Commercial RYO machine operators must comply with the new rules effective immediately. On Friday, July 6, President Barack Obama signed the transportation bill, passed by the U.S. House of Representatives and the U.S. Senate, into law. The bill included a provision that defines commercial RYO machine operators as tobacco manufacturers under federal law. This means [...]
The House and Senate Conference Committee version of the transportation bill containing the RYO amendment must be voted on by both the full House and the full Senate this week. A new RYO machine amendment has been included in a Congressional transportation bill, the National Association of Tobacco Outlets (NATO) reported. The U.S. House and [...]
In recent years, roll-your-own tobacco machines have surfaced at various retail locations putting convenience stores at a competitive disadvantage on price. By Howard Riell, Associate Editor America, and in particular its lawmakers, remains caught in a love-hate relationship with tobacco. That push-pull has resulted in very well-publicized attempts to dissuade Americans from using tobacco, or [...]
A new report finds shift in using pipe versus roll-your-own tobacco and large cigars versus small cigars to avoid hefty taxes. This week, the federal Government Accounting Office (GAO) issued a report titled “Large Disparities in Rates for Smoking Products Trigger Significant Market Shifts to Avoid Higher Taxes.” The document shows the impact of the [...]
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 [...]
As FDA cracks down on adult-only tobacco stores, NATO seeks clarification from FDA on whether a “bouncer” is needed at the door to check IDs. Some adult-only tobacco stores have been receiving warning letters regarding a failure to ensure that no minors enter the store, and for failure to have a staff member checking IDs [...]
The federal Prevent All Cigarette Trafficking Act (PACT Act) goes into effect today, June 29, 2010. PACT Act is set to regulate the sale of cigarettes, roll-your-own tobacco and smokeless tobacco sold over the Internet or by mail order to consumers. But, one provision of the PACT Act has caused some confusion, according to the [...]
Last year was truly a difficult time for tobacco. The State Children’s Health Insurance Program (SCHIP) increased tobacco taxes from a “modest” 158% increase on cigarettes up to a hideous 2,000 plus percentage increase on roll your own tobacco and small cigars. (RYO went from $1.10 per pound to $24.68 and small cigars went from [...]
Over the past six months since the U.S. Food and Drug Administration (FDA) began wielding its new powers to regulate cigarettes, smokeless and roll-your-own tobacco, the implementation of the law has been anything but smooth. Even though Dr. Lawrence Deyton, the FDA’s new head of the Center for Tobacco Products, announced several times during “Listening [...]
Confusion Reigns Supreme C-store operators aren’t the only ones left scratching their heads by the Food and Drug Administration’s (FDA) first foray into tobacco regulation.During the FDA’s teleconference, Catherine Lorraine, a lawyer for the administration, said, “I just want to draw your attention to the portion of the definition of a cigarette, which specifically refers [...]
With the Democrats controlling both houses of Congress and the White House, this year has seen major federal tax and regulatory legislation signed into law that will dramatically impact the tobacco industry. On April 1, the largest tax increase on a single product in the history of the U.S. became law with the federal cigarette [...]
Mounting cigarette costs are driving smokers to test cost-effective tobacco alternatives, such as roll your own (RYO). The 2009 NACS State of the Industry report, which polled 156 retail firms with 20,553 stores as of December 2008, found that pipe and cigarette tobacco sales had the strongest growth of all tobacco products and were up [...]
TOP PERFORMERS Philip Morris USA R.J. Reynolds Tobacco Co. Lorillard Tobacco Co. HONORABLE MENTIONS Commonwealth Brands Inc. Liggett Vector Since the 1998 Master Settlement Agreement (MSA), tobacco taxes and sales from tax-free sources continue to plague the convenience store industry. Cigarettes continue to be the top in-store category based on sales dollars. On a monthly [...]