Category: Retail

Cigarette, Vape Sales Slow While Pouches Boom

Credit: Jet City Image
Sales of cigarettes and e-cigarettes have declined in the last two weeks, while sales of oral nicotine pouches have seen significant growth, according to analysts at TD Cowen.
They say in a research note that cigarette volumes across multiple channels were down 10 percent in the two weeks ending Jan. 13, a steeper decline than the trailing four weeks and 12 weeks.
Bonnie Herzog, managing director at Goldman Sachs, remain cautious on the U.S. tobacco/nicotine industry in the near term as the tobacco consumer remains under substantial financial pressure.
She stated in an email that many consumers are being more selective in their purchases and turning to more affordable alternatives, such as 4th tier/deep discount cigarettes, modern oral tobacco and, increasingly, illicit or gray market disposable vapor products.
“Shifts in category and consumer spending dynamics have been further exacerbated by flavor ban momentum at the state & federal level (Final Rule expected in March) and uncertainty with regard to the future of the e-cig category and category innovation (with FDA PMTA reviews still pending on big market brands such as JUUL and VUSE Alto, as well as menthol variants more broadly),” Herzog wrote.
E-cigarette sales fell 11.3 percent in the two-week period and 10.7 percent in the four-week period, according to Barron’s.
Sales of smokeless tobacco, including nicotine pouches, meanwhile grew 12.1 percent in the two-week period and 13 percent in the four-week period.
The smokeless category continues to show strong dollar sales growth driven by the Zyn brand, the analysts say.
January 24, 2024
Vuse’s Market Share Lead Stays Static in December
Credit: RJR Vapor Co.
The latest Nielsen report shows that the market share of R.J. Reynolds’ top-selling Vuse e-cigarette remained flat at 42 percent in December at convenience stores.
While Vuse’s market share was unchanged, No. 2 Juul dropped from 24.3 percent to 24.2 percent for the report covering the four-week period ending Dec. 30.
As recently as May 2019, Juul held a 74.6 percent share in the U.S. electronic cigarette market. That’s when a series of regulatory actions led to product-reduction concessions, according to media reports.
Meanwhile, Altria Group’s ownership of No. 3 NJoy hasn’t resulted in a meaningful market-share increase so far. Nielsen cited a research error by why it did not include an update for NJoy in the latest report. It was at 2.6 percent in the previous report.
Fontem Ventures’ blu eCigs, an affiliate of Imperial Brands Plc, was unchanged at 1.2 percent.
The overall e-cigarette category was down 9.9 percent.
January 11, 2024
Vapes Fastest Growing Category in UK Grocery Sales

Credit: Suppachok N
Vaping products were the fastest growing category in U.K. grocery sales for the second year running in 2023, while sales of cigarettes, cigars and loose tobacco fell sharply, industry data showed.
Britain’s government in October proposed banning younger generations from ever buying cigarettes and Prime Minister Rishi Sunak said it also needed to act on youth vaping, according to Reuters.
Vaping products saw growth in value sales in Britain of 897.4 million pounds ($1.15 billion) in 2023, according to the data published on Saturday by market researcher NIQ and The Grocer.
The Lost Mary brand, owned by Chinese vaping firm Heaven Gifts, was the UK’s fastest growing product with sales up by 310.6 million pounds on the previous year, the data showed.
NIQ said vaping products also saw growth on a volume basis, or the amount people bought, while sales of cigarettes, cigars and loose tobacco were down 849.1 million pounds and 393.1 million pounds, respectively, on a sales value basis.
December 18, 2023
Vuse Market-Share Lead Over Juul Continues to Grow
Credit: Konstiantyn Zapylaie
R.J. Reynolds’ top-selling Vuse electronic cigarette saw an increase in market share after a recent small decline, according to the latest Nielsen convenience store report for the four-week period ending Dec. 2.
Vuse’s market share rose from 41.5 percent to 42 percent, surpassing No. 2 Juul which dropped from 24.7 percent to 24.3 percent.
In May 2019, Juul held a dominant 74.6 percent share of the U.S. e-cigarette market, but regulatory actions led to a decrease in product availability.
Despite Altria Group’s ownership of No. 3 NJoy, their market share remained stagnant at 2.6 percent.
Fontem Ventures’ blu eCigs, affiliated with Imperial Brands Plc, also had no change in market share at 1.2 percent. Overall, the e-cigarette category saw an 8 percent decline during this period.
December 14, 2023
January 1: New Vape Retailer Rules in Texas Begin
A Forever Vapes store in Pearland, TX, USA. (Credit: JHVEPhoto)
Beginning Jan. 1, 2024, it will be a crime in Texas to market, advertise, sell or cause to be sold an e-cigarette product in certain containers that are designed to appeal to minors.
“It is illegal to sale e-cigarettes to minors — these products are dangerous and most contain nicotine, heavy metals and cancer-causing materials — yet these products are intentionally designed to attract minors,” Texas Comptroller Glenn Hegar said. “Texas has taken action to deal with this kind of deceptive marketing and I greatly appreciate the partnership with retailers across this state to help us protect one of our most vital resources: our children.”
House Bill 4758 states any person commits a Class B misdemeanor that can lead to civil and criminal penalties if they market, advertise, sell or cause to be sold an e-cigarette product and the product’s container meets any of the following criteria:

