NEW YORK — Total nicotine volume was down 1.8% in the two weeks ending on Oct. 31.
With ongoing uncertainties around federal government stimulus, Goldman Sachs analysts continue to watch for any potential effect there could be on the nicotine category, the New York-based company’s Managing Director Bonnie Herzog wrote in a recent report based on Nielsen data through Oct. 31. Downtrading, or consumers switching to cheaper brands, remains the biggest potential risk, she said.
Cigarette volumes were down 1.9% for the two-week period, according to the report. But dollar sales growth for cigarettes in all channels was up 1.7%.
E-cigarette sales were up slightly—about half a percentage point, reflecting a deceleration in category volume declines, down 2.7%, Herzog said. Volumes for Juul, NJOY and blu were down, but Vuse, owned by Winston-Salem, N.C.-based R.J. Reynolds Vapor Co., was up 89.8% in volume, the report said.
The overall e-cigarette category is still affected by the U.S. Food and Drug Administration’s restriction on flavored cartridges/pods that has been in effect since early 2020.
Modern oral nicotine remains strong; however, dollar sales have slightly decelerated to a 5.7% increase for the two weeks ending Oct. 31.
“We believe oral nicotine is taking most of its share from traditional smokeless tobacco, but is also benefiting from increased poly-usage across nicotine categories,” Herzog said, meaning oral nicotine customers are using pouches along with other tobacco products.
Richmond, Va.-based Swedish Match’s Zyn, Richmond, Va.-based Altria Group’s On and R.J. Reynolds’ Velo all showed strong volume growth, the report said.