The Scandinavian Tobacco Group highlights cigarillos as a way of driving up retail margins
IT’S always good to reassure consumers that they aren’t being ripped off in the nicotine market but ensuring retailers aren’t either counts just as much.
Value remains an important consideration across the convenience channel – as is meeting the needs of everyone.
That’s why Scandinavian Tobacco Group (STG) UK reckons cigarillo options could be the best bet for retailers and could be a surefire way to help protect their margins.
Nataly Scarpetta, marketing manager at STG UK, said: “Many consumers are going to be increasingly price conscious, and this will affect cigars and the wider tobacco category purchases just as much as any other category in-store. So retailers should ensure they are highlighting their value brands to customers to help them save money.
“And, when it comes to pricing, I always think it’s important for retailers to offer a range of cigars with various price points to meet different consumer needs.
“But in general, I would suggest that retailers follow manufacturers’ guidance on pricing, as our recommendations afford value for the consumer, while giving exceptional margins for them, typically three times of those from cigarettes.
“It’s always worth reminding convenience retailers that cigars are exempt from the plain packaging legislation. We recommend they stock them on the middle shelf of the gantry where they are visible, and more likely to be purchased by adult smokers who can see them.”
Cigarillos continue to be a valued part of the nicotine category as IRI Marketplace data covering the week to 16 April reported that cigarillos sales made up over 47% of the volume of total cigar sales, resulting in just under £100million in value sales.
As such, STG has shouted out its Signature Action brand, noting that its sales have grown by 39% over the last year, with the firm claiming it is a good peppermint-flavour option.
Aiming to push this success further, STG has shouted out the return of its tins for 20 packs.
Scarpetta said: “Hot on the heels of our Moments re-design at the beginning of the year, we’re pleased to announce some exciting news relating to our Signature range, with the return of the iconic tins for packs of 20.
“Both Original and Blue variants are available now in the new tins, which are specifically designed to protect the cigar and preserve its flavour and aroma for longer, and we’re confident this should prove a popular move among regular Signature smokers.”
Signature limited-edition launch for 60th birthday
Scandinavian Tobacco Group (STG) UK has unveiled special 60th anniversary packs for its Signature range to celebrate its birthday.
Marking Signature’s diamond anniversary, STG has launched the limited-edition tins in a bid to bring more excitement to the cigar category.
Available in Original Gold and Blue variants, STG said the new tins will help to highlight the longevity and quality of the brand, provide retailers with a talking point for their customers, and give consumers something new and different.
Nataly Scarpetta, UK marketing manager at STG UK, said: “Sixtieth anniversaries are usually celebrated with diamonds and there’s no doubt Signature has always been the jewel in our crown, representing 60 years of quality, experience and craftsmanship.
“Retailers should take the opportunity to stock up, as limited-edition packs usually prove popular with regular smokers and will be in demand.
“We’re proud to celebrate such an important anniversary for Signature and want to thank all the convenience retailers who have played such a vital role in its continued success.”
