R.J. Reynolds Brings Newport Platinum National

New menthol offering hits stores

 

July 2017

 

WINSTON-SALEM, N.C. – A brand extension from Newport has made its way to tobacco sets across the US. R.J. Reynolds Tobacco Co., recently rolled out Newport Platinum nationally beginning this week. Newport Platinum styles offer adult smokers “a fresh take on Newport Cigarettes with a refreshingly smooth menthol taste that is different from the traditional Newport family,” per company spokesperson Jacob McConnico.

 

The latest addition to the Newport family is available in two styles: Newport Platinum (Kings and 100’s) and Newport Platinum Blue (Kings and 100’s). Newport Platinum is being offered in a direct response to demand from adult menthol smokers for a different menthol product offering from the brand. Its styles broaden the Newport portfolio and enable the brand to offer a more diverse range of adult smoker tastes, McConnico added.

 

Newport is R.J. Reynold’s top-selling cigarette brand. R.J. Reynold’s, based in Winston-Salem, is an operating company Reynolds American Inc.

 

SOURCE: “R.J. Reynolds Brings Newport Platinum National” by Convenience Store News http://www.csnews.com/product-categories/tobacco/rj-reynolds-brings-newport-platinum-national

Oregon Close to Becoming Third State to Make T21 Law

Bill awaits expected OK by state Senate, Gov. Brown.

 

July 2017

 

SALEM – The number of states that ban the sale of tobacco products to consumers under the age of 21 is growing to three. The Oregon House of Representatives approved the bill to raise the legal minimum buying age to 21. The approval came from a 39-20 vote, eight Republican legislators and all but three Democrats voting in favor, per The Oregonian.

 

The legislation is now in the hands of the state Senate where legislators are expected to agree to House amendments. The bill would then go to Gov. Kate Brown to sign into law, which would go into effect immediately.

 

According to State Rep. Rich Vial (R-Scholls), keeping tobacco from adults under the age of 21 is saving lives and money, and that citizens in Oregon spend more than $3 billion a year treating tobacco-related illnesses. Data shows increasing the tobacco sales age to 21 would cut down these costs and save tens of thousands of lives.

 

However, some lawmakers opposed the measure. Rep. Paul Evans (D-Monmouth) said the bill is a “tragic case of overreach” and “liberty theft” that could lead to “opening Pandora’s box,” giving legislators a precedent to regulate unhealthy conduct, according to the news outlet.

 

Though the Tobacco 21 movements has been on local municipal agendas across the country, only three states have set 21 as the legal minimum age to buy tobacco products statewide. Hawaii was the first to do so as of Jan. 1, 2016, followed by California six months later.

 

SOURCE: “Oregon Close to Becoming Third State to Make T21 Law” by Convenience Store News http://www.csnews.com/product-categories/tobacco/oregon-close-becoming-third-state-make-t21-law

Action Starts on San Francisco’s Total Flavor Ban

Campaign underway to repeal ordinance

 

July 2017

 

MINNEAPOLIS – Last week, the San Francisco Board of Supervisors voted unanimously to ban the sale of all flavored tobacco products, including menthol cigarettes, menthol, mint and wintergreen tobacco programs, flavored e-cigs/vapor products, flavored cigars and pipe tobacco. The ordinance goes into effect in April 2018, and it affects every kind of retailer that is licensed to sell tobacco products in San Francisco.

 

There was a significant industry effort that was taken to oppose the ordinance because of the devastating economic effect on retailers that sell tobacco products. With tobacco-product sales accounting for up to 36% of in-store sales for an average c-store, being prohibited from selling all flavored-tobacco products, including menthol cigarettes, would mean that consequences like losing jobs and stores closing are likely.

 

However, a new coalition called “Let’s Be Real San Francisco” has been formed to launch an effort to gather signatures from San Francisco voters to require the city’s Board of Supervisors to place a referendum question on an election ballot next year. Under the city’s code, a 30-day period is allowed to collect a sufficient number of voters’ signatures for a referendum question. If enough signatures are obtained, there are three different outcomes that the Board of Supervisors could consider. First, schedule the referendum vote for the next regular primary election that is on June 5, 2018. Second, set a special election date earlier than June 5, 2018, primary election date. However, San Francisco would need to cover the cost of this special election separate from the primary election. Third, the Board of Supervisors could consider repealing the flavor-ban ordinance.

 

“Let’s Be Real San Francisco” coalition is comprised of concerned citizens, business leaders, retailers and trade associations, including NATO. Securing the needed number of signatures for a referendum question to be placed on the ballot is a significant task, but one that is being taken to protect the right of retailers to sell lawful products and the right of legal-age adults to purchase legal tobacco products.

 

SOURCE: Thomas A. Briant. “Action Starts on San Francisco Total Flavor Ban” by CSP Daily News http://www.cspdailynews.com/category-news/tobacco/articles/action-starts-san-francisco-s-total-flavor-ban?utm_source=Marketing%20Cloud&utm_medium=email&utm_campaign=Tobacco_E_News_07-12-2017&sfmc_s=1743408

2 Bills in Congress That Could Save Vaping

Efforts to move ‘predicate date’ occurring on multiple fronts

 

July 2017

 

 

WASHINGTON – The vaping industry received encouraging news as a subcommittee within the House Appropriations Committee on Agriculture approved a bill with language that may ease US Food and Drug Administrations (FDA) rules on electronic cigarettes and vaping products, according to Halfwheel.com

 

Language within the US House of Representatives agricultural appropriations bill for 2018 would change the ‘predicate date’, the date from which products can be grandfathered into a less restrictive FDA application process, from Feb. 15 2007, to Aug. 8 2016. The 2007 date is a damaging end point for e-cigarettes and vaping products, because most were not on the market yet. If not grandfathered in before that predicate date, vaping, cigar and other tobacco products would have to undergo a rigorous and expensive FDA application process to stay on or go to market.