depicts a cartoon-like fictional character that mimics a character primarily aimed at entertaining minors;
imitates or mimics trademarks or trade dress of products that are or have been primarily marketed to minors;
includes a symbol that is primarily used to market products to minors;
includes an image of a celebrity; or
includes an image that resembles a food product, including candy or juice.
A violation can result in a Class B misdemeanor conviction punishable by up to 180 days in jail, a fine up to $2,000, or both. E-cigarette retailers also can face civil penalties up to $3,000 and a permit suspension or revocation for repeat violations.
The Comptroller’s office and partnering agencies perform inspections for signage and employee compliance concerning the sale, possession and use of cigarettes, e-cigarettes and tobacco products, according to a press release.
December 11, 2023
Vuse Continues to Grow Market Share Over Juul

Credit: RJR Vapor Co.
The latest Nielsen convenience store report covering the period ending November 4th shows the market share for R.J. Reynolds Vapor Co.’s Vuse electronic cigarette continues to grow over rival Juul.
Vuse’s market share rose from 41.8% to 42.1%, compared with No. 2 Juul being unchanged at 24.4%.
As recently as May 2019, Juul held a 74.6% U.S. market share in the electronic cigarette category. That’s when a series of regulatory actions led to product-reduction concessions by Juul.
Meanwhile, Altria Group’s ownership of No. 3 NJoy hasn’t resulted in a meaningful market-share increase so far. It remained unchanged at 2.5%, according to the Winston-Salem Journal.
Fontem Ventures’ blu eCigs, an affiliate of Imperial Brands Plc, was unchanged at 1.3%.
According to Barclays, Nielsen largely covers the big chains. For the smaller chains, the group extrapolates trends, which is why trend changes don’t appear immediately in Nielsen.
Altria Group and British American Tobacco have issued a warning about the surge in “illicit” synthetic nicotine electronic cigarettes in the U.S. vaping market. Both companies have estimated those synthetic products represent about half of the overall domestic market.
In July, BAT’s president and chief executive Tadeu Marroco expressed his frustration to analysts about the proliferation of “unauthorized products” in the U.S. vapor market.
Marroco’s concerns come in large part because of the pivotal revenue role Vuse is playing toward BAT achieving its fiscal 2024 goal of achieving annual profitability for its new-category products and its 2025 goal of at least $6.4 billion in new-category product revenue.
By comparison, Reynolds’ Vuse was down 1% in the latest report, while NJoy was down 13.7% and blu eCigs were down 15%. The overall e-cigarette category was down 8.1%.
The recent heightened pressure on overall tobacco industry volumes and sales remained steady over the four-week period.
The Nielsen report reflects the banning of traditional menthol cigarettes in California in December, which represents about 8% of the national marketplace.
November 20, 2023
Hyla Files to Market Vegan Vape Systems in EU

Endexx Corp.’s Hyla division is filing an EU Tobacco Products Directive (TPD) application for its vegan formulated e-cigarette products.
“Our proprietary botanical ingredient profile, flavoring and vegan sensitive formulations created in the United States will carry through in Hyla’s nicotine-enhanced products. These factors are what differentiate Hyla’s product quality,” stated Nick Mehdi, CEO of Hyla. “Hyla’s distribution partners in Europe are the top tobacco and e-cigarette distributors in Europe and have directly requested this product expansion due to ongoing demand and need for compliance leadership provided by Hyla.”
The TPD registration accelerates Hyla’s product placement into Austria, Belgium, the Czech Republic, France, Germany, Greece, Italy, Slovakia, Spain, Switzerland and the United Kingdom. Several of the listed countries have already reviewed Hyla’s non-nicotine products. The TPD registration opens the European market to all Hyla’s products.
“Endexx’s investment into Hyla has generated early success by providing non-nicotine electronic devices into the international markets. The Hyla brand represents high-quality, vegan and natural products, with attention to all regulations and compliance required to conduct commerce in each country,” said Todd Davis, CEO of Endexx. “This registration process helps secure the success of our long-term target of being a dominant player in the international age-restricted CPG markets.”
November 15, 2023
Louisiana Releases Approved Vape Products List

