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…
Forecast Strong for Cigars
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…
A Taxing Time for Tobacco
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…
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…
Senate Passage of PACT Act a ‘Major Win’ for Retailers
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…
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…
Cigarette Excise Tax, Ohio Cigarette Tax Changes Bring Higher Prices
An Ohio coalition refutes the findings of a recent report claiming that increasing Ohio’s cigarette tax by $1 per pack would bring the state $299.7 million per year. The report released yesterday, entitled, Tobacco Taxes: A Win-Win-Win for Cash-Strapped States is based on national and state surveys of registered voters. “Any economist will tell you…
Smokeless Sales Stay Strong
TOP PERFORMERS Copenhagen (Altria Sales & Distribution/US Smokeless) Grizzley (Conwood/Reynolds America) Skoal (Altria Sales & Distribution/ US Smokel) HONORABLE MENTIONS Longhorn, Red Man and Timber Wolf (Swedish Match) Kodiak (Conwood/Reynolds America) The effect of tobacco taxation and smoking restrictions has made it much more difficult to rely on cigarette sales as the primary category for…
Turning to the RYO Category
Since the onset of the April SCHIP tax increase, tobacco retailers have been turning to puffed or extended tobacco to help customers deal with the skyrocketing costs of cigarettes, especially as more customers are turning to the roll your own (RYO) category in an attempt to save dollars. Republic Tobacco’s Gambler is the market leader…
Roll-Your-Own Climbs Amid Tax Hit
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…