British media conveniencestore has released six things UK retailers need to know about tobacco, e-cigarettes and next-generation products. The following is the full text.
1. Disposable e-cigarette sales in the UK are booming, driven by Elf Bar.
Online retailer Vape Club reported that some retailers saw an 883% year-over-year increase in disposable e-cigarettes. The group claims Elf Bar led the growth, with sales doubling in the second quarter of 2022 compared to the first quarter.
RELX has also observed the success of disposables. Aky Hojeij, Associate Marketing Director at RELX International, said: “As we enter the fourth quarter of the year, we expect single-use devices to continue to gain popularity due to their sleek, ultra-compact features, affordability and convenience. We found] strong fruit flavoured disposables and pods are currently the most popular among adult consumers in the UK.
Disposable e-cigarettes, especially the ElfBar, are a must-have, according to Premier retailer Serge Notay. "Elf Bars are just the must-haves in e-cigarettes - we sell them in every flavor we can get."
Southampton retailer Richard Inglis is new to the vaping game but has been quick to lock down Elf Bars. "We've only recently entered the e-cigarette category, but we've found that after selling well, they're cheaper online," he said. "Basically people tell me that Elf Bars are about 90 percent of their vaping business now. So we decided to put them in and make a variety of flavors."
2. Retailers can help recycle single-use e-cigarettes and increase loyalty.
This success is not without its drawbacks. It is suspected that a product often popular with young e-cigarette users may soon draw the ire of UK regulators. Furthermore, questions about sustainability remain to be answered.
"Basically, part of their appeal is that they're one-offs," Richard said. "But they have batteries, which makes them difficult to recycle. We've asked this question around, but it's been hard to get a clear answer about what people can do to dispose of them. We're starting to see them on the street with rubbish. "
However, in Llanidloes, Wales, Trudy Davies of Woosnam & Davies News offers her customers an e-cigarette recycling collection service, which not only helps protect the environment, but also encourages customers to return to her store.
Nisa Local Halesowen also encourages customers to recycle their single-use items in the store, and when you bring back a single-use e-cigarette, you can get an extra 10p on your next e-cigarette purchase.
3. Tesco wants a piece of the pie.
Perhaps more challenging for convenience store sales is Elf Bars, which popped up in Tesco in October. There are concerns that malls may now steal sales as convenience stores help sell products.
But owner Serge isn't worried, citing his staff's expertise in the category and their ability to respond quickly to new flavors.
"I'm not really worried about Tesco," he said. "We're a community store and people know what we're doing - they prefer to come to us because we're local and know what we're talking about."
4. Heated tobacco is growing more than twice as fast as e-cigarettes.
In terms of cigarette alternatives, heated tobacco has more in common with the next generation of e-cigarettes than conventional vacuum cleaners. Rather than moving away from tobacco, systems like Philip Morris-backed IQOS offer a different way of heating.
"If we look at heat not burn - a relatively newcomer to the UK market - we see a category growing more than twice as fast as the e-cigarette category launched at least a decade ago." Philip Morris Ltd Business Planning Chief Kate O'Dowd said.
As in e-cigarettes, flavor may be the main driver of heated tobacco.
Gemma Bateson, sales director at JTI UK, said: "Sales of tobacco-flavored heated tobacco variants account for 50% of all sales in traditional retail, with menthol-flavored tobacco accounting for 44%.
"JTI always wants to stay current and listen to consumers when it comes to meeting the demand for new flavors. As a result, JTI has established itself as the destination for flavored tobacco and flavored capsules within the industry."
The brand has launched two new heated tobacco variants with capsules, a green option and a purple option. Both offer smokers a tobacco flavor and activate a mint infusion when the capsule is crushed.
5. Ultra Value RYO is now the fastest growing industry.
Not surprisingly, as heating bills and mortgage rates climb, customers are looking for added value from their smog. This means that brands are refocusing on low-priced RYOs.
"Over the past two years, we've worked hard to deliver products that meet the growing demand for value tobaccos - from Sterling Rolling Tobacco Essential to the new Benson & Hedges Blue Rolling and the new RMC range - Mayfair Silver." Bateson Say.
“Now more than ever, value tobacco is a key trend, with ultra-value RYO being the fastest growing price segment in terms of share, currently accounting for 6.4% of the combined tobacco market.”
Despite this trend, it's important to remember that value means different things to different people.
"Some customers may be focused on the lowest price point, while others may be looking for value-added formats such as Players JPS Easy Rolling Tobacco, which offers filters and paper in one pack," said Tom Gully, director of consumer marketing at Imperial.
"As a result, ensuring retailers stock product ranges that meet these different value needs is critical to effectively serving their customer base."
"Despite the high cost, some customers still seem to be avid smokers," Richard said.
“Cigarettes will always be a good seller for people who want tobacco. But I can also see cost that could lead to more people switching to e-cigarettes. Their point is: if you’re going to spend that much on tobacco Qian, why don't you try e-cigarettes?"
6. Cigarillos are helping to boost the £291m cigar market.
In terms of cigars, the market has ballooned by 7.6% to £291 million due to the growth of the cigarillo market, which now accounts for almost 47% of all cigars by volume. This is a key segment of c-stores, with 40% of sales coming from independent stores and symbol groups.
However, as the countdown to Christmas began, Alastair Williams, country director of Scandinavian Tobacco Group UK, said it was time to think about the bigger picture.
“Retailers should consider their cigars and cigarillos offerings year-round, as it is a high-margin category and a driver of in-store traffic. However, on Christmas Eve, we certainly know that cigar sales are going up, so retailers must Get the product range right so they can enjoy additional sales and good profit margins, usually three times that of cigarettes,” he said.
"When people are in a celebratory mood and generally have more time to enjoy it, they tend to gravitate towards bigger cigars, as a kind of Christmas gift. Make sure you have a stock of brands like our Henri Wintermans Half Corona as it is UK Best selling medium/large cigar, a true holiday favorite."