Category ADVICE. For Tobacconists Only.

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1 2018 For Tobacconists Only

2 MARKET INSIGHT Availability of best selling brands is absolutely critical 1 in 4 adult smokers would leave the store without making a purchase if their preferred brand was unavailable Margin Opportunities Stock high margin, fast growing products, such as e-liquids, and cigarette accessories, such as papers and filters E-Cigs: 3 Key Tips 1. Focus on in-store visibility and display 2. Ensure staff are knowledgeable and trained on equipment & liquids 3. Focus on flavour range not a wide range of brands No. 1 category in sales value No. 1 footfall driver in the Convenience market Tobacco category drives 1 in 10 visits to Convenience stores, and it s even higher for Independent stores Latest Trends (March 2018) Independent store tobacco sales are down 10% Multiple convenience store tobacco sales are up 5% 75% of independent retailers are premium pricing, which is the significant factor driving the decline Sell at RRP to maintain your business Top 3 customer service shopper needs: 1. Availability 2. Price 3. Range

3 MARKET INSIGHT Reduced Risk E-cigarettes and Heat Not Burn Explained Neilson research now shows there are over 2 million vapours. (Retail News - 26 Jan 2018) Devices Disposables: This is where most vapours start this sector has 3% share of the UK market and continues to decline. Cartridge Devices (16% of UK Device Market). Once purchased, the shopper will need to buy the specific cartridges for that device. Sales of the device are low, cartridges are a much bigger sales opportunity. Cartridges: Pre-filled cartridges used in their respective device Leading brands such as Logic, Blu and Vivid each have their own systems, the challenge is the cartridges are not interchangeable, so a wider range is required. Bestway range recommendation: Stay with leading brands, range as required Logic / Blu and New Vivid range all on promotion now! 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 KIK 3. Premium liquids circa 5 Blu, Vivid & Logic In addition to Tobacco and Menthol, it is important stock a range of flavours: Blueberry / Raspberry / Tropical The UK s No.1 Cartridge Vape* *Source: Nielsen ScanTrack Jan 2018 No.1 brand in open system devices in retail* *Source: Nielsen retail audit UK data January 2018 UK s fastest growing E-liquid only WSP and 1 RRP 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

4 MUST STOCK LINES 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. Leading Cigarette Brands by Region Midlands Sovereign Blue Carlton South England Rothmans Value Sovereign Blue London Marlboro Mayfair B&H Silver - the UK s fastest growing Ultra Value RMC Brand since TPD2. (Source: Nielsen Market Track MAT Dec17) Rothmans Trusted quality brand at an everyday low price. North England L&B Blue L&B Wales Carlton L&B Blue L&B Scotland Mayfair JPS Silver Range L&B Blue Players No. 1 Sub-Economy brand* *ITUK Estimates Jan 2018 Marlboro Gold UK s No. 1 Premium Cigarette Brand.* *Source: Nielsen February 2018

5 MUST STOCK LINES Market Trends - Why you should sell Value Cigarettes and RYO at RRP! Price Sector Min RRP & RYO are main areas in growth in The cheapest RRP and RYO continue to grow as shoppers look for value These are the brands such as Players,, Chesterfield & Rothmans % Share of Tobacco Market Split by Cigarette Price Tiers & RYO Percentage Share of Market 37.00% 35.00% 33.00% 31.00% 29.00% 27.00% 25.00% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2018 Feb 2018 March - Feb 2018 Cheapest RRP Cigarettes All other Cigarettes Roll Your Own Tobacco

6 MUST STOCK LINES Capsule & Menthol continue to grow Symbols & Independents Capsule Vol % Share % % 13.1% Top 6 Crushball SKUs 1 2 Pall Mall 3 4 B&H Silver 5 Sovereign Blue 6 L&B Blue Fastest Growing Crushball Sovereign Blue 4 JPS SIlver Range 5 Rothmans Players Crushball is the UK s No.1 Sub Economy Crushball Cigarette Pall Mall Double Capsule The UK s first and No.1 double* capsule brand *ITUK estimates March 2018 Roll Your Own Best Sellers (RYO) 1 Amber Leaf 2 Gold Leaf 3 Golden Virginia 4 Cutters Choice 5 Golden Virginia Yellow 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 2018 Fastest Growing RYO Brands 1 Gold Leaf 2 3 Cutters Choice 4 Marlboro 5 Pall Mall 6 Pueblo Top 5 Cigar Brands 1 Café Crème Blue 2 Moments Blue 3 Hamlet 4 Hamlet Miniatures 5 Café Crème Original New and Fastest Growing SKU 1 Moments Blue Café Crème Blue As the UK s best selling cigar brand, Café Crème Blue remains a must stock item for retailers. Since 1 in every 3 cigars sold in the UK is a Café Crème it offers retailers a reliable profit from its regular and loyal customers. Top 6 Smoking Accessories 1 Swan Filters Extra Slim 120 s 2 JPS MYO Tubes 3 Poppell Flint Lighter 4 Poppell Electric Lighter 5 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 KS Tubes 3 Cricket Firepower Dual SK Even more value from Dual House, the UK s No.1 capsule Source: Nielsen Market Track MAT Dec17 Pueblo Europe s best selling additive free hand rolling tobacco. Traditional blend of pure premium quality tobacco offering highest RYO POR in Bestway. Moments The 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. Cricket Firepower The perfect tool to light any fire or candle with safety. All Cricket lighters have undergone over 60 quality tests.

7 For more information including planograms and advice on other key ranges, go to or call quoting MAY RANGE