Tobacco

Nicotine Pouches Are the ‘Hot Item,’ Says Kraig Knudsen, Tobacco Category Manager at Circle K

One of CSP’s CMOY finalists, convenience-store veteran loves that the category is always changing
Circle K
Photograph: Shutterstock

Kraig Knudsen, tobacco category manager at Laval, Quebec-based Alimentation Couche-Tard’s Circle K, was a finalist for behind the counter, large chains, in CSP’s 2025 Category Manager of the Year (CMOY) awards.

  • Alimentation Couche-Tard is No. 2 on CSP’s 2025 Top 40 Update to the 2024 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2024 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.

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? 

There are always things changing in the tobacco world. Currently nicotine pouches are the “hot item.” It was great to see that the Food and Drug Administration (FDA) recently awarded an MGO (market granted order) to its first pouch recipient. This helps to set the stage for future success with this product class.

What do you love about your category? 

I love the fact that this category is always changing.  I have been working in tobacco for over 40 years, and I am still constantly being exposed to new products, challenges and opportunities.

What trends are you watching?

I am still watching vapor and modern oral closely. The regulatory environment around these products is always changing. These changes could have a big impact on consumer demand.

What products performed well in the past year?

It is no surprise that Zyn has been very popular.

What are your goals/most looking forward to in 2025?  

My goal is simple and has not really changed over the years. I need to provide consumers with the products that they want, merchandised effectively, at competitive prices. This includes not only the common SKUs, but also innovation.

What are the biggest challenges the category is facing? 

Aside from regulation, one of the biggest challenges is the ability to carry everything that you would like. Convenience stores typically have a limited amount of space behind the counter. There are a lot of good products out there that I would like to carry, but cannot, due to not having enough room in the backbars.

What’s the biggest regulatory hurdle your category faces this year?  

Three areas of regulation that come to mind are the status of menthol, nicotine caps and PMTAs [premarket tobacco product applications]. It will be interesting to see how these all play out.

Despite persistent regulatory uncertainty and declining cigarette usage nationwide, how do you think the tobacco industry will continue to grow in 2025? 

The industry will be fine. It has continued to morph itself to accommodate changing consumer preferences and emerging regulation. It will be interesting to see what new products are launched in 2025, and how the consumer receives them. I enjoy being a part of this and look forward to seeing what the future holds.
 

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