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If you look at what taxation has done to price and look at the corresponding amount of illicit trade in those jurisdictions, theres a direct correlation. From Hatchells perspective, its not necessarily an issue of taxes, but of varying tax rates

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"I view this as a response to the needs of our customer, and our store managers are communicating they need it." The company believes the sales comp lift from tobacco will be greater than what it has seen from beer and wine, although it expects most of the growth to be on the front end, considering the category is in decline