The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

CVS, the second-largest U.S. drugstore chain, says it will phase out cigarettes, cigars and chewing tobacco by Oct. 1 as it continues to focus more on health care.
CVS, the second-largest U.S. drugstore chain, says it will phase out cigarettes, cigars and chewing tobacco by Oct. 1 as it continues to focus more on health care.
(Gene J. Puskar/AP)

Stubbing out tobacco sales more gain than pain for CVS

CVS Caremark just had a Don Draper moment. Like the television protagonist from Mad Men, the second-largest U.S. drugstore chain has orchestrated a public relations splash by pulling tobacco products from the shelves at its 7,600 stores. The move will cost shareholders 17 cents a share, but the health care bona fides it can gain with customers against rivals like Walgreen may offset the hit.