Despite the SCHIP tobacco taxes that hit on April 1, 2009, cigar sales continue to persevere. 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 of 40.26 cents per cigar. The tax…
Cigarettes Still King
State Tax Grab During 2009, cigarette tax increases were defeated in 19 states and passed into law in 12 states. States where cigarette tax increases were not enacted include: STATE Failed TAX Increase in 2009 Alabama 32.5 cents per pack Connecticut 50 cents per pack Georgia $1 per pack Kansas 95 cents per pack over…
RYO Rolls Into 2010
RYO Pounds Sold Per Year Roll your own (RYO) cigarettes is a growing trend. Sales have climbed during the past five years, yet took a dive in 2009 as customers started using pipe tobacco to roll cigarettes as a result of increased taxes. On the other hand, customers used 10.6 million pounds of pipe tobacco…
New Cigarette Rules Proposed Today In New York
This afternoon, the state tax department of New York will issue regulations to collect taxes on cigarettes sold by Indian retailers, The Buffalo News reported. The new plan looks to collect the tax “upstream” rather than from Indian retail shops. Tobacco manufacturers will be required to sell cigarettes only to licensed stamping agents, certifying that…
NATO Fights New York On Proposed Ban of Flavored Tobacco
This week, the National Association of Tobacco Outlets (NATO) sent a letter to all 213 members of the New York state legislature urging them to defer legislative action on Bill Number A.9482, which aims to prohibit the sale of all flavored tobacco products in the state except for products with a tobacco, menthol, mint or…
Federal Judge Sides With Electronic Cigarettes
A U.S. judge has ruled that the U.S. Food and Drug Administration (FDA) does not have the authority to regulate electronic cigarettes, The Wall Street Journal reported. In a 32-page opinion, U.S. District Judge Richard J. Leon sided with electronic cigarette maker Smoking Everywhere Inc., and found that the FDA did not have the authority…
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…
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…
Full-Flavor Enhancement
General Tobacco (GT) announced the launch of the new Vaquero Little Cigars 100’s box. The line extension is the latest addition to the GT catalog and will feature a variety of flavors to choose from including: Natural, Light, Vanilla, Menthol, Peach and Cherry. For More Information from General Tobacco 877-500-9595 www.generaltobacco.com