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CVSís decision isnít really about smoking
Market Watch ^ | February 5, 2014 | Diana Furchtgott-Roth

Posted on 02/07/2014 1:51:09 AM PST by Tolerance Sucks Rocks

When CVS Caremark Corp. Chief Executive and President Larry Merlo announced that his drugstore chain would stop selling tobacco products , one of the first to respond was the president of the United States.

The speed of the president’s statement indicates that CVS’s decision was likely coordinated with the White House. Every day, countless business decisions are made without any comment from the White House. Something unusual was going on.

This is troubling. It gives the appearance of preference for those who curry favor with the powerful, and it squeezes out smaller entrants who can supply innovative products and services to consumers. What do you think about CVS’s decision? Take our poll.

The president said: “I applaud this morning’s news that CVS Caremark has decided to stop selling cigarettes and other tobacco products in its stores, and begin a national campaign to help millions of Americans quit smoking instead.”

The president congratulated Merlo by name, as well as “all who helped make a choice that will have a profoundly positive impact on the health of our country.”

As long as businesses are acting within the law, they should not be trying to please the federal government. Nor should they refrain from acting because they expect government’s praise. There is no upside to such behavior, and much downside.

As everyone knows by now, CVS, the No. 2 drug store chain, will give up $2 billion in revenues by halting sales of tobacco products. CVS’s stock declined in response to the announcement, but it is not clear that shareholders’ long-term interests will be undermined.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Culture/Society; Editorial; Government; News/Current Events; Philosophy; Politics/Elections
KEYWORDS: antitobaccoscam; biggovernment; cronycapitalism; cvs; economy; fascism; favoritism; followthemoney; freemarkets; government; health; kronies; larrymerlo; nannystate; obama; scam; smokingiscool; tobacco

1 posted on 02/07/2014 1:51:10 AM PST by Tolerance Sucks Rocks
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To: SheLion; Eric Blair 2084; -YYZ-; 31R1O; 383rr; AFreeBird; AGreatPer; Alamo-Girl; Alia; altura; ...

Nanny State PING!


2 posted on 02/07/2014 1:51:51 AM PST by Tolerance Sucks Rocks (...)
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To: Tolerance Sucks Rocks

I still find this hard to believe. I’m not a smoker, but there is a CVS near me and I often go there to get photos developed and pick up odd items. My impression is that about a third of the store’s customers show up to buy cigarettes, and often pick up a few additional items while they are there.


3 posted on 02/07/2014 1:56:20 AM PST by Junk Silver
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To: Tolerance Sucks Rocks

Rent-seeking. Somewhere in this is a deal or an expectation that Obama will grant boons to CVS.

This is inevitable when you have a government that is this big, this powerful and this lawless.


4 posted on 02/07/2014 2:02:49 AM PST by SargeK
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To: Junk Silver

It’s being reported this morning that CVS is no longer carrying odd items.


5 posted on 02/07/2014 2:04:40 AM PST by Misterioso (Man's ego is the fountainhead of human progress. - Ayn Rand)
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To: Tolerance Sucks Rocks

If this is such a good idea then why wait until October to implement it? Start now by selling all of the cigarettes they have then not order any more.


6 posted on 02/07/2014 2:12:29 AM PST by Hillarys Gate Cult (Liberals make unrealistic demands on reality and reality doesn't oblige them.)
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To: Tolerance Sucks Rocks

Talk about an opening for Niche Marketing!!.....Smoke shops will spring up next door to CVS store all over the nation!


7 posted on 02/07/2014 2:14:59 AM PST by M-cubed
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To: Misterioso

As long as they continue to carry additional items, it should not be a problem.


8 posted on 02/07/2014 2:15:38 AM PST by Cowboy Bob (They are called "Liberals" because the word "parasite" was already taken.)
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To: Tolerance Sucks Rocks

Oh hell yes.

At least one of the local TV stations in Miami gave CVS the full treatment of praise, being VERY OBVIOUS about OBAMA PRAISING THE DRUG STORE...

it was revolting.


