Scandinavian Tobacco Group offers advice to convenience channel
TARGETING cigar shoppers in convenience can prove to be a challenge, especially for those with an already tightly packed gantry.
However, ensuring the best sellers are available for these consumers will pay dividends for retailers, which is why Scandinavian Tobacco Group (STG) UK has urged store owners to review their range in store to get the most value out of the category.
Nataly Scarpetta, marketing manager at STG UK, said: “While obviously not matching the sales volume of cigarettes or roll-your-own tobacco, cigars are an important part of the tobacco category for convenience retailers because they drive footfall in-store.
“And cigars are particularly drivers of profits at the tills, as they typically offer up to three times the margin that cigarettes do.
“With cigars, it’s more important to stock the right range rather than a big range.
“So, we usually advise retailers to consider stocking the top two or three brands in each of the four cigar segments, as the top 10 biggest sellers overall account for well over 90% of total sales.”
And when it comes to these best sellers, it’s important to keep these brands relevant, which is why STG has introduced an updated look across its Signature cigar range.
This includes its Signature Blue, Original and Red Filter variants, along with updates to its tin packs of 20s, which made a comeback to stores across the UK in 2023 to help mark the brand’s 60th anniversary.
Scarpetta said: “Last year, the Signature brand celebrated its 60th anniversary with the launch of some limited-edition packs and the permanent return of the iconic tins for packs of 20s.
“Now, the exciting news for Signature continues with the launch of these newly designed packs, which have been upgraded to full colour on all sides.
“The overall design has been simplified and more focus has been added to the leaf icon to emphasise the unique nature of the product.
“While the packs have changed, the cigars inside certainly haven’t, and will continue to offer adult smokers a smooth taste and smoking experience with unquestionably high quality.”
While consumers certainly have nothing to worry about when it comes to change with their preferred brands, retailers have a date to keep in mind when it comes to the category.
This year, all tobacco-selling retailers will be made to register with the UK Government’s Track & Trace programme for tobacco products, with cigars and pipe tobacco also included in this legislation, from 20 May.
While there is still plenty of time to ensure you are covered by this, there is no better time than the present and STG UK has urged all tobacco-selling retailers across the country to ensure they have signed up to the programme as soon as possible, to avoid any potential fines or, in a worst case scenario, losing their operator ID.
To help support retailers in advance of 20 May, STG has been offering tobacco sellers throughout the UK different forms of advice to ensure their needs are met across the cigar category, whether this be via digital methods or verbal communications.
Scarpetta said: “If retailers don’t get regular visits from an STG rep then they are very welcome to email us at enquiries.uk@st-group. com to request a visit.
“Then, when it comes to digital support, we have our trade website – www.stgtrade.co.uk – which is a good reference point for retailers to visit at a convenient time to increase their knowledge and that of their staff.
“We also email out quarterly newsletters to those convenience retailers who are on our database, which highlights the latest news and trends impacting the category, plus planograms, price lists and much more.”
