Convenience stores could benefit from e-cigarette ban, say analysts

TORONTO — A growing move to ban flavoured e-cigarettes due to health concerns particularly in youth could actually benefit convenience stores in the long run, say retail analysts.

“We believe the FDA’s plan to remove mint/menthol e-cig flavours (in addition to all other non-tobacco flavours) would without question encourage a return to combustible cigarettes,” Bonnie Herzog of Wells Fargo Securities wrote in a report after conducting a survey of retailers.

A large majority of retailers surveyed believe the removal of e-cigarettes would migrate smokers to combustible cigarettes that represent a larger portion of convenience store sales.

One-third of retailers surveyed also expect mint and menthol smokers would switch to combustible cigarettes because those consumers tend to want to stick with menthol products.

Almost half of the retailers believe the removal of flavoured e-cigarettes won’t help to reduce youth usage as kids likely move to the black market. Yet some 40 per cent of retailers say they are seeing some deceleration in Juul sales and nearly 20 per cent are seeing more combustible cigarette sales as news reports increase about health issues with vaping.

Some U.S. states are moving to ban or curtail vaping but Herzog said she is “cautiously optimistic” that a complete ban on e-cigarette flavours will be imposed by the Food and Drug Administration.

In Canada, the country’s public health officer said last week at least three reports of potential vaping-related illnesses were being investigated.

Quebec health officials confirmed Friday the province’s first case of severe pulmonary illness linked to vaping. That followed a report from the Middlesex-London Health Unit that a teen from London, Ont., who was using e-cigarettes daily, suffered a severe case of pulmonary illness, the first confirmed case of vaping-related lung disease in Canada.

Herzoz added that 67 per cent of retailers believe the removal of e-cigarette flavours would increase the competitive advantage of IQOS, a heat-not-burn cigarette alternative made by Philip Morris International that has received FDA premarket approval.

Even if e-cigarettes aren’t banned outright, large convenience store chains such as Alimentation Couche-Tard would be helped in the long-term by increased regulations of e-cigarettes because they have the ability to absorb the additional costs, wrote RBC Capital Markets analyst Irene Nattel in a report.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

11 rafters rescued from Red Deer River

Red Deer RCMP rescued a party of 11 river rafters Saturday afternoon… Continue reading

Tuesday marks 20th anniversary of Pine Lake tornado

‘Devastation was apparent’ following F3 tornado killed 12 people on July 14, 2000

Red Deer woman loses student visa, ‘has no choice but to leave’ Canada

Victoria Forschle and her family came to Canada in 2008

Red Deer up to four active COVID-19 cases

Province announced 77 new confirmed cases across Alberta Friday

You can’t put a price on memories

Some people would rather buy something than sell something. Some people are… Continue reading

Masks and gloves: Elections Saskatchewan preparing for pandemic election

REGINA — Elections Saskatchewan estimates it will need 400,000 face masks and… Continue reading

Quebec police say they found 2 bodies in St-Apollinaire during search for 2 girls

SAINT-APOLLINAIRE, Que. — Quebec provincial police continue to search for the father… Continue reading

NHL commissioner Gary Bettman, NHLPA chief Don Fehr reflect on RTP, CBA deals

Gary Bettman and Don Fehr finally have a chance to catch their… Continue reading

NHL’s road to Edmonton and Toronto featured plenty of obstacles

Since early March, the novel coronavirus has affected almost every decision facing… Continue reading

Florida sets record week for coronavirus deaths

FORT LAUDERDALE, Fla. — Florida’s coronavirus death rate rose again Saturday, setting… Continue reading

Trump’s defiant help for Stone adds to tumult in Washington

WASHINGTON — President Donald Trump’s intervention into a criminal case connected to… Continue reading

With debt, deficit numbers out, experts say Liberals need plan for growth

Borrowing will push the federal debt past $1 trillion by the end of the fiscal year

Most Read