CSP Magazine

Tobacco: Cigarettes, Pipe Tobacco, RYO, E-Cigarettes 2015

Where the Gains Are

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

C-store dollar sales of cigarettes rose three-tenths of a percent in 2014, with units off 1.6%, according to IRI. Elsewhere in the tobacco category, the strongest sales growth continued to be in electronic smoking devices, which IRI defınes to include e-cigarettes and vaping products, and in pipe tobacco, up by double-digit  percentages. Chewing-tobacco dollars rose nearly 5% to hit $5.3 billion, but units were up less than 2%.

CategoryC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Cigarettes$52,532.90.3%8,512.8-1.6%
     
Chewing tobacco/snuff$5,313.34.7%1,257.21.9%
Spitless tobacco$205.514.2%52.91.9%
Total smokeless tobacco$5,518.95.1%1,310.11.9%
     
Cigars$2,444.02.7%1,613.86.8%
Electronic smoking devices$663.622.5%66.331.3%
Lighters$555.71.4%370.7-1.0%
Smoking accessories$246.0-1.3%150.0-6.7%
     
Pipe tobacco$71.822.8%10.021.2%
Roll-your-own (RYO) tobacco$59.11.3%10.4-7.7%
Total all other tobacco products$130.812.0%20.44.6%

Source: IRI

* Percent change from a year ago


Distributor Data: Cigarettes

Calendar year 2014

Shipments of cigarettes from McLane grew 1.2% in 2014, as measured in dollar terms by average shipments per store per week.

SegmentAPSW** (in dollars)APSW dollar growthPCYA*
Premium$7,173.45$57.740.8%
Generic$1,530.54$46.963.2%
Subgeneric$158.10$8.235.5%
Private label$21.70-$4.99-18.7%
Total$8,883.78$107.931.2%

Source: McLane Co.

** Average shipments per store per week


Distributor Data: Premium Cigarettes***

Calendar year 2014

Marlboro brands made up nearly 60% of premium-cigarette cartons shipped by McLane to c-stores and travel plazas in 2014.

UPCShare of premium cartonsShare of total cigarette cartons
Marlboro Gold Box King12.1%9.8%
Marlboro Red Box King7.2%5.8%
Newport Menthol Box King6.1%4.9%
Newport Menthol Box 1005.6%4.5%
Marlboro Special Blend Gold Box King3.9%3.2%
Marlboro Gold Box 1003.2%2.6%
Marlboro Special Blend Gold Box 1002.9%2.3%
Marlboro Red Box 1002.5%2.0%
Marlboro Silver Box King2.3%1.9%
Marlboro Special Blend Red Box 1002.1%1.7%

Source: McLane Co.

*** C-stores and travel plazas


Market Share By Brand

BrandShare of premium dollarsShare of total cigarette dollars
Marlboro59.0%47.7%
Newport15.3%12.4%
Camel12.7%10.3%
Winston3.1%2.5%
American Spirit2.5%2.0%
Kool1.9%1.5%
Parliament1.7%1.4%
Virginia Slims1.5%1.2%
Salem1.2%0.9%
Capri0.4%0.3%
Benson & Hedges0.3%0.3%
Other0.4%0.4%

Source: McLane Co.


Cross-Category Opportunity

According to a 2014 analysis of c-store retail POS data by Management Science Associates, the products most often purchased with cigarettes included:

  1. CSDs
  2. Hot dispensed beverages
  3. Alternative packaged beverages
  4. Newspapers
  5. Chocolate bars
  6. Bottled water
  7. Cigars
  8. Snack cakes/pastries
  9. Smoking accessories
  10. Juice

CONTINUED: Top 10 Branded Discount Cigarettes

Distributor Data: Top 10 Branded Discount Cigarettes*

Calendar year 2014

Six of the top 10 branded-discount cigarette UPCs shipped by McLane in 2014 to c-stores and travel plazas were Pall Mall labels.

