Tobacco products are governed under Provincial jurisdiction in Canada. There are salient differences and serious issues in certain locations regarding the marketing of tobacco products. These include:
• Illicit sales of tobacco products.
• Illegal marketing and distribution including counterfeit and stolen product.
• Sale of tobacco products to minors.
• Retail display bans to restrict promotion and sales of tobacco products.
To determine specific Provincial issues, actions and related information please visit the specific sector that applies.
For information on legislation by Region across Canada - Click here.
Tobacco Issues & Concerns: The war on illicit sales of tobacco products
Twenty two percent (22%) of all cigarettes purchased in Canada are sold illegally. This is a huge problem that has a direct impact on the C-Store industry and places all CCSA members’ businesses in jeopardy.
Thirty two percent (32%) of these illicit products are purchased on First Nations reserves and this illegal trade is openly growing. It is generally known that there are organized criminal elements operating these tobacco sales.
As taxes rise on the above ground economy, the underground economy (grey market) expands proportionately. As tobacco taxes rise, consumers seek other sources to meet their demand that are not always legitimate or legal. These have included sourcing product via native reserves and/or acquiring counterfeit or stolen product by various other means including the Internet. Obviously such consumers only look out for their own best interests and have little or no concern about the combined impact of their collective actions.
CCSA is working to assist law enforcement officials where possible to eradicate this illegal trade which is particularly harmful to minors; people that are otherwise denied age-restricted product at C-stores.
This unrestricted illegal trade is threatening the livelihood of our members through lost trade - and lost traffic. The combined impact of this situation has created a billion dollar issue. Governments alone are estimated to be losing over $1.5-billion in lots tax revenues annually. Taxes generated by the sale of tobacco products are a major revenue generator for all levels of government and if lost other means must be found to raise their tax income.
Tobacco - Retail Fixturing
Retail display bans have been mandated to further restrict the promotion and sale of tobacco products in C-Stores. The proposed bans being legislated will cause further direct economic hardship for C-Stores retailers.
CCSA members believe that a practical and affordable settlement can be achieved by working with government agencies and acts as an educated lobby to determine a fair and reasonable solution to ensure the safety and security of C-Store employees and staff while at the same time working to cooperate and develop practical solutions that address political and community concerns.
Focusing on the Female Perspective in C-stores
All CCSA associations have received presentations of the 2009 State of the Industry report for retailers, distributors and manufacturers.
The rise in consumption of contraband tobacco is the main reason behind the rapid increase of C-store closures across Canada. In 2009, 1 out of 10 convenience stores closed. Most of the closures occurred in Quebec, Ontario and the Atlantic provinces.
Merchandising directly impacts on generating in-store traffic first and that should translate into in-store sales. Merchandising creates the ambiance to attract people to enter the store, and once inside, that same merchandising must not just create a good first impression; it also must sustain and leave a positive last one!
