News

On April 9, 2026, Philip Morris USA Inc. (PM USA) filed its brief with the U.S. Circuit Court of Appeals for the 11th Circuit in response to the U.S. Food and Drug Administration’s (FDA) appeal of a lower federal district court decision vacating (i.e., overturning) the FDA’s graphic cigarette health warning regulation. The federal district court decision was issued in a lawsuit brought against the FDA by PM USA, Dhaliwal & Associates, Inc., Stewart Candy Company d/b/a Stewart Distribution, and the Georgia Association of Convenience Stores, Inc.

In its appeal brief, PM USA advances several key arguments as to why the Circuit Court of Appeals should affirm the lower federal district court ruling overturning the FDA’s graphic cigarette health warning regulation. These key arguments include the following:

1. The FDA failed to disclose raw data underlying the studies the agency relied on to adopt the graphic cigarette health warning regulation. Withholding of the raw study data violates the Administrative Procedures Act, the law which sets forth the required procedures that federal agencies must follow to propose and adopt regulations.
2. The delay in providing raw study data prevented PM USA, the other plaintiffs, and industry members from raising critical points in comments submitted on the proposed graphic cigarette health warning regulation that the data supported different conclusions than those reached by the FDA.
3. The FDA exceeded its authority by requiring eleven rewritten cigarette health warnings instead of the nine cigarette health warnings that Congress approved.

The Circuit Court of Appeals for the 11th Circuit will now schedule an oral argument on the case. Read the PM USA brief here.

The White House released President Trump's Fiscal Year (FY) 2027 agency budget proposals on April 3, 2026. The House Appropriations Committee scheduled Subcommittee hearings to review agency budgets for the Department of Health and Human Services (HHS), which includes the U.S. Food and Drug Administration’s (FDA) request and for the U.S. Department of Agriculture (USDA) request that oversees nutrition assistance programs. Both hearings are scheduled for April 16, 2026. See information on the HHS budget hearing here and the USDA budget hearing here.

The House Appropriations Committee, Subcommittee on Agriculture, Rural Development, Food and Drug Administration will markup the FY27 spending bill on April 23, 2026. The full Committee is scheduled to markup the legislation on April 28, 2026.

On April 9, 2026, CDA President and CEO Richard Owen participated in the Cooper-Booth Wholesale Co. Connect Trade Show where retailers had the chance to discover the latest products and services tailored for the c-store industry. Held at the Wind Creek Bethlehem in Bethlehem, PA, the trade show featured firsthand product demonstrations, exclusive deals and networking opportunities for retailers and vendors.

Owen (left) connects with Cooper-Booth Wholesale Co. President Barry Margolis.	Attendees network and conduct business on the busy trade show floor.

Designer Greetings is one of the largest greeting card publishers in the U.S. featuring more than 24,000 designs. Its cards are tailor-made for the c-stores that you service. The company consistently delivers high-margin incremental sales to the retailer from a small physical footprint on the sales floor. Its collection is unmatched in quality, value and depth, ensuring customers always find the perfect card for every occasion. Greeting cards generated over $7.5 billion in sales last year. Designer Greetings' commitment to building and maintaining strong relationships with its base of satisfied customers is at the heart of everything they do.

Contact information for Designer Greetings, Inc. is as follows:

David Kline
David.Kline@designergreetings.com
Designer Greetings, Inc.
11 Executive Avenue
Edison, NJ 08817
(732) 662-6700
www.designergreetings.com

On April 10, 2026, the U.S. Government Accountability Office (GAO) released a report titled, “Combating Illicit Substances: DOJ Enforcement of Unauthorized E-Cigarettes.” The report showed large numbers of unauthorized e-cigarette products and devices continue to be for sale in the U.S. As of June 2024, there were over 6,000 e-cigarette products on the market, most of which lack U.S. Food and Drug Administration (FDA) authorization.

The report outlines that the Department of Justice (DOJ) plays a central role in enforcement, primarily through its Civil Division, U.S. Attorneys’ Offices, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Although the ATF was directed in 2025 to shift resources away from tobacco enforcement, it still maintains a list of noncompliant online e-cigarette sellers. From fiscal years 2022–2025, the DOJ carried out 88 enforcement actions, with a sharp increase in 2025 driven largely by identifying more noncompliant sellers. Overall the report shows that unauthorized e-cigarettes are still widespread, but federal enforcement, especially by the DOJ, has been ramping up in response. Read more here.

