Alabama delivered a blow to convenience store tobacco sets on May 14. The Governor signed HB8, which, among many provisions, allows most e-cigarette products to only be sold at specialty stores, according to NATO News. These are defined as having 50% of inventory in vapor products and alternative nicotine products.
Only vape products that have received a marketing granted order via pre-market tobacco product application (PMTA) can be sold at c-stores. This includes 34 tobacco- and menthol-flavored e-cigarette products approved by the Food and Drug Administration (FDA), reported AL.com, with other flavors and hundreds of products pending FDA review banned from sale except in age-restricted vape shops.
HB8 also requires vape and alternative nicotine products to be manufactured in the U.S., revealed NATO News. Additionally, it creates a vaping enforcement fund, bans tobacco and nicotine packaging and marketing that’s attractive to minors, and revises the requirements needed to be on Alabama’s vape and alternative nicotine products directory to include synthetic nicotine under consideration by the FDA that had been on the market by April 12, 2022, and applied for a PMTA by May 14, 2022.
This new bill will draw vape customers away from c-stores and to the shops that are able to sell more flavors. C-store retailers will need to find creative ways to fill space in the backbar and boost other categories to keep foot traffic high.
The Governor also signed HB529, which imposes a tax of 10 cents per milliliter on vape products and preempts local taxing authority.
“The bill requires a distributor of vapor or alternative nicotine products to obtain a license and revises the definition of alternative nicotine products (nicotine pouches) to be included on the state directory to include products that have a PMTA application pending that was applied for by May 14, 2022,” NATO News reported.
HB529 has an effective date of Oct. 1.
Finally, on May 14, the Governor of Alabama was sent HB357. This defines heated tobacco products and taxes them at 34 cents per pack, to be effective on Oct. 1.
As many states consider flavored tobacco bans of some sort, and certainly as other regulations are foisted on tobacco, c-store retailers must remain vigilant and ultimately prepare to pivot in new directions as required.
