74
TOBACCO BUSINESS INTERNATIONAL
MAY/JUNE 2014
Private
Time
Should convenience stores be jumping
into private-label e-cigarettes?
By Jennifer Gelfand
C
iting “tremendous success” in
test markets, Mapco Express
recently announced the rollout
of its proprietary GreenStix brand of
disposable e-cigarettes across the chain’s
373 stores. “It is clear to us that smokers
are looking for alternatives to traditional
cigarettes and that electronic cigarettes are
becoming more and more popular,” says
Patrick Neuman, director of private labels
for Mapco, in explaining the rollout. “Our
GreenStix brand has quickly established a
loyal following with our customers.”
Mapco isn’t the first retail chain to take the
e-cigaretteprivatelabelpath.SmokerFriendly
launched its own e-cigarette brand way back
in 2009. “We started looking at them even
before the technology was perfected,” says
Curtis Farkas, national director of sales for
SmokerFriendly,whocreditsTerryGallagher
for spotting the category’s potential early on.
“Today, e-cigarettes represent two percent of
our tobacco sales and out of that two percent,
the majority of sales come from our SF
brand.”
A number of drug stores and c-stores
have also successfully debuted proprietary
brands. However, thanks to the complexity
of both the product and the regulatory
climate, the private-label e-cigarette path is
no small undertaking.
A Solid Supplier
Choosing a manufacturer is one of
the most critical pieces of the private-
label puzzle. “Do your due diligence,”
urges Farkas. “Make sure the company is
financially sound and will be able to make
good on its promises.There’s nothing worse
than launching your own brand and then
not being able to get product when you
need it.”
In fact, Smoker Friendly went through
exactly that with its Smoker Friendly
e-cigarette brand, eventually opting to
switch manufacturers after its previous
supplier inked a deal with a large partner
and became overwhelmed. “We’ve now
partnered with FIN and we just launched
our new private-label e-cigarette on March
4,” reports Farkas. “We’re excited about it
because the products are great and FIN’s
national sales force will be selling our brand
as a value-priced offering alongside their
own.Our private-label e-cigarette is a good
option for retailers who aren’t able to do
enough volume to create their own brand.”
In addition to seeking a supplier that can
meet inventorydemands,retailers shouldvet
a potential partner’s quality control process.
C-STORE CORNER
