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While all attendees agreed that roll-your-own (RYO) loose tobacco took a beating when its federal excise tax rate was raised 1,200 percent in April 2009 — and also suffered further when consumers discovered lower-priced pipe tobacco could be used as an alternative in cigarettes — they said there are still opportunities in this segment.
“The value of RYO is still there,” said John Mayer,[link widoczny dla zalogowanych], product director for cigarettes and tobacco for McLane Co. “Consumers will enter this category and not know anything about last year or its previous prices.”
In discussing best practices, attendees shared ways they have seen success in the category over the past year.
One such opportunity for Smoker Friendly stores was bringing in loose pipe tobacco. “I was hesitant to bring it in, but once we did,[link widoczny dla zalogowanych], it sold,” said Jeremy Weiner,[link widoczny dla zalogowanych], sales and marketing manager, adding consumers see this product as a lower-cost alternative to RYO tobacco for cigarettes.
TravelCenters of America stores have focused on installing new fixtures for a cleaner look,[link widoczny dla zalogowanych],cheap newports online supplier, as well as being on the forefront of new products, said Erin Slater,[link widoczny dla zalogowanych], category manager.
“No ways would I pay so much for one cigar,[link widoczny dla zalogowanych],” Ncapayi says, scoffing, adding, “but I know quite a few people here who would.”
The young entrepreneur smokes mainly cigars, he says, “because it shows people that I am now able to afford the finer things in life … When smoking a cigar, you are like, achieving. You’ll be not smoking as such but making yourself big, advertising yourself.”
New cigar smokers: young, black and very successful.
One of the “chief categories” of cigar smokers who regularly frequent his establishment, Mulder says, is “the gentleman with far too much disposable income to spend on anything tangible, so he needs to smoke (his money). Those kinds of customers go for the largest, most expensive cigars that we stock.”
He says these smokers “just want to be seen smoking (cigars). They would never come here on a Tuesday or a Wednesday night,[link widoczny dla zalogowanych], because those nights are more quiet and intimate here.”
These smokers “flaunt” their cigars, he says. “They probably wouldn’t smoke too much of it but they’d have it in their hand the whole night. As soon as it got wet or damaged, they’d just buy another one. A lot of the guys like that will arrive in Ferraris or Lamborghinis, and they will have the most beautiful woman sitting next to them in the whole club – if not three!”
Johannesburg businessman and self-confessed “party animal” Andile Nkosi confirms that he smokes cigars “because women love them. A loser doesn’t smoke cigars. There’s just something about them that says, ‘I’ve arrived.’ ”
Wesley maintains cigar smokers are “usually slightly confident people. They’re not embarrassed to be seen smoking a cigar.” In fact, he adds, “They may be a bit embarrassed at times that they don’t know really what they’re smoking or why they’re smoking it!”