The simple truth is that no one is certain what the Food and Drug Administration (FDA) will come up with next now that it has been given de facto control of the tobacco industry. But between bureaucratic control freaks, national, state and local taxes, and even the whispered fear of retailer liability concerns ahead, many…
Marketing Cigars in Tough Times
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…
Smokeless Stays Strong
With many states passing smoking bans, more customers are turning to smokeless tobacco, and the sales figures from 2009 bear that out. According to Information Resources Inc., for the 52 weeks ended Dec. 27, 2009 total dollar sales for other tobacco products was $6.07 billion, up 14.6% from last year. Unit sales totaled 2.40 billion,…
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…
Cigarette Excise Tax, Ohio Cigarette Tax Changes Bring Higher Prices
An Ohio coalition refutes the findings of a recent report claiming that increasing Ohio’s cigarette tax by $1 per pack would bring the state $299.7 million per year. The report released yesterday, entitled, Tobacco Taxes: A Win-Win-Win for Cash-Strapped States is based on national and state surveys of registered voters. “Any economist will tell you…
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…
Study Disputes Claims Made By E-Cigarette Manufacturers
A study at Virginia Commonwealth University found that electronic cigarettes, through which customers can inhale nicotine vapor instead of smoke do not deliver as promised, CNN reported. “They are as effective at nicotine delivery as puffing on an unlit cigarette,” said Dr. Thomas Eissenberg, at the school’s Institute for Drug and Alcohol Studies. His…
Kretek Drops Cigar Lawsuit Against FDA
Kretek International Inc., importer and marketer of Djarum clove cigars has withdrawn its lawsuit against the U.S. Food and Drug Administration (FDA), regarding the distribution and sale of clove cigar products. In light of statements made by the FDA, Kretek in September of 2009 filed a complaint in the U.S. District Court for the District…
Opportunities Exist for Cigars
TOP PERFORMERS Altria Sales & Distribution (John Middleton) Swisher Swedish Match HONORABLE MENTIONS Altadis USA Republic Tobacco The SCHIP tobacco tax rates that hit in April 2009 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…