Credit: Steheap
Louisiana’s new law bans retailers from selling vape products not listed on a state-approved registry, known as the V.A.P.E. Directory.
To receive authorization, products need a marketing order from the U.S. Food and Drug Administration or must meet one of several narrow exceptions, which favor products that have been on the market since at least 2016.
The state’s Office of Alcohol and Tobacco Control (ATC) released its list of nearly 400 approved vape products on Friday.
The list’s release came after a 19th Judicial District Court judge decided not to grant a temporary restraining order that would have stopped the Louisiana ATC from halting the sale of specific products.
Lawmakers during the 2023 legislative session passed HB 635. It increased the state’s tax rate on vape products and limited the sale of products to only those approved by the FDA.
The law is being challenged by the Louisiana Convenience and Vape Association, which argues it is unconstitutional. Whether or not the law remains on the books will be determined by a judge at the 19th Judicial District Court who will decide whether to stop the ban on those products in the coming weeks.
With the time both parties have until they return to court, plaintiffs will try to get the attorney general involved since a constitutional challenge is being made. We reached out to the LCVA for comment but did not hear back.
Part of the law raised the tax on vape liquid from 5¢ to 15¢ per milliliter. Those extra tax dollars are designated for state trooper salaries. However, the LCVA argues the law will wipe out at least 60% of the products off their shelves and, therefore, not result in the revenue increase lawmakers expect.
November 12, 2023
Louisiana Ends Sales of Unauthorized E-cigarettes

Today is the day that any vaping product not authorized by the U.S. Food and Drug Administration must be removed from store shelves in Louisiana as the state’s new vaping law goes into effect.
Act 414 also increased taxes on vaping products, which began on Oct. 1. Beginning today, only FDA-approved vapes and alternative nicotine products registered with Louisiana Alcohol and Tobacco Control (ATC) will be allowed to be sold in the state.
For the products to be considered by the ATC, a $100 application fee per product is required as well as authorization by the FDA. A list of those approved products will be released today. It is expected to be a short list.
To date, the FDA has only authorized 23 tobacco-flavored e-cigarette products and devices, which are the only e-cigarettes that currently may be lawfully sold or distributed in the U.S. Many of those products are outdated and all are owned by major tobacco companies.
November 1, 2023
Deadline is Nov. 1 for Louisiana Vape Product Registration

Credit: VFHNB12
A strict new vape law goes into effect on Nov. 1 in Louisiana. It will require every vapor product manufacturer to register their products with the Louisiana Alcohol and Tobacco Commission (ATC).
Store owners say the impact could be devastating for sales since fewer vape products will occupy shelf space as products not approved by the ATC can not be legally sold in the state.
“Every store will take about a 30, 40 percent hit. It will impact us not only through sales but also through payroll, keeping up with our expenses, different things like that will definitely affect business in a worse way than we could imagine,” Lit Vape and Smoke Owner Bilal Wardariya told KPLCTV.
The legislation stemmed from a bill to increase the vape tax, which tripled this year, but Wardariya said limiting the usage of vapes is taking it too far.
“I think this vape ban negatively impacts the state in many different ways, not just people, but the state itself because we give so much tax revenue. As a whole, I’d like to see this thing get resolved and hopefully, we can still sell and keep the same process we’ve been having for many many years,” he said.
Other vape shops in the area agree that it will affect business but believe the state and customers will suffer as well.
“We pay thousands of dollars in taxes between all of our stores, so they’re going to lose that, and it affects our customers because a lot of them genuinely need this to stop smoking cigarettes and stuff,” Smoke 360 Manager Joshua Snyder said.
For the products to be considered by the ATC, a $100 application fee per product is required as well as approval by the FDA. A list of those approved will be released on Nov. 1.
To date, the FDA has authorized 23 tobacco-flavored e-cigarette products and devices, which are the only e-cigarettes that currently may be lawfully sold or distributed in the U.S. Many of those products are outdated and all are owned by major tobacco companies.
October 26, 2023