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 [...]
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 [...]
Report by anti-smoking groups condemns c-stores for point-of-sale tobacco marketing. A new report, titled “Deadly Alliance: How Tobacco Companies and Convenience Stores Partner to Market Tobacco Products and Fight Life-Saving Policies” has been released by the Campaign for Tobacco-Free Kids, Counter Tobacco (a project that works to counter tobacco product sales and marketing at the [...]
Convenience stores have evolved from being a destination for cigarettes to a destination for tobacco products as a whole. By Joe Bush, Contributing Editor. It was inevitable that the conversation on convenience store cigar sales would shift eventually from rapid growth to supplier relations, category management and marketing. As cigarette regulations and prices and taxes [...]
Alternative products are helping to shape the future of convenience store tobacco sets. By Lou Maiellano. Imagine, if you will, that European explorers land in Africa, North America or South America in the 14th, 15th or 16th centuries. Upon landing, these explorers find the inhabitants of these exotic new lands drinking a strange, energizing brew [...]
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. [...]
By: John Lofstock, Editor. “We’re from the government and we’re here to help.” Those words are about as chilling to convenience store retailers as Navy SEAL Team 6 is to terrorists. But this is the new reality for all marketers of tobacco. The Food and Drug Administration (FDA) wants convenience store retailers to think otherwise. [...]
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 [...]
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 [...]
Amid all the chaos of legislation, regulation and taxation, it’s good to have tobacco category managers like Gate Petroleum’s Matt Hieb. Hieb’s approach to his chain’s market-leading cigar performance is calm and measured, driven by data, common sense and manufacturer promotions. In 225 locations throughout six southeastern states, Gate’s cigar offering exceeds the southeast market [...]
Proper Handling Quality counts—especially with tobacco, something c-store operators had better keep in mind. Kevin Paige, owner of three Butthead’s Tobacco Emporiums in Danbury, Conn., said he is trying to distance himself from the c-store channel when it comes to tobacco. “Although I operated my own c-stores for over 20 years, I don’t think 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 [...]
The U.S. House of Representatives has passed the PACT Act (Prevent All Cigarette Trafficking Act) on a vote of 387-25. “A significant amount of work has gone into getting this bill passed by both the U.S. Senate and the U.S. House, and I extend a special thank you to all NATO members for their assistance [...]
The March 11 Senate passage of the Prevent All Cigarette Trafficking Act (PACT Act), which addresses the long-standing convenience store industry concern of tax evasion via remote sellers of tobacco products, is a “major win” for retailers, according to NACS Senior Vice President of Government Relations Lyle Beckwith. Authored by Sen. Herb Kohl (D-WI) and [...]