House Passes PACT Act

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

NATO Urges Retailers To Fight For PACT Act Passage

As the PACT (Prevent All Cigarette Trafficking) Act moves to the House after passage in the Senate, for a final vote, NATO is urging retailers to take action. Because the Senate version of the bill is slightly different than the House version, the U.S. House of Representatives must vote on the bill again before it

7-Eleven Joins NATO

NATO, the National Association of Tobacco Outlets, announced that 7-Eleven Inc. has joined NATO as a retail member.  Based in Dallas, 7-Eleven operates, franchises and licenses more than 6,970 stores in the U.S. and Canada. As one of the leading national retail trade associations that focuses exclusively on state and federal tobacco legislative issues, NATO’s

Smokeless Stays Strong

With many states passing smoking bans, more customers are turning to smokeless tobacco, and the sales figures from 2009 bear that out. According to Information Resources Inc., for the 52 weeks ended Dec. 27, 2009 total dollar sales for other tobacco products was $6.07 billion, up 14.6% from last year. Unit sales totaled 2.40 billion,

Renewed Optimism for Smokeless tobacco and tobacco chewing products

The simple truth is that no one is certain what the Food and Drug Administration (FDA) will come up with next now that it has been given de facto control of the tobacco industry. But between bureaucratic control freaks, national, state and local taxes, and even the whispered fear of retailer liability concerns ahead, many

NATO Fights New York On Proposed Ban of Flavored Tobacco

This week, the National Association of Tobacco Outlets (NATO) sent a letter to all 213 members of the New York state legislature urging them to defer legislative action on Bill Number A.9482, which aims to prohibit the sale of all flavored tobacco products in the state except for products with a tobacco, menthol, mint or

New Regulations on Tobacco from the FDA

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

FDA Looks at Future of Tobacco Products

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

Smokeless Sales Stay Strong

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

What’s in Store in the Humidor

As if the turbulent economy, rising state taxes and local anti-smoking regulations hadn’t rendered the retail cigar landscape dangerous enough, enter the U.S. Food and Drug Administration (FDA), which wants to significantly reshape that landscape, but so far hasn’t told anyone—most notably the retailers that will be selling the products—how. Some background: The law granting

Dipping Into New Profits

In a market plagued by high taxes, declining gross margin profits on cigarettes and the likely possibility of FDA restrictions on tobacco, retailers more than ever need to manage the tobacco category more closely. It’s no secret that the smokeless category has been growing, with big year-on-year gains in new product sales, flavors and line

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

Cigarettes

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

The Tax Train Keeps Rolling

January could not end soon enough. The industry hasn’t seen such a tumultuous month since November 1998 when Congress first turned to tobacco as its financial panacea. Big Brother was at it again last month with the U.S. Senate passing the State Children’s Health Insurance Program (SCHIP)—including all of the cigarette and tobacco tax rate

Preparing for Drastic Tobacco Regulations

Not surprisingly, convenience store industry operators identified the future of tobacco as one of their top five concerns heading into 2010. And with good reason. Operators have entered a period of unprecedented challenges when it comes to selling cigarettes, which means they must find new and innovative ways to market and merchandise this essential product

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