Fast Takes on Cigars

FAST TAKES ON CIGARS
The NATO Show’s version of “TED Talks”
Operator
Chris Beaulier
Operations Director
Cigaret Shopper
Wholesaler
Keith Canning
Managing Partner
Pine State Trading Company
Manufacturer
Jeff Rossi, CPCM
Senior Director
Swisher International
Chris Beaulier
Cigaret Shopper
Fast Takes on Cigars
Retailer Viewpoints
Chris Beaulier
Brewer, Maine
What
is the customer
looking for?
Price?
Flavor?
Size?
Variety?
No Tip?
Plastic Tip?
Wood Tip?
Mini?
Regular?
Large?
Single?
2 Pack?
5 Pack?
Larger?
Margin & Profit
vs
Volume
Average Margin on a 2/99¢ foil pouch ~ 28%
Average Margin on a 3/99¢ foil pouch ~ 24%
V
S
Natural Leaf
is
King in Maine!
Cigar stick have grown each
of the last 40 months.
•
Multi Stick Foil Pouch cigars grew by
+33% the last 6 months.
•
Sweet, Tropical, and Pineapple are the
fastest growing flavors (strawberry and
white grape are the fastest declining).
•
The category is quickly moving towards
nearly all singles/foil pouches and
cigarillos (only 21% of category sticks are
traditional cardboard packs).
5 Packs or Pouches?
Pros and Cons
•
Foil pouches – 2 for 99¢ or 3 cigars for the price of 2
•
•
•
•
•
Wide variety and assortment of flavors
Popular with today’s young adult tobacco consumer
Available in both HTL and Natural Leaf Wrappers
Cons ~ Sheer number of sku’s available – constant
new item introductions, possibility of obsolete
inventory due to the latest “flavor of the month”
5 packs – Traditional 5 pk cigars or 5 for 3 packaging
•
•
•
•
Staple items – typically high volume items that have
withstood the test of time. VERY consistent volume
Both HTL and Natural Leaf Wrapped cigars available,
typically the lowest retail cost per stick
Mature adult tobacco consumers typically purchase
out of this segment
Cons ~ Higher tax jurisdictions make this package too
expensive for many consumers
3 for 2 pouches VS 5 for 3
packs
Which way is
YOUR
market shifting?
•
2013 Cigaret Shopper Large Cigar category up 35.79%
overall. Swisher International UP 35.03%
•
2014 Cigaret Shopper Large Cigar category up 4.9%.
Swisher International UP 12.92%
•
#1 Selling Domestic Cigar Item in Cigaret Shopper:
Swisher Sweet 5 pack Cigarillo
•
#2 Selling Domestic Cigar Item in Cigaret Shopper:
Swisher Sweet 5 pack Plastic Tip Cigarillo
•
#25 Swisher Sweets BLK Cigarillo Smooth Tip 30/3ct Foil
Pack (1st 3pk foil on top 100 list)
•
#26 Garcia y Vega Game Cigarillo Pineapple 30/2pk Foil
Upright (1st 2pk foil on top 100 list)
WHY is our Cigar Category SUCCESSFUL and GROWING?
Category > Other Tobacco Products 52 Week Ending
Apr 04, 2015
Customer Average Sales/Store/Wk : $922.90
Market Average Sales/Store/Wk : $142.90
Sales Index to Market : 645.8
Customer Average SKUs Stocked : 82
Market Average SKUs Stocked : 20
SKU Index to Market : 410.0
Customer Average Sales/SKU/Store/Wk : $11.25
Market Average Sales/SKU/Wk : $7.15
Sales/SKU Index to Market : 157.
To Contract
or NOT
to Contract?
Buydowns?
Rebates?
Self Serve?
NON Self Serve?
Product Placement?
Minimum space percentages?
Minimum SKU requirements?
Margin Parity?