 

The 2007 date is particularly challenging to the vaping industry because that is the year e-cigs were introduced in the US. Requiring a strict review of these products since then would effectively gut the market. The appropriations bill passed by subcommittee on June 27 must gain approval from the full Appropriations Committee and then both the full House and Senate before going to President Trump’s desk for signature, Halfwheel reported. The bill also has language that pulls large and premium cigars out from under FDA jurisdiction.

 

Still, the bill is not only going to attempt to change the FDA’s predicate date, said Gregory Conley, president of American Vaping Association. He noted that earlier this year, with Reps. Tom Cole (R-Oklahoma) and Sanford Bishop (D-Georgia) mounted a stand-alone bill dubbed the Cole-Bishop Amendment. The lawmakers had been developing similar legislation for the past several years, with this being their latest version.

 

Conley says that he supports the appropriation bill but believes the new version of the Cole-Bishop Amendment has a better chance of surviving the legislative process. In the past, House Democrats have looked down on vaping and changes to the predicate date.

 

The new Cole-Bishop Amendment has new language that includes flavored e-liquids. In doing so, the bill would allow the FDA jurisdiction over e-liquid flavors, something Democrats may appreciate but the vaping industry frowns upon. However, the FDA already has authority over vaping and thus, could already impose something as radical as a flavor ban. In addition, a Trump administration -presumable pro-business – will still have influence over vaping in the company years and may wield its influence over this critical decision-making time frame.

 

“It is imperative that the predicate date is modified before Nov. 8, 2018, our prohibition [deadline],” Conley told CSP Daily News, referring to the day when essentially all vaping manufacturers would have to have filed applications with the FDA. “So while we may not be fully satisfied with every provision of the [new Cole-Bishop Amendment], it is a positive step.”

 

SOURCE: Angel Abcede. “2 Bills in Congress That Could Save Vaping” by CSP Daily News http://www.cspdailynews.com/category-news/tobacco/articles/2-bills-congress-could-save-vaping

Flavored-Tobacco Bans Turn to Menthol

NATO warns that new ordinances bring consequences

 

June 2017

 

Yolo County. Santa Clara County. Contra Costa County. Oakland. San Leandro. San Francisco. All of these California counties or cities have adopted or are considering adopting a local ordinance that would ban the sale of menthol cigarettes and all-flavored tobacco products.

 

While proposing to ban the sale of all menthol cigarettes and flavored tobacco products might be intended to reduce younger people accessing and using tobacco products, the enactment of a flavor ban will create an illegal market in such flavored tobacco products. Why? A total flavor ban would require retailers to remove up to 100 different flavored tobacco products from store shelves, including menthol cigarettes and flavored cigars, pipe tobacco, chewing tobacco, hookah tobacco and electronic cigarettes and vaping products.

 

With retailers being unable to sell flavored tobacco products, criminal elements will begin and provide a ready supply of flavored tobacco products. This is an unintended consequence of the ordnance and would be the replacement of legal, regulated, retail sales of tobacco products with illegal, unregulated sales of these products.

 

A good example of this kind of activity is New York City, where a tobacco product flavor ban in addition to high tobacco excise taxes has resulted in a widespread illegal market in tobacco products. Elected officials should not enact local laws that create conditions for criminal activity. This would put the safety of local citizens at risk. The creation of an illicit trade in flavored tobacco products will make it easier for youth to obtain tobacco because unlicensed and unregulated sellers of tobacco products are not concerned about whom they sell to or aren’t concerned with checking photo identification to verify age. Rather than allowing criminals to sell flavored tobacco products on street corners or backstreet alleys, local governments need to continue to allow responsible convenience store, drug store, tobacco store and grocery store retailers to continue to sell flavored tobacco products.

 

According to the National Association of Convenience Stores, tobacco products account for 36% of all in-store sales at an average c-store. The business model for a c-store relies on gasoline sales at the pump and tobacco sales inside the store. Without both gasoline and tobacco sales, a convenience store will be unable to operate profitably. By banning the sale of all flavored cigarettes and tobacco products, the sales and profit margins of retail stores will plummet, employees will be laid off, stores will close and there will be no sound business reason for any retailer to open a new store in a city or county that enacts this ban. This devastating economic effect on hard working, family owned retail stores and their employees should not be disregarded and is reason to forego the adoption of these kinds of ordinances.

