The SCHIP tobacco tax rates that hit on April 1 are costing cigar smokers more, but sales continue to persevere. As of April, the federal taxes on large cigars rose from 20.719% of the wholesale price with a tax cap of 4.875 cents per cigar to 52.75% of the wholesale price with a tax cap…

Despite the SCHIP bill and mounting state taxes, smokeless tobacco products have experienced a strong year packed with innovation, new flavors and increased consumer demand. According to the NACS 2009 State of the Industry report, smokeless tobacco sales surged 6.1% to $2.96 billion last year. The average c-store totaled $1,703 per month in smokeless sales…

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…

TOP PERFORMERS Swisher International Inc. Swedish Match Altadis USA HONORABLE MENTIONS John Middleton (Philip Morris USA) Royal Blunts (New Image Global) PrimeTime Cigars New insights on the cigar category reveal that retailers who manage the tobacco segment more strategically benefit from accelerated growth and a larger share of the market. “Retailers focused on offering a…

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…

“John Middleton has some very strong sellers in our stores, but the new merchandiser they developed with us has been an overall improvement to the [cigar] category.” John Middleton Inc. has been operating in the Philadelphia area since 1856, beginning with a retail tobacco shop. More than a hundred years later, John Middleton divested its…