Keith Canning
Pine State Trading Company
CMetrics™ Overview of Other Tobacco Products 1st Quarter 2015
Keith Canning
Managing Partner Pine State Trading Company
April 2015 InRhythm, Inc
Total Tobacco Space
Convenience Tobacco vs. Non-Tobacco Sales
• Total warehouse delivered convenience store retail dollar sales for
Q1 2015 are projected at $22 billion, up vs. YAGO (+5.2%)
Share of C-Store $ Sales - Q1 2015
Q1 2015 % Change vs. YAGO
0.0%
Non
Tobacco
25%
Cigarettes
OTP
2.0%
4.0%
6.0%
8.0% 10.0%
3.5%
8.0%
OTP
11%
Cigarettes
64%
CMetricsTM
13 Weeks
ending
3/28/2015
InRhythm Inc. – All Rights Reserved
InRhythm,Source:
Inc. Confidential:
Copyright
2015
– All Rights
Reserved
Non Tobacco
8.5%
# 18
Center Store Category Sales Performance
Center Store categories account for $3.6 billion in Q1 2015 warehouse
delivered c-store sales, with 7.0% growth vs. YAGO
Distributor delivered Alternative, Salty and Packaged Sweet Snacks are
all showing double-digit dollar growth vs. YAGO
$ % Change vs. YAGO
Center Store Categories Dollar
Edible
Share
General
Merch
Packaged 5%
Sweet
Snacks
7%
Grocery
5%
0.0%
20.0%
Candy
8.1%
Alternative Snacks
Candy
35%
14.2%
Health & Beauty
6.3%
Salty Snacks
Auto
Products
7%
Packaged
Beverages
8%
Salty
Snacks
9%
-20.0%
Non-Edible
Grocery
3%
10.9%
Packaged Beverages
Auto Products
4.0%
-3.7%
Packaged Sweet Snacks
12.8%
General Merch
Health &
Beauty
10%
Alternative
Snacks
11%
TM 13 Weeks ending 3/28/2015 InRhythm Inc. – All Rights Reserved
CMetricsCopyright
InRhythm, Source:
Inc. Confidential:
2015 – All Rights Reserved
5.1%
Edible Grocery
Non-Edible Grocery
0.5%
-1.7%
# 19
OTP: Retail Dollar Sales Trends
• Q1 2015 dollar sales growth is up 8.0% vs. YAGO. This category
continues to show steady upward growth trends
Millions
OTP Retail Dollar Sales Trend
$260
$240
$220
$200
$180
$160
$140
$120
TM 13 Weeks
Source:
CMetrics
3/28/2015
InRhythm, Inc.
Confidential:
Copyright
2015 –ending
All Rights
Reserved InRhythm Inc. – All Rights Reserved
3/6/2015
2/6/2015
1/6/2015
12/6/2014
11/6/2014
10/6/2014
9/6/2014
8/6/2014
7/6/2014
6/6/2014
5/6/2014
4/6/2014
3/6/2014
2/6/2014
1/6/2014
12/6/2013
11/6/2013
10/6/2013
9/6/2013
8/6/2013
7/6/2013
6/6/2013
5/6/2013
4/6/2013
$100
# 20
OTP: Sub-Category Performance
• Smokeless (Moist & SNUS) products show 8.7% dollar growth
vs. YAGO, as has been the trend for this sub-category
• E-Cigarettes are showing a bump in dollar sales in Q1 of
31.1%, recalling for 2014 dollar sales grew only 5%
Q1 2015 Dollar Share of OTP
Pipe/Cigarett
e Tobacco
3%
E-Cigarettes
6%
Papers
2%
Vaping
1%
% Dollar Chg. Vs. YAGO
-100.0%
Cigars