 

SOURCE: Thomas A. Briant. “Flavored-Tobacoo Bans Turn to Menthol” by CSP Daily News http://www.cspdailynews.com/category-news/tobacco/articles/flavored-tobacco-bans-turn-menthol?utm_source=Marketing%20Cloud&utm_medium=email&utm_campaign=Tobacco_E_News_06-14-2017

Zeller to Speak at NATO Education Seminar

Registration now open to all tobacco retailers

 

June 2017

 

Mitch Zeller, director of Food and Drug Administration’s Center for Tobacco Products, will be a featured presenter at a regional education seminar being conducted by NATO, the National Association of Tobacco Outlets, on August 23rd at the Omin Interlocken Hotel in Broomfield, CO. All c-store retailers that sell tobacco products are encouraged to consider attending this information-packed event. This seminar will bring together the top experts on tobacco-related regulatory and marketing topics to update and educate retailers on the most important issues faced by retailers today.

 

 

 

The full agenda for this one-day seminar event is as follows:

 

Tuesday, August 22nd

 

5:00-6:30 PM Networking Reception

 

6:30 PM Dinner on your own

 

Wednesday, August 23rd

 

7:00-8:00 AM Continental Breakfast

 

8:00-9:15 AM FDA Regulatory Update and Panel Discussion

 

Mitch Zeller, Director, FDA Center for Tobacco Products

 

9:15-10:30 AM Tobacco Market Trends

 

Don Burke, Management Science Associates

 

10:30-10:45 AM Break

 

10:45-11:45 AM Wall Street Tobacco Industry Update

 

Bonnie Herzog, Managing Director, Beverage, Tobacco & Convenience Store Research, Wells Fargo Securities LLC

 

11:45-12:30 PM Local, State and FDA Update

 

Thomas Briant, Executive Director, NATO

 

12:30 PM Lunch followed by departures

 

There is no registration free for retailers to attend. Click here to register to attend!

 

In addition, in conjunction with the Smoker Friendly Tobacco Festival being held at the same location the two days following the NATO seminar, a hotel room block has been set aside at the Omni Interlocken Hotel for attendees. Click here to reserve a hotel room.

 

Questions regarding this seminar can be director to NATO Executive Director, Thomas Briant at info@natocentral.org

 

SOURCE: Thomas A. Briant. “Zeller to Speak at NATO Education Semiar” by CSP Daily News http://www.cspdailynews.com/category-news/tobacco/articles/zeller-speak-nato-education-seminar

NEW! Nu Mark Retail Program

Available Starting July 1, 2017

 

June 2017

 

While the e-vapor category is important, consumer sales have slowed down. E-vapor is a $2.5 billion dollar industry, but overall category growth was flat in 2016. Nu Mark has a winning proposition with MarkTen®. MarkTen® is now the number two brand within closed system e-vapor. C-store owners need to be thoughtful when establishing e-vapor category space, considering category profitability and turn rates: fewer sku’s are driving volume in stores selling the category, stores earn more profit from the cigarette, MST and cigar categories, and inventory turn rates in the e-vapor category present risk. With that being said, Nu Mark is offering a retail program to create flexibility for the trade and support effective category merchandising, beginning July 1, 2017.

 

The objective of this program is to provide flexible options to support a thoughtful approach to e-vapor category merchandising. The goal is to provide an e-vapor merchandising program what aligns with varying retailer strategies, category performance and profitability as well as secure highly visible space for Nu Mark e-vapor products.

 

General Program Requirements

 

• Visibility
  • Visibly merchandise Nu Mark products as determined by AGDC
    • At least one interior Nu Mark sign
    • Right to Match exterior competitive e-vapor signage

• Value
  • Accept Nu Mark new product offerings
  • Accept Nu Mark coupons
  • Participate in Nu Mark promotions, when offered

• Other
  • Follow responsible retailing elements
    • We Card elements and Non-Self Service merchandising of E-Vapor Products
  • Participate in EFT payments
  • Log into Insightsc3m quarterly

• Nu Mark Retail Program incentives will be calculated on PM USA carton volume as reported in STARS.

 

Payment Eligibility

 

To be eligible for quarterly payments on the 2017 Nu Mark Retail Program, stores must purchase:

 

≥ 1 Nu Mark Closed Cartridge per Week, net of returns

 

Merchandising Requirements

 

• No Consolidated E-Vapor Category Present
  • Signage Plan = $0.02/Carton Payment
• Consolidated E-Vapor Category Present
  • #1 E-Vapor Brand Position = $0.06/Carton
  • #2 E-Vapor Brand Position = $0.01/Carton

 

Defining Category Space

 

Consolidated E-Vapor Category Space means a Dedicated E-Vapor Fixture or an area in which (i) E-Vapor Products are merchandised with an e-vapor fixture header or (ii) two or more manufacturer’s E-Vapor Products are merchandised contiguously where at least one shelf of such Consolidated E-Vapor Category Space is at least six inches above the store floor.

