Where The Gains Are
C-store sales, 52 weeks ending Dec. 27, 2015
According to IRI, c-store unit sales rose 4% in 2015, after recent years with little, no or negative growth. Dollar sales jumped nearly 7% to hit $56.2 billion.
In the rest of tobacco, strong dollar and unit gains were the trend for spitless (i.e., snus) and chewing tobacco.
C-store unit sales of electronic smoking devices--or e-cigarettes and vaporizers--jumped more than 22% in 2015, although dollar sales rose just more than 2 percent, according to IRI.
Roll-your-own (RYO) dollar and unit sales were deep in negative territory, while pipe tobacco sales grew slightly.
| Category | C-store sales ($ millions) | PCYA* | Unit sales (millions) | PCYA* |
|---|---|---|---|---|
| Cigarettes | $56,161.1 | 6.7% | 8,865.8 | 4.0% |
| Chewing tobacco/snuff | $5,932.9 | 8.6% | 1,358.0 | 4.6% |
| Spitless tobacco | $247.6 | 19.2% | 60.0 | 12.9% |
| Total smokeless tobacco | $6,180.6 | 9.0% | 1,418.0 | 4.9% |
| Cigars | $2,613.8 | 5.8% | 1,757.8 | 9.0% |
| Electronic smoking devices | $704.4 | 2.1% | 83.5 | 22.3% |
| Lighters | $599.0 | 8.1% | 384.8 | 4.7% |
| Smoking accessories | $253.6 | (0.3%) | 149.2 | (2.7%) |
| Pipe tobacco | $84.4 | 0.3% | 11.2 | 0.4% |
| Roll-your-own tobacco | $55.9 | (6.2%) | 9.0 | (12.0%) |
| Total all other tobacco products | $140.3 | (2.4%) | 20.3 | (5.5%) |
Channel Comparison: Cigarettes
| Channel | Dollar sales ($ millions) | PCYA* | Unit sales (millions) | PCYA* |
|---|---|---|---|---|
| C-store | $56,161.1 | 6.7% | 8,865.8 | 4.0% |
| Multioutlet** | $14,160.5 | (1.4%) | 1,358.2 | (5.8%) |
| Food | $3,880.0 | 2.3% | 519.2 | 0.3% |
| Drug | $2,664.1 | ( 25.1%) | 385.2 | (27.5%) |
Source: IRI | * Percent change from a year ago | ** Includes supermarkets, drug stores, mass market, military commissaries, and select club and dollar retail chains
Distributor Data: Cigarettes
Calendar year 2015
| Segment | APSW*** (in dollars) | APSW*** dollar growth | PCYA* |
|---|---|---|---|
| Premium | $5,742.11 | $326.84 | 6.0% |
| Generic | $1,216.49 | $49.31 | 4.2% |
| Subgeneric | $112.37 | $10.66 | 10.5% |
| Private label | $16.33 | $3.23 | 24.7% |
| Total | $7,078.30 | $390.04 | 5.8% |
Source: McLane Co. | * Percent change from a year ago | *** Average shipments per store per week
Distributor Data: Premium Cigarettes****
Calendar year 2015
The top premium cigarettes UPC from McLane in 2015 was the Marlboro Gold Box King. Marlboro brands made up more than one-third of McLane's cigarette cartons.
| UPC | Share of premium cartons | Share of total cigarette cartons |
|---|---|---|
| Marlboro Gold Box King | 11.8% | 9.6% |
| Marlboro Red Box King | 7.0% | 5.7% |
| Newport Menthol Box King | 5.9% | 4.8% |
| Newport Menthol Box 100 | 5.5% | 4.5% |
Marlboro Special Blend Gold Box King | 3.8% | 3.1% |
| Marlboro Gold Box 100 | 3.2% | 2.6% |
| Marlboro Special Blend Gold Box 100 | 2.8% | 2.3% |
| Marlboro Red Box 100 | 2.5% | 2.0% |
| Marlboro Silver Box King | 2.3% | 1.8% |
| Marlboro Special Blend Red Box 100 | 2.1% | 1.7% |
Market Share by Brand
Source: McLane Co. | **** C-stores and travel plazas
22.3% - Increase in c-store unit sales of electronic smoking devices in 2015, according to IRI
Distributor Data: Branded Discount Cigarettes***
Calendar year 2015
The top branded-discount UPC at McLane in 2015 was Pall Mall Red Box 100. The Pall Mall brand made up nearly 56 percent of branded discount cartons shipped by the distributor.
