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

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

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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