tobacco products under 10 USC Section 2484 (b)(8). Since 1996, tobacco products have been sold at commissaries on consignment from exchanges;3 under 10 USC 2484(3)(a), exchanges are the vendors for tobacco products in commissaries. On most installations, commissaries and exchanges are independent entities and can price their products independently. Table 2-7 shows an example of the variety of pricing of tobacco products at an Army exchange and commissary as well as at nearby civilian tobacco retailers. In a few cases in which a substantial number of active-duty members and their families do not live on the military installation, the commissary and the exchange are combined into a hybrid store. Many installations also have small stores, akin to civilian convenience stores, that are run by the exchanges and that sell tobacco,

TABLE 2-7 Price List ($) for Cigarettes and Smokeless Tobacco at and Near an Army Installation

Tobacco Type

Exchange Price

Commissary Price

Retail Store A (outside installation gates)

Retail Store B (several miles from gates)

Cigarettes A, 1 pack

5.91

Sells cartons only

6.48

5.54

Cigarettes A, carton(10 packs)

52.88

47.03

Sells packs only

50.99

Cigarettes B, 1 pack

6.62

Sells cartons only

7.13

6.09

Cigarettes B, carton

56.48

50.46

Sells packs only

52.09

Chewing tobacco, 1 can

4.50

Sells rolls only

5.59

6.19

Chewingtobacco, 1 roll (5 cans)

22.50

21.43

Sells cans only

Sells cans only

SOURCE: Cynthia Hawthorne, US Army, personal communication, May 6, 2009.

3

According to Defense Commissary Agency Directive 40-5 (June 26, 1992—Administrative Reissuance Incorporating Changes Through Change 4, August 1, 2000), this policy became effective on November 1, 1996. The reason for the decision was “to support DoD efforts to enhance military readiness by discouraging smoking and promoting healthier lifestyles” (DeCA Directive 40-5, Chapter 6, Tobacco Products, 6-1[a]).



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