9 posted on 02/07/2014 2:16:48 AM PST by SoFloFreeper
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To: Tolerance Sucks Rocks

Hmmm, maybe they’re going to be the sole source of socialized prescriptions when der fuehrer makes more strides in the field of socialized health care?


10 posted on 02/07/2014 2:17:26 AM PST by RushLake (Nothing can bring you peace but the triumph of principles. (Emerson))
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To: Tolerance Sucks Rocks
Wallgreens here I come.
11 posted on 02/07/2014 2:21:36 AM PST by McGruff (Every night has it's dawn.)
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To: McGruff

yep, Walgreens, Rite-Aid... CVS isn’t the only game in town...


12 posted on 02/07/2014 2:47:21 AM PST by latina4dubya (when i have money i buy books... if i have anything left, i buy 6-inch heels and a bottle of wine...)
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To: SargeK

CVS is planning on partnering with insurers and health care systems. This gives them an edge over their competition. Would not be surprised if buried somewhere in the ACA is regulations prohibiting the above from partnering with any company that sells tobacco, or alcohol. Or Firearms....


13 posted on 02/07/2014 2:59:06 AM PST by Kozak ("Send them back your fierce defiance! Stamp upon the cursed alliance! To arms, to arms in Dixie!)
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To: Tolerance Sucks Rocks

Gotta make room for pot.


14 posted on 02/07/2014 3:03:31 AM PST by fso301
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To: Tolerance Sucks Rocks
you sleep with dogs, you get fleas
you sleep with whores/sluts, you get std's and much worst.
you get what you asked for..good riddance.

15 posted on 02/07/2014 3:06:37 AM PST by skinkinthegrass (The end move in politics is always to pick up a gun..0'Caligula / 0'Reid / 0'Pelosi)
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To: Tolerance Sucks Rocks

ANY company CEO who decides to give up TWO BILLION dollars in this horrible economy should be canned. Immediately.

If not, I would be an immediate seller of the stock.

The CEO should be only interested in getting as much revenue through the door as possible. THAT IS HIS/HER ONLY JOB.


16 posted on 02/07/2014 3:07:47 AM PST by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Kozak

You can partner with health systems and also sell legal products. The two are not mutually exclusive.

Bet that Walgreens and Riteaid will also be partnering in the future; that does not mean they cannot sell cigarettes also.


17 posted on 02/07/2014 3:09:07 AM PST by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Hillarys Gate Cult

Exactly!

And if it is so easy to replace revenue, then why don’t all of their competitors simply mimick what CVS is doing? Hint: It ain’t easy to replace lost revenue.


18 posted on 02/07/2014 3:10:48 AM PST by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: M-cubed
Smoke shops will spring up next door to CVS store all over the nation!

Actually, for every CVS in my area, and there are lots, there's a competing Walgreens.........Fortunately I get my prescriptions from a local Walgreen so CVS hasn't lost my business in that respect since they never had it.

19 posted on 02/07/2014 3:18:43 AM PST by Hot Tabasco (I think I've lost my mojo.....)
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To: SargeK
Somewhere in this is a deal or an expectation that Obama will grant boons to CVS.

This Obama?


20 posted on 02/07/2014 3:25:12 AM PST by Jess Kitting
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To: SargeK
Rent-seeking

Yep.......It's likely CVS will become the primary dispenser of drugs under whatever Obama drug plan goes into effect.

While all pharmacies are basically the same when it comes to selling prescriptions via their stores, the BIG money is in the 90 day mail order programs which are currently administered by the individual's current health plan.

For example, my maintenance drugs have to be ordered thru CVS-Caremark.

21 posted on 02/07/2014 3:27:05 AM PST by Hot Tabasco (I think I've lost my mojo.....)
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To: fso301

Bingo! You nailed it!


22 posted on 02/07/2014 3:51:43 AM PST by Flick Lives (Got a problem with the government? Have a complaint. Get a free IRS audit!)
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To: Tolerance Sucks Rocks

What will CVS and this CEO be getting in exchange? That’s the 2 billion dollar question.


