Where the Gains Are
C-store sales, 52 weeks ending Dec. 29, 2013
C-store sales of cigarettes fell 1.4%, with units off more than 2% in 2013, according to IRI. The biggest areas of growth in the category could be found in smokeless—unit sales rose nearly 4% for chewing tobacco and snuff, with spitless tobacco up almost 3%. Electronic smoking devices—IRI’s term for e-cigarettes—rose by triple-digit percentages on an expanding base, hitting more than $530 million in sales for 2013.
Roll-your-own (RYO) underperformed in 2013, with dollars off more than 15% and units down more than 16%. Pipe tobacco, however, enjoyed a more than 15% increase in unit sales, according to IRI.
| Category | C-store sales ($ millions) | PCYA | Unit sales (millions) | PCYA |
| Cigarettes | $51,643.7 | -1.4% | 8,546.7 | -2.1% |
| Chewing tobacco/snuff | $5,004.1 | 7.7% | 1,214.9 | 3.8% |
| Spitless tobacco | $181.4 | 3.9% | 52.4 | 2.8% |
| Total smokeless tobacco | $5,185.4 | 7.6% | 1,267.3 | 3.8% |
| Cigars | $2,352.6 | -2.7% | 1,509.2 | 2.0% |
| Electronic smoking devices | $530.4 | 176.5% | 49.2 | 203.8% |
| Pipe tobacco | $75.7 | 7.6% | 9.9 | 15.3% |
| Roll-your-own (RYO) tobacco | $58.5 | -15.2% | 11.2 | -16.3% |
| Total all other tobacco products | $134.2 | -3.6% | 21.0 | -3.9% |
| Lighters | $538.6 | 2.8% | 368.5 | 0.1% |
| Smoking accessories (pipes, etc.) | $249.6 | -2.4% | 158.7 | -5.1% |
Source: IRI
Distributor Data: Cigarettes
Calendar year 2013
Shipments of cigarettes from McLane were off 4.5% in 2013, in dollar terms of average shipments per store per week, with all segments down from the previous year. E-cigarette shipments, meanwhile, rose by nearly 187%.
| Segment | Avg. shipments per store per week (in dollars) | Avg. shipments per store per week (dollar growth) | PCYA |
| Premium | $6,659.80 | -$328.01 | -4.7% |
| Generic | $1,390.60 | -$49.29 | -3.4% |
| Subgeneric | $140.87 | -$3.09 | -2.2% |
| Private label | $25.14 | -$4.84 | -16.2% |
| Total | $8,216.41 | -$385.24 | -4.5% |
| Electronic cigarettes | $60.32 | $39.28 | 186.7% |
Source: McLane Co.
Distributor Data: Premium Cigarettes (C-Stores & Travel Plazas)
Calendar year 2013
The No. 1 premium cigarette UPC shipped by McLane in 2013 was the Marlboro Gold Box King. The Marlboro brand made up 60% of premium-cigarette cartons shipped by McLane.
| Market Share by UPC | |
| Cigarette UPC | Share of carton sales |
| Marlboro Gold Box King | 12.4% |
| Marlboro Red Box King | 7.3% |
| Newport Menthol Box King | 5.9% |
| Newport Menthol Box 100 | 5.2% |
| Marlboro Special Blend Gold Box King | 4.0% |
| Marlboro Gold Box 100 | 3.4% |
| Marlboro Special Blend Gold Box 100 | 2.8% |
| Marlboro Red Box 100 | 2.5% |
| Marlboro Silver Box King | 2.4% |
| Marlboro Special Blend Red Box King | 2.2% |
| Market Share by Brand | |
| Brand | Share of carton sales |
| Marlboro | 60.0% |
| Newport | 14.4% |
| Camel | 12.9% |
| Winston | 3.5% |
| Kool | 2.0% |
| American Spirit | 1.9% |
| Parliament | 1.7% |
| Virginia Slims | 1.4% |
| Salem | 1.3% |
| Capri | 0.3% |
| Benson & Hedges | 0.3% |
| Other | 0.3% |
Source: McLane Co.