| UPC | Share of branded discount cartons | Share of total cigarette cartons |
|---|---|---|
| Pall Mall Red Box 100 | 10.4% | 1.8% |
| Pall Mall Blue Box 100 | 7.8% | 1.4% |
| Pall Mall Blue Box King | 5.5% | 1.0% |
| Pall Mall Menthol Box 100 | 5.3% | 0.9% |
| Pall Mall Red Box King | 5.3% | 0.9% |
| L&M Box 100 | 4.7% | 0.8% |
| L&M Box King | 4.6% | 0.8% |
| Pall Mall Orange Box 100 | 4.3% | 0.7% |
| L&M Blue Box King | 3.6% | 0.6% |
| L&M Menthol Box 100 | 3.5% | 0.6% |
Market Share By Brand
| Brand | Share of branded discount cartons | Share of total cigarette cartons |
|---|---|---|
| Pall Mall | 55.8% | 9.7% |
| L&M | 24.4% | 4.2% |
| Pyramid | 4.8% | 0.8% |
| Doral | 4.8% | 0.8% |
| Misty | 3.6% | 0.6% |
| USA | 2.6% | 0.4% |
| Basic | 1.4% | 0.2% |
| Liggett Select | 1.4% | 0.2% |
| Sonoma | 0.7% | 0.1% |
| Old Gold | 0.3% | 0.1% |
Distributor Data: Subgeneric Cigarettes
Calendar year 2015
With nearly 84 percent share of subgeneric cartons shipped by McLane in 2015, Maverick also supplied nine of the top 10 UPCs.
| UPC | Share of subgeneric cartons | Share of total cigarette cartons |
|---|---|---|
| Maverick Menthol Box 100 | 26.3% | 0.4% |
| Maverick Box 100 | 20.0% | 0.3% |
| Maverick Gold Box 100 | 10.8% | 0.2% |
| Maverick Box King | 8.1% | 0.1% |
| Maverick Menthol Box King | 6.5% | 0.1% |
| Maverick Gold Box King | 5.3% | 0.1% |
Maverick Menthol Gold Box 100 | 2.4% | 0.0% |
| Maverick Silver Box 100 | 2.4% | 0.0% |
Maverick Menthol Silver Box 100 | 1.8% | 0.0% |
| Grand Prix Red Box 100 | 1.7% | 0.0% |
Market Share by Brand
Source: McLane Co. | *** C-stores and travel plazas
RYO Trends
Distributor Data: RYO
Source: McLane Co. | * Percent change from a year ago | *** Average shipments per store per week
Distributor Data: Cigarette Papers
Calendar year 2015
The top cigarette paper UPC shipped by McLane in 2015 was the Zig-Zag French Orange.
- Zig-Zag French Orange
- Joker Orange
- Zig-Zag White
- Job Gold (1.5, 24-count)
- EZ Wider 1 1/2
Source: McLane Co.
Distributor Data: Pipe Tobacco
Calendar year 2015
The 0.75-ounce pouch of Largo Regular was the top-shipped pipe tobacco UPC at McLane in 2015.
- Largo Regular Pipe Tobacco (0.75-oz. pouch)
- Red Cap Pipe Regular (0.75-oz. pouch)
- Talon Sweet Filtered (20-pack)
- Tin Star Pipe buy one, get one free (0.7-oz. pouch)
- Smokers Pride Rich Toast (0.65-oz. pouch)
Source: McLane Co.