 

Merchandising Plan N1 – Signage Plan

 

This plan refers to the No Consolidated E-Vapor Category Present plan mentioned above. Requirements for this plan are as follows:

 

• Nu Mark and other E-Vapor Products are not merchandised in Consolidated E-Vapor Category Space
• Placement of a Nu Mark sign in a highly visible location outside of the merchandising area, as determined by Nu Mark
  • In No Access Stores, the sign must be posted in the selling window
• Right to match competitive e-vapor displays in the #1 location
• Payment = $0.02/Carton

 

Merchandising Plan N2 - #1 E-Vapor Brand Position

 

This plan refers to the Consolidated E-Vapor Category Present plan mentioned above. Requirements for this plan are as follows:

 

• Nu Mark Products are merchandised at the top of an e-vapor fixture with a Nu Mark header or Nu Mark products placed in the #1 E-Vapor Brand Position in Consolidated E-Vapor Category Space
• Minimum of 2 square feet of merchandising for Nu Mark Products
• Nu Mark spans the entire width of the e-vapor category, up to 2 square feet.
• Payment = $0.06/Carton

 

Merchandising Plan N3

 

This plan refers to the Consolidated E-Vapor Category Present plan mentioned above. Requirements for this plan are as follows:

 

• Nu Mark Products placed in the #2 e-vapor brand position in Consolidated E-Vapor Category Space.
  • Maximum 12” from top of the e-vapor category
  • Minimum 6” off the floor
• Minimum 2 square feet of merchandising for Nu Mark Products
• Nu Mark Spans the entire width of the e-vapor category, up to 2 square feet
• Payment = $0.01/Carton

 

This program is effective as of July 1, 2017. For any questions, please contact James Conrad, Category Manager at 630-353-7986.

Environment Ripe for PMI & Altria Merger

Need for global innovation highlights likelihood of deal

 

May 2017

 

Wells Fargo Securities LLC remains optimistic that Philip Morris International (PMI) and Altria Group Inc. will tie the knot.

 

According to Bonnie Herzog, managing director of tobacco, beverage and convenience store research at Wells Fargo Securities, “the environment looks increasingly attractive for a PMI/Altria combo.”

 

She put a roughly 70-percent probability rate on a deal materializing in the next few months.

 

The possibility of PMI and Altria merging has grown since the two tobacco companies expanded its alternative tobacco pack two years ago. The pact is the catalyst behind PMI bringing its heat-not-burn product, known internationally as iQOS, to the United States.

 

In the past several months, PMI has submitted a Modified Risk Tobacco Product and a Premarket Tobacco Product Application for its electronically heated tobacco product, known as iQOS internationally, to the Food and Drug Administration’s (FDA) Center for Tobacco Products, as CSNews Online previously reported.

 

If approved, PMI-Altria’s agreement – which was first established in 2013 – gives Altria the exclusive rights to commercialize the product in the US.

 

According to Herzog, a combined PMI and Altria makes sense for several reasons, including:

 

• iQOS is worth more to PMI by owning Altria outright
• The growing need for scale/innovation in global “arms” race in reduced risk products
• The potential for US corporate tax reform, and more favorable tobacco regulations and excise taxes
• The benefit of accessing Altria’s significant cash flow in the US to pay dividends and a return to a robust share repurchase program
• The improved and potentially accelerated rollout of iQOS globally
• More diversified geographic exposure which will reduce the impact of market headwinds
• The potential to leverage attractive cannabis market if/when it's legalized federally in the US.

 

SOURCE

“Analyst: Environment Ripe for PMI & Altria Merger” on CS News http://www.cspdailynews.com/category-news/tobacco/articles/3-big-changes-fda-could-make-tobacco#page=3

4 Reasons to Be Optimistic About Tobacco

By Angel Abcede, Senior Editor/Tobacco, CSP

 

May 2017

 

CHICAGO – Convenience retailers may feel a little down about their first-quarter tobacco numbers, but cigars were a strong performer and limited-time-offer opportunities and innovative technologies are reasons to remain optimistic. A half-dozen reasons ranging from rainy weather to disheartened Clinton voters contributed to a slower start in sales this year, said Nik Modi, managing director of tobacco, household products and beverages for RBC Capital Markets, LLC, New York. However, despite that slow start, Modi says numbers for March and April are already looking up!

 

Below are four highlights from the May 11th webinar put on by Nik Modi.

 

Cigars

 

Cigars drove 83% of OTP growth over a six-month period ending the beginning of April, said Joe Teller, director of category management for Swedish Match. Unit growth was 9.6% and dollar growth was 9.5%, he said, citing c-store figures from New-York based Nielsen. Natural-leaf and rolled-lead cigars showed the largest percentages of growth in specific categories and increasing competition from new and current players fueled growth.

 

Limited-Time Offers (LTOs)

 

Most of the drivers for cigars formidable showing were limited-time offers. With manufacturers able to develop new LTO products even under heavy regulations from the US FDA, retailers need to be ready to accommodate the fast in-and-out stock cycles.

 

Promotional Dollars

 

As new retail contracts settle in the coming weeks, retailers can expect more promotional dollars from manufacturers as they try to share up or gain market share, Modi said.

 

Heat Not Burn Method

 

While retailers in a CSP-RBC survey expressed doubt about the emerging nicotine-delivery method known as “heat not burn,” Modi still expects it to be a significant opportunity, especially as global tobacco players find success with the technology outside the United States. Also, Modi said, the technology will have an even stronger chance at success if the FDA deems it less harmful than combustible cigarettes. Consumers have responded to that product claim with other nicotine products in the past, he said.

 

 SOURCES

“4 Reasons to be Optimistic About Tobacco” by Angel Abcede, Senior Editor/Tobacco,CSP on CSP Daily News http://www.cspdailynews.com/category-news/tobacco/articles/4-reasons-be-optimistic-about-tobacco#page=0

More Vapers Become Ex-Smokers: Report

New study points to risk-reduction effects of e-cigarettes

 

May 2017

 

New research is bolstering the idea that electronic-cigarette use helps smokers give up cigarettes. A new report out of England shows that more than half of the country’s 2.9 million e-cigarette users have given up smoking. In its annual survey, Action on Smoking and Health (ASH), a London-based anti-smoking group that works with staff and researchers at King’s College London, found that 1.5 million vapers are former smokers, a number that exceeds the number of vapors who continue to smoke, CNBC reported.

