Progressive Grocer Product

Fall 2014

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Fall 2014 / Progressive Grocer Products Showcase 41 Tobacco and E-cigarETTEs Cigarettes, E-Cigs, Smokeless Tobacco KeY TreNds 4 Broad-reaching ban on cigarette smoking 4 Focus on leading healthier lifestyles 4 Consumers' growing demand for alternatives to traditional smoking CATEGORY GROWTH SALES Cigarettes -0.6% $65.8 B Electronic Smoking Devices +37.5% $768.5 M Smokeless Tobacco +5.5% $6.0 B Source: IRI, Chicago sales for e-cigarettes during the past year. Convenience Store News conducted a Forecast Study for 2014, which projected another stellar year for e-cigarettes and figures indicate it has been strong. The market for e-cigarettes, in particular, is a strong one, with potential growth today and into the future given the population and health and wellness trends. Young consumers are seeking alternatives to traditional cigarettes – these consumers have grown up in an era of understanding on the health implications of smoking – and there is a notable population of consumers looking for smoking cessation options. However, the cigarettes category should not be overlooked when considering the influences in this segment. The category still holds a top spot when it comes to convenience store revenue, generating about a third of in-store sales in 2013, Convenience Store News reports. While the 2012 and 2013 results for the tobacco category showed similar patterns, a number of issues and influences have and will play out still in 2014, certainly set to make an influence on year-end results. For one, CVS Caremark Corp. exited the category, giving up billions in sales to stay committed to what it deems a total health focus for the company. Another influence is the increase in the legal age to buy tobacco products set into effect in some areas of the country. And of course government influences, Food & Drug Administration requirements and mandates, as well as taxes will make an impact. PGPS

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