This story incorporates reporting from The Baltimore Sun, Business Insider and Bloomberg on MSN.com.
The Trump administration has withdrawn the Food and Drug Administration’s proposed ban on menthol cigarettes. Initially introduced by the Biden administration in 2022, the proposal aimed to eliminate menthol-flavored cigarettes from the U.S. market. This regulatory shift has significant implications for various stakeholders, including the tobacco industry, convenience store operators, and public health advocates.
The tobacco industry, which includes major publicly traded companies such as Altria Group, British American Tobacco, Imperial Brands, and Philip Morris, is likely to view this development favorably. These companies have significant investments in menthol products, which make up a substantial portion of their sales. The removal of the ban mitigates potential financial impacts these firms could have faced had the regulation gone into effect.
Convenience store operators, often small businesses, will likely also be relieved by the decision. Industry estimates suggest that the proposed ban would have resulted in a collective loss of $2.16 billion in sales, equating to an average of $232,392 in lost sales per store. The preservation of menthol cigarette sales is crucial for these operators, many of whom rely on tobacco products as a significant revenue source.
However, the decision to withdraw the ban has sparked concerns from public health officials and advocacy groups. They argue that menthol cigarettes pose distinctive public health risks due to their appeal among youth and minority populations. Health advocates had supported the ban as a means to reduce smoking-related illnesses and deaths. The reversal of the proposal may be seen as a setback in efforts to curtail tobacco consumption in the U.S.
The regulatory landscape surrounding tobacco products remains complex and contentious. It includes ongoing debates about the role of flavored tobacco products and their impact on public health. Additionally, scrutiny from lawmakers is not limited to cigarettes alone. In 2024, federal lawmakers, led by Sen. Chuck Schumer of New York, criticized brands like Zyn for allegedly marketing nicotine products to minors, illustrating broader concerns about flavored nicotine products.
Quartz Intelligence Newsroom uses generative artificial intelligence to report on business trends. This is the first phase of an experimental new version of reporting. While we strive for accuracy and timeliness, due to the experimental nature of this technology we cannot guarantee that we’ll always be successful in that regard. If you see errors in this article, please let us know at qi@qz.com.
