Thursday, February 6, 2014

CVS Caremark plans to stop selling tobacco products

CVS Caremark, which operates 50 pharmacy stores in West Virginia, announced Wednesday it will stop selling cigarettes and tobacco products at its 7,600 U.S. stores by Oct. 1.
The largest provider of prescription medications in U.S., the company said the sale of cigarettes and other products was inconsistent with its broader purpose of providing access to products and services designed to improve customers' health and wellbeing.L&M Red Label
"Tobacco products have no place in a setting where health care is delivered," Larry Merlo, president and CEO of CVS Caremark, said in a video statement announcing the decision.
Woonsocket, R.I.-based CVS will be the first national pharmacy chain to pull tobacco products from its shelves. In addition, the company plans to launch a national smoking cessation program this spring to help consumers kick the habit.
"As a leader of the health care community focused on improving health outcomes, we are pledging to help millions of Americans quit smoking," Merlo said. The move will hit the CVS' bottom line. The company estimates it will lose approximately $2 billion in annual revenue from tobacco shoppers, reducing its annual profits by about 17 cents a share. CVS said it its news release it has identified "incremental opportunities" that might offset that lost revenue.
Public health officials praised the company's move.
"We're really excited about this and commend CVS for taking this step and putting health ahead of immediate profits," said Cinny Kittle, director of the Coalition for a Tobacco-Free West Virginia.
"We're hoping this is a game-changer and might open the door and lead other businesses to do the same," she said.
Kittle also said she has seen a tremendous response to the company's decision on social media, with some saying they will be more likely to shop at the chain now. She said she hoped that type of public reaction will help offset some of the revenue the company will lose from tobacco sales.
"Hopefully the public will repay them," Kittle said.
While smoking among adults has been cut by more than half since the 1960s, smoking-related illnesses still account for more than 480,000 U.S. deaths each year, according to a recent report from the Office of the Surgeon General. Tobacco use accounts for $132 billion in direct medical costs and $157 billion in lost productivity each year, the report said.
In West Virginia, which has one of the highest rates of use in the nation, tobacco use is the leading cause of death and disease and costs about $2 billion in medical expenses and lost productivity each year, according to data from the state Division of Tobacco Prevention.
Nearly 4,000 state residents die each year from tobacco - or secondhand smoke-related illnesses. On average, a West Virginia smoker will die 14 years earlier than expected due to the toll tobacco takes on their health.
Research has shown the number of tobacco stores in a given area can increase the rate of tobacco use. A study published by the Journal of Epidemiology and Community Health in 2009 study published in the Journal of a person has higher odds of becoming a smoker when more stores in their area are sell tobacco products.