Convenience Store News - July 2018 - 62

TOBACCO

Growth Accelerating
(percent change in industry dollar sales)
chain has upped the SKU count and "set space to sells."
3. Update regularly
Retailers should be much more vigilant now about
updating their cigar assortments than in years past, Teller
advised. Part of this strategy means keeping new products
in stock, added Woodley.
4. Make limited-edition options part
of the regular updates
Limited-time cigar products allow for continuous real-world
testing of new and interesting flavors, the best of which
end up becoming everyday cigars. This trend has become
expected by c-store cigar smokers, who often come
into the store more frequently expecting to find new
and limited-time cigars.
5. Be sure to highlight foil resealable packages
Foil pouches represent about two-thirds of total cigar
category volume, according to Nielsen large-chain convenience data.
"Cigar smokers make an average of 7.4 visits per month to
c-stores to buy cigars, which is among the most frequent
c-store consumers," reported Teller, citing industry statistics. "The result is that the average cigar smoker spends

2017 . . . . . . . . . . . . . . . . . 14.6%
2016 . . . . . . . . . . . . . . . . . . 7.5%
2015 . . . . . . . . . . . . . . . . . . 4.1%
2014 . . . . . . . . . . . . . . . . . .0.9%
2013 . . . . . . . . . . . . . . . . . -0.1%
Source: Convenience Store News Industry Report, 2014-2018

29 percent more
dollars per year at a
convenience store than
the overall average of all
c-store shoppers."
The bottom line is that c-store retailers are wise to cater
to cigar smokers, who increasingly see the value of buying
through the channel. Cigar consumers have become
very loyal to c-stores that have the everyday variety, new
limited-time products and fair prices they seek.
On the flip side, "there is a large downside risk to a retailer's
cigar unit and dollar sales if cigar smokers' needs are not
met," concluded Teller. CSN

Premium Moves
Premium cigars are not necessarily a convenience store's
domain, but if upcoming legislative moves go a certain
way, more stores may want to dabble in them. At the
very least, it's smart strategy to keep abreast of the latest
legislative and regulatory action:
* Republican Senator Joni Ernst of Iowa became the 21st
U.S. senator to co-sponsor S294 or the Traditional Cigar
Manufacturing and Small Business Jobs Preservation Act,
which was originally introduced by Florida Senators Bill
Nelson and Marco Rubio. It seeks to amend the federal
Food, Drug and Cosmetic Act, intended to exempt
traditional large and premium cigars from regulation by
the Food and Drug Administration (FDA).
* Meanwhile, a second bill, with language intended to
exempt premium cigars from FDA regulation, was
approved by the U.S. House of Representatives Appropriations Committee in mid-May. The FY2019 Agriculture
and Rural Development Appropriations Bill would move
the predicate date - also known as the grandfather
date - for deeming tobacco products from Feb. 15,
2007 to April 25, 2014. The cigar industry applauded this
move, with the Cigar Association of America, the International Premium Cigar & Pipe Retailers Association, and
Cigar Rights of America issuing a joint statement saying
the language in the bill addresses significant concerns
that the premium cigar industry has maintained since
the FDA's deeming rule was proposed in 2014.

62 Convenience Store News C S N E W S . c o m

* As of press time, Republican Congressman Bill Posey
sent a letter signed by 32 of his colleagues (31 Republicans and one Democrat) to Mick Mulvaney, director
of the Office of Management and Budget, urging the
federal government to extend the comment period
to Sept. 23, 2018 for the advance notice of proposed
rulemaking on premium cigar regulation, which was
set to end June 25, 2018. In the letter, the legislators
also asked for a delay in the implementation of new
warning statement requirements on all packages
and advertising related to premium cigars. Set to go
into effect Aug. 10, 2018, the warning label requirements have been a highly contested point of friction
between many manufacturers, retailers and the FDA
since the announcement of the deeming rule affecting
cigars in 2016.
* As the FDA accepts public comments on whether
premium cigars should be exempt from agency
oversight, J.C. Newman Cigar Co. revived its "Save
Cigar City" campaign against cigar regulation in May.
The company distributed 100,000 postcards to its
network of retailers, which came preaddressed to the
FDA and urge the agency to "exempt premium cigars
from regulation and save J.C. Newman's historic cigar
factory in Tampa, Fla." The company also hung a "Save
this Factory" banner outside its factory, and relaunched
its Savecigarcity.com website.


http://www.Savecigarcity.com http://www.CSNEWS.com

Table of Contents for the Digital Edition of Convenience Store News - July 2018

Contents
Convenience Store News - July 2018 - Intro
Convenience Store News - July 2018 - Cover1
Convenience Store News - July 2018 - Cover2
Convenience Store News - July 2018 - 3
Convenience Store News - July 2018 - 4
Convenience Store News - July 2018 - 5
Convenience Store News - July 2018 - Contents
Convenience Store News - July 2018 - 7
Convenience Store News - July 2018 - 8
Convenience Store News - July 2018 - 9
Convenience Store News - July 2018 - 10
Convenience Store News - July 2018 - 11
Convenience Store News - July 2018 - 12
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Convenience Store News - July 2018 - 21
Convenience Store News - July 2018 - 22
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Convenience Store News - July 2018 - 26
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Convenience Store News - July 2018 - 28
Convenience Store News - July 2018 - 29
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Convenience Store News - July 2018 - 31
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Convenience Store News - July 2018 - 34
Convenience Store News - July 2018 - 35
Convenience Store News - July 2018 - 36
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Convenience Store News - July 2018 - Cover3
Convenience Store News - July 2018 - Cover4
Convenience Store News - July 2018 - U1
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