Gavin Anderson, General Sales Manager for Republic Technologies (UK) Ltd, comments on the Tobacco & Smokers’ Requisites industry.
The category
Despite sweeping changes in the market the tobacco accessories category, worth over £253 million*, remains buoyant.
NPD is driving category growth, with consumer demand such as that for slimmer filters making an impact.
Republic Technologies is meeting this demand for innovation with products designed to cater to changing shopper needs. Recognising the need for greater choice, the company launched Swan Ultra Slim; the thinnest ever Swan filter and a premium quality product aimed at smokers looking for a smoother taste while reducing the amount that they smoke for health or financial reasons.
RYO smokers are more discerning than ever before, with many of them taking environmental considerations into account when making purchasing decisions.
In 2016, Republic Technologies responded to this demand and introduced more choice to the UK’s booming £71.6m* filters market with the launch of the first ‘Eco’ filter from Swan. The most environmentallyfriendly Swan product ever, Swan Extra Slim Eco Filters are biodegradable, featuring a naturally coloured filter and unbleached paper wrap. Each pack contains 120 filter tips at an rrp of 99p, with 20 packs per outer.
NPD
In addition to consumer demand for environmentallyfriendly RYO products, there has also been increasing demand for ‘make your own’ products from cash-conscious consumers looking for an alternative to ready-made cigarettes.
Republic Technologies has recognised this demand with the launch of Swan Kingsize Cigarette Tubes. New for 2017, the Swan tubing machine allows consumers to roll cigarettes with ease, with packs available featuring both 100 and 200 tubes in both Standard and Menthol variants.
RRPs:
• Standard Tubes (100) – 0.99p
• Standard Tubes (200) – £1.89
• Menthol Tubes (100) – £1.25
• Menthol Tubes (200) – £2.50
• Tubing Machine – £3.64
Merchandising
With the introduction of EUTPD II, it’s now more important than ever for retailers to find ways of signposting the category to promote and maintain tobacco sales.
Stocking the right range of tobacco accessories and merchandising accordingly is key to making the most of sales from this category. Below are a few tips from Republic Technologies for how retailers can maximise results:
o Stock a broad range of products (filters, papers, matches and lighters) and the latest NPD to tap into changing shopper needs.
Space saving packs such as ZIG-ZAG King Size vertical packs (50% space saving compared to traditional King Size packs) and Poppell 45 packs help retailers to merchandise more effectively, while convenient pack formats such as Swan Slim Pop-a- Tip Filters offer an alternative pack format (vs Swan Slim Loose Filters) for on-the-go consumers.
o As with tobacco products, if your customer’s desired product is not stocked you may lose them. Be sure to stock a core range of papers (Green, Blue and Silver in both standard and King Size variants) plus other options such as Unbleached and flavoured and make sure you have multipacks available to combat the discounters.
o Using display stands and off gantry fixtures will help to signpost the tobacco category in-store while additional prominence will also boost sales of RYO products.
o Republic Technologies continues to work closely with key cash & carry / wholesale partners to drive sales of tobacco accessories in depot including creating branded bays and displays and taking a category approach to product ranges offered.
Dual-siting of nonrestricted products (e.g. lighters) outside of the tobacco room also works to drive significant sales increases of these products in-depot.
*IRI £Sales 52 wk MAT to 4 December 2016
Republic Technologies (UK) Ltd. is a papers, filters and smoking accessories specialist, with leading brands in Swan, ZIG-ZAG and OCB.
REPUBLIC TECHNOLOGIES (UK) LTD
Tel: 01494 492230
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