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July Brings New Tobacco Prices

This summer, many states see increases in tobacco taxes, while a few enact small decreases. Starting July 1, several state cigarette and tobacco tax rates changed due to action by state legislatures, the National Association of Tobacco Outlets (NATO) reported. Following are updates from NATO on cigarette and tobacco taxes as of July 1.  

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Smokeless Sales Show Promise

While managing new products and planograms is vital, retailers will need to keep an eye out for federal tax increases and FDA intervention over the next 12 months. By Howard Riell, Associate Editor. Smokeless tobacco has outperformed expectations for three straight years—which, while good, leaves many in the industry fearing it’s only a matter of

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Serving Today’s Smokers

Led by the Gallagher family, Smoker Friendly continues the fight to sell tobacco legally and responsibly. By John Lofstock, Editor. While the federal government seems intent on eliminating tobacco products altogether, tobacco remains a legal product in the U.S. enjoyed by legal-aged adults exercising their right to smoke, dip or chew. The right to enjoy

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Tobacco Sales Rolling Along

As consumers embrace roll your own (RYO) tobacco, retailers are seeing a boost in sales of accessories such as rolling papers, cigarette tubes and rolling machines. By Howard Riell, Associate Editor. Smokers seeking a safe harbor from cigarette tax increases have made port in the roll your own (RYO) segment. Many have been pleasantly surprised

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FDA’s CTP Website Features New Content

FDA seeks to educate retailers with new quizzes and updated information on tobacco regulations, including in Spanish. The FDA’s Center for Tobacco Products’ (CTP) has added new features to the retailer section of its Website. FDA hopes these new updates and quizzes will help educate retailers about relevant tobacco regulations and increase voluntary compliance with

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FDA Cracks Down On The Illegal Marketing of Tobacco Products

“It is illegal for tobacco companies or retailers, including Internet sellers, to make unsubstantiated claims or statements that imply tobacco products reduce health risks,” says the director of FDA’s Center for Tobacco Products. The U.S. Food and Drug Administration (FDA) issued 11 warning letters last week to online retailers for illegally marketing tobacco products with

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Commonwealth Brands, Altadis USA Announce Integration

Commonwealth Brands and Altadis USA have announced the integration of their sales and marketing units into a unified team. The unified team is expected to provide greater sales coverage and more comprehensive service to its customer. “This will put us in a stronger position to drive growth across our USA mass market portfolio that comprises

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Complying with Cigarette Sales Restrictions

As the noose tightens on menthol products, convenience store retailers are learning to accept the latest limitations placed on tobacco products. By: John Lofstock, Editor. Cigarettes will soon carry new warning labels as the question for retailers becomes how to market a product whose package basically urges consumers not to buy it. Federal legislation handed

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FDA Posts Draft Guidance To Website

Industry members are encouraged to read and comment on the guidance. Draft guidance, Establishing that a Tobacco Product was Commercially Marketed in the U.S. as of Feb. 15, 2007, has been posted to the Federal Register and on the FDA’s Center For Tobacco Products (CTP) Website today, to encourage feedback from those in the industry.

Even in the face of federal and state taxes, cigarette sales were up 5.21% in 2010.

Dealing With Tobacco’s Cloudy Future

For all the controversy surrounding cigarettes and increased local and federal taxes, cigarette sales fared well in 2010, according to SymphonyIRI Group. For the 52 weeks ended Dec. 26, 2010, cigarette sales totaled more than $53.5 billion, up 5.21% from the pervious 12 months. Units sold increased 1.52% to slightly more than nine billion. The

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TPE 2011 Kicks Off in Las Vegas

E-cigarettes are a big trend on the show floor, with several new manufacturers showcasing electronic products. The Tobacco Plus Expo International (TPE) opened in Las Vegas on March 2 at the Las Vegas Convention Center, bringing together a broad array of tobacco, tobacco products and accessories under one roof. On the show floor, the major

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U.S. Gasoline Prices Climb Amid Egyptian Uprising

By Brian L. Milne, Refined Fuels Editor, Telvent DTN Gasoline price watchers should expect prices at the pump to again nudge higher in closing out January, pushed up by a surge in oil valuations in wholesale trading on Jan. 28 sparked by unrest in Egypt. The rally reversed what would have been a decline in

