PERFORMANCE in the cigar category may be fairly static, but the cigarillos segment is posting solid growth, according STG UK.
Alastair Williams, country director at STG UK, highlighted IRI MarketPlace value and volume sales for Scotland – for the year to 11 July – which show cigarillos trending upwards.
“When you include the recently emerging cigarillos segment, you can see that the combined [cigar] category has grown strongly over the last year or so and is currently worth just over £270m in annual sales across the UK.
“The fast growing cigarillo segment is already worth just over £70m in total UK sales, and our Signature Action brand continues to play an important role within it,” he said.
With the festive season on the horizon, Williams said cigar sales will increase as Christmas day approaches, “so it’s really important for retailers to get their range right so they can enjoy those extra sales and rewarding profit margins, which are typically three times those of cigarettes.
“ It tends to be larger cigars that people will gravitate towards as a bit of a Christmas treat when they are in celebratory mood and typically have more time to enjoy it,” he said.
