CSP Magazine

Tobacco: Smokeless 2015

Where the Gains Are

C-store sales, 52 weeks ending Dec. 28, 2014

C-store sales of smokeless tobacco rose more than 5% in 2014 to hit $5.3 billion, according to IRI. The largest segment—chewing tobacco/snuff, which includes moist smokeless—was up 4.7%.

Smokeless typeC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Chewing tobacco/snuff$5,313.34.7%1,257.21.9%
Spitless tobacco$205.614.2%52.91.9%
Total smokeless tobacco$5,518.95.1%1,310.11.9%

Source: IRI

* Percent change from a year ago


Distributor Data: Smokeless-Tobacco Shipments

Calendar year 2014

Shipments of smokeless tobacco from McLane in 2014 rose more than 6%, led by moist smokeless and snus.

SegmentAPSW*** (in dollars)APSW dollar growthPCYA*
Moist smokeless$575.16$35.656.6%
Snus/stick/strip/orb$28.72$2.007.5%
Alternative$0.34$0.025.1%
Dry$0.14$0.0326.1%

Source: McLane Co.

* Percent change from a year ago

*** Average shipments per store per week


Smokeless Sales: 20 Large Chains**

C-store sales, 52 weeks ending Dec. 28, 2014

A Nielsen sample of 20 large c-store chains shows moist snuff and snus making unit gains in the 52 weeks ending Dec. 20, 2014. Low-price and portion-pouch moist smokeless provided the lift.

TypeC-store sales ($ millions)PCYA*Pouch/can sales (millions)PCYA*
SMOKELESS    
Moist snuff$544.26.7%147.63.8%
Loose-leaf$15.2-1.5%2.4-9.2%
Snus$25.813.4%6.93.0%
Total smokeless$585.26.7%156.93.6%
     
MOIST SMOKELESS    
Low-price$234.110.0%76.24.0%
Midtier$18.03.1%4.6-1.5%
Premium$210.90.0%44.6-1.3%
Portion pouch$81.317.8%22.116.5%

Sources: The Nielsen Co., Swedish Match North America

* Percent change from a year ago

** Nielsen Large Convenience Chain store-level database of 20 chains comprising about 14,000 stores


Moist-Smokeless Share by Type: 20 Large Chains**

C-store sales, 52 weeks ending Dec. 20, 2014

Low-price brands supplied more than half of moist-smokeless volume sales in the Nielsen large-chain sample.

SegmentVolume shareDollar share
Low-price51.6%43.0%
Midtier3.1%3.3%
Premium30.3%38.8%
Potion pouch15.0%14.9%

Sources: The Nielsen Co., Swedish Match North America


Market Share by Product: 20 Large Chains**

C-store sales, 52 weeks ending Dec. 20, 2014

More than 90% of smokeless volume and dollar sales for the retailers in Nielsen’s large-chain sample came from moist snuff.

SegmentVolume shareDollar share
Moist snuff94%93%
Snus4.4%4.4%
Loose leaf1.5%2.6%

Sources: The Nielsen Co., Swedish Match North America

** Nielsen Large Convenience Chain store-level database of 20 chains comprising about 14,000 stores

CONTINUED: Smokeless Brand Breakdown

Moist-Smokeless Share by Brand: 20 Large Chains**

C-store sales, 52 weeks ending Dec. 20, 2014

One-third of moist-smokeless unit sales for the chains in the Nielsen sample came from Grizzly; Copenhagen supplied 34.8% of dollar sales.

Unit share

BrandUnit share
Grizzly33.3%
Copenhagen30.9%
Skoal20.4%
Longhorn4.9%
Kodiak3.4%
Red Seal3.1%
Timber Wolf1.9%
Other***2.0%

Dollar share

BrandDollar share
Copenhagen34.3%
Grizzly29.0%
Skoal22.8%
Kodiak4.5%
Red Seal3.3%
Longhorn2.9%
Timber Wolf1.5%
Other***1.2%

Sources: The Nielsen Co., Swedish Match North America

** Nielsen Large Convenience Chain store-level database of 20 chains comprising about 14,000 stores

*** Brands with less than 1% share


Moist-Smokeless Trends: 20 Large Chains**

C-store sales, 52 weeks ending Dec. 20, 2014

Grizzly was the top-selling moist-smokeless brand by can sales for the chains in the Nielsen sample. By dollars, Copenhagen led the ranking.

Brands by Can Sales

BrandPouch/can sales (millions)PCYA*C-store sales ($ millions)PCYA*
Grizzly49.25.9%$157.811.2%
Copenhagen45.67.4%$189.610.5%
Skoal30.1-0.3%$123.9-1.0%
Longhorn7.26.4%$15.57.9%
Kodiak5.0-1.7%$24.81.9%

Sources: The Nielsen Co., Swedish Match North America

* Percent change from a year ago


UPCs by Can Sales

UPCPouch/can sales (millions)PCYA*C-store sales ($ millions)PCYA*
Grizzly Long-Cut Wintergreen (1.2-oz.)14.3-15.5%$49.3-10.9%
Copenhagen Fine-Cut Natural (1.2-oz.)9.2-5.5%$46.7-1.4%
Copenhagen Long-Cut Wintergreen (1.2-oz.)7.47.3%$25.915.0%
Copenhagen Long-Cut Natural (1.2-oz.)7.4-4.4%$37.5-0.4%
Grizzly Pouches Wintergreen (0.82-oz.)6.113.4%$20.721.0%
Grizzly Long-Cut Wintergreen (5-can roll)5.0-3.2%$13.54.7%
Grizzly Long-Cut Wintergreen 50 Cents Off (1.2-oz.)4.2154.0%$11.7211.7%
Kodiak Wintergreen Long-Cut (1.2-oz.)4.0-5.8%$20.1-1.8%
Copenhagen Long-Cut Straight (1.2-oz.)3.57.2%$11.914.1%
Grizzly Long-Cut Straight (1.2-oz.)3.4-15.8%$11.9-10.3%

Sources: The Nielsen Co., Swedish Match North America

* Percent change from a year ago


Distributor Data: Snus UPCs

Calendar year 2014

Six of the top snus UPCs shipped by McLane in 2014 to c-stores and travel centers were Camel brands.

  1. Camel Frost
  2. Camel Frost Large Can
  3. Camel Mellow
  4. Camel Winterchill
  5. Camel Mint
  6. Skoal Mint
  7. General Mint (0.85-oz.)
  8. Skoal Smooth
  9. MintCamel Robust
  10. General White (0.85-oz.)

Source: McLane Co.


Chewing-Tobacco UPCs: 20 Large Chains**

C-store sales, 52 weeks ending Dec. 20, 2014

The top-selling chewing-tobacco UPC for the large chains in the Nielsen sample was the 3-ounce Red Man pouch.

UPCPouch/can sales (millions)PCYA*C-store sales ($ millions)PCYA*
Red Man Pouch (3-oz.)0.9-9.0%$5.6-0.9%
Red Man Golden Blend Pouch (3-oz.)0.8-7.5%$5.11.2%
Levi Garrett Pouch (3-oz.)0.5-0.5%$3.5-3.1%

Sources: The Nielsen Co., Swedish Match North America

* Percent change from a year ago


Category Insight

2014 analysis of c-store point-of-sale data by Management Science Associates found that the following products were most often included in an OTP market basket:

  1. CSDs
  2. Premium cigarettes
  3. Bottled water
  4. Alternative packaged beverages
  5. Juice
  6. Chocolate bars
  7. Iced tea
  8. Snack cakes/pastries/desserts
  9. Sports drinks
  10. Hot dispensed beverages

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