20%
0.0%
100.0%
Smokeless
8.7%
Cigars
4.5%
E-Cigarettes
Pipe/Cigarette Tobacco
Papers
Smokeless
68%
CMetricsTM
13 Weeks
ending
3/28/2015
InRhythm Inc. – All Rights Reserved
InRhythm,Source:
Inc. Confidential:
Copyright
2015
– All Rights
Reserved
Vaping
31.1%
-7.4%
-0.4%
0.0%
# 21
OTP: Manufacturer Performance
• Lorillard’s OTP performance continues to decline as the
market continues adjusting for E-Cigs
Manufacturer Dollar Share of OTP
0.0
25.0
ALTRIA
Dollar % Change vs. YAGO
50.0
-60.0%
44.2
RJ REYNOLDS
ALTRIA
24.9
SWEDISH MATCH
6.5
6.4%
SWEDISH MATCH
5.6%
SWISHER INTERNATIONAL
5.7%
3.5
COMMONWEALTH -…
REPUBLIC TOBACCO
2.2
REPUBLIC TOBACCO
-7.5%
NATIONAL TOBACCO…
2.0
NATIONAL TOBACCO…
-4.3%
1.5
NU MARK LLC
1.0
LOGIC TECHNOLOGIES
0.6
ALL OTHER
90.0%
10.8%
COMMONWEALTH -…
LORILLARD INC
40.0%
RJ REYNOLDS
8.1
SWISHER INTERNATIONAL
-10.0%
-2.8%
LORILLARD INC -31.9%
NU MARK LLC
LOGIC TECHNOLOGIES
5.6
TM
Source:
Weeks 2015
ending
3/28/2015
InRhythm Inc. – All Rights Reserved
InRhythm,
Inc. CMetrics
Confidential: 13
Copyright
– All
Rights Reserved
100.0%
-11.3%
ALL OTHER -20.9%
# 22
Cigars: Manufacturer Unit Share
Performance
• Cigar units for Q1 2015 are up 2.7%, but only the top 3
manufacturers show growth vs. YAGO
• Good Times Tobacco was up in 2014, but is flat so far for 2015
Unit % Change vs. YAGO
Unit Share of Cigars
0.0
10.0
20.0
30.0
PHILIP MORRIS
33.0
SWISHER…
28.3
SWEDISH MATCH
19.5
COMMONWEALTH -…
8.9
GOOD TIMES TOBACCO
1.8
CHEYENNE INTL
1.5
NATIONAL TOBACCO…
NHA INC
ALL OTHER
40.0
1.0
0.8
5.2
Source:
CMetricsTMCopyright
13 Weeks2015
ending
InRhythm Inc. – All Rights Reserved
InRhythm,
Inc. Confidential:
– All3/28/2015
Rights Reserved
-60.0% -30.0%
0.0%
PHILIP MORRIS
8.5%
SWISHER…
7.5%
SWEDISH MATCH
COMMONWEALTH -…
5.4%
-15.0%
GOOD TIMES TOBACCO
CHEYENNE INTL
NATIONAL TOBACCO…
30.0%
-0.6%
-13.1%
-22.0%
NHA INC
-13.4%
ALL OTHER
-12.5%
# 23
Cigars: Manufacturer Dollar Share
Performance
• Cigar dollars are up 4.5%, outpacing unit growth indicating a
drop in the levels of promoting and discounting so far for 2015
Dollar % Change vs. YAGO
Dollar Share of Cigars
0.0
10.0
20.0
PHILIP MORRIS
27.8
COMMONWEALTH -…
15.7
SWEDISH MATCH
15.1
CHEYENNE INTL
2.3
KRETEK INTERNATIONAL
1.3
GOOD TIMES TOBACCO
1.3
ALL OTHER
40.0
-30.0% -10.0% 10.0% 30.0% 50.0%
29.4
SWISHER INTERNATIONAL
INTERCONTINENTAL…
30.0
1.1
PHILIP MORRIS
14.4%
SWISHER INTERNATIONAL
COMMONWEALTH -…
6.0%
-2.3%
SWEDISH MATCH
5.9%
CHEYENNE INTL -13.1%
KRETEK INTERNATIONAL
-2.4%
GOOD TIMES TOBACCO
-1.5%
INTERCONTINENTAL…
5.9
Source:
CMetricsTMCopyright
13 Weeks2015
ending
InRhythm Inc. – All Rights Reserved