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Discount Tobacco City Takes on the FDA

When a number of major tobacco companies, including R.J. Reynolds Tobacco Co., Conwood Co. LLC, Commonwealth Brands Inc., Lorillard Inc. and National Tobacco Co., decided to take on the federal government’s ban on tobacco advertising, they were looking for one retailer to step up and join the fight. They got their wish when Frank Hinton,

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District Court Throws Out NYC Cigarette POS Warnings

The United States District Court for the Southern District of New York declared null and void the New York City resolution mandating that retailers who sell cigarettes display signs containing graphic health warnings, according to Philip Morris USA. The court ruled that such requirements were preempted by federal law. “We are pleased that the Court

Restraining Order Issued On RYO Machine Rule

According to a Nov. 15 Court decision, the U.S. Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) is immediately restrained from enforcing the rule issued on Sept. 30, 2010 that regulates the commercial size cigarette-making machines being used in retail stores, the National Association of Tobacco Outlets (NATO) reported. The Nov. 15 order also

Tax On Reservation Cigarettes On Hold

A federal judge has sided with New York in the latest ruling over the state’s plans to tax most Indian reservation smokeshop sales, but collection of the tax is on hold for now, the New York Post reported. U.S. District Judge Richard Arcara in Buffalo, N.Y. denied a request to block the state from collecting

FDA Proposes Rules on Cigarette Warnings Labels

On Nov. 10, 2010, the FDA’s Center for Tobacco Products issued a 140 page document titled “Required Warnings for Cigarette Packages and Advertisement Proposed Rule,” which modifies the current cigarette package warning labels and also requires color graphic warnings to accompany the new text warnings, the National Association of Tobacco Outlets (NATO) reported. The FDA

RYO Machine Rule Stands

A judge has struck down a request for a temporary restraining order against the U.S. Treasury’s Alcohol Tobacco Tax and Trade Bureau’s (TTB) ruling that regulates the commercial size cigarette-making machines being used in retail stores, the National Association of Tobacco Outlets (NATO) reported. The TTB previously ruled that a retailer who provides a commercial

Sweetening Cigar Sales

Small filtered cigarellos represent a real albeit temporary opportunity for convenience stores to rack up sales, so get going before the window of opportunity slams shut. These diminutive cigars have gained strong appeal among smokers laboring to afford cigarettes in the wake of multiple tobacco tax hikes. The price differential between filtered cigars and cigarettes

7-Eleven Adds Promotion Optimization Solution

7-Eleven Inc. has selected KSS Retail for its price modeling, forecasting and optimization solution for 7-Eleven stores in the U.S. and Canada. 7-Eleven plans to use KSS Retail’s PriceStrat and Heartbeat systems to conduct extensive market-basket analytics and affinity analysis to drive more effective promotions. It also plans to deploy PriceStrat’s cigarette buy-down capabilities to

Mail Order Cigarette Ban Upheld

Seneca cigarette businesses cannot ship cigarettes through the U.S. Postal Service, according to a federal district court ruling last week. Judge Richard Arcara upheld the mail-order ban contained in the Prevent All Cigarette Trafficking (PACT) Act but temporarily exempted more than 140 Seneca-owned businesses from a provision requiring them to comply with all taxing laws

Fresh Breath Latches On

Attach/Mints LLC is launching a revolutionary product to solve one of the most common problems experienced by smokers losing or carrying bulky mint containers in one’s pockets or purse. The attach/Mint is designed specifically to clip perfectly on to the top or bottom of any standard cigarette pack. Attach/Mints potency is strong enough to eliminate

TPE 2011 Expecting Strong Attendance

Building on the success of the Tobacco Plus Expo (TPE) 2010, the Tobacco Plus Expo slated for March 2-3 at the Las Vegas Convention Center is attracting a record level of early interest from both exhibitors and attendees. “A full 10 months out we already have commitments from the majority of last year’s exhibitors, as

PACT Act On Hold

Federal District Judge Richard Arcara temporarily ordered that the Prevent All Cigarette Trafficking Act (PACT Act), a new law that disallows cigarettes to be shipped via the mail-which was set to go into effect yesterday-to be placed on hold, the Associated Press reported. A Seneca Indian Nation tobacco business owner asked for the restraining order

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

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