Marlboro to Lead Market Share Growth
OAK BROOK, Ill. — More than a year removed from the largest federal levy in history, the state of tobacco is strong, albeit changed.
Cigarettes, despite ongoing unit declines, continue to generate high rings and propel market basket purchases. At the same time, other tobacco products (OTP), from the strongholds of moist smokeless and cigars to the promising prospects of oral products, are rapidly transforming convenience stores from cigarette-center outposts to total-tobacco depots.
In the latest CSP-UBS Tobacco Survey, more than 50 retailers, from one-store shops to 5,000-site chains, addressed a number of issues, from supplier field execution and promotion value to new products.
In the first of a three-part series, CSP examines the strength of the top-selling cigarettes. Retailers were asked: “Among the Big Three premium brands, which one do you expect to gain the most market share in 2010?”
The results: 56% of respondents said Marlboro, 24% said Newport and 20% gave the nod to Camel.
“Marlboro is regaining some share momentum after 2009′s ‘transition year’,” UBS tobacco analyst Nik Modi said. “It looks like the company is executing better as an integrated total tobacco company (though we still believe there is room for further improvement).”
As for the other major brands, Modi offered this assessment: “Newport continues to be the most consistent performer among the Big Three premium brands and Camel seems to be losing some momentum it built last year, perhaps due to RJR’s focus on Pall Mall—which continues to grow very strongly and from a very successful roll out of Camel Crush in 2009.”
From cspnet.com, July 12th, 2010