InRhythm,
Inc. Confidential:
– All3/28/2015
Rights Reserved
7.3%
ALL OTHER-15.9%
# 24
Detailed Large Cigar Excise Tax Rates
VT - 92%
from 41%
on 7/1/09
WA*
95% from 75%
on 5/1/2010
OR*
65% from 35%
on 2/1/2007
MT
50% from 25%
on 1/1/2005
ID
40% from 35%
on 7/1994
NV
30%
enacted 1984
CA
29.82% from
30.68% on
7/1/2013
HI*
50% from 40%
on 9/30/09
AK
75% from
25% on
10/1/1997
UT
86% from 35%
on 7/2010
AZ
7.3c – 21.8c
from
4.3c – 13c
on 1/1/2007
WY
20%
ND
28% from 22%
on 7/1993
SD
35% from 10%
on 1/1/2007
MN
95% from
70% on
7/2013
NE
20% from 15%
on 10/2002
CO
40% from 20%
on 1/2005
NM
25% enacted
7/1986
OK
11c – 12c
on 1/2005
TX
.75c – 1.5c
MA - 40%
from 30%
on 7/31/13
WV - 7%
enacted
2002
WI*
71% from
50% on
9/1/2009
IA*
50% from 22%
on 3/2007
KS
10% enacted
1973
ME - 20%
from 16%
on 6/2005
NH – 65%
from 48% on
8/1/13
MI
32% from
20% on
7/1/2004
OH 17%
enacted
2/1/1993
NY
75%
from46%
on 8/1/10
RI* - 80%
from 40%
on 4/10/09
NH
CT – 50%
from 27.5%
on 7/1/2011
PA
0%
IN
24%
VA
from
10%
18% on
enacted
7/1/07
MO
KY
3/2005
10%
15% from 8% on
NC – 12.8%
4/1/09
from 10% on
TN – 6.6% from
9/1/09
AR
6% on 7/02
68% from
AL
GA
32% on
.3c –4.05c
23% from
MS
3/1/2009
from
13% on
15% from .015c –
6/2003
LA** 11.25%
DC*–
2.0525c
SC$2.00
8% - 20%
on 5/04
Onfrom
10/1/08
5%
1.1c
on
–From
2c in $1.00
1968
1/1975
IL
36%
from
18% on
7/1/12
NJ - 30%
from 48%
on 3/2002
DE - 15%
from 30%
on 3/1987
MD - 70%
from 15%
on 7/1/2012
DC* - 12%
enacted
1/1/2006
FL
0%
As of April 1, 2009, the Federal excise tax
rate is 52.75% of the selling price with a
maximum tax of $0.4026 per cigar.
* States with a cigar tax cap of $0.50 per unit.
** Cigars net invoiced by manufacturer at $120 per 1,000 or less will be taxed at 8% of invoiced price;
cigars net invoiced by manufacturer at over $120 per 1,000 will be taxed at 20% of invoiced price.
-- Effective July 1, 2010, Philadelphia increased its large cigar tax rate from 0% to $0.036/unit.
-- Effective 1/1/13, Cook County, IL increased its large cigar tax rate from $0.25/cigar to $0.30/cigar.
PR
0%
As of
February 24, 2014
Little Cigars Tax Rate Equalization (LCE)
Passed/Failed/Pending
Enacted Prior to 2014 (15 + PR)
Enacted in 2014 (0)
Pending in 2014 (6)
Failed in 2014 (0)
WA
$3.025/pac
k
MT
$1.70/pack
OR
65% WP
ID
40%
WP
NV
30% WP
WY
20%
WP
UT
$1.70/pack
CA
87c/pack
AZ
44.1c/pack
CO
40% MP
NM
25% MP
HI
$0.16/stic
k
ND
28%
WP
SD
35%
MP
NE
20%
WP
MN*
$2.83/
pack
IA
$1.36/pack
KS
10% WP
OK
72c/pack
TX
1c for each 10
AK
75% WP
Pack = 20 Cigars
WP = Wholesale Price
MP = Manufacturer’s Price
WI
71%
MI
32%
WP
VT **
NH
ME
$2.62/p
k
1.78/pk.
