Vape, Cigar Unit Sales Fall

While cigar dollar sales remained relatively flat, electronic smoking device dollar sales increased by 4.3%. Unit sales for both categories dropped — 8.9% for electronic smoking devices and 1.3% for cigars. The price per unit for both categories saw increases.

Vape And Cigar Trends

For the latest 52 weeks ending June 18, cigar dollar sales remained flat at convenience stores (down 0.3%) at $4 billion, according to Circana, a Chicago-based market research firm. Unit sales dipped a slight 1.3%.

At Grub Mart’s 11 stores in Alabama, flavored cigars are leading the tobacco subcategory.

“Cigar (smokers) seem to be a little bit more fluid in what they will smoke. It could be strawberry this week, kiwi or whatever the next week. It could be different,” said Brian Young, vice president of Young Oil, operator of Grub Mart.

So far, Alabama has not experienced any flavor bans at the state level. However, FDA’s crackdown on certain vapes has kept the chain on its toes. For example, Grub Mart carried Elf Bar products, many of which are now no longer legal.

Vuse is a top seller for the chain, however, with the tobacco flavor being the most popular. “We’re over a hundred a week or so in (pods),” said Young. “… It’s really been a good mover for us.”

Electronic smoking devices saw a 4.3% uptick in dollar sales at c-stores for the 52 weeks ending June 18, reaching $7.09 billion, per Circana. Unit sales, on the other hand, dropped 8.9% to $419 million. This is likely due to a 14.5% increase in the price per unit.

At Grub Mart, however, Young believes inflation, particularly the higher cost of cigarettes now, is driving customers to vapes.

“Our vape business has continued to grow. We have not really had (price) increases in it. We’ve had (increases) in the others, and it may be driving people to the vapes more. … It seems like in our marketplace, our Newports have really hit the wall in what people will accept on the price,”

Young said. He added that Grub Mart has seen a pretty large decrease in two of the biggest fullpriced cigarette brands that it sells.

Trends have clearly been influenced by inflation, which is leading many c-store retailers to take stock of their backbars.

“Retailers cannot absorb higher costs of goods and increases in labor. That’s always a factor. Minnesota just passed a gas tax increase tied to inflation, not the consumer price index. It may hurt inside store sales, including tobacco sales,” said Klatt.

In Minnesota c-stores, vape represents a small portion of sales, although they do sell a variety of closed systems.

Cigars are also becoming a smaller part of the tobacco business at Minnesota c-stores due to higher taxes as well as pack restrictions and flavor bans. CSD

FAST FACTS:

• Cigar dollar sales stayed flat, but unit sales decreased 1.3% for the 52 weeks ending June 18, per Circana.

• Vape unit sales saw an 8.9% drop for the same time period and a 14.5% uplift in price per unit.

• The Food and Drug Administration is expected to make a decision on the proposed flavored cigar ban in the fall.