RYO Tobacco by UPC: 25 Large Chains****
C-store sales, 52 weeks ending Dec. 19, 2015
According to a Nielsen database of 25 large c-store chains representing about 14,000 stores, the 0.65-ounce Bugler Original was the top RYO UPC by unit sales.
| UPC | Unit sales (thousands) | PCYA* | C-store sales ($ thousands) | PCYA* |
|---|---|---|---|---|
Bugler Original Tobacco Pouch (0.65-oz.) | 33.7 | (0.8%) | $3,556. | (0.8%) |
TOP Tobacco Puch (0.75-oz.) | 9.6 | (26.0%) | $848.9 | (23.7%) |
| Bugler blue (4-oz. bag) | 5.6 | 407.8% | $179.0 | 401.7% |
TOP Superoll Regular (2-pack) | 3.4 | (28.6%) | $344.3 | (28.7%) |
Bugler Gold Tobacco (0.65-oz.) | 1.8 | 8.9% | $177.7 | 7.7% |
| Total** | 1,360.9 | (10.4) | $6,208.9 | (9.3%) |
Sources: The Nielsen Co., Swedish Match North America | * Percent change from a year ago | **** Nielsen Large Convenience Chain store-level database of 25 chains comprising ~14,000 stores
E-Cigarette Trends
McLane shipments of e-cigarette cartomizers rose more than 45 percenet in 2015. The Vuse Original was the top cartomizer,a nd the Vuse Solo Original was the top starter kit.
Distributor Data: E-Cigarettes
Calendar year 2015
| Segment | APSW*** (in dollars) | APSW dollar growth | PCYA* |
|---|---|---|---|
| Cartomizer | $46.11 | $14.35 | 45.2% |
| Starter Kits | $21.33 | $0.64 | 3.1% |
| Disposable | $16.13 | $ | (46.0%) |
| Accessories | $0.58 | $ | (150.6%) |
| Display | $0.08 | $ | (98.3%) |
| Total e-cigarette | $83.07 | ($5.19) | (5.9%) |
Source: McLane Co. | * Percent change from a year ago | ** Average shipments per store per week
Cartomizers
- Vuse Original Cartridge
- Vuse Menthol Cartridge
- Blu Plus Classic Tank
- Vuse Mint Cartridge
- Logic Black Tobacco Cartomizer
Source: McLane Co.
Starter Kits
- Vuse Solo Original
- Vuse Solo Menthol
- Blu Plus Express
- MarkTen Classic 2.5
- Blu Plus Recharge
Source: McLane Co.
Category Insights
While e-cigarette dollar sales may have been soft in 2015, volume was up. According to Wayne Jones, senior vice president of sales operations for Fontem Ventures, manufacturer of Blu e-cigarettes, retail e-cigarette volume rose 19% in 2015. “Not only was there an increase in the annual number of retail units sold,” Jones says, “but the category also saw an increase in consumers’ frequency of daily usage, which rose from 23% in October 2013 to 43% in November 2015.”
There is a difference between consumers who purchase their e-cigarette products at retail vs. vape shops, says Jones. “Consumers are not going into retail to purchase bottles of nicotine juice and create their own flavors,” he says. “Instead, they are coming in for a product that is convenient, familiar and trustworthy, which makes these consumers unique to retail.”
E-Cigarette Sales: 25 Large Chains***
C-store sales, 52 weeks ending Dec. 19, 2015
According to a Nielsen database of 25 large c-store chains that represent about 14,000 stores, dollar sales of electronic cigarettes barely rose in the 52 weeks ending Dec. 19, 2015. Cartridges, starter kits and disposables saw the biggest growth.
