Tag: cvs
CVS Pulls Last Of Tobacco Items A Month Early, Plans Name Change

CVS Pulls Last Of Tobacco Items A Month Early, Plans Name Change

By Peter Frost, Chicago Tribune

The nation’s number-two drugstore operator has finally kicked the habit.

CVS plans to announce Wednesday that it has pulled all remaining cigarettes, cigars, smokeless tobacco and other tobacco products from each of its 7,700 pharmacies nationwide.

In doing so, the company, long known as CVS Caremark Corp., announced plans to rebrand as CVS Health, a clear nod to the broader role it hopes to play in the health care market.

The move to go tobacco-free, coming a month earlier than planned, carries a substantial risk to CVS’ bottom line, but it also holds the potential for a long-term competitive advantage over its peers, particularly Deerfield-based Walgreen Co., the nation’s largest pharmacy retailer.

“We believe this reflects our broader health care commitment,” said Larry Merlo, the company’s chief executive officer. “What this says about CVS is that we’re a pharmacy innovation company that is at the forefront of a changing health care landscape, and it helps us to play a bigger role in health care.”

The company, the first major pharmacy to undertake such a ban, first announced the plans in February.

CVS estimates that it will forgo about $1.5 billion in annual tobacco sales and an additional $500 million in associated purchases from people who visit pharmacies primarily to buy cigarettes or chewing tobacco.

But, Merlo said, getting out of tobacco clears up a “contradiction” and removes a “growing obstacle” for the company as it pushes deeper into health care.

Eliminating tobacco already has helped with some negotiations, he said.

CVS, based in Woonsocket, R.I., leads the nation with about 900 walk-in clinics, which are staffed to treat minor ailments, administer vaccines and help patients manage chronic illnesses like hypertension and diabetes.

It also has been seeking more partnerships with hospitals, health systems and physicians to manage the health care of groups of patients.

In some cases, such arrangements, which are being adopted by Medicare, Medicaid and private insurers, call for groups of providers to share in savings they’re able to produce by keeping patients healthier and their health care costs low.

A care network in which patients would be directed into a pharmacy where they could buy cigarettes while picking up their prescription began to make less sense for some health system executives, said Dr. Troy Brennan, CVS’ chief medical officer.

“This shows them we’re in health care to stay and we’re really serious about managing patient care and population health,” Brennan said.

Like CVS, Walgreen for years has faced criticism from health and advocacy groups over its policy of selling tobacco products. It also is transforming into a more health care-focused company.

Still, its policy on selling tobacco has not changed.

“We believe that if the goal is to truly reduce tobacco use in America, then the most effective thing retail pharmacies can do is address the root causes and help smokers quit,” Walgreen said in a statement. “A retail pharmacy ban on tobacco sales would have little to no significant impact on actually reducing the use of tobacco.”

Both Walgreen and CVS have smoking-cessation programs.

Still, about 18 percent of American adults smoke, a number that hasn’t moved significantly in a decade.

Groups including the Campaign for Tobacco-Free Kids and American Lung Association praised CVS’ decision and called on other retailers to follow suit.

“We feel it’s a very important move for a retail pharmacy to take tobacco out of their stores,” said Harold Wimmer, the national president and chief executive officer of the American Lung Association. “We feel this gives us another opportunity to go back to other retail pharmacies and encourage them to do the same.”

AFP Photo/Justin Sullivan

CVS Caremark, Number Two Drugstore Chain, Will End All Tobacco Sales

CVS Caremark, Number Two Drugstore Chain, Will End All Tobacco Sales

By Noam N. Levey and Tiffany Hsu, McClatchy Washington Bureau

WASHINGTON — CVS Caremark, the nation’s second-largest drugstore chain, plans to stop selling cigarettes and other tobacco products at its more than 7,600 retail stores by Oct. 1, a landmark decision that would make it the first national pharmacy company to cease tobacco sales.

The move, which the company announced Wednesday, comes after years of pressure from public health advocates and medical providers, who have urged retailers to make tobacco products and advertising less available, particularly to children and teenagers.

It also marks a major turn for one of the country’s biggest healthcare companies, which said it is giving up about $2 billion in annual sales, or about 1.6 percent of the company’s 2012 revenues.

CVS, which is second only to Walgreen Co. in retail locations, has been steadily increasing its business providing medical care through its pharmacists and a growing number of urgent care clinics at its retail locations.

“As the delivery of healthcare evolves with an emphasis on better health outcomes, reducing chronic disease and controlling costs, CVS Caremark is playing an expanded role in providing care,” Larry J. Merlo, the president and chief executive officer, said in a statement. “Put simply, the sale of tobacco products is inconsistent with our purpose.”

CVS, based in Woonsocket, R.I., also pledged to launch what it called a “robust national smoking cessation program” this spring.

