Walgreens’ tobacco sales under ‘real scrutiny,’ new CEO Roz Brewer says

Walgreens Boots Alliance CEO Roz Brewer mentioned the pharmacy is taking a tough take a look at whether or not it would proceed to promote cigarettes and tobacco merchandise because it steps up its give attention to well being care.

"We are thinking about what's next in our stores," she mentioned in an interview with CNBC's Bertha Coombs that aired Thursday. "And how do we really project a healthy-for-you profile when you enter our stores? Tobacco is one of those areas that's under real scrutiny right now. And so you'll see more to come in that area."

Walgreens beat Wall Street's expectations on Thursday for fiscal fourth-quarter earnings, because it acquired a elevate from Covid-19 vaccinations. Sales within the three-month interval mirrored the energy of well being and wellness-related merchandise, comparable to at-home Covid exams, nutritional vitamins and over-the-counter drugs for cough, chilly and flu.

Comparable retail sales rose 6.2% within the fourth quarter in contrast with the year-ago interval. That elevated to 7.2% when the corporate excluded sales of tobacco and e-cigarettes.

For years, Walgreens has been under scrutiny from some traders and public well being officers for promoting the merchandise. Walgreens has scaled again tobacco-related merchandise, comparable to stopping sales of e-cigarettes. It additionally raised the tobacco shopping for age to 21 in 2019 after the Food and Drug Administration alleged that the pharmacy chain was promoting to minors.

Yet its main competitor already took tobacco off cabinets. CVS Health stopped promoting cigarettes and associated merchandise in 2014, saying it didn’t align with the corporate's health-care mission.

The FDA has taken a harder stance on e-cigarettes, amid considerations that vaping is resulting in an increase in tobacco use amongst teenagers — particularly with flavors like sweet, fruit and mint. Early this week, it authorized an e-cigarette model on the market within the U.S., saying it may gain advantage some grownup people who smoke who change merchandise. However, it didn’t approve among the firm's flavored merchandise.

Walgreens CEO on earnings, Covid-19 vaccines and provide chain issuesSquawk Box

primarily based on website supplies www.cnbc.com

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