On April 8, 2026, CDA submitted a comment letter to the Office of the United States Trade Representative to support its investigation concerning the unfair trade conditions in the U.S. caused by the large-scale production and export from the People’s Republic of China of unauthorized e-cigarettes intended for sale in the U.S. The importation and sale of these unauthorized e-cigarettes from Chinese manufacturers have a significant impact on the lawful distribution of e-cigarettes in the U.S. In the comment letter, CDA states that domestic distributors “seek a market in which lawful, American-owned and operated businesses are not structurally disadvantaged by an upstream, foreign‑origin supply chain that routinely evades U.S. legal requirements.” Read the CDA comment letter here.

The Hershey Industry Performance Analysis (HIPA) Report delivers the most comprehensive financial benchmarking report in the convenience distribution industry. Thanks to the generous support of The Hershey Company, it is available at no cost to participating CDA distributor members. Participants receive:

• Industry Benchmarking Report: Financial and operational data with insights on key metrics.
• Individual Financial Benchmarking Dashboard: An interactive tool to compare your company’s performance, identify areas for improvement, and make smarter, data-driven decisions.

New for 2026: The survey has been streamlined for an even better user experience – shorter, easier and faster to complete, while still delivering the same high-value insights.

To secure your company’s personalized benchmarking results, complete the survey by May 15.

For more details, click here or contact Lauren Herbert.

On March 11, 2026, the U.S. Food and Drug Administration (FDA) issued a draft guidance on the agency’s current thinking on assessing the risk to youth, and the added benefit to adults needed to outweigh that risk, when reviewing applications for flavored e-cigarettes.

“Flavored Electronic Nicotine Delivery Systems (ENDS) Premarket Applications – Considerations Related to Youth Risk” addresses in general how much of an added benefit – compared to a tobacco-flavored e-cigarette – an applicant must demonstrate, via appropriate studies, for a flavored e-cigarette to be found appropriate for the protection of the public health.

The public may submit comments on this draft guidance at regulations.gov to docket number FDA-2026-D-1817. Comments should be submitted by 11:59 PM ET on May 11, 2026. Read more here.

Last week, CDA President and CEO Richard Owen traveled to Overland Park, KS, for the AMCON Distributing Company ProShow. Held at the Sheraton Overland Park Hotel & Convention Center, the ProShow featured an immersive experience with the latest tools, knowledge and a curated selection of top-tier products designed to help retail businesses excel.

Owen (center) connects with Andy Plummer (left) and Chris Atayan, AMCON Distributing Company.	Attendees do business at the AMCON Distributing Company ProShow.

This week, CDA's Angie Simonetti and Jenn Finn attended the Merchants Grocery Company, Inc. "Hit A Home Run with Team MGC" trade show. Held in Fredericksburg, VA, the baseball-themed show kicked off Tuesday evening with a vendor appreciation dinner at the Nationals Minor League Baseball Stadium, followed by Wednesday's Merchants Grocery Company Market Place.

Posing with a themed cutout of Merchants Grocery Company, Inc. President and CEO Chris Smythers are (l-r) Simonetti, CDA; Smythers and Heather Means, Merchants; and Finn, CDA.	Attendees had plenty of chances to win big throughout the trade show, with exciting prizes and even a cash booth, adding to the fun.

The CDA Distributors Education Foundation awards four annual college scholarships of $5,000 to applicants from distributor member companies in honor of Ray Foley, the late executive vice president of the National Candy Wholesalers Associations.

The Ray Foley Memorial Scholarship is open to CDA distributor member company employees and their immediate family members who are currently enrolled in a full-time undergraduate or graduate program for the 2026-2027 academic year. Click here for full eligibility requirements and share this flyer with your company employees.

All applications must be received by April 17, 2026. Contact Lauren Herbert for more information.

New York Gov. Kathy Hochul announced that authorities removed more than 28,000 pounds of illicit vapor products in Nassau and Orange counties following a three-month investigation. The products were linked to Ecto World, a Buffalo-area distributor also known as Demand Vape, according to the governor’s office. Read more here.

