Cigarette cash windfall for Dutch service stations

Tobacco products will soon no longer be allowed to be sold at supermarkets in The Netherlands and as a result, petrol stations can look forward to a massive increase in profits.

Starting from January 1, 2024, supermarkets in the Netherlands will no longer be allowed to sell cigarettes and other related products. The Dutch government believes that this move will make it easier for smokers to quit and harder for others to take up the habit.

Tobacco products will no longer be sold in vending machines starting in 2022, and online tobacco sales will be forbidden the year after. It should lead to a reduction of 120 thousand smokers within a decade, the Ministry of Health Welfare and Sport said.

By that time, tobacco products will only be sold in specialized tobacco stores. Currently, 16 thousand locations sell tobacco products. That will fall by 5,600 within two years once cigarette vending machines are banned. After 6,400 supermarkets halt tobacco sales, only six thousand retailers will sell the products.

According to a recent report by ING, supermarkets will lose over 1.5 billion euros in earnings due to the ban on selling tobacco that comes into effect on July 1. Researchers at the bank claim that 35 percent of tobacco sales will shift to tobacconists and smaller convenience stores and petrol stations.

To get around the ban, Supermarkets are opening specialist tobacco stores next door to their food retail premises.