 

“This is encouraging news as we know that vapers who continue to smoke continue to be exposed to cancer-causing substances,” said Ann McNeill, professor of tobacco addiction at King’s College, adding that the most common reasons e-cigarette users switched from tobacco were to help them stop smoking and to save money. “The message for the 1.3 million vapers who still smoke is that they need to go further and switch completely.”

 

Deborah Arnott, chief executive of public health charity for ASH, said the news is encouraging, but many smokers still overestimate the risks associated with e-cigarettes. “The rapid growth in e-cigarette use has come to an end while over a third of smokers have still never tried e-cigarettes, saying the main reasons are concerns about safety and addictiveness of e-cigarettes,” Arnott said. “It’s very important smokers realize that vaping is much, much less harmful than smoking.”

 

Such claims remain controversial as regulation and testing of vaping tools and ingredients is still in a nascent stage. In the United States, the current atmosphere in Washington, D.C. suggests progress may speed up soon. President Donald Trump’s nominee to head the U.S. Food and Drug Administration, Dr. Scott Gottlieb, has a history of supporting the e-cigarette industry and appears to be open to risk reduction claims.

 

SOURCE

“More Vapers Become Ex-Smokers: Report” by Angel Abcede on on CSP Daily News http://www.cspdailynews.com/category-news/tobacco/articles/more-vapers-become-ex-smokers-report

3 Big Changes FDA Could Make in Tobacco

By Angel Abcede, Senior Editor/Tobacco, CSP

 

May 2017

 

 

WASHINGTON – With the recent Senate confirmation of Dr. Scott Gottlieb to lead the US Food and Drug Administration (FDA), tobacco retailers are hopeful that federal regulation and oversight of the category could ease.

 

Gottlieb, 44, has ties to electronic cigarettes, having invested in Kure Corp., an e-cigarette company based in Charlotte, N.C. Because of those ties, he has recused himself from commenting on vaping regulation for a year. Still, articles he has written for Forbes and other publications show an openness to harm-reduction arguments presented by vaping proponents.

 

This could potentially conflict with the views of the current head of FDA’s Center for Tobacco Products (CTP), Mitch Zeller, who has taken an anti-tobacco viewpoints since the FDA gained oversight of the category last year.

Here are some ways Gottlieb could reshape the FDA’s position on tobacco products:

 

A Stronger Harm-Reduction Stance

 

The FDA could take a more open position on the harm-reduction potential of alternative nicotine-delivery devices like electronic cigarettes. While e-cigarettes still pose health concerns such as cardiovascular risk, studies have shown shaping to be of less harm than combustible cigarettes.

 

An Easing of Product-Development Rules

 

Current regulations mandate that virtually all e-cigarettes go through a rigorous and expensive application process by the FDA. Pending proposals at the federal level could ease those requirements, but any reversal from within the FDA could also quickly remedy the matter. In general, the severity of the FDA approval process affects virtually all new tobacco products, so manufacturers and retailers are hopeful that a more pro-business perspective would reduce the challenges of new-product development.

 

Letting Zeller Go

 

Some industry watchers suggest that a removal of Zeller as head of the CTP will resolve several regulatory issues the tobacco industry has, but whether Gottlieb will go in that direction remains unseen.

 

 SOURCES

 

“3 Big Changes FDA Could Make in Tobacco” by Angel Abcede, Senior Editor/Tobacco,CSP on CSP Daily News http://www.cspdailynews.com/category-news/tobacco/articles/3-big-changes-fda-could-make-tobacco#page=3

Introducing the World’s Smallest Cigarette Filter

AIRIO Micro Filter from Smokey Mountain

 

May 2017

 

The AIRIO Micro filter adds only ¼ of an inch to a cigarette and is the ultimate in discrete filtering. AIRIO’s filter system works by cyclonic action so there is no need to add drugs or chemicals. AIRIO is so unique that it has multiple patent pending. AIRIO has also been granted a utility model patent.

 

AIRIO is a pressure filter that removes MOST of the tar and other toxic additives found in cigarettes. AIRIO delivers less tar with better taste. Why should you carry AIRIO?

 

Tobacco Cessation

 

AIRIO reduces nicotine and it can be used as part of a tobacco cessation program.

 

Easy to Use

 

Simply slip one AIRIO micro-filter on the filtered end of a cigarette. Just include AIRIO Filters as part of your daily routine.

 

Discrete

 

With other filters, you may feel like a count or countess having to grab the plastic filter when you smoke. AIRIO does not significantly protrude from the cigarette filter tip allowing you to hold our cigarette in a normal fashion.

 

See Results

 

AIRIO is clear so you can see it working from your first cigarette.

 

No Need For…

 

Expensive patches or gum that add nicotine, dangerous drugs or prescriptions, mystery herbs or strange therapies.

 

Effective

 

AIRIO significantly reduces tar, and other harmful chemicals, without sacrificing taste.