20% WP
MA
$3.51/p
NY
$4.35/pk
k.
RI**
$3.50/p
PA
$1.60/pk
k
OH*
37% WV
IL
IN
$1.98/ 24%
7%
VA
pack WP
WP
MO
KY
10% WP
10%
15% WP
NC
MP
12.8% WP
TN – 62c/pk.
SC
AR
5% MP
AL
68%
GA
MS
4c for
MP
15%
each 10 5c/pk.
LA*
MP
8%;
20%
FL
0%
*MN effective 7/1/13 equalized cigars
weighing less than 3lb/1000 to cig rate.
Those weighing more than 3lb/1000 taxed
at $5.66/pack.
*OH effective 10/1/13 sets ad-valorem rate
at 37% to try and equalize to cig rate
* LA: Cigars invoiced by manufacturer at $120 per 1,000 or less will be taxed at 8% of invoiced price; cigars invoiced by
manufacturer at over $120 per 1,000 will be taxed at 20% of invoiced price.
**RI and VT equalized little cigar tax rates at 3lbs per 1,000 prior to 2013.
--Effective 3/1/12, Cook County, IL increased its little cigar tax rate from 0% to $0.05/cigar.
CT
$3.40/p
k
NJ
30% WP
DE
15% WP
MD
DC
$2.50/p
k
30% MP
PR
$3.23/pk.
As of
February 24, 2014
Pipe Tobacco & RYO Excise Tax Rates
VT
VT
WA
95%
ND
MT
50%
OR
65%
NV
30%
CA
29.82%
ID
40%
UT
86% MP
Pipe: 28%
RYO: $0.022 /
0.09 oz.
WY
20%
CO
40%
HI
70%
NM
25%
IA
50%
OK
80%
TX
$1.16/o
z
AK
75%
% of Manufacturer’s Price
WI
71%
SD
35%
KS
10%
NH
ME
65%
20%
MA
MN
95%
NE
20%
AZ
Smoking
Tobacco:
$0.223/oz.
Cavendish:
$0.055/oz.
Pipe: 92%
$1.66
RYO:$1.87/
oz.
IL
36%
MI
32%
OH
IN 17%
WV
24%
7%
NY
75%
RI
80%
PA
CT
50%
VA
MO
10%
10%
KY 15%
NC
12.8%
TN 6.6%
SC
AR
SC
5%
68%
$.07
GA
MS AL*
10%
LA 15%
33%
AL: ≤ 1-1/8 oz.: 4 cents
1-1/8 oz. to ≤ 2 oz.: 10 cents
Over 2 oz. ≤ 3 oz.: 16 cents
Over 3 oz. ≤ 4 oz.: 22 cents
Each additional oz. or fraction: 6 cents
40% retail
90%
vendor
price
FL
85%
NJ
30%
DE
15%
DC
DC**
MD
12%
15%
30%
sales tax
PR
As of
February 24, 2014
Educating the Retailer
InRhythm, Inc. Confidential: Copyright 2015 – All Rights Reserved
# 28
Consumer Pack
Value
Equivalency
$7.89
Packs for
$20
2.5
1 pk Filtered Cigar
$1.49
13.4
6oz Pipe Tobacco
$.96
20.8
16oz Pipe Tobacco
$.65
30.7
1 Disposable E-Cigarette
$.50
40
10ml Bottle E-Juice
$.15
133
Nicotine Delivery System
1 pk Full Revenue Cigarette
InRhythm, Inc. Confidential: Copyright 2015 – All Rights Reserved
# 29
Summary
■ OTP showing strong growth, especially Smokeless,
E-Cigarettes and although small in share, Vaping
■ Given higher OTP margin contribution, C-Store profitability
should increase, despite weak overall sales levels and lower
cigarette margins
■ Retailers are increasing shelf space for OTP
■ Retailers increasingly look to drive value, more promo
activities on premium brands, as well as focus on value
brands and private label
■ Distribution, shelf-space and assortment are a major
challenge for OTP
InRhythm, Inc. Confidential: Copyright 2015 – All Rights Reserved
# 30
Jeff Rossi
Swisher International
DTO BEST PRACTICES
