{"id":218,"date":"2016-04-08T14:15:49","date_gmt":"2016-04-08T18:15:49","guid":{"rendered":"http:\/\/www.tobaccofixtures-cigarettedisplays.com\/blog\/?p=218"},"modified":"2016-04-08T14:15:49","modified_gmt":"2016-04-08T18:15:49","slug":"the-state-of-the-tobacco-industry","status":"publish","type":"post","link":"https:\/\/www.tobaccofixtures-cigarettedisplays.com\/blog\/the-state-of-the-tobacco-industry\/","title":{"rendered":"THE STATE OF THE TOBACCO INDUSTRY"},"content":{"rendered":"
Wells Fargo Securities <\/em>has released a report, evaluating data from Nielson Equity Research, and has made a number of conclusions regarding the current state of the tobacco market<\/strong>.<\/strong><\/span><\/h6>\n

Data from Nielson Equity Research on the tobacco market has been released, and the tobacco industry has demonstrated growth in a number of areas, while others have experienced a marked decline.<\/span><\/p>\n

Strong Pricing Drives Cigarette Dollar Sales<\/span><\/strong><\/p>\n

According to a report from Wells Fargo Securities, all channel cigarette dollar sales increased +1.7% in the four week period ending March 26, 2016. They also increased +2.2% for the recent 12-week period and +2.6% for 52-weeks. All channel pricing increased +3.6%, offsetting the slightly weaker equal unit volume of -1.8% (-1.4% for 12-weeks).<\/p>\n

In its \u201cTobacco Talk\u201d survey, Wells Fargo Securities recently discussed that tobacco consumption and pricing remains healthy, and strong manufacturer pricing and profit growth are expected to continue this year.<\/p>\n

Reyonlds American Inc. Cigarette Dollar Sales Remain Strong<\/span><\/strong><\/p>\n

According to the report from Wells Fargo Securities, cigarette dollar sales for Reynolds American strongly outpaced the industry +1.7% growth. Reynolds American\u2019s dollar sales were driven by exceptionally strong +3.9% pricing (versus category of +3.6%), which offset the -0.3% volume declines, versus the category at -1.8%.<\/p>\n

According to Wells Fargo Securities, Newport was the company\u2019s big contributor, with dollar sales up +6.1%, above its 12- and 52-week period trend (5.3% and 5.5%, respectively). Natural American Spirit volume was up +23.8%, with steady pricing (+2.4% versus +2.3% 12-weeks). Camel dollar sales were lower (+1.2%) with weak turn in unit volume (-2.2% for four-weeks and -1.4% two-year stacked) and a tough year over year comparison (+4.1%). However, pricing remained resilient (unchanged at +3.5%), offsetting the volume weakness.<\/p>\n

Altria Group Cigarette Dollar Sales Stead<\/span><\/strong><\/p>\n

According to the report from Wells Fargo Securities, Altria Group dollar sales are steady at +2.0% versus +2.1% for 12-weeks.\u00a0Marlboro share has improved back to the levels of a year ago. Altria Group cigarette dollar sales are driven primarily by pricing (+3.0%), which is partially offset by soft volume growth (-0.9% versus -0.5% for 12-weeks. Marlboro dollar sales, which were reportedly up +1.6%, reflected strong pricing (+3.2%), which offset the -1.6% volume decline. Importantly, Marlboro improved its market share by 40 basis points sequentially to 47.4% (versus 47.5% in March 2015).<\/p>\n

Dollar Sales for Imperial Tobacco Group Plc Sharply Decelerate<\/strong><\/span><\/p>\n

Wells Fargo Securities reported that Nielsen data suggested Imperial Tobacco Group volume declined -13.4%. The decline was reportedly driven by double-digit volume declines in four of its largest cigarette brands (Maverick, Kool, Salem and Winston). It is possible that this sharp decline could be explained by \u201cdepletion of extra stock\u201d post-acquisition as Imperial Tobacco Group continues to shift its focus to the \u201cgenerally cheaper\u201d East South Central and South Atlantic regions. Additionally, Newport has posted +110 base points of share gains year over year under Reynolds American\u2019s ownership, which is in line with the +95 base points that Wells Fargo Securities predicted in its \u201cTobacco Talk\u201d survey.<\/p>\n

Smokeless Tobacco Dollar Sales Trends Indicate Healthy Category Shifts<\/span><\/strong><\/p>\n

Wells Fargo Securities has reported that smokeless tobacco dollar sales grew +5.5% this period, continuing a decline from a high of 8.0% in December. Wells Fargo Securities notes that this decline is indicative of continued shifts back into favorite cigarette brands by a stronger adult tobacco consumer. Reynolds American\u2019s Grizzly brand continued to outpace Altria\u2019s Copenhagen with Grizzy\u2019s market share increasing 60 base points year over year to 7.9%, as Copenhagen decreased 350 base points to 7.6%.<\/p>\n

Electronic Cigarette Dollar Sales Growth Remains Negative on Persistently Weak Pricing<\/span><\/strong><\/p>\n

The report from Wells Fargo Securities revealed that all channel e-cigarette dollar sales were down -7.6% in the recent period (-10.9% for 12-weeks), driven by negative net pricing of -7.4% and -0.2% unit declines. The persistent year over year decline in e-cigarette pricing may be partially attributed to difficulty in capturing SKUs of the evolving vapor category, and proliferation of vapors\/tanks\/mods (VTM) and refills which tend to have lower retail prices.<\/p>\n

Reynolds American Remains Market Leader in Electronic Cigarette Dollar Share<\/span><\/strong><\/p>\n

Wells Fargo Securities reported that Reynolds American reinforced its position as the share leader in all channel e-cigarettes with 38.9% dollar share, reflecting its strongest share position achieved to date for VUSE versus Fontem U.S. (blu eCigs), a subsidiary of Imperial at 20.4%, Logic at 14.2% and NJOY 4.3%.<\/span><\/p>\n

 <\/p>\n

\n

We, at TheCstoreEstore.com<\/a><\/strong>, are here to assist retailers by providing the largest selection<\/strong><\/span><\/em> of tobacco fixtures and cigarette displays, and offering retailers the fixtures and point of sale products that they need to keep cigarette, tobacco and smokeless sales a viable and profitable category.<\/p>\n

Visit our website to view a full range of tobacco fixtures and cigarette displays. With the exception of custom units, all pricing is disclosed on our website and online ordering is very simple. Call us and we’ll provide you with immediate pricing for all custom units.<\/p>\n

TheCstoreEstore.com<\/a><\/strong><\/p>\n

(866) 630-2100<\/strong><\/h6>\n
sales@cademanenterprises.com<\/strong><\/h6>\n

Reprinted from\u00a0The State of the Tobacco Industry,\u00a0April 7, 2016 CSD Staff\u00a0<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Wells Fargo Securities has released a report, evaluating data from Nielson Equity Research, and has made a number of conclusions<\/p>\n","protected":false},"author":1,"featured_media":222,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[115],"tags":[26,136,29,13,28,70,18,10,17,12,27,24,30,25,22,23,100,50,44,9,11,135],"yoast_head":"\nTHE STATE OF THE TOBACCO INDUSTRY - Tobacco Fixtures and Merchandising Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tobaccofixtures-cigarettedisplays.com\/blog\/the-state-of-the-tobacco-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"THE STATE OF THE TOBACCO INDUSTRY - 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