30
TOBACCO OUTLET BUSINESS
NOVEMBER/DECEMBER 2012
CATEGORY MANAGER
OTP VS. CIgARETTES
CiGARETTE CATEGORY PERFORMANCE
Branded Discount
14%
Sub-Generic/
Private Label
2%
Fourth Tier
5%
Imports
1%
Premium
78%
Share of Tobacco Gross
Margin Dollars
Unit Sales Growth
Sub-Category
YTD PCYA
Premium
(1.2)
Branded Discount
(3.0)
Sub-Generic/Private Label
3.0
Fourth Tier
(7.5)
imports
(4.7)
While demand for cigarettes is declining, cigarettes still represent approximately 90% of the retail
tobacco sales in c-stores, and 80% of total dollar sales in the channel. Of the cigarette sub-categories,
sub-generic/private label products are the only category seeing sales growth in the c-store channel.
C-Stores sales, C-Metrics, AWMA/InfoRhythm, YTD ending 6/30/2012; David Bishop, BALVOR
OTP PRODUCT PERFORMANCE
Cigars
24%
Smokeless
69%
Year-to-Date Dollar Sales
Unit Sales Growth
Sub-Category
YTD PCYA
Smokeless
4.0
Cigars
(5.8)
Pipe/Cigarette Tobacco
2.4
Papers
(6.8)
E-Cigarettes
287.5
OTP continues to sustain strong growth year-over-year with dollars sales up over 2.5%, largely due to
product innovation in a number of areas, ranging from the expansion of snus in smokeless to foil-packs
in cigars, as well as electronic cigarettes.
C-Stores sales, C-Metrics, AWMA/InfoRhythm, YTD ending 6/30/2012; David Bishop, BALVOR
Pipe/Cigarette
Tobacco
3%
Papers
2%
E-Cigarettes
2%