3 minute read
Casey’s Comes for Breakfast
“JUUL is the one that makes me the most nervous about FDA decisions regarding the big brands. To use an old-school term, they’ve had a bullseye on their back,” said Anna Bettencourt, senior category manager for Haffner’s convenience store chain, which is owned by Energy North Inc. Headquartered in Lawrence, Mass., the company also runs car washes and foodservice sites.
It appears Bettencourt and others will have to wait a bit longer. On Sept. 9, the FDA requested additional time to make a final decision on the pod system, along with other big-name brands.
“It is absolutely absurd that the same agency that found time to ban over 6 million vaping products manufactured by small businesses is now indicating they need more time to review products with massive market shares,” said Conley in an AVA statement. “This decision brings even more uncertainty on the day FDA had previously pledged to provide the public with answers.”
The National Association of Convenience Stores (NACS), along with four other national retail associations, wrote to the FDA requesting a public release of the list of products that are receiving MDOs.
“Without this list, our retail members, who make every effort to comply with the law, do not know which products must be removed from shelves,” the NACS letter stated. “As the agency takes action on PMTAs, it is imperative that there is continued transparency in the process and that stakeholders across the tobacco trade know all of the products that have had PMTAs rejected as well as all of the products that have had marketing orders granted.”
SUMMER SALES
Despite the prolonged regulatory process, the category continues to post noteworthy profits. Market research firm IRI recorded nearly 33.8 million unit sales of electronic smoking devices in U.S. convenience stores for the
Positively Positioned
Double-digit growth in electronic smoking devices bodes well for c-stores as the category undergoes an inventory shake-up.
Electronic Smoking Devices Latest 4 weeks (ending 8/8/21) Latest 12 weeks (ending 8/8/21)
Dollar Sales 1-Year % Change Unit Sales 1-Year % Change ≈$470 million 20.9% ≈33.8 million 15.4%
≈$1.4 billion 18.1% ≈102 million 15.6%
Source: IRI Market Advantage -TSV Total U.S. Convenience data ending Aug. 8, 2021; received Sept. 9, 2021 ≈427 million 21.6%
four weeks ending Aug. 8, 2021. That’s a 15.4% increase compared with a year ago; the 52-week comparison showed a gain of 21.6%. “Our vapor sales compared to last year are skyrocketing. This is our biggest category increase from all of our categories. JUUL is still the main force, but Vuse Alto is moving up quickly with disposable coming in very strong,” said
Rick Staley, merchandising manager for Tri Star
Energy, which owns and operates Twice Daily,
Hightail and Sudden Service convenience stores. On a brand comparison level, Nielson data confirms JUUL is still the top seller, with 41.1% of market share, but Vuse holds steady with 31.2% for the four weeks ending Aug. 24, 2021. Naturally, analysts are adopting a conservative stance on the future of the vape category until the fallout from PMTA decisions settles. Meanwhile, c-store category managers no longer have the luxury of a wait-and-see approach as the FDA mandates products subject to denial fast facts: orders be removed from back bars. “Our distributors work guaranteed programs with all vendors,” said Staley, a policy he hopes • Electronic smoking devices (ENDS) unit will cushion possible losses. sales reached nearly 33.8 million between However, it pays to be proactive, too.
July and August. There’s no definitive timeline to go with, so • FDA issued marketing denial orders on you have to deal with the information you have more than 946,000 flavored ENDS. • JUUL maintains market share leadership. in the moment. But you also need exit strategies and you have to keep an eye on inventory,” said Bettencourt. “A lot of it is having a Plan A and a Plan B — and sometimes a Plan C.” CSD
Sweetening Fall Candy Sales
After an uncertain 18 months, candy sales are looking promising with better-for-you varieties, mega packs of gum and mints, and individually wrapped candy in multi-serving packages trending.
Howard Riell • Contributing Editor
