Category advice

Tobacco & Vaping icon
Tobacco & Vaping icon

Market Insight

Category advice2021

 

Tobacco is the No.1 category in value and the leading footfall driver into convenience stores.

On average each customer in convenience is worth over £1100* per year in Tobacco sales alone.

*Source: HIM research

Impact of Covid Pandemic

Overall UK volume has grown 10% due to travel restrictions with less tobacco coming in from abroad.

Roll Your Own has driven growth as economic uncertainty and continued duty increases have made consumers seek value for money.

Roll You Own volumes up 23% with 50g now representing 36% of RYO sales.*

More people than ever are working from home and using their local stores more – keep them coming back by meeting their shopper needs.

*Source: IRI

The menthol ban in 2020 has fuelled new top sellers in Smokers Accessories.

Menthol cards, menthol drops and filters are driving sales – see inside for leading brands.

Top 3 customer service shopper needs:

1. Availability  2. Price  3. Range

If a cigarette shoppers brand is not available, almost 1 in 2 will leave to buy elsewhere.

Value for money is key – sell at RRP on all main value lines to protect your business and store footfall, supermarkets are recovering share lost at the start of the pandemic due to premium pricing in convenience.

Vaping – Sales in convenience grew by 25% in 2020 to £115m* but Independent Retailers grew faster than any other retail outlets at +34%.

Vape is one of the biggest sales and profit opportunities for convenience retailers.

Liquids and pods account for 85% of sales, with pods driving the most growth.

Excellent margins – especially liquids.

Independent retailers have a great opportunity to drive additional sales, see our advice inside.

*Source: Nielsen

Alternatives to traditional tobacco continue to get traction with consumers.

Nicotine Pouches are new and already selling almost £1m per month* – almost half of which is through convenience.

Heat Not Burn sales almost doubled in 2020*, and IQOS (Device & Heets) is the UK’s No.1 Smoke Free Product.**

*Source: IRI **Source: Nielsen

Tobacco & Vaping icon

Must Stock Lines

Category advice2021

 

These are the ‘Must Stock’ lines in each region – meet your customer’s needs of AVAILABILITY, PRICE and RANGE to ensure they buy from you regularly. The right product, at the right price in a convenient location, is a winning combination!

South East England

B&H Blue

Sovereign Blue

Sterling

Rothmans Value

JPS Players

Amber Leaf

Gold Leaf RYO

Sterling RYO

Golden Virginia Original

Golden Virginia Yellow

Midlands

B&H Blue

Sterling

JPS Players

Carlton

Sovereign Blue

Amber Leaf

Sterling RYO

Gold Leaf RYO

Golden Virginia Original

Golden Virginia Yellow

Wales

JPS Players

L&B Blue

Carlton

Sterling

L&B Original

Amber Leaf

Sterling RYO

Gold Leaf RYO

Golden Virginia Original

Lambert & Butler RYO

Scotland

JPS Players

L&B Blue

L&B Original

Sterling RYO

Kensitas Club

Amber Leaf

Gold Leaf RYO

Golden Virginia Original

Sterling RYO

Lambert & Butler RYO

North England

JPS Players

L&B Blue

L&B Original

Sterling

JPS Silver Range

Amber Leaf

Gold Leaf RYO

Sterling RYO

Golden Virginia Original

Lambert & Butler RYO

South West England

JPS Players

B&H Blue

Rothmans Value

Sterling

Carlton

Gold Leaf RYO

Amber Leaf

Golden Virginia Original

Cutters Choice Extra Fine

Cutters Choice

Greater London

B&H Blue

Marlboro

Sovereign Blue

Sterling

Embassy Signature

Amber Leaf

Sterling RYO

Golden Virginia Original

Gold Leaf

Golden Virginia Yellow

Tobacco & Vaping icon

Key Market Trends and Opportunities

Category advice2021

 

The tobacco category is evolving, driven by legislative changes and technology, these are the key trends you need to be driving to maximise your sales and profit.

Flavour Infusions

Following the menthol ban in May 2020 this sub-category has emerged in Smokers Accessories and are now some of the best-selling lines and represent an excellent margin opportunity.

Menthol Flavour Cards

Rizla is the leading brand now with a new price marked pack creating retailer value and consumer confidence, Swan recently entered the market and Bestway also offer Rolling King as a value alternative.

Swan Menthol Flavour Fusion Cards

Swan Menthol Filters

Swan Menthol Filter
Instahit Menthol Drops

Filter Drops

Instahit is a new and unique product that infuses the cigarette filter with menthol flavour – retails at £1 with great margins and is the second best-selling line in the category.*

Swan Extra Slim Filter Tips / Rizla Menthol Chill

Top 10 Smokers Accessories by Value Sales*

Swan Filters Extra Slim20 x 120 Tips 
Instahit Filter Drops Menthol20 x 2mlNEW in 2020!
Rizla Menthol Flavour Card25 x CardNEW in 2020!
Poppell Electric Lighter25 x Lighter 
Raw Classic KS Paper & Filter24 x Packet 
Rizla Mint Flavour Card25 x CardNEW in 2020!
Rizla KS Slim Silver50 x Book 
Swan Filters Xtra Slim Menthol20 x 120 Tips 
Rizla Green100 x Book 
Raw Black Connoisseur Paper24 x Book 

*BW sales data

Cigars & Cigarillos

Signature/Sterling

Cigarillos – available in price marked packs and including flavour capsules no longer permitted in cigarette have re-ignited the cigars category driving over 50% growth and are by far the best selling lines – Sterling 10’s is the best seller and also available in 20’s price marked packs.

