28
TOBACCO OUTLET BUSINESS
NOVEMBER/DECEMBER 2012
CATEGoRy MANAGER
OTP VS. CIGARETTES
news You Can Use
ToB
’
s roundup of interesting
statistics and facts on tobacco
industry products.
1.8%
Amount by which cigarette
volume is expected to dip in
2012.
—
CS News
Keeping up with the ever-shifting landscape of tobacco
retail is a perennial challenge. By sharing data we’ve
collected from multiple sources, we hope to help you
stay on top of the purchasing and profitability trends
shaping this evolving marketplace.
6.9%
10.2%
+3.3 ppt
8.9%
19.5%
+3.3 ppt
oTP vS. CIGARETTE SHARE EvoLUTIoN
Share of Tobacco Sales
Share of Tobacco Gross
Margin Dollars
2002
2011
2002
2011
Ongoing decline in demand for cigarettes, along with new OTP introductions, have enabled OTP to gain a 3.3% in-
crease in dollar volume sales. Meanwhile, a squeeze in cigarette margins coupled with margin leeway in OTP catego-
ries has OTP comprising nearly 20 percent of gross profit on tobacco.
2002 - 2011
data, State of the Industry Survey NACS; David Bishop BALVOR
Cigarettes
OTP
14.1%
Predicted
growth in OTP volume
per store in 2012 (smokeless and
cigars expected to lead the pack).
—
CS News