PLANNING FOR PROFIT

Maximising returns from the cigar category in 2023

The Cigar Category

“The retail sales value of the cigar category has remained stable over the last year, now standing at just under £285m. This performance is largely driven by the cigarillo segment, which barely existed three years ago but now accounts for 46.7% of all cigars sold in volume terms and is worth £98.1m in annual sales. Miniatures remain the largest segment within cigars, currently worth £98.9m in annual sales and led by our Signature Blue brand, and ably supported by our Moments Blue brand, which is especially relevant right now as a good quality, value cigar.”

THE CATEGORY IS WORTH JUST UNDER £285M IN RETAIL SALES

Moments has a new eye-catching design

VALUE BRANDS ARE KEY!

“There’s no doubting the importance of value as a consumer trend at the moment. Many consumers are becoming increasingly price conscious as the cost-of-living crisis continues to bite, and this will affect cigars and the wider tobacco category purchases just as much as any other category in-store, so retailers should ensure they are highlighting their value brands to customers to help them save money and cash and carries should do the same in depot. With that in mind we’ve recently announced a modern and eye-catching re-design for our Moments brand. The new pack design can be seen now on packs of Moments Blue and Moments Original, with packs of Moments Panatella following closely behind in May. Moments Blue has been the fastest growing VFM cigar in the UK and is well-known amongst tobacco-selling retailers as a popular choice amongst those customers who are looking to save money.”

Cash and carries would be wise to always have brands like our Henri Wintermans

Half Corona in stock as it is the UK’s best-selling medium / large cigar

Getting The Range Right

“It’s worth noting that the top ten cigar brands account for over 90% of total sales, so don’t tie up your cashflow with slow moving brands. Cigarillos are the growing segment in cigars at the moment, so I’d encourage cash and carries to consider stocking our Signature Action brand if you don’t already do so. It may not be the best-selling cigarillo on the market, but it’s growing steadily in popularity and a good option for adult smokers who enjoy the peppermint flavour. Finally, irrespective of the time of year, I think it’s always important for cash and carries to offer retailers a range of cigars with different price points to meet the different needs of their customers.”

Key Occasions For The Cigar Category

“It’s also worth considering that there are key times of the year when cigar sales are on the rise. Typically, as Spring approaches, bringing with it more outdoor smoking opportunities, some adult smokers will treat themselves and ‘trade up’ to a larger format option, but of course this doesn’t mean that retailers need to start stocking larger more expensive handmade cigars! It may be as simple as a Miniature cigar smoker opting to jump to a Panatella for example. In general, I think cash and carries would be wise to always have brands like our Henri Wintermans Half Corona in stock as it is the UK’s best-selling medium / large cigar and a popular choice throughout the year.”

HOW CAN CASH & CARRIES MAXIMISE SALES?

“I believe it is very important to ensure our products are merchandised in a way that it makes it easier for the retailers to navigate, find them and purchase them. Of course, consistent availability and competitive cost prices are essential, but keeping the range in sight for the retailer to buy, will ensure we have our products at the ‘risk of sale’ within their outlets. Brand blocking is an effective tool to merchandising, along with a clear category versus market trend approach to stocking products.”