While cigarettes and smokeless tobacco took the largest share of tobacco dollars over the last year, cigars brought home $4 billion in sales at c-stores, remaining relatively flat overall, according to Circana.
During the 12 weeks ending April 20, cigars dipped 3.7% in dollar sales and 9.4% in unit sales. Little cigars saw the greatest decrease in sales in the category (-29.5%), a trend echoed over the past year (-42.2%).
At Englefield Oil-operated Duchess stores, with 116 locations in Ohio and West Virginia, cigar space was reduced last spring as sales have fallen below that of nicotine pouches.
In one of the first moves the Trump administration made once the new president took office, the Food and Drug Administration (FDA) withdrew the proposal that would ban the sale of flavored cigars, as well as the proposal banning menthol cigarettes.
This came as a relief to c-store retailers, who have been watching the progress of these proposals since they were unveiled in 2022.
A proposal to limit the level of nicotine in cigarettes and certain other combustible tobacco products is still in play.
Regulations are also affecting vape, possibly more presently than other areas.
Electronic smoking devices saw a 9.4% drop in dollars during Q1 2025, according to Circana, and units decreased by 13%.
At Duchess stores specifically, vape sales are down, with Vuse contributing to 70% of total vape sales.
Stillwater, Okla.-based OnCue, with 73 stores in Oklahoma and Texas, is utilizing bundled promotions such as “buy two pods or packs, save $X.XX” with the vape segment. This is proving to be an effective value proposition for the chain.
“In many cases, we’ve had to get creative with our pricing tactics to help absorb the impact of list price increases. As consumer preferences evolve rapidly, we remain focused on staying nimble and responsive to maintain competitiveness and meet shoppers where they are,” said Chris Stevenson, category manager — tobacco and center store, OnCue.
Still, regulations and the need for enforcement are complicating the category, particularly as illicit and unauthorized products enter the market.
“While flavored disposable vapes remain highly popular among consumers, the majority of these offerings are illegal under current U.S. regulations. We remain optimistic that the FDA will maintain and intensify its enforcement efforts to address this critical issue,” Stevenson said.
Duchess, too, is noticing illicit vape products enter the market.
“I am grateful to see the state cracking down on illicit vape products. We’ve always followed state regulations, and we expect other retailers to do the same,” said Heather Smith, category manager — tobacco, nicotine and packaged beverages for Englefield.
Columbus, Ohio, has had a flavor ban for over a year, which has affected 18% of Duchess’ stores. The sales from these stores are pulling down the chain’s overall tobacco and nicotine sales.
“Our Ohio House and Senate voted to overturn the ban. We need the Ohio Supreme Court to certify this decision and bring the flavors back to the retailers,” Smith said. “Independents are continuing to sell flavors even in the banned areas, and it’s hurting us retailers who are following the law.”
Among New York Association of Convenience Store (NYACS) members, this is an important issue. New York has a flavored vape ban, and illicit flavored vapes available elsewhere in the state has made for additional challenges.
“Despite these headwinds,” said Alison Ritchie, president of NYACS, “the vapor category has shown resilience.”
OnCue is monitoring the regulatory landscape and the effect it might have on assortment and overall strategy. The chain is determined to remain compliant with federal, state and local regulations, both to avoid fines and to maintain trust with customers and regulatory bodies.
One of its biggest ongoing challenges, echoing NYACS members, is the illicit vape market, forcing OnCue to compete with unauthorized products while still upholding compliance and profitability.
“At both the federal and state levels, the regulatory landscape for tobacco and nicotine products has been plagued by a lack of clarity, transparency and enforcement. FDA mismanagement over the past several years has created a confusing, uneven playing field where responsible retailers and manufacturers who follow the rules are punished, while bad actors continue to flood the market with illegal products,” Ritchie said.
She noted that in New York, the problem is worse, as policymakers continue to focus on prohibitionist methods that “have failed time and again.”
A proposed flavored nicotine pouch ban had been added to the Assembly Health Committee for a Tuesday agenda. When NYACS received word of this the Friday beforehand, the team worked nonstop to show lawmakers what this bill would do in practice, not just theory.
“We got on the phones, drafted memos, organized briefings and mobilized our network of convenience store owners from every corner of the state,” Ritchie said.
The group explained how their effort was meant to help small businesses already struggling with rising costs and competition from the illicit market.
“We explained how a well-intended policy could unintentionally make matters worse — handing more power to illegal sellers and slashing tax revenue that supports public programs, all without doing much to stop youth access to nicotine,” she continued.
The bill was pulled from the agenda.
“That was a win. A temporary one. But it reminded me why this work matters so much. Behind every bill are real people — store owners, employees and communities — who deserve to be part of the conversation,” Ritchie said. “And when that next version of the proposal comes back, as we know it will, we’ll be ready to stand up for them again.”
She advocates for a harm reduction strategy, a marketplace where tobacco users can access less harmful alternatives while still having the ability to choose.
The effort on the part of c-store retailers to form a relationship with policymakers to influence these strategies and adjust to changing consumer trends is imperative. Tobacco category managers must constantly stay abreast of the many factors that shape the segment.
“That’s why we’re focused on maintaining the right mix of assortment, promotional strategies and category flexibility to stay ahead. In a category that changes as fast as this one, adaptability will continue to be critical to long-term success,” Stevenson said.
