Small filtered cigarellos represent a real albeit temporary opportunity for convenience stores to rack up sales, so get going before the window of opportunity slams shut. These diminutive cigars have gained strong appeal among smokers laboring to afford cigarettes in the wake of multiple tobacco tax hikes. The price differential between filtered cigars and cigarettes…
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…
Wild Ride Continues for Cigarettes
Once again, cigarettes dominated in-store sales, accounting for nearly one in every three dollars spent in stores, but cigarette gross margins continued to plummet, falling to 15.3%. These low cigarette margins dropped the category to third in terms of gross margin contribution (16%) behind foodservice (23.9%) and packaged beverages (16.6%) Margins promise to continue falling…
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…
Cigars
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…
Turbulent Times for Tobacco
Fasten your seat belts because 2009 will likely be one of the most turbulent years for the tobacco industry in recent memory. The outcome of the federal elections has further cemented Democratic control in both the U.S. Senate and the U.S. House and ushered in a new liberal administration with President-elect Obama waiting to be…