According to the NACS State of the Industry Report of 2014 Data, sales of tobacco products (cigarettes and other tobacco products) represent approximately 38% of in-store sales at U.S. convenience stores. Tobacco is a legal product and one that is important to the economic viability of the convenience store industry.
In an effort to reduce the incidence of smoking, particularly among minors, and to improve the safety of tobacco products, Congress has passed a law giving the Food and Drug Administration (FDA) regulatory authority over the manufacture and retailing of tobacco.
If TTB is unable to enforce Ruling 2010-4, a growing number of tobacco consumers and retailers will exploit it. Over time, this lack of tax parity will dramatically alter the retail tobacco space, permitting consumers to purchase large quantities of RYO cigarettes using pipe tobacco for a substantially lower price than traditional packaged cigarettes.