HUNGARY FORBIDS TOBACCO SALES IN GAS STATIONS, GROCERY STORES

December 4, 2013

The government has banned national tobacco firms from providing product to supermarkets and convenience stores starting June 1, 2014.

​BUDAPEST – The Hungarian government has decided to remove tobacco products from the shelves of gasoline stations and grocery stores, a move that could cost it billions for damages, The Budapest Beacon reports. The government ban will take effect June 1, 2014.

Last year, Hungary said it would prohibit around 40,000 retailers from selling tobacco products, shifting tobacco sales to privately owned National Tobacco Shops. The government reason for the change was to reduce minor purchases of tobacco products. The change means that the government would have to pay the retailers damages resulting from early termination of concession contracts to sell the tobacco.

The shops must adhere to strict guidelines, including no visible products seen on the street and uniform signage outside. The National Tobacco Shops also can stock alcohol, ice cream, newspapers and sodas. The government may permit lottery ticket sales in the future.

According to the Government Information Center, tobacco shops in petrol stations and grocery stores government generated 17% of all tobacco sales, which endangered the solvency of freestanding shops. Between 600 and 630 tobacco shops are operated within filling stations or supermarkets.