CHICAGO -- With regard to the tobacco category, 2016 was hardly a year for smooth sailing. Retailers spent the year under a cloud known as the U.S. Food and Drug Administration’s (FDA) “deeming” regulations, which left them no answers once the rules went into effect last summer.
Then the November elections brought a $2-a-pack tax hike to California, potentially triggering price increases on list contracts from the major tobacco manufacturers. The other revelation post-election was the legalization of recreational marijuana sales in four states—tangential to c-stores, but still a trend to watch.
Then, finally, the elephant in the room. Well, more accurately, elephants swallowing elephants, as talk of mergers within the major tobacco manufacturers moved to the forefront.
Here’s a recap of the year’s major tobacco stories …