The Cross-Industry Compensation & Benefits Report is a comprehensive study of compensation and benefits programs at wholesale distribution companies across the U.S. It provides information about executive and employee compensation including salaries, bonuses and commissions, and fringe benefits such as health insurance, retirement programs and time off.

Participate today to gain valuable insights to help strengthen your organization’s compensation practices – the survey deadline has been extended to April 15.

Participating distributor companies will receive:

• An industry comparison report with results from 1,000+ distributors
• A personalized, company-specific benchmarking report
• Downloadable excel data tables & online access to searchable results
• An executive-ready infographic & on-demand results presentation

Click here for more details or contact Lauren Herbert with any questions.

The Hershey Industry Performance Analysis (HIPA) Report delivers the most comprehensive financial benchmarking report in the convenience distribution industry. Thanks to the generous support of The Hershey Company, it is available at no cost to participating CDA distributor members. Participants receive:

• Industry Benchmarking Report: Financial and operational data with insights on key metrics.
• Individual Financial Benchmarking Dashboard: An interactive tool to compare your company’s performance, identify areas for improvement, and make smarter, data-driven decisions.

New for 2026: The survey has been streamlined for an even better user experience – shorter, easier and faster to complete, while still delivering the same high-value insights.

To secure your company’s personalized benchmarking results, complete the survey by May 15.

For more details, click here or contact Lauren Herbert.

The Convenience Distribution Business Exchange (CDBX) will be held Sept. 14–17 at the JW Marriott Miami Turnberry Resort & Spa in Aventura, FL.

CDBX is the most productive meeting of the year for CDA members. In just 2 ½ days, distributor members can participate in up to 30 top-to-top meetings with key trading partners, plus valuable networking during meals and receptions.

Key details:

• Registration closes April 17
• Distributor members can view the brochure and register online
• Supplier/manufacturer participation is invitation-only and requires participation in Marketplace
• Check out the video to the right for an exclusive preview of CDBX 2026 and future CDA event destinations!

CDBX Website | Schedule | Hotel and Travel

Questions? Contact Jenn Finn at jennf@cdaweb.net.

By attending CDBX, you agree to the CDA Notices & Disclaimers and Attendee Terms & Conditions.

The U.S. Department of Health and Human Services (HHS) has updated its regulations to reflect the required annual inflation-related increases to civil money penalties (CMPs). This adjustment occurs every year as described by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

The adjusted civil money penalty amounts for tobacco retailers and manufacturers can be found on CTP’s website.

On March 27, 2026, Sens. Jeanne Shaheen (D-NH) and Lisa Murkowski (R-AK) reintroduced the Resources to Prevent Youth Vaping Act (S. 4257). The legislation would require e-cigarette manufacturers to pay user fees to the U.S. Food and Drug Administration (FDA) to help conduct stronger oversight of the e-cigarette industry. A bi-partisan group of Senators introduced the same bill last Congress. “Allowing the FDA to collect user fees on e-cigarette manufacturers and using those resources to educate on the dangers of vaping will help promote the health of America’s young people,” said Murkowski.

On March 31, 2026, New Mexico Attorney General Raul Torrez announced that the New Mexico Department of Justice (NMDOJ) filed a lawsuit against several convenience store chains and distributors for selling flavored disposable e-cigarettes which have not been authorized for sale by the U.S. Food and Drug Administration (FDA). The lawsuit alleges that the retailers and distributors sold flavored disposable vaping products in disregard of the public health and safety. At this time, the FDA has only authorized e-cigarettes with either tobacco flavor or menthol flavor, not other flavors. The NMDOJ complaint seeks to stop the sale of unauthorized flavored disposable e-cigarettes in the state and to assess civil penalties and other relief under the New Mexico Unfair Practices Act. Read more here.

The CDA Distributors Education Foundation awards four annual college scholarships of $5,000 to applicants from distributor member companies in honor of Ray Foley, the late executive vice president of the National Candy Wholesalers Associations.

The Ray Foley Memorial Scholarship is open to CDA distributor member company employees and their immediate family members who are currently enrolled in a full-time undergraduate or graduate program for the 2026-2027 academic year. Click here for full eligibility requirements and share this flyer with your company employees.