For more information and to learn more, visit www.airiofilters.com

Cigarettes Still King, but Facing Hurdles

CSP Senior Editor Talks Why

 

April 2017

 

CHICAGO – Cigarettes still top the list of convenience-store merchandise categories in terms of sales, even though it falls behind in gross profit dollars and margin percentages according to numbers released at the NACS State of the Industry (SOI) Summit that was held on April 4-6 in Rosemont, IL.

 

On the list of top 10 categories, cigarettes ranked number 1 at $50,740 in average sales per store per month. Packaged beverages ranked second at $24,784 followed by beer at $15,201. When it comes to gross profit, cigarettes fell to number two at $7,703 compared to packaged beverages at $10,272. Margins are thinner for cigarettes at 15.18% vs. packaged beverages at 41.45%

 

Even though a core category of 36% of sales, cigarettes numbers are still seeing a declining trend in both sales and volume. “It does not look good for the [cigarette] category,” said Andy Jones, president and CEO of Spring Food Stores, Augusta, GA. who moderated a general session on the SOI category numbers.

 

While these numbers were not unusual compared to data from recent years, other tobacco-related figures revealed newer trends – both upbeat and ominous. Both share of sales and volume numbers show that cigarettes are on the declaim, with the share of sales dropping 0.5% in 2016 vs. 2015 and volumes falling 1.3%. Jones said the effect drug-store giant CVS, dropping tobacco sales in 2014  is wearing off.

 

When it comes to cigarette subcategories, the SOI numbers showed sales and unit growth in only one: subgeneric/private brands, which is an increase in sales of 5.8% and unit growth of 2.1%. In addition, tobacco customers are reverting to the basics. In 2015, when low gas prices were a relatively new phenomenon, soda and cold dispensed beverages were the most bought items along with tobacco products. In 2016, gasoline because the number one right along with tobacco. Other tobacco products performed well for the industry in 2016, ranking among packaged beverages and salty snacks as highest in sales and gross-profit-dollar growth since 2014.

 

 

Sources: “Cigarettes Still King, But Facing Hurdles” by Angel Abcede, Senior Editor/Tobacco, CSP on April 10, 2017 https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&partnerref=email&eventid=1406978&sessionid=1&key=BB1A113FEAFA96B2D13EB41877E40385&regTag=&sourcepage=register

Tobacco Update Webinar

Featuring Nik Modi and Joe Teller

 

April 2017

 

On May 11th, CSP is hosting a tobacco update webinar featuring tobacco experts Nik Modi and Joe Teller. This webindar starts at 2:00 PM ET / 1:00 PM CT.

 

Despite the upbeat signals that the Trump administration is sending the business community in general, state and local taxation and regulation continue to dog retailers 24/7.

 

Everything from raising the purchasing age of tobacco to 21 to new rules on zoning and digital coupons are emerging in the form of proposed legislation. In addition to those concerns, the relative uncertainty surrounding the FDA under President Trump is anything but settled.

 

Join tobacco analyst Nik Modi and Swedish Match Category Management Director Joe Teller as they share their industry-leading insights, strategies and observations. Click here to register now!

 

Sources: CSP Webinars Tobacco Update sent on April 10th, 2017

Proposed Regulations Come Down Hard on Tobacco Retailers

Minimum Price Per Pack Would Hit $13

 

April 2017

 

NEW YORK – Several new proposals by New York City Mayor Bill de Blasio would raise the price of cigarettes to at least $13 and reduce the number of retailers selling tobacco and ban sale of cigarettes at drug stores, among other regulations.

 

De Blasio announced that these legislative proposals have the goal of reducing the number of smokers in New York City by 160,000 over the next three years. Although smoking rates in New York City have decreased by 21.5% in 2002 and 14.3% in 2015, the city still has more than 900,000 smokers which includes 15,000 youth. In addition, there are 174,000 adults and 42,000 adolescents using e-cigarettes. These new proposals will decrease smoking rates by 12%, according to estimates.

 

“When it comes to New Yorkers’ health, big tobacco is public enemy No.1” he said. “These companies have used the same playbook for decades, and we can no longer sit by while the next generation becomes addicted.”

The mayor said a series of five legislative proposals will be introduced to raise the pack of cigarettes to $13:

 

1. Raising the minimum prices for all tobacco products, including cigarettes, and imposing a new 10% local tax on other tobacco products

2. Reducing through attrition the number of tobacco retailers citywide

3. Creating a retail license for e-cigarettes and capping the number of e-cigarette retailers

4. Requiring all residential building to create a smoking policy and disclosing it to both current and prospective tenants

5. Banning the sale of tobacco products at pharmacies.

 

Sources: “Proposed Regulations Come Down Hard on Tobacco Retailers” by Steve Holtz on April 20th, 2017

http://www.cspdailynews.com/category-news/tobacco/articles/proposed-regulations-come-down-hard-tobacco-retailers?utm_source=Marketing%20Cloud&utm_medium=email&utm_campaign=CSP_Flash_04-20-2017

ITG Launches ‘Select’ Cigarettes

Tobacco maker expands Winston brand in non-menthol ‘gold’ segment

 

April 2017

 

GREENSBORO, NC --  ITG Brands expanded its Winston brand of non-menthol cigarettes in what the industry calls its “gold” category –typically referring to cigarettes with a milder flavor profile – in the release of its Winston Select line, company officials announced.