Nationwide, less than 5 percent of cigarette sales occurred in pharmacies in 2009, according to a study by the Center for Global Tobacco Control. But sales at pharmacies have been increasing, even as overall cigarette sales declined.

Public health advocates hailed the CVS decision, expressing optimism that it could catalyze new efforts to curb tobacco use.

“This is a bold step,” said Dr. Risa Lavizzo-Mourey, president and chief executive officer of the Robert Wood Johnson Foundation. “CVS is clearly establishing a leadership position in making the country healthier and in building a culture of health.”

Half a century after the ground-breaking U.S. Surgeon General’s report warning of the dangers of smoking, the nation has dramatically cut smoking rates for adults from 42 percent in 1965 to just 19 percent in 2011, according to the U.S. Centers for Disease Control and Prevention.

But public health advocates have grown concerned that progress has stalled in recent years.

No major retailer has taken steps to limit tobacco sales since Target announced in 1996 that it would stop selling tobacco products.

And though pressure on pharmacies has been growing, Walgreen went to court to try to stop San Francisco from imposing a ban on tobacco sales in pharmacies. The challenge was dismissed by a federal court. Boston has enacted a similar ban.

Public health advocates hope that reducing the number of stores where tobacco products can be sold and advertised will help push smoking rates down even further.

“We need another boost,” said Dr. Richard Wender, chief cancer control officer at the American Cancer Society.

While acknowledging that smokers will be able to go somewhere else to buy cigarettes, Wender and other advocates said making purchases a little more difficult can help tobacco users resist the urge to buy.

“It is a hard habit to break,” said Robin Koval, president and chief executive officer of Legacy, a foundation that is a leading advocate for the prevention of tobacco use. “But if you are standing there in a store … and the ad and the display is there in front of you, you may not be able to resist the urge.”

CVS executives said they hoped the company’s decision would also contribute to the ongoing campaign to make tobacco use socially unacceptable.

“Making cigarettes available in pharmacies in essence ‘renormalizes’ the product by sending the subtle message that it cannot be all that unhealthy if it is available for purchase where medicines are sold,” the company’s chief medical officer, Dr. Troyen Brennan, wrote in a new article in the Journal of the American Medical Assn. The article is co-authored by Dr. Steven Schroeder, director of the Smoking Cessation Leadership Center at UC San Francisco.

In June, Starbucks began prohibiting smokers from lighting up within a 25-foot radius of its stores, attributing the rule to “a sense of responsibility to provide customers with a safe and healthy environment.” The Seattle coffee giant had previously banned smoking inside its cafes.

It is unclear if other pharmacy chains will follow CVS’ lead.

When Target stopped selling tobacco products nearly two decades ago, the company cited low profit margins in part because the high costs of theft and enforcement of age restrictions on sales.

CVS said that the anticipated $2-billion annual sales hit would not change its profit guidance for the year.

The company said it has “identified incremental opportunities that are expected to offset the profitability impact,” but did not specify what they are. CVS reported total revenues of $123 billion in 2012.

AFP Photo/Justin Sullivan

U.S. Drugstore Giant CVS To Remove Cigarettes From Store Shelves

U.S. Drugstore Giant CVS To Remove Cigarettes From Store Shelves

Washington (AFP) – U.S. retail drug store giant CVS Caremark announced Wednesday that it will stop selling cigarettes, a move immediately applauded by President Barack Obama as having a “profoundly positive impact on the health of our country.”

CVS said in a statement that the decision to no longer carry tobacco products in its 7,600 stores across the United States makes it the first national pharmacy chain to take such dramatic action to discourage smoking.

“Ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do for our customers and our company to help people on their path to better health,” said Larry Merlo, President and CEO of CVS Caremark.

“Put simply, the sale of tobacco products is inconsistent with our purpose,” he said.

Merlo added that CVS stores shelves will be tobacco-free by October 1 of this year.

President Barack Obama hailed the decision as a bold move that will save lives.

“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 said in a statement.

“As one of the largest retailers and pharmacies in America, CVS Caremark sets a powerful example, and today’s decision will help advance my administration’s efforts to reduce tobacco-related deaths, cancer, and heart disease, as well as bring down health care costs –- ultimately saving lives and protecting untold numbers of families from pain and heartbreak for years to come.”

Obama — who worked for years to break a cigarette addiction — praised officials at CVS “who helped make a choice that will have a profoundly positive impact on the health of our country.”

Smoking is the leading preventable cause of premature death in the United States, killing nearly half a million Americans a year.

A report released last month by the U.S. government found that smoking cigarettes can cause even more health problems than previously known, including liver and colon cancer, blindness and diabetes.

The report by the U.S. Surgeon General said that more than 20 million people in the United States have died from smoking-related diseases and illnesses caused by second-hand smoke.

AFP Photo/Justin Sullivan