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TOBACCO BUSINESS
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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