Basic HTML Version
26
TOBACCO OUTLET BUSINESS
JULY/AUGUST 2012
CATEGORY MANAGER
RYO and Pipe tobacco
35
30
25
20
15
10
5
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
SCHIP Legislation Transformed
the Pipe and RYO Categories
U.S. Pipe and RYO Volumes
Pounds/Millions
After SCHIP, there was a clear migration of RYO volume to fine cut pipe tobacco
Decline Seems to be Leveling Off
U.S. Pipe Smokers 2002-2009
Percent Using in Past Month
35
30
25
20
15
10
5
0
2002 2003 2004 2005 2006 2007 2008 2009
Source: CDC 2009 National Survey on Drug Use and Health
The Vast Majority
of Pipe Smokers Are Over Age 35
337
278
288
1,092
18 to 20
21 to 25
26 to 34
35+
Smoked Tobacco from a Pipe in Past Month 2010 - Number (Thousands)
SCHIP legislation has had a dramatic impact on the RYO and Pipe
categories. In this issue’s Category Manager, we offer statistics presented
by Leonard Wortzel, brand manager of Pipe and RYO Tobacco at Lane
Limited, at the TMA Annual Conference. For more highlights from the
conference, see page 64.
Tobacco Products
Cigarettes
Cigars
Smokeless Tobacco
Pipe Tobacco
Five Brands Dominate
in Mass Market RYO Sales
RYO Market Share (Food, Drug, Convenience)
• Premium price segment has seen consistent growth
since SCHIP
• Value price segment initially suffered most, but has recently
shown strength
Buglar, TOP,
Gambler, American
Spirit, Drum
90%
All Others
10%
In
2010
, there was a
49%
decline
in the volume of
RYO
tobacco sold;
in 2011 volume was
down
just
18%
,
suggesting a
leveling off
of the
decline
.*
*Source: TTB
RYO Rolls Along