Revisiting pouch displays

Nicotine pouches lead on margin according to Darren Griffin at Zyn.

MAXIMUM space and minimum fuss are two of the key benefits that nicotine pouches can offer convenience retailers, according to Zyn.

Darren Griffin, UK country manager for Zyn, said that when compared to vaping and tobacco products, nicotine pouch brands take up little space, and so retailers may wish to reassess how they’re assigning space in their store.

The case for revamping displays is further strengthened by tobacco manufacturers placing a greater focus on producing alternatives, according to Griffin.

“This industry shift shows the need for retailers to revisit their displays, remove slow-selling cigarette, tobacco and cigar SKUs, and make space for the latest high-performing categories such as nicotine pouches.

“As nicotine pouches in particular offer significantly higher margins than either heat-not-burn or cigarettes and tobacco, not only will retailers better meet the changing consumer demands but they can also benefit from an increased return on investment,” he said.

Pouch margins may be high, but Griffin reckons the category also offers adult smokers value at a time when cost pressures are high.

“During a cost of living crisis, we’re seeing cigarette prices significantly increasing, resulting in consumers looking for more affordable options.

“Zyn has a modest RRP of £6.50 and is a more cost-friendly alternative to cigarettes and certain types of vapes, where liquids, mods and other hardware devices are also required to be purchased,” he said.