Category adviCe2019

• Market Insights• Must Stock Lines• Planograms

www.bestwaywholesale.co.uk

For TobacconisTs only

Category adviCe2019Market Insight

Top 3 customer service shopper needs:

1. Availability 2. Price 3. Range

Latest TrendsIndependent store tobacco sales are down 8%

Multiple convenience store tobacco sales are up 7%

75% of independent retailers are premium pricing, which is the significant factor

driving the decline

Sell at RRP to maintain your business

What do you need to do if you sell tobacco?

The regulations require all retailers to have an Economic Operator Identifier Code (their own unique code registered to their business) and a Facility Identifier Code

(a unique code for each store or premises which sells tobacco) in order to purchase cigarettes and hand-rolling

tobacco products from 20th May 2019 onwards.If you would like us to apply on your behalf

or would like more information visit: www.bestwaywholesale.co.uk/trackandtrace

Tobacco Track & Trace

- are you ready?

Margin OpportunitiesStock high margin, fast growing products, such as

e-liquids and cigarette accessories: papers and filters

No. 1 category in sales valueNo. 1 footfall driver in the

Convenience marketTobacco category drives 1 in 10 visits

to Convenience stores, and it’s even higher for Independent stores

Vaping: 3 Key Tips1. Focus on in-store visibility and display2. Ensure staff are knowledgeable and

trained on equipment & liquids3. Stock a range of brands and systems

with a good selection of flavours

Starts 20th May

2019

Category adviCe2019Market Insight

Liquid Systems: These account for 82% of sales!Open systems all use E-liquids - and with such a large share of this growing market we strongly recommend you stock a range of E-liquids that are showing strong growth:

● Liquids are excellent sales opportunity as most are universally compatible with the majority of open tank systems

● Stock a range of price points to cater for all consumers needs

1. Value £1 PMP – 88Vape

2. Mid Tier £2 - Pendle Potion

3. Premium liquids circa £5 – Blu, Vivid, Logic & Cirro

● In addition to Tobacco and Menthol, it is important stock a range of fruit and sweet flavours.

No.1 brand in open system devices in retail**Source: Nielsen retail audit UK data January 2019

UK’s fastest growing E-liquid – only 50P @ WSP and £1 RRP

The UK is the second largest E-Cigarette market with over 3.2 million vapers (YouGov 2018)

Cartridges: Pre-filled cartridges used in their respective devicePod systems are more expensive than liquids but offer consumers a convenient and discrete solution to their vaping needs. Leading brands such as Blu, Vype and Logic cartridges are not interchangeable so a wider range is required.

Bestway are rolling out a range of leading Vape Brands - liquids & kit - including Vampire Vapes, Double Drip, Liberty Flights, Vapouriz, Pure Evil, Aquavape, Sub-zero, XO, Innokin etc. This range and pricing allows the independent retailer to tap into the growing vape market by offering 3 for £10 on liquids and still making over 50% POR. To see further details of this range please see the Bestway website.Pendle Potion

Manufactured in the UK£2 Price Mark58% POR8 Great flavours

Heat Not Burn tobacco products● IQOS is a heat-not-burn system which promises to be 90% less harmful to

smokers than cigarettes● PMI have invested $3bn in the system and in its first year of launch in Japan

sold 3 million units● Independents have the opportunity to take advantage by listing HEETS

Information correct at time of printing

Category adviCe2019

These are the ‘Must Stock’ lines which shoppers expect to see in a convenience store. By stocking these lines, you will be meeting your shoppers’ needs and therefore they will visit your store again.

Must Stock Lines

MidlandsB&H Blue Sterling JPS Players Sovereign Blue Carlton

WalesCarlton JPS Players Sterling L&B Blue L&B

South EnglandSterling B&H Blue JPS Players Sovereign Blue Marlboro Rothmans

LondonB&H Blue Marlboro Sterling Sovereign Blue Mayfair

North EnglandJPS Players Sterling L&B Blue B&H Blue L&B

ScotlandJPS Players Kensitas Club L&B Blue Sterling Mayfair

Leading Cigarette Brands by Region

B&H Blue - the UK’s fastest growing Ultra Value RMC Brand.