UPCShare of branded discount cartonsShare of total cigarette cartons
Pall Mall Red Box 10010.6%1.9%
Pall Mall Blue Box 1008.0%1.4%
Pall Mall Menthol Box 1005.8%1.0%
Pall Mall Blue Box King5.7%1.0%
Pall Mall Red Box King5.7%1.0%
Pall Mall Orange Box 1004.5%0.8%
L&M Box 1004.2%0.7%
L&M Box King4.2%0.7%
L&M Blue Box King3.3%0.6%
L&M Blue Box 1003.2%0.6%

Source: McLane Co.

* C-stores and travel plazas


Market Share by Brand

BrandShare of branded discount dollarsShare of total cigarette dollars
Pall Mall57.3%10.1%
L&M22.2%3.9%
Pyramid4.8%0.9%
Doral3.8%0.7%
Misty3.7%0.7%
USA2.7%0.5%
Basic1.7%0.3%
Liggett Select1.6%0.3%
Sonoma0.8%0.2%
Old Gold0.3%0.1%
Other1.1%0.2%

Source: McLane Co.


Distributor Data: Top 10 Subgeneric Cigarettes*

Calendar year 2014

Nearly 80% of subgeneric cigarette cartons shipped by McLane in 2014 to c-stores and travel plazas were Lorillard’s Maverick brand.

BrandShare of subgeneric cartonsShare of total cigarette cartons
Maverick Menthol Box 10023.9%0.4%
Maverick Box 10018.7%0.3%
Maverick Gold Box 10010.5%0.2%
Maverick Box King7.9%0.1%
Maverick Menthol Box King6.2%0.1%
Maverick Gold Box King5.1%0.1%
Grand Prix Red Box 1003.3%0.1%
Maverick Menthol Gold Box 1002.5%0.0%
Maverick Silver Box 1002.3%0.0%
Grand Prix Black Box 1001.8%0.0%

Source: McLane Co.

* C-stores and travel plazas


Market Share by Brand

BrandShare of subgeneric dollarsShare of total cigarette dollars
Maverick78.8%1.3%
Grand Prix8.3%0.1%
Wave3.0%0.1%
Tahoe0.6%0.0%
Silver Eagle4.2%0.1%
Other5.1%0.1%

Source: McLane Co.

CONTINUED: RYO, Pipe Tobacco & Cigarette Papers

RYO Trends

Distributor Data: RYO

Calendar year 2014

McLane shipments of cigarette tobacco to c-stores in 2014 fell 3.9%, as measured in dollars by average shipments per store per week.

SegmentAPSW** (in dollars)APSW dollar growthPCYA*
Cigarette tobacco$9.00-$0.36-3.9%
Pipe tobacco$1.33$0.064.5%
Cigarette papers$7.57$0.263.5%
Cigarette tubes$0.82$0.0912.4%

Source: McLane Co.

* Percent change from a year ago

** Average shipments per store per week


RYO Brands

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

The top c-store roll-your-own tobacco brand in 2014 by dollars and units was Bugler, according to IRI figures.

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Bugler$33.4-9.0%6.8-11.2%
Top$17.4-18.0%3.4-21.6%
American Spirit$13.812.3%1.27.8%
Drum$5.70.1%0.68.7%
Gambler$5.4-1.5%0.9-6.9%
Total (including brands not shown)$81.3-4.2%13.5-10.8%

Sources: IRI, Scandinavian Tobacco Group Lane Ltd.


Distributor Data: Cigarette Papers

Calendar year 2014

The most-shipped cigarette paper UPC from McLane in 2014 was Zig-Zag French Orange.

  1. Zig-Zag French Orange
  2. Zig-Zag White
  3. Joker Orange
  4. Job Gold (1.5, 24-count)
  5. TOP Gummed

Source: McLane Co.


Pipe Tobacco Trends

Pipe Tobacco by Brand

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

Captain Black was the top-selling traditional pipe tobacco sold in c-stores in 2014, with Gambler the top value brand, according to IRI.