Large Cigar Top Line
•
Large Mass Market Cigar last 52 Weeks Total US
• 5.2 Billion Large Cigars all outlets
• 233 Million Large Cigars DTO
•
Total Category is up 3.6%
•
MSA predicts cigars could reach 19 Billion Globally by 2019
•
Growth Drivers
• Flavor Blast / Innovation
• Foil Pouches / Freshness
• Value PrePrice offerings
• Premium Mass Market
Source: MSAi Database as of 3/21/15 - Swisher International, Inc. - 52 Weeks Ending 3/7/15 - Confidential
Channel Brick And Mortar Retail
• Tobacco Outlet’s 11,270 + 2.9%
• Total Convenience stores 151,282 + 1%
– Single Store operators 95,056 + 1.3%
Source: TDLinx Data as of 3/21/15 - Swisher International, Inc. - Confidential
DTO Best Practices
•
3x the Average Space POG for Cigars
•
Secondary Placement Opportunities
– Floor Displays
– Counter Displays
•
Complete Portfolio
– Premium Cigars
– Little / Filtered Cigars
– Smokeless
•
•
Destination for the Adult Consumer
Manufacturer Support
DTOs Support The Complete Category Portfolio
LARGE
CIGARS
LARGE
SWISHER #1 LARGE
CIGARS
CIGAR MFCTR
MOIST
MOIST
SNUFF
PREMIUM
CIGARS
RYO
DTO
#1 MST
SNUFF
OUTLET CPW
MANUFACTURE
OPPORTUNITY IN
DTO’S
VAPOR /
ECIG
LITTLE &
FILTERED
CIGARS
CHEWING
TOBACCO
Source: MSAi Database as of 3/21/15 - Swisher International, Inc. - YTD Weeks Ending 3/21/15 - Confidential
DTO’s Are More Diversified With Their Overall Sales When Compared
With Convenience Stores
DTO Channel – OTP Breakout
Convenience Channel – OTP Breakout
Adult Consumer Volume Share By Category
YTD - 10 Weeks Ending 3/7/15
Adult Consumer Volume Share By Category
YTD - 10 Weeks Ending 3/7/15
2%
2%
3%
1%
1%
13%
Moist Snuff
Large Cigars
13%
30%
1%
30%
1%
6%
6%
1%
E-Category
Filtered Cigars
Little Cigars
Loose Leaf/Chew
Moist Snuff
Snus / CTP
Large Cigars
Filtered Cigars
Little Cigars
47%
Loose Leaf/Chew
47%
38%
54%
1%
Source: MSAi Database as of 3/21/15 - Swisher International, Inc. - Confidential
E-Category
Filtered Cigars
Little Cigars
Loose Leaf/Chew
Moist Snuff
Snus / CTP
Large Cigars
Large Cigar Market Growing And Following Cyclical Trends For DTO’s
Large Cigar Category Volume Trend
4 Week Increments – Volume In Millions
2014
Large Cigar Growth
In DTO’s +3% YTD
2015
19.9
18.6
Source: MSAi Database as of 3/21/15 - Swisher International, Inc. - Confidential
12/26/15
11/28/15
10/31/15
10/3/15
9/5/15
8/8/15
7/11/15
6/13/15
5/16/15
Total Large Cigar Category Increased 3.6%
DTO Volume Declined (2.5)%
Convenience Stores Increased 9.3%
4/18/15
2/21/15
1/24/15
17.9
3/21/15
52 Weeks
Ending 3/7/15
19.3
DTO’s Are Performing Considerably Well From A Share And
Volume Perspective
DTO Large Cigar Category Volume % Chg vs. YAG
YTD - 10 Weeks Ending 3/7/15
DTO’s Have
Acquired A 5.5%
Share of Ttl Large