Distributor Data: Branded Discount Cigarettes (C-Stores & Travel Plazas)
Calendar year 2013
The Pall Mall brand represented nearly 56% of branded discount cigarettes shipped by McLane in 2013, with the Pall Mall Red Box 100 the No. 1 UPC.
| Market Share by UPC | |
| Cigarette UPC | Share of carton sales |
| Pall Mall Red Box 100 | 11.2% |
| Pall Mall Blue Box 100 | 8.6% |
| Pall Mall Blue Box King | 6.0% |
| Pall Mall Red Box King | 5.9% |
| Pall Mall Menthol Box 100 | 5.7% |
| Pall Mall Orange Box 100 | 4.6% |
| L&M Box 100 | 3.7% |
| L&M Box King | 3.7% |
| L&M Blue Box King | 3.0% |
| L&M Blue Box 100 | 2.8% |
| Market Share by Brand | |
| Brand | Share of carton sales |
| Pall Mall | 55.9% |
| L&M | 19.0% |
| Pyramid | 6.8% |
| Doral | 4.5% |
| Misty | 4.1% |
| USA | 3.0% |
| Liggett Select | 2.2% |
| Basic | 1.9% |
| Sonoma | 1.2% |
| Old Gold | 0.4% |
| Other | 1.0% |
Source: McLane Co.
Distributor Data: Subgeneric Cigarettes
Calendar year 2013
McLane’s most shipped subgeneric cigarette UPC in 2013 was the Maverick Menthol Box 100; the Maverick brand commanded nearly 73% share of the segment’s carton sales from the distributor.
| Market Share by UPC | |
| Cgarette UPC | Share of carton sales |
| Maverick Menthol Box 100 | 20.6% |
| Maverick Box 100 | 16.9% |
| Maverick Gold Box 100 | 9.9% |
| Maverick Box King | 7.6% |
| Maverick Menthol Box King | 5.7% |
| Maverick Gold Box King | 5.0% |
| Maverick Menthol Gold Box 100 | 2.6% |
| Maverick Silver Box 100 | 2.2% |
| Grand Prix Red Box 100 | 2.1% |
| Maverick Menthol Silver Box 100 | 1.9% |
| Market Share by Brand | |
| Brand | Share of carton sales |
| Maverick | 72.5% |
| Grand Prix | 5.5% |
| Wave | 2.0% |
| Tahoe | 0.6% |
| Other | 19.4% |
Source: McLane Co.
RYO Trends
Distributor Data: RYO
Calendar year 2013
McLane shipments of cigarette tobacco fell nearly 11% in 2013 in dollar terms, while pipe-tobacco shipments rose 7%.
| Segment | Avg. shipments per store per week (in dollars) | Avg. shipments per store per week (dollar growth) | PCYA |
| Cigarette tobacco | $8.63 | -$1.05 | -10.8% |
| Pipe tobacco | $1.19 | $0.08 | 7.0% |
| Cigarette papers | $6.82 | -$0.14 | -2.0% |
| Cigarette tubes | $0.69 | $0.05 | 7.1% |
Source: McLane Co.
Distributor Data: Pipe Tobacco
Calendar year 2013
McLane’s top pipe tobacco UPC in 2013 was the 0.75-ounce pouch of Largo Regular Pipe Tobacco.
1. Largo Regular Pipe Tobacco (0.75-oz pouch)
2. Red Cap Pipe Regular (0.75-oz. pouch)
3. Largo Mellow Pipe (0.75-oz. pouch)
4. Largo Mint Pipe (0.75-oz. pouch)
5. 4 Aces Pipe Tobacco (6-oz. bag)
Source: McLane Co.
RYO Tobacco by UPC: 20 Large Chains
C-store sales, 52 weeks ending Dec. 21, 2013
According to a Nielsen database of large c-store chains, the top-selling UPC in 2013 was the 0.65-ounce Bugler Original Tobacco Pouch, which was also the top cigarette-tobacco UPC shipped from McLane.
| UPC | C-store sales ($ millions) | PCYA | Pound volume (millions) | PCYA |
| Bugler Original Tobacco Pouch (0.65-oz.) | $4.0 | -15.6% | 1.0 | -19.4% |
| TOP Tobacco Pouch (0.75-oz.) | $1.5 | -26.8% | 0.4 | -31.4% |
| TOP Superoll (0.8-oz. double 0.4-oz. pack) | $0.5 | 5.8% | 0.1 | 3.3% |
| Total (including UPCs not shown) | $7.5 | -15.3% | 1.8 | -19.7% |
Sources: The Nielsen Co., Swedish Match North America
Distributor Data: Cigarette Papers
Calendar year 2013
Zig-Zag French Orange was the No. 1 shipped cigarette-paper UPC from McLane in 2013.
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.
