Sorting through all of the dynamics at work in the smokeless tobacco category is proving a complex calculation for convenience store operators and consumers alike. For example: retail prices rose with the April 1 passage of an increase to the Federal Excise Tobacco (FET) tax to fund an expansion of SCHIP, the State Children’s Health…
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…