Even in states with tougher enforcement, financial penalties dont always solve the problem: in the 23 months after Dollar General agreed in November 2023 to pay Wisconsin $850,000, its stores failed 31% of their price inspections
Key challenges include declining smoking prevalence in developed markets reducing the potential customer pool, the risk of duty free tobacco allowance reductions by regulators pursuing public health objectives, potential restrictions on tobacco promotions and displays within duty free environments under WHO FCTC guidelines, and growing competition for consumer tobacco spend from next-generation products including e-cigarettes, heated tobacco products, and nicotine pouches
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