 

Available this month with the backing of buydown discounts and 50-cents-off-a-pack promotions, the product in a king box has a white filter tip and a flavor profile that’s considered milder than the bolder taste of Winston Red.

 

“The [Select] name speaks of our selection of choice tobacco that brings flavor, character and quality together in one select brand,” said Leonard Jones, vice president of marketing for ITG.

 

In blind taste tests, Winston Select performed “exceptionally well with adult smokers who cited the [cigarette’s] overall satisfaction, smoothness and character of taste,” the company said.

 

While ITG already has a product in the gold segment, the Winston Select launch represents an expansion in the area of milder alternatives. The product also comes from an established line in the companys portfolio, so it has already met FDA requirements. Elaborating on its planned promotional support, the company said it will offer the same buydowns as other brands in the Winston family, as well as specifically marked 50-cents-off-a-pack promotions in April and June. Point-of-sale (POS) support includes posters and signage, as well as counter mats with several having the tagline, “Meet the New Gold Standard.” Winston Select also joins the rest of the Winston-branded engagement programs, including campaigns using direct mail, digital and print advertising. Members of the trade and adult consumers are also encouraged to visit www.winstoncigarettes.com.

 

The Winston brand family continues to gain market share since it became the flagship brand of ITG in June 2015, the company said. ITG Brands, LLC is the third-largest tobacco company in the United States and offers a broad portfolio of cigarette, cigar and electronic cigarette brands, including Winston, Kool, Salem, Maverick, USA Gold Cigarettes; Dutch Masters, Backwoods and Phillies cigars; and blu electronic cigarettes.

 

Sources: “ITG Launches ‘Select’ Cigarettes” by Angel Abcede, Senior Editor/Tobacco, CSP on April 12, 2017

https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&partnerref=email&eventid=1406978&sessionid=1&key=BB1A113FEAFA96B2D13EB41877E40385&regTag=&sourcepage=register

Black & Mild Mild is Changing its Name to Black & Mild Select

 

April 2017

 

AGDC is announcing that Black & Mild Mild is changing its name to Black & Mild Select on its two existing SKU’s:

 

• Black & Mild Mild 25-CT Upright

• Black & Mild Mild 10/5 Pack

 

We will continue to ship product under the Black & Mild Mild brand name while supplies last. We estimate that product under the new name, Black & Mild Select will begin arriving at wholesale in May 2017.

 

Please note: UPCs will not change

 

You should follow a first-in, first-out inventory management practice to help facilitate the transition from Black & Mild Mild to Black & Mild Select. If you require additional information regarding this communication, please contact your AGDC representative.

New from Smokey Mountain Chew!

Airio Micro Filter, World’s Smallest Cigarette Filter

 

February 2017

 

Introducing a new product from Smokey Mountain Chew – Airio!

Airio is the world’s smallest and only Micro Filter with a patent pending design. Many consumers are looking for a discreet, cost effective way to control their habit. With over 48 million cigarette smokers in the US, Airio is the perfect new product.

 

Airio Micro Filter Features

 

One Airio Micro Filter is effective for up to five full flavor cigarettes. It features a cyclonic pressure process that removes a minimum of 66% of tar and other substances per cigarette. Airio Filter are the only Micro Filter lab tested under ISO 9,000 standards and proven to work. It is also the only filter designed to eliminate most smoker’s objections to use a filter accessory. It improves the taste of your consumers chosen cigarettes and improves as it removes.

 

Why Airio Micro Filters?

 

Airio Micro Filters are packaged 20 filters in each pack creating a value for the consumer. There are twelve packs per pop up display with a low SRP designed to create impulse sales. Recommended SRP is anywhere between $1.99-$2.19 per pack. Airio creates store destinations for the consumer and 30-35% of smokers who try it will repeat purchase. It is a safer alternative for the consumer and extends the cigarette category as well as increase your margins.

You can receive a special introductory offer of Buy 10, Get 2 Free from now until June 30, 2017. Buy a 12 count display and pay for 10! Place your order through your distributor or contact James Conrad at RBG at 630-353-7986 or j.conrad@royalbuying.com

Black & Mild Brand Expansion

Brand New Black & Mild Sweets

 

February 2017

 

Black & Mild Sweets Tipped will be available starting April 3, 2017! A unique pipe-tobacco blend for the sweet blend category will be available with a Sweetened Plastic Tip & Wood Tip. Black & Mild is well positioned to expand its portfolio with 14 consecutive quarters for growth. Black & Mild Sweets can capitalize on Black & Mild Tipped strength with 5 of the top 10 SKUs in the large cigar segment are Black & Mild.

 

There is big opportunity in large mass cigar sweets space. Sweets Blends account for about one-fourth of large mass cigar volume and the industry sweets blend volume is growing at approximately 8%. Black & Mild Sweets is a tipped offering in the sweets category which will be within the untipped competitive landscape as well as providing benefits such as high margin dollars, pre-priced offering, pipe tobacco, sweetened tip, plastic tip and wood tip.