23 posted on 02/07/2014 4:31:35 AM PST by ilgipper (Obama is proving that very bad ideas can be wrapped up in pretty words)
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To: Tolerance Sucks Rocks

Never mind the huge alcohol displays 20 feet from the cigarettes. You know the one, right past the entire aisle of CVS branded candy. And if those don’t get you, why the entire checkout stand is one big candy aisle. And lest we forget, don’t forget to drop by the pharmacy for your “don’t ask, don’t tell” morning after pill.


24 posted on 02/07/2014 4:31:47 AM PST by cincinnati65
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To: Tolerance Sucks Rocks
It comes as absolutely no surprise to me that the writer speculates that "...CVS’s decision was likely coordinated with the White House"
CVS is scum.
.... not just because corporate CVS has also decided to actively promote ObamaCare.
I
25 posted on 02/07/2014 4:53:53 AM PST by Amagi (Lenin: "Socialized Medicine is the Keystone to the Arch of the Socialist State.")
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To: Tolerance Sucks Rocks

Bet CVS gets an ACA exemption.

My daughter is trapped by her med. insurance into CVS for her prescriptions.
Every time she goes to get a Rx filled they have to order the drug. Not something exotic, simple antibiotics, etc.


26 posted on 02/07/2014 4:54:16 AM PST by Vinnie
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To: Tolerance Sucks Rocks

Nine times out of ten, when I shop at CVS, I am in the line behind someone buying cigarettes.


27 posted on 02/07/2014 5:03:31 AM PST by Cowgirl of Justice
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To: Tolerance Sucks Rocks

CVS thinks they have made a deal with Obama for favors in Obamacare. Just wait, the double cross is coming CVS, just like it did to Christy.


28 posted on 02/07/2014 5:11:35 AM PST by Hattie
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To: Tolerance Sucks Rocks

CVS is now in first place for the next fed bailout !!


29 posted on 02/07/2014 5:22:36 AM PST by George from New England (escaped CT in 2006, now living north of Tampa)
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To: Red in Blue PA
ANY company CEO who decides to give up TWO BILLION dollars in this horrible economy should be canned. Immediately. If not, I would be an immediate seller of the stock. The CEO should be only interested in getting as much revenue through the door as possible. THAT IS HIS/HER ONLY JOB.

By geting rid of tobaco products, CVS will have more shelf space for healthy products like beer, wine, Doritos, Pringles, and other artery clogging waist enhancers.

30 posted on 02/07/2014 5:31:04 AM PST by Labyrinthos
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To: latina4dubya

Walgreens supports AARP.


31 posted on 02/07/2014 5:42:51 AM PST by ThePatriotsFlag ("There never was a democracy yet that did not commit suicide." - Thomas Jefferson)
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To: Tolerance Sucks Rocks
I don't smoke but thanks to CVS and their self-abasement to the alter of political correctness (or perhaps political connectedness), I will never darken their door again.

32 posted on 02/07/2014 5:56:09 AM PST by Durus (You can avoid reality, but you cannot avoid the consequences of avoiding reality. Ayn Rand)
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To: Kozak
CVS is planning on partnering with insurers and health care systems. This gives them an edge over their competition. Would not be surprised if buried somewhere in the ACA is regulations prohibiting the above from partnering with any company that sells tobacco, or alcohol. Or Firearms....

Bingo.

33 posted on 02/07/2014 5:56:32 AM PST by trebb (Where in the the hell has my country gone?)
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To: SargeK

It’s all about 0Care. They’re appointed navigators, I’ve read.

Isn’t ironic that 0 would “applaud this morning’s news that CVS Caremark has decided to stop selling cigarettes and other tobacco products in its stores, and begin a national campaign to help millions of Americans quit smoking instead”, but thinks it’s okay to keep smoking pot?!

Strange days, indeed.


34 posted on 02/07/2014 6:06:33 AM PST by Jane Long (While Marxists continue the fundamental transformation of the USA, progressive RINOs assist!)
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To: fso301

Or, make room for smoking cessation meds and programs. Which, like the diet industry, have a high rate of failure and repeat business. Cha-Ching!


