In happier days, Big Tobacco aided retailers’ efforts by flushing the markets with buybacks, marketing allowances and other promotional spending. Times have changed: Today those once-plentiful marketing dollars have eroded—and, with them, retailers’ bottom lines.
Only a few years ago, the electronic-cigarette segment was barely a consideration in retailers’ product sets. And now that it’s one of the hottest subcategories in the industry, some of its offshoots are also catching fire. Here's what's happening in one of those hot subcategories: vaporizers.
Last year, our CSP vice president and group editor, Mitch Morrison, called for the FDA to take action on tobacco regulation and resolve a slew of unanswered questions. For the most part, that hasn’t happened. This year, I’m calling for retailers to take action. Don’t wait for the FDA— go on the offensive before it’s too late to build a solid defense.
The struggle for growing cigar sales in convenience stores has been finding new products that boast consumer-driven innovations—as opposed to “me-too” offerings—while still driving the profitable margins retailers need to justify the space in an already overcrowded tobacco set.