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TOBACCO BUSINESS

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JULY

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AUGUST

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17 ]

helped STG Lane move products and remain viable as

a business. Besides strategic thinking and planning, STG

Lane relies heavily on its parent company, Scandinavian

Tobacco Group, and all of its resources and data.

“We have the support of a really strong global orga-

nization, which also helps us from a resource and a cre-

ativity standpoint because we don’t have to drive all of

our ideas just on what’s happening in the U.S.,” explains

Michols. “We can look throughout the world and see

what could potentially work here.”

DATA-FUELED RELATIONSHIPS

Another area where STG Lane’s data plays a big role is

in its relationships with its retail partners. The company

works with retailers of all types because of the variety of

its product lineups. STG Lane’s products can be found

in convenience stores, premium tobacconists, specialty

tobacco outlets and food stores, and each venue requires

a different approach in order to maximize results. As

with the other parts of STG Lane’s business, what the

company likes to do is partner with retailers and use data

to create a buzz and turnover for its products. 

“Being able to sit on the same side of the desk as the

retailer and really talk about their tobacco business over-

all using the data we’ve invested in and we feel like we’re

good at working with—that’s when we really get excited,”

says Michols. “We’ve made a big investment over the years

in trying to be that trusted resource for data. When we

can use that data and see the benefit for the retailer with

increased business and increased sales—not just on our

products but overall in the product category—then that’s

when we see a partnership start to develop, and that’s

when we really start to see success from the retailer.”

The company is interested in working and partnering

with retailers of all kinds, from traditional brick-and-mor-

tar stores to online business outlets. Michols says the com-

pany strives to be creative and flexible enough to help all

of its business partners, and the true proof of its abilities

lies in how successful its campaigns and relationships are

in terms of helping move STG Lane products off store

shelves and into the hands of consumers. 

“We have ongoing efforts with our brick-and-mortar

partners, whether they be a premium shop or a conve-

nience store, and we try to create programs that are spe-

cific to them and their needs,” he says. “We participate

in online businesses as well with a number of different

retailers. We try to customize our approach with all of

our business partners specifically because they all have

different requirements and opportunities.”

A DIVERSE PRODUCT PORTFOLIO 

Besides data, STG Lane’s diverse product lineup also

keeps the company thriving in a tough marketplace.

While there are declining categories of tobacco prod-

ucts, the company has brands within each with long his-

tories that are still very popular with its customers. Take

Captain Black, for example, a pipe tobacco brand with

global recognition that remains one of the company’s

most popular products. Michols says he and others at

STG Lane are seeing one trend that has them excited:

the growth of premium tobacco products. This growth is

one that STG Lane sees as viable and is one they believe

they can create a future for with their products. 

“While, overall, some segments may be slipping, we’ve

got the premium segment, which is actually showing some

nice, strong growth, and we believe that’s driven by the

desire for the consumer to have an elevated experience

when they choose to smoke,” explains Michols.

Another trend the company is watching is that of age

21-plus millennial smokers having an interest in exper-

imenting with and trying new things. When millennial

smokers try new products, they are seeking quality, pre-

mium experiences. The premium areas of STG Lane’s

business excite Michols and his team and are viewed as

new opportunities and challenges. Another new oppor-

tunity STG Lane will be capitalizing on to expand its

product portfolio is that it will soon begin selling and

distributing Cricket Lighters. Seen as a product that fills

We have the

support of a

really strong

global organi-

zation, which

also helps us

from a resource

and a creativity

standpoint be-

cause we don’t

have to drive

all of our ideas

just on what’s

happening in

the U.S.

STG Lane

Continued