40
TOBACCO BUSINESS
MARCH/APRIL 2014
CATEGORY MANAGER
retail trends
Retailers Report Impact
From Vape Shops
(Responses to question, “Are vape shops
impacting e-cigarette sales?”)
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0
YES
(Negatively impacting)
NO
(No impact)
NO
(But expect negative
impact in future)
47%
33%
19%
Change in Shelf
Space Allocation Y/Y
80%
60%
40%
20%
0%
-20%
Cigarettes
Smokeless
Snus
Cigars
E-Cigs
Q1 2013 Q2 2013 Q3 2013 Q4 2013
7%
-5% -5%
1%
4%
7% 6%
3%
-1%
-7% -6% -5%
4%
1%
-1%-1%
72%
26%
56%
31%
E-Cig Growth Hiccup
(Percent of customers converting to e-cigarettes
from conventional cigarettes)
Chart Source: Wells Fargo Securities
While annual growth for e-cigarettes is still estimated to be above 20 percent,
customers’ “switching” rate declined in the fourth quarter of 2013.
12%
10%
8%
6%
4%
2%
0
Q1 2013
Q2 2013
Q3 2013
Q4 2013
9.2%
10.6%
10.7%
8%
Category Growth in Measured
Channels Appears to be Decelerating
(Responses to question,
“Do you carry any ‘tank-style’ vaporizers?”)
Tank-style or “open system” vaporizers are gaining traction and taking some
share away from the “cigarette-like” style of e-cigarettes.
40%
35%
30%
25%
20%
15%
10%
5%
0
YES
Currently carry
NO
But plan to carry soon
NO
No plans to carry
36%
36%
28%
