Under fire now for more than a decade, cigarettes remain among the most important in-store categories in convenience stores. Cigarettes, along with other tobacco products (OTP), combined to account for 40.7% of in-store sales, according to the 2013 NACS State of the Industry Report. However, according to Information Resources Inc. (IRI), cigarette sales in the…
Smokeless Tobacco Still Dominates OTP
The smokeless tobacco category continued its upward trajectory in 2013 thanks to ongoing manufacturer promotions and a growing customer interest in alternative tobacco products to supplement their smoking habits. Manufacturers are capitalizing on the strong sales demand by introducing more products in an array of flavors. For the 52 weeks ended Jan. 20, 2014, the…
Optimism for RYO Tobacco
Roll-your-own (RYO) tobacco will continue to put convenience store operators to the test over the next couple of years—enduring the ongoing legislative assault on all tobacco products while continuing to carry it to provide greater variety and service to loyal consumers. “Roll-your-own tobacco is important for those retailers that are creating a ‘destination stop’ for…
Seizing Control of Smokeless Tobacco
With new flavors, brand extensions and increased promotional activity, MST sales continue to post strong gains at convenience stores. By Howard Riell, Associate Editor. The smokeless tobacco category remains strong, and not just because legislators have chased consumers away from cigarettes. New products and flavors combined with competitive pricing, increased promotional activity and effective merchandising…
Omaha Seeks 7% Occupation Tax On Tobacco Products
All tobacco products from cigarettes to OTP, including e-cigarettes, and even smoking devices like pipes, would be impacted by the tobacco taxation. The Omaha, Neb. City Council is introducing an ordinance today that if adopted would require an “occupational privilege tax” on tobacco retailers equal to 7% of the gross receipts from the sale of…
FDA Announces New Compliance Check Inspection Notice
If a minor succeeds in purchasing a regulated tobacco product during a compliance inspection, the FDA will now send the retailer a “Compliance Check Inspection Notice” after the inspection occurs. Last week, during an FDA-hosted compliance training Webinar for retailers, the FDA announced it plans to use a new Compliance Check Inspection Notice if a…
Couche-Tard Profits Up
While merchandise sales are up, the tobacco category remains a challenge, says chief executive of Couche-Tard. Canadian convenience store operator Alimentation Couche-Tard Inc.’s adjusted quarterly profit is up, boosted in part by recent acquisitions, stronger merchandise sales and higher fuel margins, Reuters reported. Net earnings for the company fell, however, due to one-time costs associated…
TTB Addresses RYO Cigarette Machine Ruling
Anyone manufacturing tobacco products without first obtaining the necessary permit is subject to civil and/or criminal penalties. The federal Alcohol, Tobacco Tax and Trade Bureau (TTB) issued an announcement regarding the impact of the Aug. 20 ruling on RYO cigarette machines by the U.S. Circuit Court of Appeals for the Sixth Circuit, the National Association…
Customers ‘Krave’ Electronic Tobacco
E-cigarettes offer consumers an alternative to traditional cigarettes. They are also virtually odorless, allowing them to be consumed in locations where traditional smoking is commonly prohibited. By CSD Staff Vapor Corp., one of the only publicly traded companies (OTCBB: VPCO) servicing the electronic cigarette and vaporizer industry, maintains its integrity in a fiercely competitive market…
Reynolds America Inc. Entering New Tobacco Categories
Reynolds’ is launching an NRT gum made by its Niconovum pharmaceutical subsidiary, among other products. Reynolds American Inc. is preparing, within the next six months, to delve into several categories, including vapor (likely electronic cigarettes), nicotine-replacement therapy (NRT) and nicotine extract products, such as lozenges, Winston-Salem Journal reported. Reynolds also plans to launch new styles…