|
Tobacco Industry News
Reports
In convenience stores: More food, fewer cigarettes
According to a recent report, 7-Eleven stores are planning to remove cigarettes from their long-term business model. Cigarettes make up about 38% of non-gasoline sales for convenience stores, but gross margins have decreased from 20.8% in 2002 to 14.6% in 2011. Additionally, retailers are shying away from tobacco product sales as more stringent laws regulate the marketing and sale of these products. Profits from sales of food items such as prepared food and fountain soda appear to be growing; the convenience store chain Casey’s General Stores reported a 30% profit in food items, which is double the amount generated from cigarette sales (13%). This is also evidenced by 7-Eleven’s plans to double their sales in fresh foods to 20% by 2015. This trend toward increasing food sales and reducing cigarette sales could improve public health by reducing access to tobacco products in convenience stores. Click here to read more.
Citi tobacco analyst bets on menthol trends
Citi analyst Vivien Azer stated that she sees a new trend among Hispanic smokers of increased use of menthol cigarettes. Hispanic smokers now account for 13% of smokers compared to 5% of smokers in 2001. The increase in the number of Hispanic smokers is partly tied to population growth, and is outpacing rises in smoking seen among African Americans. The smoking rate among whites has declined during that same period. Click here to read more.
R.J. Reynolds Tobacco Company announces redesigned website
Tobacco company R.J. Reynolds has announced the redesign of its website that was created to educate wholesalers and retailers about tobacco tax issues. Changes were made to the structure and content of the website to reflect the company’s three transformation pillars: Tobacco Harm Reduction, Commercial Integrity, and Youth Tobacco Prevention. The plan is for this website to serve as an educational tool on other “tobacco-related issues that adversely affect the tobacco industry.” Click here to access the new website titled “TransformTobacco.com.”
top
Back to Table of Contents
|
