Commentary: The CVS Tobacco Ban
11 Feb 2014
Last week CVS (NYSE: CVS) made big news when it announced they would no longer be selling tobacco products in their drug stores. The decision itself doesn’t have direct implications on premium handmade cigars, but it does raise some issues that should be of interest to all smokers.

First off, let’s recognize that this is a very significant decision for a corporation to make. The company sells $1.5 billion worth of tobacco every year (presumably with a healthy profit margin), which probably is why the stock dropped the day of the announcement. Any time a company eliminates over 1% of their total revenue (more when you look at total estimated revenue losses) with nothing to replace it, it’s a big deal.
This isn’t the first time a business has made a decision to go anti-tobacco, but I can’t think of another decision that cuts into the bottom line so obviously. Local bars and restaurants go smoke-free all the time before laws dictate they have to, so have national hotel chains and Starbucks, which now forbids smoking even in outdoor areas.
But none of those decisions so obviously impact the bottom line. Sure, I go to Caribou Coffee now instead of Starbucks when I want to sit outside and smoke a cigar with some coffee, but it’s not nearly as apparent to shareholders that my revenue is lost in the way that cigarette sales at CVS are now gone because, as the CVS CEO puts it, “We came to the decision that cigarettes and providing health care just don’t go together in the same setting.â€
First off, let’s recognize that businesses are free to make their own decisions, though a public company does have to answer to shareholders. There’s nothing inherently wrong about CVS deciding not to provide cigarettes in the same way that a government prohibition in allowing smoking smoking does infringe on the rights of a business owner to choose to provide a customer something he or she wants (in this case a place to smoke).
But let’s not glance over the hypocrisy either. CVS still sells plenty of products that contribute to the overall bad health of our society (even before you dig into the overuse of over-the-counter and prescription drugs). Potato chips, candy bars, and soda, not to mention beer and wine, all will presumably keep being sold at CVS.
Take a look at the obesity, diabetes, etc. that this country faces, and it’s clear that CVS has singled out one product among many unhealthy things. People are already noticing this hypocrisy, even if they don’t realize that it’s likely because anti-smoker discrimination is far more acceptable than other types of judgmental discrimination.
Still, perversely, if CVS’s move catches on, it could end up helping the independent cigar shops that often carry, though hardly emphasize, cigarettes. Until CVS’s competitors like other drug stores, grocery stores, and 7-11-style convenience stores take the same approach, it will just hurt CVS’s bottom line to the benefit of those who don’t go along. If it ever does catch on more widely, specialty tobacconists will be there to sell cigarettes to smokers, along with the premium tobacco products they currently focus on selling.
And that’s the beauty of the free market. Paternalistic types can bully businesses around, but as long as some businesses are free to cater to adults who choose to enjoy tobacco products, they only open up more opportunities for those who celebrate, or at least don’t moralize about, the freedom to choose to smoke.
photo credit: Flickr

My knowledge of wine is far more limited than my knowledge of cigars. Yet my understanding of wine seems to grow exponentially with each visit I pay to a vineyard. While those visits are rare, each one leaves a lasting impression on me. I pick up new nuggets of information. I see the passion of winemakers sewn into their meticulous processes. I observe how others taste wine. And, above all, I gain a greater appreciation for the grape.
Even today there continue to be many social movements that rally behind the slogans of ending discrimination and promoting tolerance. And yet, there’s at least one exception to this trend: the anti-smoking movement.
In understand cigar making and marketing goes in trends, but what I want the most is originality. Don’t just give your own twist on an existing formula, try something new that challenges the status quo. Last year we saw lots of San Andreas wrappers (we’ll probably see a lot more this year) and before that lots of Ecuadorian wrapper. While I like many of those cigars, I’m more interested in cigars that don’t just follow the trends. (Here’s a thought: What do the RoMa Craft, CroMagnon, and CAO La Traviata have in common? Besides being breakout hits, both use a Cameroon binder, something you don’t see very often. That’s not a plea for more cigars with Cameroon binders, but a reminder that cigar consumers will reward a good, unique cigar.)
Smoke More Socially – I smoke plenty of cigars, but not enough in the company of fellow smokers. Part of the reason is I smoke a lot of cigars for reviews, and plenty others while writing other content for this site. But even when I just smoke a cigar to relax, too often it’s just me and a couple fingers of bourbon. (Don’t feel bad for me, I have plenty of friends; just not many who enjoy cigars.) So this year I’m hoping to sit around the table more with my cigar-smoking buddies.
I can often be found on the twelfth-floor balcony of the American Enterprise Institute, also with stogie in hand. A friend and former colleague and I gave this balcony a nickname, “The Remnant,†in homage to Albert Jay Nock’s notion of an irreducible sliver of right-thinking humanity separate and apart from the “Neolithic†masses.
Patrick Ashby
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Patrick Semmens
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George Edmonson
Tampa Bureau Chief