Can grocers keep pace as e-cigs evolve?

By most category standards, e-cigarettes is still very much a booming market - 18.6% value growth on volumes up more than a quarter is a rare sight in the grocery trade.

But for e-cigs and vaping products, this represents a slowdown compared with the stellar growth recorded in the past few years. Look outside the grocery channel and there is little sign of such a slowdown, however, and traditional grocery retailers are at risk of losing out to direct online sales and the specialist vape stores that continue to open across the country.

The quickly evolving market and plethora of new launches make it hard for convenience retailers, in particular, to manage the category and keep up with the latest trends.However, the growing expansion of big tobacco companies into the e-cigarette sector will help retailers in this regard, argues JTI communications head Jeremy Blackburn

“The expertise, resources and capacity for research of tobacco companies investing in the market have played an important role in ensuring the future growth of the e-cigarette category,” he says.

Along with JTI, which owns E-Lites, the tobacco companies have established a strong presence. Philip Morris International owns Nicocigs, which is the maker of the Nicolites and Vivid brands. BAT has Vype owner CN Creative, while Imperial owns Blu.

The grocery trade may benefit as these brands become fully integrated with the tobacco companies’ distribution operations and sales forces, which already have close ties to retailers.

However, this is still at an early stage and some retailers have already looked elsewhere for help. In May, leading CTN operator Rippleglen handed over the management of its e-cigarettes business to specialist Real Trading, which also works with Nisa, Budgens and Bestway.

“There are so many brands it is impossible to decide which ones to stock,” explains Rippleglen buying director Laraine Jones. “Real Trading have now put in a range to all our stores and we are monitoring sales.”

E-cigarettes have had an impact on the market for more traditional nicotine replacement therapies (NRT), such as gums and patches, which have fallen 7.6% by volume year on year.

Last year, brand leader Nicorette looked to take on vaping with an advert that challenged smokers who wanted to give up the habit, stating: ‘Don’t quit, give up for good.’

It is clear the makers of NRT products see vaping as a serious threat to their industry. With the key trading period coming up - as consumers make new year resolutions to quit smoking - they are sure to face further challenges in the form of a fresh wave of marketing activity from e-cigarette and vaping brands come January.