All applications must be received by April 17, 2026. Contact Lauren Herbert for more information.

Join your fellow CDA Distributor members and CDA Staff as we engage with federal officials in Washington, DC for our annual Day on the Hill on May 12-13, 2026.

Distributors will participate in policy briefings, hear from knowledgeable speakers, enjoy networking and have interactive meetings with Members of Congress and their staff who represent their businesses. CDA provides training, materials and support to make the most of all the meetings. View the video to learn more about the program.

Please visit the CDA website to learn more and register by March 31, 2026. Participation is limited; register* today to secure your spot.

For questions, please contact Kathee Facchiano at KFacchiano@capitoldecisions.com.

*Attendees must be 21 or older. Up to two attendees per company; additional as space allows.

The Cross-Industry Compensation & Benefits Report is a comprehensive study of compensation and benefits programs at wholesale distribution companies across the U.S. It provides information about executive and employee compensation including salaries, bonuses and commissions, and fringe benefits such as health insurance, retirement programs and time off.

Participate today to gain valuable insights to help strengthen your organization’s compensation practices – the survey deadline has been extended to March 31.

Participating distributor companies will receive:

• An industry comparison report with results from 1,000+ distributors
• A personalized, company-specific benchmarking report
• Downloadable excel data tables & online access to searchable results
• An executive-ready infographic & on-demand results presentation

Click here for more details or contact Lauren Herbert with any questions.

Are you looking to unlock leadership potential? The CDA Leadership Institute, formerly known as the CDA Leadership Academy, offers a transformative hybrid program combining expert coaching, collaborative learning, and real-world applications. Participants will learn to improve team dynamics and cultivate a strategic mindset, all while connecting with like-minded individuals.

The CDA Leadership Institute is designed specifically for CDA members – it is ideal for high-potential employees, new managers and anyone on your team looking to broaden their communications, managerial, financial and leadership skills.

To learn more and reserve a spot, click here or reach out to Lauren Herbert - register by Friday, April 3.

The CDA Distributors Education Foundation awards four annual college scholarships of $5,000 to applicants from distributor member companies in honor of Ray Foley, the late executive vice president of the National Candy Wholesalers Associations.

The Ray Foley Memorial Scholarship is open to CDA distributor member company employees and their immediate family members who are currently enrolled in a full-time undergraduate or graduate program for the 2026-2027 academic year. Click here for full eligibility requirements and share this flyer with your company employees.

All applications must be received by April 3, 2026. Contact Lauren Herbert for more information.

A coalition of 20 states and Washington, D.C. is suing the U.S. Department of Agriculture (USDA) over new conditions forcing states to comply with certain policy requirements, or risk losing funding. The states argue the requirements are vague, unlawful and designed to coerce states into adopting federal political positions. A central concern is the potential impact on the Supplemental Nutrition Assistance Program (SNAP), with officials warning that critical food assistance funding could be withheld if states do not comply. The lawsuit claims the USDA lacks authority to impose these conditions and is violating both the Constitution and federal administrative law. The coalition is seeking to block enforcement of the rules while the case moves forward.

This case differs from a separate lawsuit brought by low-income individuals, which focuses on the direct harm to beneficiaries who rely on nutrition assistance. While that case argues the policies would unlawfully restrict access to benefits for vulnerable people, the states’ lawsuit centers on federal overreach and the coercion of state governments through funding conditions. Read more here.

CDA’s "The Drive to Thrive: CDL Scholarship Program" offers an exciting opportunity for employees of distributor member companies to grow their careers in commercial truck driving. The scholarship program awards ten recipients with up to $5,000 towards their CDL training. CDA Distributor Member Companies in good standing can nominate up to two employees.

Click here to learn more about the program, eligibility, and criteria. Contact Lauren Herbert when you are ready to begin the nominating process.

The deadline has been extended – all applications must be received by April 3, 2026. Contact Lauren Herbert with any questions.

CDA’s "The Drive to Thrive: CDL Scholarship Program" offers an exciting opportunity for employees of distributor member companies to grow their careers in commercial truck driving. The scholarship program awards ten recipients with up to $5,000 towards their CDL training. CDA Distributor Member Companies in good standing can nominate up to two employees.