(Source: Nielsen Market Track MAT Feb 2019)

Players • No. 1 Sub-Economy brand* *ITUK Estimates Jan 2019

Marlboro Gold• UK’s No. 1 Premium Cigarette Brand.**Source: Nielsen February 2019

Rothmans• Trusted quality brand at

an everyday low price.

Category adviCe2019Must Stock Lines

Price Sector Min RRP & RYO are main areas in growth in 2019 The cheapest RRP and RYO continue to grow as shoppers look for value – These are the brands such as Players, B&H Blue, Chesterfield & Rothmans.

Market Trends - Why you should sell Value Cigarettes and RYO at RRP!

Bestway / Batleys Lowest priced Cigarette

American Legend Red 20’s

RRP £8

On Promotion May 2019 9.5% POR

Category adviCe2019

Top 5 Crushball SKUs1 Sterling2 Pall Mall3 JPS Players4 Sovereign Blue 5 L&B Blue

Must Stock Lines

Gold Leaf • Choose the right leaf

at the right price• Great price points• Smooth and quality

smoking experience• The UK’s No. 1 Economy

RYO brand* *ITUK estimates January 2019

Players Crushball is the UK’s No.1 Sub Economy Crushball Cigarette (Imperial 2019)

May 2020 Menthol and Crushball will no longer be available after this date. Maximise your sales before it is too late.

Pall Mall Double Capsule The UK’s first double* capsule brand

Sterling Dual SK The UK’s No.1 and fastest growing capsule brandSource: Nielsen Market Track MAT Feb 2019

Top 6 Smoking Accessories

1 Swan Filters Extra Slim 120’s 2 JPS MYO Tubes 3 Poppell Flint Lighter 4 Poppell Electric Lighter5 Rizla Green Cigarette Papers 50’s 6 Swan Menthol Filters Extra Slim 120’s

New and Fast Growing SKUs

1 Raw Classic KS Papers 2 Swan Extra Slim Filters 120’s 3 Cricket Firepower

Top 5 Cigar Brands1 Café Crème / Signature Blue2 Moments Blue3 Hamlet4 Hamlet Miniatures5 Café Crème / Signature Original

New and Fastest Growing SKU

1 Signature Blue

The Danger of Premium Pricing• It is evident that after a manufacturers price or

budget increase, smokers shop around for the cheapest price, resulting in stores who premium price losing out

• As the No.1 footfall driver to convenience stores, this will affect a stores total business

• Bestway recommend selling at RRP or less!

Signature BlueAs the UK’s best selling cigar brand, Signature Blue remains a must stock item for retailers. Since 1 in every 3 cigars sold in the UK is a Signature it offers retailers a reliable profit from its regular and loyal customers.

MomentsThe value for money trend in the UK continues to rise with tobacco customers constantly looking for a more affordable option. Moments is strategically positioned to take advantage of this lucrative market by offering the best value on shelf for both Miniature and Panatella size cigars.

Roll Your Own Best Sellers (RYO)

1 Amber Leaf2 Gold Leaf3 Golden Virginia4 Sterling5 Cutters Choice

Fastest Growing RYO Brands

1 Marlboro2 Riverstone3 Sterling4 Rothmans5 Cutters Choice

RiverstoneEasy rolling, high quality tobacco blend. Created in line with consumer preference.

Cricket Firepower The perfect tool to light any fire or candle with safety. All Cricket lighters have undergone over 60 quality tests.

Symbols & Independents Capsule Vol % Share

2016 11.3%

2017 13.1%

Capsule & Menthol continue to grow

2018 15%

Category adviCe2019

For more information including planograms and advice on other key ranges, go to

www.bestwaywholesale.co.uk/categoryadvice or call 01738 646666 quoting MAY RANGE