Convenience store operators are enjoying the growing popularity of smokeless tobacco products, but they are also being forced to keep a wary eye on federal and local regulations. By Howard Riell, Associate Editor Is the smokeless tobacco product category, which includes moist snuff, snus and dissolvables, the lifeboat that convenience store retailers hope it will…
GAO Suggests Equalizing Tobacco Tax Rates
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…
Grizzly MST Brand Celebrates 10th Anniversary
Grizzly, the flagship moist snuff tobacco brand of Memphis-based American Snuff Co., is celebrating 10 years of unprecedented success. Grizzly has become the best-selling smokeless tobacco brand on the U.S. market in 10 short years — something unique to the industry that has never been done before. From its introduction in 2001, Grizzly grown to…
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…
Seizing Smokeless Opportunities
The tobacco customer is changing, along with consumers’ product options, which is driving optimism for a strong 2011. By Pat Pape, Contributing Editor. Eric Choncko is a 31-year-old locomotive engineer living in North Texas. He also is a regular snuff user and a core convenience store customer. He chose that tobacco product over cigarettes several…
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,…
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,…
Legislative Wrap Up for 2009
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…
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…