Top 5 Sellers*

Sterling Dual Capsule Leaf £4.5010s
Signature Blue10s
Hamlet Half Outer5s
JPS Crushball Cigarillo10s
Hamlet Miniature10s

Heat Not Burn

The IQOS device, using HEETS tobacco sticks, has pioneered this segment of the market and emits on average 95% lower levels of harmful chemicals compared to cigarettes: making it a much better choice for smokers.** Heets Menthol varieties are available. Ploom is a new entry into the market and uses EVO sticks.

**Average reductions in levels of harmful chemicals (excluding nicotine) compared to smoke of a reference cigarette (3R4F).

Heets

Nordic Spirit

Nicotine Pouches

Dominated by Nordic Spirit available in a variety of flavours including PMP’s.

Tobacco & Vaping icon

Vaping & E-Liquids

Category advice2021

 

The vape category continues to grow and the UK is one of the biggest markets in the world. Vape shops have been hit by closures during the pandemic, driving sales in total convenience by 25% vs supermarkets at +17% – with Independents and Symbols leading the way at +34%.

This makes Vape one of the most exciting categories in the store, here is our advice for getting your vape sales smoking!

Range and Visibility

Ensure you have a carefully selected range, clear pricing and shoppers are able to see your offer and ideally browse.

Staff education can be a major factor driving sales, if you don’t have what a shopper is looking for or they are new to vape a recommendation can make the extra sales.

Liquids offer greater choice and can be used in multiple devices, they are also the best value for money and offer the best margins.

Tobacco in-store display

The Market

Two Important vaping product types to stock:

Vaping market: Liquids Vaping market: Pods/Cartridges

*Source; Nielsen / BW Data

Vape shop

Hardware/Disposables

  • Approx. 15% of value and volume sales
  • Starter kits provide the device and shopper buys pods and liquids there after
  • Basic open tank devices are for use with liquids. Don’t forget to stock replacement coils – the sales are almost as good as the devices themselves
  • Devices for pods and cartridges are branded and only compatible to their own cartridges and pods – these are the best sellers
  • Disposables are a small segment of the market and often used as a back-up to main device by vapers
  • Larger devices – called “mods” – are mainly bought at specialist outets, they have a longer battery life and adjustable power but use most liquids.

Best Sellers

Juul / Vype ePen 3 / Logic Compact / Blu Pro

Vaping bestsellers
Best Selling Flavours: Menthol/Mint/Fruits/Tobacco

Pods & Closed Systems

  • Driving growth of vape in convenience chanel
  • Easy and convenient for the consumer, just click and go
  • High cash margins
  • Multiple brands each with unique pod system, with different flavours and often different nicotine strengths – stock the brand leaders

Leading Brands and Best Selling Cartridge Flavours

Juul products

Juul – No.1 Vaping Brand

  • Juul Glacier Mint 18mg
  • Juul Mango Nectar 18mg
  • Juul Alpine Berry 18mg

Vype ePen 3 and Vype ePod – Vype is changing its name to Vuse, becoming a global brand (both products fully compatible)

  • Vype ePen 3 Crisp Mint 18mg
  • Vype ePen 3 Blended Tobacco 18mg
  • Vype ePen 3 Dark Cherry 18mg
  • Vype ePod Vpro Mint 18mg
  • Vype ePod Vpro Berry 18mg
Vype products

Logic Compact – No.1 distribution brand in retail*

Logic products
  • Logic Compact Menthol 18mg
  • Logic Compact Berry Mint 18mg
  • Logic Compact Tobacco 18mg

*Source: IRI

Vape liquids

Liquids

  • Best percentage margin in category with highest unit sales
  • Available in different flavours and nicotine strengths
  • Suitable for most devices, offers biggest choice to vapers and is the most economical way to vape

Best Selling Flavours

Menthol – The best selling flavour in any brand
Fruits – Blackcurrant, Forest Fruits and Blueberry leading sellers
Tobacco – Best seller in highest nicotine strengths
Heizen – A fruit & menthol flavour well known to vapers

Nicotine Strengths

Providing consumers with a brand choice for some top flavours in each nicotine strength will help boost sales.

Low: less than 6mg
Medium: 9-12mg
High: 16-20mg

Leading Brands

Logic Epiq

Edge is leading the way in convenience with almost 40% market share followed by Logic Epiq – both price marked packs.

Edge products

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