Where the Gains Are
C-store sales, 52 weeks ending Dec. 21, 2013
According to IRI, c-store dollar sales of cigars fell 2.7% to reach $2.4 billion, while unit sales rose 2.0% in the 52 weeks ending Dec. 29, 2013. In a Nielsen database that tracks sales from 20 large c-store chains representing about 13,000 sites, dollar sales of cigars barely budged, while unit sales rose more than 11%. The database reflects purchases at these large chains, most of which have 500 stores or greater.
| Type | Unit sales (millions) | PCYA | C-store sales ($ millions) | PCYA |
| Pipe | 87.5 | 6.7% | $80.1 | 0.2% |
| Sweet | 71.6 | 22.2% | $47.1 | 5.0% |
| Flavored | 66.5 | 8.0% | $44.2 | -10.4% |
| Natural leaf | 43.8 | 0.5% | $44.1 | -0.8% |
| Unflavored | 18.5 | 41.4% | $10.5 | 35.6% |
| Premium | 0.3 | 331.6% | $1.0 | 205.7% |
| Total cigars (including segments not shown) | 288.3 | 11.3% | $227.1 | 0.2% |
| Sales by Pack Size: 20 Large Chains | ||||
| Pack type | Unit sales (millions) | PCYA | C-store sales ($ millions) | PCYA |
| Foil pouch | 112.1 | 55.3% | $67.7 | 39.0% |
| Single | 97.1 | -5.5% | $89.7 | -10.9% |
| Pack | 79.1 | -5.9% | $69.6 | -9.8% |
| Little Cigars: 20 Large Chains | ||||
| Segment | Unit sales (millions) | PCYA | C-store sales ($ millions) | PCYA |
| Little cigars | 194.1 | -9.2% | $34.6 | -5.7% |
Sources: The Nielsen Co., Swedish Match North America
Distributor Data: Cigar Shipments
Calendar year 2013
McLane shipments of cigars dipped more than 3% in 2013, although little-cigar singles were up sharply.
| Segment | Avg. shipments per store per week (in dollars) | Avg. shipments per store per week (dollar growth) | PCYA |
| Cigars, singles | $127.95 | $0.61 | 0.5% |
| Cigars, packs | $76.64 | -$4.82 | -5.9% |
| Little cigars, packs | $19.74 | -$3.63 | -15.5% |
| Little cigars, singles | $1.96 | $0.30 | 18.0% |
| Cigar wraps | $6.35 | -$0.44 | -6.4% |
| Total cigars | $232.64 | -$7.97 | -3.3% |
Source: McLane Co
Pack-Type Trends: 20 Large Chains
C-store sales, 52 weeks ending Dec. 21, 2013
Foil-pouch products contributed nearly 30% of dollar sales and almost 40% of unit sales in the cigar category at the chains in the Nielsen Large Convenience Chain sample.
| Pack type | Dollar share |
| Singles | 39.5% |
| Packs | 30.7% |
| Foil pouch | 29.8% |
| Pack type | Unit share |
| Foil pouch | 38.9% |
| Singles | 33.7% |
| Packs | 27.4% |
Sources: The Nielsen Co., Swedish Match North America
Units and Dollars by Pack Size: 20 Large Chains
C-store sales, 52 weeks ending Dec. 21, 2013
Nearly 40% of cigar unit sales came from small foil pouches for the retailers in Nielsen’s Large Convenience Chain database.
| Pack type | Stick volume (millions) | PCYA | Unit share | C-store sales (millions) | PCYA | Dollar share |
| Small foil pouch | 111.7 | 56.6% | 38.7% | $67.4 | 40.0% | 29.7% |
| Small single | 93.4 | -4.7% | 32.4% | $82.8 | -10.4% | 36.4% |
| Small pack | 73.6 | -4.7% | 25.5% | $63.2 | -8.9% | 27.8% |
| Large pack | 5.5 | -19.5% | 1.9% | $6.4 | -18.2% | 2.8% |
| Large single | 3.7 | -22.1% | 1.3% | $7.0 | -16.5% | 3.1% |
| Large foil pouch | 0.4 | -51.0% | 0.1% | $0.3 | -46.9% | 0.1% |
Sources: The Nielsen Co., Swedish Match North America
Flavored-Cigar UPCs: Units and Dollars
C-store sales, 52 weeks ending Dec. 21, 2013
The top-selling flavored-cigar UPC by units and dollars at the stores in Nielsen’s Large Convenience Chain database was the “5 for the Price of 3” pack of Swisher Sweets cigarillos.
