NEW YORK -- Cigarette-category volumes in convenience stores were down 2.8% during the four-week period ended April 12, according to a research report from Bank of America Merrill Lynch. This sales decrease follows a 2.2% drop in the prior four-week period and laps 4.0% decline in April 2013.
Citing Nielsen, total U.S.-convenience data, the analysts reported that in the most recent period:
- Philip Morris USA's c-store cigarette volume declined 2.8 %.
- R.J. Reynolds Tobacco’s volume fell 2.8%.
- Lorillard’s volume decreased 0.9%.
Volume share for Philip Morris and RJR held steady at 53.5% and 26.9% respectively; Lorillard share rose 0.2% to 13.0%.
Cigarette-per-pack prices were up 1% in April. Average prices for the category, Philip Morris $6.14, RJR $6.26 and Lorillard $6.44 per pack.
Meanwhile, smokeless-tobacco volumes (including moist smokeless tobacco or “MST,” chew and all other smokeless tobacco products) increased +6.4% in April, below year-to-date trends of 7.3% growth and lapping a 5.7% increase a year ago.
"In MST only, we estimate that Philip Morris/U.S. Tobacco’s volumes rose +2.2% in the latest four-week period, slowing from the prior four weeks’ rise of 3% and lapping a 6.6% gain a year ago," the analysts wrote.
Cigarette Sales in Convenience Stores
Key cigarette category and manufacturer trends for the 4-, 12- and 52-week periods to April 12, 2014
| Volume % change | Price per pack | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Manufacturer | Latest 4 weeks | Latest 12 weeks | Year to date | Latest 52 weeks | Latest 4 weeks | Latest 12 weeks | Year to date |
| |
| Total cigarettes | -2.8% | -3.3% | -3.3% | -2.5% | $6.14 | $6.15 | $6.16 | $6.11 | |
| Altria Group | -2.8% | -3.6% | -3.6% | -2.8% | $6.26 | $6.27 | $6.27 | $6.24 | |
| Reynolds American | -2.8% | -2.9% | -2.8% | -2.8% | $5.97 | $5.98 | $6.00 | $5.94 | |
| Lorillard Tobacco | -0.9% | -1.2% | -1.0% | -0.7% | $6.44 | $6.46 | $6.47 | $6.42 |
Source: Nielsen, Total US-Convenience
Smokeless Tobacco Sales in Convenience Stores
Key smokeless-tobacco category and manufacturer trends for the 4-, 12- and 52-week periods to April 12, 2014
| Volume % change | Price per can | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Manufacturer | Latest 4 weeks | Latest 12 weeks | Year to date | Latest 52 weeks | Latest 4 weeks | Latest 12 weeks | Year to date |
| |
| Altria Group | 2.2% | 2.3% | 2.4% | 3.6% | $4.19 | $4.19 | $4.20 | $4.22 | |
| Reynolds American | 4.8% | 6.9% | 7.1% | 7.5% | $3.42 | $3.45 | $3.45 | $3.39 | |
| Swedish Match | -1.9% | -1.1% | -1.0% | -0.1% | $2.28 | $2.30 | $2.29 | $2.27 |
Source: Nielsen, Total US-Convenience
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