Category Management | Vape
In fact, Galli noted that vape sales are more than keeping pace. “Other tobacco products, vape and nicotine replacement products have been doing very good for us, and it continues to grow,” he said. NielsenIQ Total U.S. Convenience data over the 52 weeks ending Oct. 23, 2021, registered an increase in dollar sales of 13.8% for both tobacco alternatives vapor and electronic cigarettes. This is consistent with the same period last year, which landed at 14.0% for each. Plus, the research firm reported that Vuse gained a point in market share for the four weeks ending Oct. 23, 2021, and dollar sales jumped more than 54%. WHAT TO WATCH
The FDA’s actions aren’t the only regulations affecting the category heading into 2022. In Massachusetts, the first state to pass a comprehensive flavor and menthol tobacco ban, lawmakers have proposed repealing elements of the law. One bill, for example, would exempt products granted FDA marketing approval or modified risk status. “The data shows the ban hasn’t worked. Increased sales in New Hampshire and Rhode Island coupled with conversion to traditional tobacco flavored cigarettes in Massachusetts prove this out,” said Jon Shaer, executive director, New England Convenience Store & Energy Marketers Association. “It’s difficult for retailers to watch the sales occur, just not through their stores.” “One of my issues is that when they put the ban into effect, it didn’t allow for PMTA or modified risk from the FDA,” added Anna Bettencourt, senior category manager for Haffner’s c-store chain, owned by Lawrence, Mass.-based Energy North Inc. “If the FDA clears products to be on the market, then states should allow them to be sold.” Another development that could benefit the vape category for c-stores is the final ruling on 52
CSTORE DECISIONS •
December 2021
the Preventing Online Sales of E-Cigarettes to Children Act (POSECCA). The law forbids the delivery of vape products to residences throughout the continental U.S. via the U.S. Postal Service. Several delivery services, including FedEx, also have declared they would no longer transport vape items to homes. “Consumer access is being tested with the new regulations,” Clark said. Perhaps the most intriguing component of this legislation is that Congress did not distinguish between tobacco plant-based and synthetic nicotine products. Currently, it’s unclear whether synthetic nicotine falls under FDA jurisdiction. It’s certainly a product line worth watching for its potential to replenish convenience stores’ back bars after so many MDOs. CSD
fast facts: • Vape and e-cigarette sales climb 13.8% at c-stores for the 52 weeks ending Oct. 23, 2021, per NielsenIQ. • The Preventing Online Sales of E-Cigarettes to Children Act bans mail delivery of vape products. • Manufacturers look to synthetic nicotine to possibly sidestep FDA regulations.
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