| Units | ||||
| UPC | Unit sales (millions) | PCYA | C-store sales ($ millions) | PCYA |
| Swisher Sweets cigarillos 5 for the Price of 3 pack | 15.1 | 85.7% | $9.0 | 86.8% |
| Swisher Sweets Save on 2 pouch | 12.8 | 187.3% | $8.2 | 183.2% |
| White Owl White Grape cigarillos 2 for 99 cents pouch | 7.4 | >1,000% | $3.6 | >1,000% |
| White Owl Sweet cigarillos 2 for 99 cents pouch | 5.4 | 332.1% | $2.7 | 331.2% |
| Black & Mild Jazz wood-tip single cigar | 4.6 | >1,000% | $1.8 | >1,000% |
| Dollars | ||||
| UPC | C-store sales ($ millions) | PCYA | Unit sales (millions) | PCYA |
| Swisher Sweets cigarillo 5 for the Price of 3 pack | $9.0 | 86.8% | 15.1 | 85.7% |
| Swisher Sweets Save on 2 pouch | $8.2 | 183.2% | 12.8 | 187.3% |
| Black & Mild Wine Wood-Tip 25-count | $4.6 | -8.0% | 3.5 | -5.5% |
| Backwoods Sweet & Aromatic 5-pack | $4.5 | 12.2% | 4.1 | 6.9% |
| Black & Mild Wine Plastic-Tip single cigar | $4.4 | -19.8% | 3.7 | -18.1% |
Sources: The Nielsen Co., Swedish Match North America
Pack-Size Share of Volume Sales
C-store sales, 52 weeks ending Feb. 23, 2014
Two-packs picked up nearly 12 points in c-store large-cigar volume share to provide more than 29% of volume sales, closely followed by single packs, according to IRI.
| Pack size | Share of volume sales |
| 2-packs | 29.3% |
| Single-pack | 28.8% |
| 5-packs | 22.7% |
| 3-packs | 11.1% |
| 11-20-packs | 3.9% |
| 6-10 packs | 2.7% |
| 4-packs | 1.0% |
| >20 packs | 0.5% |
Sources: IRI, Scandinavian Tobacco Group Lane Ltd.
Cross-Category Opportunity
According to research by Management Science Associates (MSA) that examined two years’ worth of retail point-of-sale data, the categories most often included in baskets with large cigars were:
1. Packaged beverages
2. Beer
3. Salty snacks
4. Candy
5. Nonedible grocery
6. Ice
7. Wine
8. General merchandise
9. Frozen foods
10. Lottery/gaming
Cigars and beer had a particularly close relationship and were purchased together most often on weekends, MSA found.
Flavor Trends: 20 Large Chains
C-store sales, 52 weeks ending Dec. 21, 2013
More than 30% of cigar volume sales for the retailers tracked in Nielsen’s Large Convenience Chain database came from pipe-flavored items.
| Volume Share by Type | ||
| Type | Volume share | PCYA |
| Pipe | 30.4% | 6.7% |
| Sweet | 24.8% | 22.2% |
| Flavored | 23.1% | 8.0% |
| Natural leaf | 15.2% | 0.5% |
| Unflavored | 6.4% | 41.4% |
| Premium | 0.1% | 331.6% |
Sources: The Nielsen Co., Swedish Match North America
For the retailers in the Nielsen Large Convenience Chain database, sweet varieties generated more than 41% of flavored-cigar volume sales.
| Volume Share by Flavor | ||
| Type | Volume share | PCYA |
| Sweet | 41.5% | 19.4% |
| Wine | 13.0% | 0.5% |
| Grape | 12.2% | -3.0% |
| White grape | 11.7% | 16.5% |
| Blueberry | 5.7% | 4.5% |
| Strawberry | 3.2% | -21.9% |
| Vanilla | 1.9% | 8.5% |
| Tropical | 1.8% | NA |
| Peach | 1.6% | -36.4% |
| Honey berry | 1.5% | 6.4% |
| Others | 5.9% | NA |
Sources: The Nielsen Co., Swedish Match North America
Category in Focus
Analysis of data from Nielsen’s Large Convenience Chain database for the 24 weeks ending Jan. 18, 2014, by Swedish Match shows that the top five largest contributors to tobacco dollar sales for these retailers were e-cigarette cartomizers, unflavored cigars, sweet pouch cigars, low-price loose moist smokeless tobacco, and natural-leaf pouch cigars. The fastest-declining sales: natural-leaf, grape, white grape and sweet single cigars, and pipe-flavored pack cigars.
Cigar Brands by Units and Dollars
C-store sales, 52 weeks ending Feb. 23, 2014
The top-selling c-store cigar brand by units and dollars in the 52 weeks ending Feb. 23, 2014, was Middleton’s, according to IRI figures.
| Units | ||
| Brand | Unit sales (millions) | PCYA |
| Middleton’s | 468.3 | 13.3% |
| Swisher Sweets | 343.2 | -6.5% |
| White Owl | 211.3 | 30.0% |
| Dutch Master | 141.1 | -14.4% |
| Garcia Y Vega | 106.0 | 15.4% |
| Zig Zag | 30.9 | -26.6% |
| Pompom Operas | 24.1 | 36.8% |
| Backwoods | 19.6 | 17.4% |
| Phillies | 19.6 | -29.8% |
| Good Times | 16.6 | 99.0% |
| Total (including brands not shown) | 1,438.2 | 4.5% |
| Dollars | ||
| Brand | C-store sales ($ millions) | PCYA |
| Middleton’s | $696.9 | 0.3% |
| Swisher Sweets | $476.2 | -6.1% |
| Dutch Master | $250.1 | -9.6% |
| White Owl | $244.9 | 5.2% |
| Garcia Y Vega | $134.5 | 13.8% |
| Backwoods | $88.8 | 11.4% |
| Djarum | $39.9 | 11.3% |
| Phillies | $34.1 | -30.5% |
| Zig Zag | $32.7 | -25.2% |
| Pompom Operas | $17.8 | 84.8% |
| Total (including brands not shown) | $2,163.5 | -1.3% |
Sources: IRI, Scandinavian Tobacco Group Lane Ltd.
