18
TOBACCO OUTLET BUSINESS
MAY/JUNE 2013
NEWS & TRENDS
MAY/JUNE 2013
Altadis Sells
Pipe Division
Major tobacco manufacturer plans to
focus on cigarettes and cigars.
In April, Altadis USA announced the sale of its Rich-
mond, Virginia-based pipe tobacco division to Mac
Baren Tobacco Co., a 125-year-old pipe tobacco
company based in Denmark. The division will now
operate under the name Sutliff Tobacco Co., which
was its original name when founded in 1849.
“This acquisition will not only strengthen the pipe
tobacco portfolio of Sutliff Tobacco, but also will
bring to the U.S. market Mac Baren Tobacco Co.’s
significant knowledge and expertise, strength, com-
mitment and leadership in pipe tobacco,” says Paul
Creasy, current general manager, who will continue
to lead the business as president. Sutliff Tobacco will
continue to operate out of its Richmond factory, im-
porting and distributing Mac Baren products in the
Western Hemisphere.
V2 Cigs and National Tobacco
Forge Partnership
Online e-cigarette retailer will work with distributor
on expanding.
V2 Cigs has joined forces with National Tobacco Company (NTC) to de-
velop a new line of electronic cigarette products for the retail market. The
new line will feature a redesigned V2 Cigs Disposable model that will be
sold alongside V2’s new rechargeable Express Kits and refill cartomizer
products. Products will be showcased in a variety of multi-product display
units designed to stand out on the counters of c-store and tobacco retail-
ers.
“The new disposable electronic cigarette models in this line offer a major
step forward in consumer experience provided by its vapor and battery
performance,” said Dan Recio, president of business development at V2
Cigs. “They feature a soft and pliable form factor to more closely mimic the
traditional smoking experience.”
The new partnership will bring the V2 Cigs line of electronic cigarette
products to a greatly expanded list of retailers across the nation. National
Tobacco Company will become the exclusive marketer and distributor of
V2 Cigs products in domestic c-stores and other retail outlets.
TPE Becomes TPC
TMG announces a name change and expanded c-store focus for TPE 2014.
TobaccoPlusExpo (TPE), thepremier tobacco
products show, announces the expansion of
its franchise to include the convenience store
community. “Convenience stores, which rely
upon the tobacco category for 41 percent of
their revenues, are a natural fit for TPE,” says
TMG President Ed O’Connor. “With a trade
show floor featuring more than 270 manu-
facturers and wholesalers, TPE can offer con-
venience store attendees a comprehensive
assortment of tobacco and tobacco-related
products under one roof.”
At a time of rapid evolution within the to-
bacco industry, that opportunity is more im-
portant than ever, explains O’Connor, who
notes that even asmany traditional categories
of tobacco products have been consolidating
in recent years, there has been an extraordi-
nary influx of new products and product cat-
egories in the emerging modified risk sector
of tobacco. “Electronic cigarettes alone have
displayed breath-taking growth, energizing
the market as no other tobacco product has
in decades,” he reports. “Research conducted
in late 2012 forecasted electronic cigarettes to
be the fastest-growing tobacco item in outlet
storesnationallyover the coming18months.”
Recognizing this, the major cigarette com-
panies are now entering the market to com-
pete directly with their traditional product.
Lorillard signaled the “tipping point” with the
acquisition of Blu e-cigarettes, Altria’s an-
nounced market entry through their Nu Mark
division and RJR’s Vuse entrant confirm the
trend.”
“These new and exciting entrants to the
retail landscape represent an opportunity for
all retail channels that sell tobacco products,
but they also make the challenge of keeping
up with the hottest products and latest trends
more challenging,” notes O’Connor. “TPE of-
fers convenience store owners and buyers
the chance to review an extensive array of to-
bacco products, as well as attend educational
seminars on recent trends and top-of-mind
issues around all the categories of tobacco.”
As the tobacco industry evolves, TPE ex-
pects consumer demand coupled with the
pace of innovation to continue to spawn
new, improved and differentiated products,
requiring all channels of retail selling tobacco
to carry multiple brands and SKUs. “We be-
lieve this seismic market change will make it
more imperative than ever for these retailers
to stay abreast of the latest developments in
the various categories,” says O’Connor, who
reports that the show’s expanded focus will
be reflected in a newname and logo. “We are
changing the name of our show from ‘Tobac-
co Plus Expo’ to ‘Tobacco Plus Convenience’
to reflect a rolling out of the proverbial red
carpet to the convenience industry, welcom-
ing them to join the tobacconists, tobacco
outlets and smoke shop attendeeswe already
serve.”
The new TPC logo preserves the familiarity
of TPE, the “buyer show,” while symbolizing
the show’s mission: “It’s all about tobacco
business,” he adds. “It heralds the invitation
and inclusion of any and all convenience
stores that carry tobacco products,” sums up
O’Connor. “Our goal is to maintain the activi-
ties and programs that respond to the essen-
tial needs of the retail tobacco communities
we serve.”
Tobacco Plus Convenience, which is
slated for January 29 & 30, 2014, is a trade
show for manufacturers and distributors
who are provided a venue for exhibiting
their tobacco products and related mer-
chandise.
In 2013, Tobacco Plus Expo represented
one of themost diverse and extensive venues
for thewholesale distribution of electronic cig-
arettes to retail and wholesale buyers—2014
promises to be just as large, if not larger, an
event.
