Michael Murphy, the former category manager for nicotine, alternatives and general merchandise at Atlantis Management Group, Mount Vernon, New York, was a finalist for behind the counter, small chains, in CSP’s 2025 Category Manager of the Year (CMOY) awards. Murphy now works at RepRally, a New York-based company that aims to eliminate the barriers to wholesale distribution and broaden consumer accessto high-quality products.
- Atlantis Management Group is No. 71 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
This year's CMOY awards featured 14 winners across seven categories. Winners from both small (99 or fewer stores) and large chains (100 stores or more) were selected for the first time in each category.
Here is the Q&A from his conversation with CSP on the tobacco category trends, challenges, innovation and more:
What’s new and exciting in your category?
In my opinion, there are several things that are new and exciting about the category. Many people view the back bar as a status quo declining area of the store, but it is still a huge traffic driver with plenty of room for innovation and creativity. There are tons of exciting brands emerging in the synthetic nicotine world, whether they are vape brands, modern oral or completely new ways for the user to get nicotine. Finding the best new innovative brands and figuring out how to make them work within the back bar is going to be exciting for the next few years.
What do you love about your category?
I love dealing with the people in this category. It is a perfect mix of long-standing-veteran companies and brands and the new upcoming innovative products just launching in the market. The industry is filled with passionate people that may just be getting started or have been part of their companies for decades. There is always something to learn in every meeting from a wide range of perspectives and I truly value that.
What trends are you watching?
Some of the big trends I am watching are fourth-tier cigarettes, vape, e-cigarettes, modern oral as well as the future of THC laws and products. Each of these subcategories has seen growth in the part of the store known for not growing and it’s incredibly important to understand that growth potential and ride the wave.
What products performed well in the past year?
Some of the products that performed well last year align right with the trends I am watching. Fourth-tier brands have such nice growth in the cigarette category. Geek and Raz bar created nationwide demand across the vape and e-cigarette world. Zyn was one of the highest volume growers while it was in stock and completely shifted the trajectory of modern oral.
What are your goals/most looking forward to in 2025?
My goals are to continue to evaluate contract levels and maximize the potential with our biggest brand partners as well as leave room for innovation and new brands. It is to offer the best possible variety to my consumers while maximizing the sales and profit potential in the category as a whole. I am looking forward to discovering new brands, meeting new people and unlocking the true potential behind the counter.
What are the biggest challenges the category is facing?
Regulatory concerns are always one of the largest issues in the category and they are constantly changing. Ever since synthetic nicotine and the premarket tobacco product application (PMTA) there have been constant changes around what can and cannot be sold. It also varies at a state and even a local level and is constantly changing. Navigating this is tricky but the potential lies in offering as many legal options as possible to create a unique value to the consumer without putting our company at risk.
What’s the biggest regulatory hurdle your category faces this year?
The biggest hurdle is going to be what happens with flavored vape products or flavored modern oral. Consumer demand is exponentially higher for flavors than it is for tobacco or clear and any type of regulation that removes that would be a hit to the sales instantly. Being ready in case these things happen is key. This means having the most and highest quality non-flavor options as possible and working with vendor partners to be ready for any upcoming regulations.
Despite persistent regulatory uncertainty and declining cigarette usage nationwide, how do you think the tobacco industry will continue to grow in 2025?
I believe the key to tobacco growth is to focus on the subcategories that are growing individually and to focus on those wins while mitigating any volume loss elsewhere. There are subcategories in every section that have some growth. Fourth tier, modern oral, vape and potentially THC all have seen growth. There is certainly decline in the category as a whole, but there is still plenty of room for growth. It just means being flexible and taking advantage of those trends that are within the subcategories to keep the back bar trending up overall.
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