Competitive Watch: Dollar General
While the c-store industry is paying keen attention to the dollar channel’s recent entry into the tobacco business, recent research by Management Science Associates suggests the level of competition is not heavy—yet. After examining two years of distributor shipment data, MSA determined that c-stores within a mile of a Dollar General store saw an initial hit in cigarette volumes of 5.8%; however, that decline narrowed to 3.8% on a sustained basis. The research suggests that grocery stores are actually the most vulnerable and giving up the greatest share to dollar stores relative to their overall share of cigarette volumes.
E-Cigarette Trends
C-store sales, 52 weeks ending Dec. 21, 2013
According to a Nielsen database of 20 large c-store chains representing about 13,000 locations, disposables enjoyed the strongest dollar and unit growth in 2013, although sales of rechargeables rose a
respectable 47%. The top three brands at these chains: blu, Logic and NJOY, according to Nielsen. IRI reports total c-store e-cigarette sales up by triple-digit percentages in 2013 to reach $530.4 million.
E-Cigarette Sales: 20 Large Chains | ||||
| Segment | C-store sales ($ millions) | PCYA | Unit sales (millions) | PCYA |
| Disposables | $37.7 | 163.6% | 4.7 | 189.0% |
| Cartridge/rechargeable | $24.1 | 47.0% | 7.1 | 44.2% |
| Starter kits | $7.7 | 122.1% | 0.4 | 7.1% |
| Total | $69.6 | 103.5% | 12.1 | 76.2% |
| E-Cigarette Brands: 20 Large Chains | ||||
| Brand | C-store sales ($ millions) | PCYA | Unit sales (millions) | PCYA |
| blu | $23.9 | -- | 3.0 | -- |
| Logic | $17.3 | 148.7% | 3.2 | 262.3% |
| NJOY | $10.9 | 244.0% | 1.4 | 204.4% |
Sources: The Nielsen Co., Swedish Match North America
Cross-Category Opportunity
E-cigarettes are not only the fastest-growing segment of the tobacco category, but they also show a great potential for building baskets. According to research by Management Science Associates that examined point-of-sale data at three midsized c-store chains, purchases that included e-cigarettes had the highest basket ring of all of the in-store categories, or $18.13 vs. an average of $6.99. While e-cigarettes contributed the bulk of that ring, 53% of e-cigarette market baskets included items from other categories. The most popular:
1. Premium cigarettes
2. Hot dispensed beverages
3. Foodservice bakery
4. Carbonated soft drinks
5. Foodservice sandwiches
6. Alternative packaged beverages
7. RTD iced tea
8. Discount cigarettes
9. Gum
10. Newspapers
Distributor Data: E-Cigarette UPCs
Calendar year 2013
Among the brands McLane carries, the top e-cigarette UPC shipped in 2013 was the blu Classic Tobacco disposable.
1. blu Classic Tobacco disposable
2. NJOY King Traditional Bold
3. blu Magnificent Menthol disposable
4. NJOY King Menthol Bold
5. NJOY King Traditional Gold
6. NJOY King Menthol Gold
7. blu Classic Tobacco Cartridge (5-count)
8. FIN Rich Tobacco
9. FIN Cool Menthol
10. blu Magnificent Menthol Cartridge (5-count)
Source: McLane Co.
Pocket-Lighter Brands
C-store sales, 52 weeks ending Dec. 29, 2013
Nearly 89% of c-store lighter sales in 2013 came from the BIC brand, according to IRI. Total c-store dollar sales of lighters rose nearly 3%, but units barely budged.
| Brand | C-store sales ($ millions) | PCYA | Unit sales (millions) | PCYA |
| BIC | $357.9 | 5.9% | 242.7 | 2.2% |
| BIC Limited Edition | $76.0 | 7.4% | 44.4 | 3.4% |
| BIC Pro Series | $15.0 | -0.4% | 8.1 | -2.5% |
| Flick My BIC | $14.0 | 24.2% | 8.0 | 17.5% |
| The American Match | $7.0 | -7.9% | 8.7 | -9.6% |
| BIC Collectors Series | $6.5 | -14.2% | 3.5 | -17.1% |
| Playa del Rey (no brand) | $6.5 | -0.9% | 6.4 | 5.4% |
| Private label | $5.4 | -0.9% | 5.6 | -2.0% |
| Ace Products USA Inc. (no brand) | $2.9 | 24.6% | 3.4 | 24.9% |
| Calico | $2.9 | -19.7% | 3.3 | -19.8% |
| Total (including brands not shown) | $538.6 | 2.8% | 368.5 | 0.1% |
Source: IRI
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