35 posted on 02/07/2014 6:08:35 AM PST by coop71 (Being a redhead means never having to say you're sorry...)
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To: Tolerance Sucks Rocks

I wonder what the reaction would be if CVS announced that they found selling the Plan B abortifacient and infant products contradictory, and decided to stop selling Plan B?

I’m just saying...


36 posted on 02/07/2014 6:11:10 AM PST by Ted Grant
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To: Red in Blue PA

*sigh*, haven’t we covered this before, somewhere else?

CVS isn’t giving up $2 billion in revenue. From their perspective they’re trading $2 billion in revenue from a low margin, declining product (tobacco) for $2 billion from a high margin rising product (health services and the associated revenue from filling prescriptions written in their stores.

And that’s just the first year. They’re projecting that they will see gross and net increases in the following years, while sales of tobacco products continue to decline.

Yes, it poses a possible risk, but only if the health services aspect doesn’t pan our. So it’s still a good bet/decision from a practical business standpoint.


37 posted on 02/07/2014 6:22:28 AM PST by tanknetter
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To: ThePatriotsFlag

but Walgreens does sell tobacco products...


38 posted on 02/07/2014 6:43:22 AM PST by latina4dubya (when i have money i buy books... if i have anything left, i buy 6-inch heels and a bottle of wine...)
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To: Tolerance Sucks Rocks

Who cares? Its a pharmacy not a tobacco shop. Their prices on pipe tobacco are too high anyway. Pharmacies used to sell gasoline when the first cars came out. It was the only place you could buy it. Now they don’t. Who cares? They used to sell Laudenum over the counter too. Times change.


39 posted on 02/07/2014 7:29:52 AM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: Junk Silver
I find this hard to believe

Amazing, isn't it? Nobody goes into CVS just to buy cigarettes; now they'll go elsewhere for all of those other items. I would also argue this move by CVS is HARMFUL TO SMOKERS. It would've been far more helpful to keep selling tobacco products, but offer deep discounts on anti-smoking drugs and free stop smoking clinics to CVS card members who smoke. The approach of not selling cigarettes shows a complete lack of careful thought by them.

That being said, I can't imagine why smokers buy their cigarettes at their drug store, and probably use their courtesy discount card. It identifies them as smokers for the nanny state to rehabilitate. Better they buy their cigarettes cash, no courtesy card, at the local gas station. Unless they want Nanny raising their insurance costs and forcing them into rehab programs.

PS: I'm a former smoker; quit over ten years ago, after 40 years of smoking. People will quit when their ready, even if it's difficult. JMHO

40 posted on 02/07/2014 7:39:05 AM PST by grania
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To: Jane Long

Maybe you’re onto something there. They might just be clearing shelf space for weed.


41 posted on 02/07/2014 10:31:32 AM PST by SargeK
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To: Tolerance Sucks Rocks

Thanks for the ping!


42 posted on 02/07/2014 12:57:44 PM PST by Alamo-Girl
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To: Tolerance Sucks Rocks
The new health insurer I got stuck with this year, Humana, informed me last month that they are now only doing prescriptions with CVS and Walmart. They dropped Walgreens.

Humana is also he first to announce that they will request financial help from the taxpayers ($450 million) as is allowed in the ACA.

These people are all in bed together.

43 posted on 02/07/2014 1:04:34 PM PST by Cementjungle
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To: Tolerance Sucks Rocks
As everyone knows by now, CVS, the No. 2 drug store chain, will give up $2 billion in revenues by halting sales of tobacco products. CVS’s stock declined in response to the announcement, but it is not clear that shareholders’ long-term interests will be undermined.

Huh? Show me another company where "long-term interests" will not be undermined if they lose $2bn revenue.

44 posted on 02/07/2014 1:44:19 PM PST by VeniVidiVici (Play the 'Knockout Game' with someone owning a 9mm and you get what you deserve)
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To: Junk Silver

they must be in the mix to sell legal weed....or maybe they’ll get an exemption from obamacare fiasco....


45 posted on 02/07/2014 7:42:59 PM PST by cherry (.in the time of universal deceit, telling the truth is revolutionary.....)
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