What is behind the CVS tobacco announcement?

The country's second largest drugstore chain announced on Wednesday that it will be phasing out cigarettes and other tobacco products in the coming months. By October, iconic brands such as Marlboro, Camels and Winstons will be off the shelves of more than 7,600 CVS stores nationwide. 

"It's the right time and the right decision to remove cigarettes and tobacco products from our store shelves." said President and CEO of CVS Caremark, Larry Merlo. "Positioning us for a growing role in the health care delivery system."

The decision could cost the pharmacy as much as $2 billion in annual revenue — but that is a mere dent in the chain’s $125 billion annual sales.

The Obama administration applauded the announcement. As a former smoker, the president praised the pharmacy chain by saying, "It sets a powerful example that will ultimately help bring down health care costs."

Health and Human Services Secretary Kathleen Sebelius also celebrated the decision by praising CVS for taking an "unprecedented step in the retail industry."

Just this week, the Food and Drug Administration announced an ad campaign aimed at smoking prevention for teens. Starting next week a $115 million multimedia campaign will be seen on places like MTV, Teen Vogue and Facebook. 

It's estimated that 90 percent of smokers pick up the habit before they turn 18. That's why the "Real Cost" campaign is aimed at 10 million American kids between the ages of 12 and 17 who are not yet hooked, but may be tempted.

Nearly half a million people die each year because of smoking related issues. Just last week, the fourth Marlboro man passed away of a smoking-related disease, his life taken by the lethal product he helped to promote.

Smoking rates have fallen dramatically since the days of those ads. Nearly half of Americans smoked in 1965. Today, only 18 percent puff away. Despite the encouraging numbers, 42 million Americans cannot kick the habit; their addiction makes smoking the leading cause of preventable death, in addition to $132 billion in direct medical costs.

CVS and other drugstores are trying to reinvent themselves by moving beyond the role of traditional pharmacies and becoming health-care providers. CVS has over 750 in-store clinics with nurses and doctors on staff offering flu shots and diagnosing common ailments. The company's president, Larry Merlo, said the sale of tobacco products that lead to chronic health problems is inconsistent with CVS's main mission.

What does the announcement mean from a health, marketing and cultural point of view? 

Do decisions made by large chain shops affect national demographics?

Will the U.S. become healthier as a result?

We consulted a panel of experts for the Inside Story.

The above panel was assembled for the broadcast of “Inside Story” to discuss.

For future hard-hitting conversations, find Al Jazeera America on your TV.