Case Study: How Kum & Go Added a New Revenue Stream

Cuban Rounds Hand Made Cigars help retailer beat today’s tobacco category decline

Brought to you by Kretek.

The challenge

With the steady decline of cigarette sales each year, Kum & Go needed to create a new revenue stream to compensate.

The solution

Cigar sales in particular are growing in the OTP category. Last year, convenience store cigar sales rose more than 13% to nearly $3.2 billion during the 52 weeks ending Dec. 31, 2017, according to IRI, a market research company.

At Kum & Go, which operates 408 convenience stores in 11 states, both hand-rolled and machine-made cigar sales rose 9% over the past year to $11.1 million, according to data collected by Nielsen.

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