| Segment | C-Store Sales ($ Millions) | PCYA* | Unit Sales (Millions) | PCYA* |
|---|---|---|---|---|
| Cartridge | $53.0 | 35.0% | 15.9 | 44.1% |
| Liquid | $16.6 | (43.6%) | 1.9 | (46.8%) |
| Starter kit | $4.5 | (57.1%) | 0.4 | (47.0%) |
| Vaping | $3.2 | **** | 0.7 | 941.7% |
| Disposable | $3.0 | 231.4% | 0.4 | 261.6% |
| Total electronic cigarettes | $80.3 | 0.1% | 19.4 | 23.9% |
Source: The Nielsen Co., Swedish Match North America | * Percent change from a year ago | *** Nielsen Large Convenience Chain store-level database of 25 chains comprising ~14,000 stores | **** Increase greater than 1,000%
E-Cigarette Segment Share: 25 Large Chains***
Segment
E-Cigarette Brands: 25 Large Chains***
| Brand | C-Store Sales ($ Millions) | PCYA* | Unit Sales (Millions) | PCYA* |
|---|---|---|---|---|
| Vuse | $32.0 | (143.7%) | 9.1 | 185.8% |
| Blu | $17.0 | (29.7%) | 2.2 | (30.8%) |
| Logic | $11.6 | (26.6%) | 3.0 | (8.5%) |
| MarkTen | $6.1 | (23.0%) | 1.7 | 9.6% |
| 21st Century | $1.5 | (27.5%) | 1.5 | (18.9%) |
Source: The Nielsen Co., Swedish Match North America | *** Nielsen Large Convenience Chain store-level database of 25 chains comprising ~14,000 stores
Vapor Trends
Calendar year 2015
E-liquid shipments per store per week from McLane rose by triple digits in 2015, with the Logic Pro the top kit and NJOY menthol the most-shipped e-liquid.
Distributor Data: Vapor
| Segment | APSW*** (in dollars) | APSW*** dollar growth | PCYA* |
|---|---|---|---|
| E-liquid | $2.93 | $1.57 | 115.6% |
| Kits | $2.35 | $1.06 | 81.8% |
| Display | $2.20 | ($0.55) | (20.1%) |
| Accessories | $1.31 | $1.02 | 355.4% |
| Total vapor | $8.78 | $3.09 | 54.4% |
Source: McLane Co. | * Percent change from a year ago |*** Average shipments per store per week
Vapor Kits
- Haus Starter Kit
- NJOY Vape Pen Starter Kit
- Vapin Plus 650mAh Vaporizer Kit
- Logic Pro Vaporizer Kit
- Vapin Plus Vaporizer Kit
Source: McLane Co.
E-Liquids
- Haus Cool Ice Menthol (2.4%/mL)
- Haus American Blend (2.4%/mL)
- Haus Washington Red Cherry (2.4%/mL)
- NJOY Berry (15mg/mL)
- NJOY Methol (15mg/mL)
Source: McLane Co.
Top 10 Pocket-Lighter Brands
C-store sales, 52 weeks ending Dec. 27, 2015
The BIG brand supplied nearly two-thirds of c-store lighter sales in 2015, according to IRI.
| Brand | C-store sales ($ millions) | PCYA* | Unit sales (millions) | PCYA* |
|---|---|---|---|---|
| BIC | $393.1 | 9.0% | 252.0 | 5.6% |
| BIC Limited Edition | $80.6 | 11.2% | 44.4 | 7.9% |
| BIC Pro Series | $15.3 | 6.5% | 7.8 | 3.2% |
| The American Match | $12.1 | 25.4% | 12.8 | 20.4% |
| Flick My BIC | $12.0 | (16.9%) | 6.6 | (18.3%) |
| BIC Collectors Series | $7.2 | 18.2% | 3.7 | 13.0% |
| BIC Walking Dead | $5.9 | 899.1% | 3.0 | 862.6% |
| BIC Admit one | $5.5 | 42.4% | 3.0 | 38.5% |
| Playa del Rey (no brand) | $4.9 | 18.3% | 4.3 | 17.4% |
| BIC Special Edition | $4.1 | N/A | 2.1 | N/A |
| Total** | $599.0 | 8.1% | 384.8 | 4.7 |
Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown
Cross-Category Opportunity
According to an examination of retail point-of-sale data by Management Science Associates, 51% of cigarette transactions included just that one purchase. For the remaining 49% of market baskets with cigarettes, the other top purchase included:
- Carbonated soft drinks
- Energy drinks
- Popular beer (Bud, Coors, Miller)
- Bottled water
- Chocolate bars/packs
- Smoking accessories
- Sports drinks
- RTD iced team
- Gum
- Cigars
4.0% - Increase in c-store unit sales of cigarettes in 2015, per IRI
Tobacco: What to Watch
Smokeless Sales
Cigar Sales
CMOY Tobacco: Ruth Ann Lilly
CMOY Tobacco/OTP: Matt Hieb
View the full 2016 Category Management Handbook
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