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Britain's single-use e-cigarettes are booming: Tesco wants a piece of the action

Britain's single-use e-cigarettes are booming: Tesco wants a piece of the action

2022-10-22

According to an conveniencestore system, the U.K. released six things to know about tobacco, vaping and the next generation at a Conveniencestore system in the U.K. The following is the full text.


1. Sales of single-use e-cigarettes are booming in the UK, driven by Elf Bars.


Online retailer Vape Club reports that some retailers have seen an 883 per cent year-on-year increase in single-use e-cigarettes. Elf Bar led the growth, doubling sales in the second quarter of 2022 compared to the first quarter, the group claimed.


RELX has also observed the success of disposables. Aky Hojeij, Associate Marketing Director, RELX International, said: As we enter the fourth quarter of this year, we expect disposable devices to continue to be popular due to their stylish, ultra-compact features, affordability and convenience. We found that strong, fruity disposable foods and pods are currently the most popular among adult consumers in the UK.


Single-use e-cigarettes, especially Elfbars, are a must, according to Premier retailer Serge Notay. "Elf Bars are just a must-have in e-cigarettes -- we sell them in every flavor we can buy."


Southampton retailer Richard Inglis is new to the vaping game, but has quickly zeroed in on Elf Bars. "We only recently entered the e-cigarette category, but we found they were cheaper online after selling well." He said. "Basically people are telling me that Elf Bars is now about 90 percent of their e-cigarette business. So we decided to put them in and do a variety of flavors."



2. Retailers can help recycle disposable e-cigarettes and increase loyalty.


This success is not without drawbacks. The suspicion is that a product often popular with young vaping users could quickly draw the ire of UK regulators. Moreover, questions about sustainability remain to be answered.


"Basically, part of their appeal is that they're disposable." Richard said. "But they come with batteries, which makes them difficult to recycle. We've asked around about this, but it's hard to get a clear answer about what people can do to dispose of them. We're starting to see them on the street with rubbish."


However, in Llanidloes, Wales, Trudy Davies of Woosnam & Davies News has launched an e-cigarette recycling collection service for her customers, which not only helps to protect the environment but also encourages customers to return to her shop.


Nisa Local Halesowen is also encouraging customers to recycle their disposables in the store, and when you bring back a disposable e-cigarette, you get an extra 10p on your next purchase.



3. Tesco wants a piece of the action.


Perhaps more challenging for convenience store sales are Elf Bars, which popped up in Tesco in October this year. There are concerns that malls may now be siphoning off sales as convenience stores help sell products.


But Serge, the owner, isn't worried, citing his staff's expertise in the category and ability to quickly respond to new flavors.


"I'm not really worried about Tesco." He said. "We're a community store and people know what we do -- they're more willing to come to us because we're local and know what we're talking about."



4. Heated tobacco is growing more than twice as fast as e-cigarettes.


As cigarette alternatives go, heated tobacco has more in common with traditional vacuum cleaners than the next generation of e-cigarettes. Systems like the Philip Morris-backed IQOS do not stay away from tobacco, but instead offer a different way to heat it.


"If we look at heat not burn - a relative newcomer to the UK market - we see a category that is growing more than twice as fast as the e-cigarette category, which was launched at least a decade ago." Kate O 'Dowd, head of business planning at Philip Morris LTD.


As in e-cigarettes, taste may be the main driver of heating tobacco.


According to Gemma Bateson, sales director at JTI UK, tobacco-flavored heated tobacco variants account for 50 percent of all sales in traditional retail, with peppermint tobacco accounting for 44 percent.


"JTI always wants to stay on top of trends and listen to consumer needs when meeting the demand for new flavours. As such, JTI has established itself as the destination for flavoured tobacco and flavoured capsules within the industry."


The brand has launched two new heated tobacco variants with capsules, the green option and the purple option. Both provide tobacco flavor to smokers and activate mint infusion when the capsule is crushed.



5. Ultra Value RYO is now the sector with the fastest share growth.


Not surprisingly, with heating bills and mortgage rates climbing, customers are looking for added value from their smoke. That means brands are refocusing on low-priced RYO.


"In the last two years, We have been working hard to introduce products that meet the growing demand for value Tobacco - from Sterling Rolling Tobacco Essential to the new Benson & Hedges Blue Rolling and the new RMC line, Mayfair Silver." Bateson said.


"Now more than ever, value tobacco is a key trend, with super value RYO being the fastest growing price segment by share, now accounting for 6.4% of the combined tobacco market."

Despite this trend, it's important to remember that value means different things to different people.


"Some customers may focus on the lowest price point, while others may be looking for value-added formats, such as Players JPS Easy Rolling Tobacco, which provides filters and paper in a package." Tom Gully, head of consumer marketing at Imperial Tobacco.


"Ensuring retailers stock product ranges that meet these diverse value needs is therefore critical to effectively serving their customer base."


"Despite the high cost, some customers still seem keen to smoke." 'said Richard.


"Rolling cigarettes will always be a great seller for people who want them. But I can also see how the cost might lead more people to switch to e-cigarettes. Their view is: if you're going to spend that much money on tobacco, why not try e-cigarettes?"



6. Cigarillos is helping to boost the £291m cigar market.


In cigars, the market has swelled by 7.6% to £291 million thanks to growth in the cigarillos market, which now accounts for almost 47% of all cigars by volume. This is a key segment for c-stores, with 40% of sales coming from independent stores and token groups.

However, as the countdown to Christmas begins, Alastair Williams, country director of Scandinavian tobacco group UK, says it is time to think about the big picture.


"Retailers should consider their small cigars and cigar year-round supply, because it is a profitable category, and in-store traffic drivers. However, on the eve of Christmas, we of course know cigar sales will rise, so the retailers must choose correct product range, so that they can enjoy additional sales and lucrative profit margins, usually is three times the cigarette." He said.

"When people are in a celebratory mood and generally have more time to enjoy it, there is often a tendency towards larger cigars as a Christmas gift. Make sure you have brands such as our Henri Wintermans Half Corona in stock as it is the UK's best-selling medium/large cigar and a true festive favourite."


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