45
TOBACCO BUSINESS
JANUARY/FEBRUARY 2014
Announcing
TB
’s Top 50 Retailers
Domestic perspectives from the top of the tobacco chain(s)
By Renée M. Covino
T
The top of the tobacco chain speaks
out. As 2013 came to a close, the
general assessment from some of
Tobacco Business’
s Top 50 tobacco outlet
retailers was that there was a good
deal of good news to report amidst the
expected challenges. And while good
news came in varied forms, every top
player mentioned electronic cigarettes/
non-combustible tobacco alternatives
as a top trend that is not letting up.
As for 2014, there is generally a
sentiment of cautious optimism for a
steady year ahead.
Here are seven specific viewpoints
from top-level tobacco retailers that
range in size from 15 stores to more
than 800.
Expansion and Education
As the largest chain of authorized
dealers (currently 816) in the
business, Smoker Friendly of Boulder,
Colorado, recognizes that the best
business issue for its stores and the
industry last year was “the continued
amazing growth in the e-cig/vape
category,” mentions Jeremy Weiner,
marketing and purchasing director.
At Smoker Friendly stores, e-cig/
vape sections were carved out and the
chain continued to expand the product
selection throughout the year. “We also
provided our employees [with] sales
training classes to educate them on all
the different brands we currently carry,”
Weiner adds. “We feel that having
well-educated employees who are able
to explain the differences between
e-cigs and vapes gives us a competitive
advantage over convenience locations.”
Other good news came in the
form of moist tobacco/snus and
premium cigars, which also continue
to be growth categories for the chain,
according to Weiner. “Many of the
premium manufacturers have come
out with fresh foil packs so that stores
without humidified cases can carry a
nice premium selection without the
worry of humidification,” he points
out. “We have [also] added a few more
walk-in humidors and lounges during
2013. This continues to help increase
the premium cigar sales in our Smoker
Friendly stores.”
The category that has been the most
challenging to the chain is domestic
cigars. “Manufacturers continue to
bring out pre-priced or discounted
pack offerings (i.e. five for $3 or three
for $2), which are available as everyday
offerings,” Weiner explains. “This
continues to lower the dollars spent
in the store and compresses the profit
margin.”
For 2014, Weiner expects to see
continued growth in the e-cig/vape
category, along with moist tobacco,
snus and premium cigars. However, he
believes that, “as more major cigarette
manufacturers enter the e-cig category,
other brands may get squeezed out
of the category in many stores due to
space constraints and specific contract
requirements.” He recognizes that
“the big unknown” is if the FDA gets
involved.
See page 56
for
The 2014
TB
Top 50 List
