Premium Cigs Deliver A Repeat Performance

Imported cigarettes, though, posted impressive growth in 2011

Cigarettes continue to be big business for the convenience store industry, with the category claiming more than a third of all in-store sales and nearly a fifth of in-store gross margin dollars.

At the same time, however, cigarettes continue to be a challenge for c-store operators. Volumes and margins pose a constant struggle, and states find it all too easy to turn to cigarette tax hikes as a way to raise revenue. Despite these obstacles, premium cigarettes still lead the pack — with industry experts pointing to programs put in place by tobacco companies as a key driver behind the numbers.