Circle K Takes Second Swing at Private-Label Cigarettes

RALEIGH, N.C. -- Circle K has launched an exclusive cigarette brand, Traffic. Chesterfield, Mo.-based Premier Manufacturing, the consumer products division of the U.S. Tobacco Cooperative (USTC), is supplying the Traffic brand cigarettes to Circle K convenience stores.

“We are extremely pleased to be partnering with Circle K,” USTC CEO Stuart Thompson said. “We look forward to supplying Circle K convenience stores with the highest quality U.S. tobacco products as they continue their growth here.”

More ...

Circle K completed the national rollout of Traffic cigarettes in June. The brand will be supported through a national advertising campaign and promotional support within Circle K’s convenience stores.

“The combination of high-quality U.S. flue-cured tobacco, manufactured in Timberlake, N.C., and a value price should make Traffic cigarettes a huge success with Circle K adult-age consumers,” said Thompson.

Private-label cigarettes have historically been a challenge for retailers struggling to build brand recognition among consumers, while others, such as Boulder, Colo-based Smoker Friendly, have found success in offering a lower-priced alternative to the major premium brands.

This isn’t Circle K parent Alimentation Couche-Tard’s first foray into private-label cigarettes. In 2013, just as cigarette prices were going through an increase, the retailer introduced Crown cigarettes as part of an effort to provide a low-price alternative with a strong margin.

Circle K is a subsidiary of Alimentation Couche-Tard, which operates approximately 8,000 convenience stores with more than 4,700 convenience stores in the United States. The company employs more than 80,000 people throughout its network and service offices in North America.

U.S. Tobacco Cooperative Inc. is a grower-owned marketing cooperative located in Raleigh, N.C.