Cigars
YTD 3/7/15
42,223,988
YTD 3/8/14
+2.9%
41,054,505
Source: MSAi Database as of 3/21/15 - Swisher International, Inc. - Confidential
DTO’s Have The Highest Velocity Out Of All Trade Class Channels
Large Cigar Classes of Trade
Large Cigar Channel Velocity Per Store Per Week
YTD – 10 Weeks Ending 3/7/15
YTD - 10 Weeks Ending 3/7/15
C-Store
Drug
312.5
DTO
509.6
2% 7%
5%
4%
1%
429.1
DTO’s Outperform
C-Stores In SPW By 15%
5%
All Other
95.2
76%
DTO
Source: MSAi Database as of 3/21/15 - Swisher International, Inc. - Confidential
C-Store
Drug
69.9
Mass Merch
171.8
Liquor
231.9
Grocery
Grocery Liquor
Mass All Other
Merch
DTO’s Perform Well In All Segments Of Large Cigars
DTO Large Cigar Share By Package Format
C-Store Large Cigar Share By Package Format
YTD - 10 Weeks Ending 3/7/15
YTD - 10 Weeks Ending 3/7/15 – Volume in Millions
4%
13%
Five
38% Pack
Pouch
16%
18%
38%Five Pack
Other
33%
Source: MSAi Database as of 3/21/15 - Swisher International, Inc. - Confidential
Pouch
Five Pack
Pouch
Singles
33%
Five Pack
Pouch
Singles
19%
19%
59%
59%
Other
Pouches In C-Stores Are The Key Growth Segment For Large
Cigars -- +21%
DTO Large Cigar Pouch Performance
C-Store Manufacturer Large Cigar Pouch Perf.
YTD - 10 Weeks Ending 3/7/15
YTD - 10 Weeks Ending 3/7/15 – Volume In Millions
3/7/15 YTD
3/8/15 YTD
3/7/15 YTD
35.4%
3/8/15 YTD
47.4%
32.2%
25.3%
47.9%
Swisher
Swedish Match
Altadis
Swisher
Source: MSAi Database as of 3/21/15 - Swisher International, Inc. - Confidential
Swedish Match
19.5 MM
23.5 MM
86.9 MM
108.8 MM
98.6 MM
145.3 MM
0.9 MM
1.4 MM
3.0 MM
3.9 MM
4.5 MM
6.1 MM
20.4%
Altadis
All Major Manufacturers For DTO’s Are Contributing To Overall Volume Growth
Large Cigar Manufacturer Volume & Volume Performance
YTD 10 Weeks Ending 3/7/15 vs. YAG – Volume In Millions
14.3
4.4 %
9.1
7.4
3.5 %
3.1 %
4.8
3.7
18.2 %
2.6
0.1
Swisher
Altadis
JMC
Swedish
(9.0)%
(8.7)%
Good Times
National
Source: MSAi Database as of 3/21/15 - Swisher International, Inc. - Confidential
0.4
(60.1)%
0.0 %
Trendsettah
All Other
Strategies Behind Large Cigar Industry Success Is Innovation
•
•
•
•
•
Packaging – Pouch Technology
Blends – Diversity
Partnerships With Retailers & Distributors
Pricing
Analytics
Summary / Next Steps
•
Discount Tobacco Outlets remain competitive with other channels
•
Large Cigar growth rate continues for DTOs
•
Sales & Marketing Strategies in terms of innovation are working to
assist in growth
•
Continue working your local manufacture representative to stay in
front of what is happening in your markets
FAST TAKES ON CIGARS
Chris Beaulier, Cigaret Shopper
[email protected]
Keith Canning, Pine State Trading
Company
[email protected]
Jeff Rossi, Swisher International
[email protected]