roller Grill

Tough times call for creative measures. The stagnant economy and hefty cigarette taxes have more c-store chains expanding their foodservice segments and adding more roller grill items to provide a greater array of hot food options at a value price to sustain loyal customers. “Customers automatically associate c-stores and roller grills. It’s been a source

Staying Competitive in a Tough Economy

A moribund economy is not the best time to take over as a category manager in charge of identifying what customers will spend their money on, but Pat Zelechoski is up to the challenge. Zelechoski, named category manager for NOCO Energy Corp.’s 31 NOCO Express convenience stores in the Eastern New York, will take on

Concerns Abound for Cigars

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

The Night They Burned Tobacco Down

Increases on cigarettes have put the category’s long-term viability in jeopardy. By Jim Callahan, Convenience Store Solutions I recently saw a statistic that declared tobacco was no longer king in convenience stores. While that is not yet true for most of us, it’s about to become an indisputable fact. The entire country now gets to

The Impact of Tobacco Federal Excise Taxes

The increase of federal and state cigarette excise taxes will have a far-reaching, negative impact on the convenience store industry. With the exception of petroleum products, no other category is more vital to the industry’s success than tobacco products. Given that cigarettes represent 30-45% of c-store inside sales, the deterioration of this category will have

css.php