Tobacco: Cigarettes, RYO, E-Cigarettes & Lighters 2014

Samantha Oller, Senior Editor/Fuels, CSP

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RYO Trends

Distributor Data: RYO

Calendar year 2013

McLane shipments of cigarette tobacco fell nearly 11% in 2013 in dollar terms, while pipe-tobacco shipments rose 7%.

Segment Avg. shipments per store per week (in dollars) Avg. shipments per store per week (dollar growth) PCYA
Cigarette tobacco $8.63 -$1.05 -10.8%
Pipe tobacco $1.19 $0.08 7.0%
Cigarette papers $6.82 -$0.14 -2.0%
Cigarette tubes $0.69 $0.05 7.1%

Source: McLane Co.

Distributor Data: Pipe Tobacco

Calendar year 2013

McLane’s top pipe tobacco UPC in 2013 was the 0.75-ounce pouch of Largo Regular Pipe Tobacco.

1. Largo Regular Pipe Tobacco (0.75-oz pouch)

2. Red Cap Pipe Regular (0.75-oz. pouch)

3. Largo Mellow Pipe (0.75-oz. pouch)

4. Largo Mint Pipe (0.75-oz. pouch)

5. 4 Aces Pipe Tobacco (6-oz. bag)

Source: McLane Co.

RYO Tobacco by UPC: 20 Large Chains

C-store sales, 52 weeks ending Dec. 21, 2013

According to a Nielsen database of large c-store chains, the top-selling UPC in 2013 was the 0.65-ounce Bugler Original Tobacco Pouch, which was also the top cigarette-tobacco UPC shipped from McLane.

UPC C-store sales ($ millions) PCYA Pound volume (millions) PCYA
Bugler Original
Tobacco Pouch
$4.0 -15.6% 1.0 -19.4%
TOP Tobacco Pouch
$1.5 -26.8% 0.4 -31.4%
TOP Superoll
(0.8-oz. double 0.4-oz.
$0.5 5.8% 0.1 3.3%
Total (including UPCs
not shown)
$7.5 -15.3% 1.8 -19.7%

Sources: The Nielsen Co., Swedish Match North America

Distributor Data: Cigarette Papers

Calendar year 2013

Zig-Zag French Orange was the No. 1 shipped cigarette-paper UPC from McLane in 2013.

1. Zig-Zag French Orange

2. Zig-Zag White

3. Joker Orange

4. Job Gold (1.5, 24-count)

5. TOP Gummed

Source: McLane Co.

Competitive Watch: Dollar General

While the c-store industry is paying keen attention to the dollar channel’s recent entry into the tobacco business, recent research by Management Science Associates suggests the level of competition is not heavy—yet. After examining two years of distributor shipment data, MSA determined that c-stores within a mile of a Dollar General store saw an initial hit in cigarette volumes of 5.8%; however, that decline narrowed to 3.8% on a sustained basis. The research suggests that grocery stores are actually the most vulnerable and giving up the greatest share to dollar stores relative to their overall share of cigarette volumes.

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