Cigar Singles and Packs by UPC: 20 Large Chains
C-store sales, 52 weeks ending Dec. 21, 2013
The leading pack UPC for the retailers in Nielsen’s Large Convenience Chain database was Swisher Sweets’ “5 for the Price of 3” pack. Among singles, Middleton’s Black & Mild plastic tip led, while the Swisher Sweets Save on 2 cigarillo was the top-selling foil-pouch UPC.
| UPC | Unit sales (millions) | PCYA | C-store sales ($ millions) | PCYA |
| Packs | ||||
| Swisher Sweets Cigarillo 5 for the Price of 3 pack | 15.1 | 85.7% | $9.0 | 86.8% |
| Black & Mild Plastic Tip 5-pack | 12.4 | -5.9% | $12.3 | -6.6% |
| Black & Mild Wood Tip 5-pack | 4.4 | 10.4% | $4.7 | 9.3% |
| Backwoods Sweet & Aromatic 5-pack | 4.1 | 6.9% | $4.5 | 12.2% |
| Swisher Sweets Cigarillo Grape 5 for the Price of 3 pack | 4.0 | 76.4% | $2.6 | 83.9% |
| Singles | ||||
| Middleton’s Black & Mild Plastic Tip | 12.1 | -2.0% | $13.8 | -5.4% |
| Swisher Black Smooth Pipe Cigarillo | 4.8 | 17.1% | $2.1 | 19.4% |
| Swisher Black Cherry Cigarillo | 4.7 | 18.6% | $2.2 | 21.4% |
| Black & Mild Jazz Wood Tip | 4.6 | <1,000% | $1.8 | <1,000% |
| Black & Mild Plastic Tip 69-cent | 3.7 | 137.3% | $2.5 | 137.3% |
| Foil Pouch | ||||
| Swisher Sweets Cigarillo Save On 2 | 12.8 | 187.3% | $8.2 | 183.2% |
| White Owl Cigarillo White Grape 2 for 99 Cents | 7.4 | <1,000% | $3.6 | <1,000% |
| White Owl Cigarillo Sweet 2 for 99 Cents | 5.4 | 332.0% | $2.7 | 331.2% |
| Swisher Sweets Cigarillo Blueberry Save On 2 | 4.4 | 128.2% | $2.9 | 127.1% |
| White Owl Cigarillo Green Sweets 2 for 99 Cents | 4.1 | 257.6% | $2.0 | 256.9% |
Sources: The Nielsen Co., Swedish Match North America
Little-Cigar Trends
C-store sales, 52 weeks ending Feb. 23, 2014
The biggest little-cigar brand in c-stores by units in the 52 weeks ending Feb. 23, 2014, was Cheyenne, according to IRI figures. By dollars, Swisher Sweets led the ranking in c-stores.
| Units | ||
| Brand | Unit sales (millions) | PCYA |
| Cheyenne | 14.2 | -4.1% |
| Swisher Sweets | 10.2 | -9.2% |
| Prime Time | 9.9 | -16.7% |
| Phillies | 9.7 | 110.4% |
| 305s | 8.4 | 31.5% |
| Total (including brands not shown) | 86.9 | -9.1% |
| Dollars | ||
| Brand | C-store sales ($ millions) | PCYA |
| Swisher Sweets | $50.4 | -8.6% |
| Cheyenne | $36.0 | -1.4% |
| Prime Time | $21.8 | -15.3% |
| Phillies | $14.7 | 154.2% |
| 305s | $13.7 | 39.3% |
| Total (including brands not shown) | $218.4 | -9.3% |
Sources: IRI, Scandinavian Tobacco Group Lane Ltd.
Little-Cigar UPCs: Dollars
The top-selling little-cigar UPC in c-stores by units and dollars in the 52 weeks ending Feb. 23, 2014, was the 20-pack of original Swisher Sweets, according to IRI.
| UPC | C-store sales ($ millions) | PCYA |
| Swisher Sweets Original (20-pack) | $31.9 | -7.4% |
| Cheyenne Full Flavor (20-pack) | $7.1 | -1.7% |
| Cheyenne Menthol (20-pack) | $6.2 | -2.2% |
| 305s Full Flavor (20-pack) | $4.8 | 42.4% |
| Phillies Regular (20-pack) | $4.4 | 159.4% |
Sources: IRI, Scandinavian Tobacco Group Lane Ltd.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.