Click here to learn more about the program, eligibility, and criteria. Contact Lauren Herbert when you are ready to begin the nominating process.

All applications must be received by March 20, 2026. Contact Lauren Herbert with any questions.

On March 11, 2026, five Supplemental Nutrition Assistance Program (SNAP) consumers filed a complaint against the U.S. Department of Agriculture (USDA) and Agriculture Secretary Brooke Rollins claiming that new waivers are part of an effort by the USDA to undermine the program.

The USDA has approved various restrictions on which foods are eligible for SNAP benefits in 22 states. The lawsuit challenges the waivers in five states - Colorado, Iowa, Nebraska, Tennessee and West Virginia - and alleges the USDA’s approval of the waivers violates the Administrative Procedure Act, a federal law that governs administrative law procedures, as well as exceeds the statutory authority granted under the Food and Nutrition Act of 2008. The lawsuit also alleges the waivers have caused the plaintiffs irreparable harm and add “onerous compliance burdens on retailers.”

The Trump administration has said that the waivers will help SNAP consumers buy healthier foods. Read more here.

The U.S. Food and Drug Administration (FDA) has issued a Marketing Granted Order (MGO) authorizing the marketing of an e-cigarette and nicotine pod manufactured by Glas Inc. This FDA marketing authorization is for the Glas G2 Device and the Blonde Tobacco 50 MG/ML Pod. To date, the FDA has now issued MGOs for 41 e-cigarette devices and nicotine cartridges or pods. View an updated list of e-cigarette devices and nicotine cartridges/pods authorized by the FDA here.

On March 16, 2026, President Trump issued an executive order creating a benefits-fraud task force chaired by Vice President JD Vance. Members of the task force are to come up with ⁠a plan in 90 days to implement anti-fraud measures. A White House fact sheet describing the order mentioned California, Illinois, New York, Maine and Colorado as U.S. states with "insufficient" fraud oversight.

Trump had previously tasked Vance with leading administration efforts to investigate fraud in Minnesota. The order designated that the task force look into fraud allegations across the country. Trump has repeatedly invoked a scandal that dates back to 2020 in Minnesota in which 47 ⁠people were accused of defrauding $250 million from a state-run, federally-funded child nutrition program. Read more here.

Rep. Mike Carey (R-OH), joined by 71 of his House colleagues, recently sent a letter to Treasury Secretary Scott Bessent and U.S. Trade Representative (USTR) Ambassador Jamieson Greer, urging them to require the Chinese government to curb the flow of illegal e-cigarettes in any new trade agreement with the U.S.

Citing a threat to national security, the letter calls for the U.S. federal government to "aggressively counter the source of these products" and requests a commitment requiring the Chinese government stop all e-cigarette exports in the ongoing trade negotiations. The full text of the letter can be found here.

On March 17, 2026, the U.S. Food and Drug Administration (FDA) announced it is withdrawing the following two temporary guidances, originally published during the COVID-19 public health emergency, regarding human and animal foods that involve onsite visits under the FDA Food Safety Modernization Act (FSMA):

• Temporary Policy Regarding Preventive Controls and FSVP Food Supplier Verification Onsite Audit Requirements Due to COVID-19
• Temporary Policy Regarding Accredited Third-Party Certification Program Onsite Observation and Certificate Duration Requirements Due to COVID-19

In these two documents, the agency issued guidance on onsite auditing and observations requirements to assist firms responding to the COVID-19 pandemic and help ensure continued food safety and availability during the pandemic. Read more here.

The House Transportation and Infrastructure Committee held a markup of the Dalilah’s Law (H.R. 5688) on March 18, 2026. The Committee approved the bill by a vote of 35 to 26. H.R. 5688 would require:

• Ensuring all CDL holders understand English, roads signs and law enforcement officers;
• Placing drivers who fail to meet the law’s requirements and safety standards out-of-service;
• Requiring states to verify that they are not issuing CDLs to illegal immigrants;
• Significantly increasing penalties for states failing to comply with the law by withholding of Federal funds;
• Banning foreign dispatch services and brokers, who have fueled a surge in freight fraud and cargo theft; and
• Cracking down on “CDL mills” to ensure drivers entering the industry are receiving adequate training.

Read more here.