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
TRADITIONAL    
Captain Black$6.4-6.2%0.7-3.2%
Prince Albert$2.6-17.5%0.5-16.8%
Carter Hall$1.8-0.1%0.4-10.7%
Admiral$1.4-39.6%0.1-39.0%
Virginia Gold$1.182.3%0.196.3%
Total (including brands not shown)$19.6-13.2%2.6-12.3%
     
VALUE    
Gambler$14.461.4%1.876.3%
Largo$12.2-9.9%2.4-10.1%
Criss Cross$8.8-4.0%0.9-0.8%
4 Aces$4.3-42.9%0.5-39.9%
The Good Stuff$4.082.4%0.497.5%
Total (including brands not shown)$75.517.3%10.717.0%

Sources: IRI, Scandinavian Tobacco Group Lane Ltd.


Distributor Data: Pipe Tobacco

Calendar year 2014

The most-shipped pipe tobacco UPC from McLane in 2014 was the 0.75-ounce Largo Regular.

  1. Largo Regular Pipe Tobacco (0.75-oz pouch)
  2. Red Cap Pipe Regular (0.75-oz. pouch)
  3. Largo Mellow Pipe (0.75-oz. pouch)
  4. Largo Mint Pipe (0.75-oz. pouch)
  5. 4 Aces Pipe Tobacco (6-oz. bag)

Source: McLane Co.

CONTINUED: E-Cigarettes & Lighters

E-Cigarette Trends

Shipments of e-cigarettes from McLane in 2014 rose more than 41%, with cartomizers leading in average shipments per store per week dollars.

Distributor Data: E-Cigarettes

Calendar year 2014

SegmentAPSW** (in dollars)APSW dollar growthPCYA*
Cartomizer$33.94$21.80179.5%
Disposable$32.27-$14.48-31.0%
Starter kits$22.04$15.58241.4%
Display$5.19$3.61227.3%
Accessories$1.22$1.180.0%
Total$94.67$27.6941.3%

Source: McLane Co.

* Percent change from a year ago

** Average shipments per store per week


E-Cigarette Sales: 20 Large Chains***

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

A Nielsen database of 20 large c-store chains representing approximately 14,000 stores shows strong cartridge sales in 2014.

SegmentC-store sales ($ millions)PCYA*Dollar shareUnit sales (millions)PCYA*Volume share
Cartridge$45.9102.1%54.0%12.374.2%73.4%
Disposable$30.8-21.3%36.2%3.8-21.2%22.8%
Starter kit$7.3-27.7%8.6%0.4-47.1%2.6%
Liquid$0.9NA1.1%0.1NA0.7%
Vaping$0.2NA0.2%0.1NA0.4%
Total electronic cigarettes$85.118.3%100%16.731.5%100%

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 ~14,000 stores


E-Cigarette Brands: 20 Large Chains***

SegmentUnit sales (millions)PCYA*Unit shareC-store sales ($ millions)PCYA*Volume share
Vuse3.7****22.2%$15.1****17.8%
blu3.43.8%20.3%$25.53.0%29.9%
Logic3.20.9%19.3%$15.9-8.2%18.6%
21st Century1.8-37.3%10.7%$5.3-42.7%6.2%
Markten1.7****10.0%$8.6****10.2%

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 ~14,000 stores

**** Increase greater than 1,000%


Distributor Data: Disposable E-Cigarette UPCs

Calendar year 2014

The top disposable e-cigarette UPC shipped by McLane in 2014: blu Classic Tobacco.

  1. blu Classic Tobacco
  2. blu Magnificent Menthol
  3. blu Cherry Crush
  4. Logic Platinum Label Menthol
  5. Logic Platinum Label Tobacco

Source: McLane Co.


Category Insight

E-cigarette consumers’ flavor preferences have remained fairly constant over the years, according to an analysis of c-store POS data by Management Science Associates. In 2014, 63% of e-cigarette sales at these retailers were regular flavor, 30% menthol and 7% “other,” a breakdown in share that has held steady over the past two years.


Top 5 Pocket-Lighter Brands

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

C-store lighter dollar sales rose 1.4% in 2014, with units off 1%, according to IRI.

BrandC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
BIC$357.4-2.1%237.7-3.9%
BIC Limited Edition$76.81.4%44.0-0.4%
Flick My BIC$15.916.1%8.912.9%
BIC Pro Series$14.0-5.8%7.3-9.1%
The American Match$9.735.0%10.822.8%
Total (including brands not shown)$555.71.4%370.7-1.0%

Source: IRI

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