 

The first retail delivery date will be April 3, 2017. Below are the different price points available based on your state:

 

• 1 for $0.79 – AL, FL, GA, IN, KS, KY, LA, MO, MS, NC, NE, NM, OH, PA, SC, TN, TX, VA, WV, WY.
• 1 for $0.89 – CO, CT, IA, ID, IL, MA, MI, MT, ND, NJ, NV, OK, RI, SD.
• 1 for $0.99 – AR, AZ, CA, MD, MN, NH, NY, OR, UT, VT, WA, WI.
• 5-Pack – DC

 

Black & Mild Sweets tipped cigarillo premium price point yields higher gross margin dollars. Below are projected weighted average retail margins:

 

• Sweets 1 for $0.79 -  41%
• Sweets 1 for $0.89 – 36%
• Sweets 1 for $0.99 – 33%

 

The first wholesale order day is March 20th, the first wholesale and retail delivery date is April 3rd.

If you’re not currently contracted with John Middleton, please contact RBG or your Altria representative immediately.

New Product – Skoal Tobacco Blend Pouches

A Masterful Blend of Flavor and Tobacco in a Pouch

 

February 2017

 

Distribution on Skoal Tobacco Blend Pouches is expanding to national availability! The first wholesale delivery date for this product is April 2, 2017. Existing states with this product will need to manage wholesale inventory conversion to minimize returns of revenue product. Also, they will need to convert revenue Skoal Tobacco Blend Pouches to $0.50 off promotion product. Revenue product will be unavailable for wholesale to order beginning March 24, 2017. For the expansion states, you will need to order $0.50 off promotional product as regular inventory and maintain in-stock and fresh inventory.

 

 

Below are the acceptance details for this product:

 

First Delivery Date – April 3, 2017

 

Purchase Requirement for USSTC Retail Program Participants – Initial Purchase: on or before April 15, 2017 and re-order one 5-can roll between April 16, 2017 – September 16, 2017.

 

Price Skoal Tobacco Blend Pouches using a margin or mark-up percentage that is no higher than what is applied to Skoal Tobacco Blends Long Cut SKUs. As always, Retailers may choose to price Skoal Tobacco Blend Pouches SKUs at whatever price they choose. As with all USSTC cents off promotional product, applicable SPP funding will still apply.

 

Skoal Tobacco Blend Pouches come in a plastic can with a metal lid, with three different flavors: Apple Tobacco Blend, Berry Tobacco Blend and Citrus Tobacco Blend. Citrus and Berry Tobacco Blend Pouches have a 12 week “Sell-By” date and Apple Tobacco Blend Pouches have an 8 week “Sell-By” date. All products are guaranteed fresh.

 

Contact your local Altria rep for more information or questions on ordering this product.

Looking for New Tobacco Fixtures? Choose Visual Marketing

AIM Tobacco Fixtures Provide On Target Tobacco Marketing

 

February 2017

 

AIM was designed to meet retailers’ tobacco merchandising needs first and foremost – and it’s getting better. New improvements include category-specific spring-load pushers, larger pricers, enhanced security options, and more flexibility in planogramming products in this dynamically changing category. AIM has significant advantages over other systems.

 

Compliance Options

 

LED Illuminated Headers

Eliminate the continual costs to purchase new and dispose of burnt out fluorescent bulbs. AIM uses next generation LED light panels for energy efficiency and compliance with CA statutes.

 

Storage Doors

AIM’s innovative and cost-effective storage solution is here. Our storage doors are user-friendly, install in seconds, and can even accommodate POS graphics for your sales promotions.

 

FRP Contract Compliant

 

AIM meets tobacco company contract requirements and is also approved for the fixture reimbursement program.

 

Additional Options

 

Side Panels

If additional security on the side of the set is needed, their perforated steel side panels eliminate access to the ends from top to bottom while providing a seamless look.

 

Security Grid

Their back wire grid provides an additional layer of security by eliminating access to the back and still providing you with visibility behind your set.

 

Molded Pricers

Advertise your prices by utilizing their molded prices with z-fold numerals that provide a clear display.

 

Header Storage Shelf

VMI recognizes that your merchandising space is at a premium so maximize your space by using their header storage shelf to house additional product.

 

Features & Benefits

 

Spring-Loaded Pusher System

Their spring-loaded pushers are strong and flexible for all your Cigarette, OTP and E-Cigarette category needs. Now featuring 2 new types:

 

• NEW! E-Cigarette Pusher – Accommodates the various product lines as narrow as 1” wide.
• NEW! Moist Pusher – Made specifically for your smokeless tobacco product

 

In-Store/POG Flexibility

Their enhanced OTP pushers are robust and compatible with all pack sizes and packages of this growing category.

 

• 1’ Category Increments – Adjustable standards allow for your categories to be sorted in 1’ increments.
• 1’ Shelf Adjustments – Adjust the height of your shelves by 1” to fit your needs.

 

Slide Out Shelf

Their shelves have easy pull out functionality for easy loading and quick product rotation.

 

Lock Back Paddle

All their pushers lock in the back to help you speed up your product loading process and ensure product freshness.

 

C-Channels

Allows easy placement of your Point of Sale material throughout your set to help you increase sales.

 

Durability

The AIM system is made of heavy gauge steel and is built to last in your busy retail environment.

 

Speedy Delivery

Large inventory is kept in-stock for quickly shipping your fixture order.

 

1 Year Warranty

VMI offers a 1year warranty on all material. In the rare even that an issue arises, repair or replacement will be handled at VMI discretion.

 

For more information on how you can partner with Visual Marketing contact James Conrad at 630-353-7986 or j.conrad@royalbuying.com