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[FEATURE STORY]
Flavored Smokes
Mmmmm...More profits?
By Melissa Niksic
Mint. Cherry. Vanilla. Mango. Grape. No, these aren’t your choices for a soda or a latte. Flavors have also inundated the tobacco industry, and consumers have plenty of options from which to choose.
Flavored tobacco products have been around longer than anyone can remember. However, the popularity of these products has greatly increased in recent years.
House of Oxford Distributors offers a variety of flavored cigars and other tobacco products. Some of its top sellers include Swisher Cigarillos in Regular, Grape and Strawberry; Optimo Cigarillos in Grape and Peach; Black & Mild in Traditional and Apple; Phillies Blunts in Strawberry and White Owl Sport Peach.
Photo courtesy of Swisher International, Inc. |
According to Vice President Alex Goldman, the sale of flavored tobacco products skyrocketed when flavored homogenized cigar wrappers, or blunts, arrived on the market several years ago.
“Shortly after the traditional cigar manufacturers saw how well these products were doing, they started to concentrate on flavored cigars,” Goldman says. “Until that point, the only really popular flavored cigars were Swisher Sweets, which by their very nature are flavored. But soon we started seeing brands like Phillies, White Owl and Swisher coming out with flavors.”
Consumer demand for a larger variety of flavored tobacco products also rose when the industry experienced an overall spike in cigar sales during the late 1990s.
“In the past few years, we have been able to witness a revival that has allowed traditional products to be looked at in a new light,” says Heather Phillips, president and CEO of Heavenly Cigar Company, known for its angel spokeswomen and its flavors. “The people that are willing to trade their paradigms for open-mindedness have been rewarded with a myriad of exciting products that test the limits of the traditional.”
Swisher Sweets cigars are one of the oldest flavored tobacco brands on the market, and were first introduced in 1958. When flavored tobacco products gained popularity several years ago, Swisher International, Inc. immediately expanded its flavor offerings.
“Swisher International responded to this popular trend by offering cigars in various flavors, including strawberry, peach, chocolate, honey, tequila and just recently, grape,” says Jane Green, vice president of marketing at Swisher International, Inc.
Flavor everywhere
One of the industry’s top producers of flavored tobacco products is HBI International. In addition to cigars, blunt wrappers, rolling tobacco and papers, the company offers innovative products like flavored cigar wrappers and even flavored glue.
Photo courtesy of Heavenly Cigar Company |
“We’ll flavor just about anything,” says Josh Kesselman, marketing spokesman for HBI International. “We’ve been marketing roll-your-own flavored papers for more than 15 years, which is longer than anybody. We recently launched a line of flavored cigarette tubes, and we’re the first ones to ever do that.”
Kesselman claims that HBI International has the best flavored tobacco product line on the market. He says that the quality of the products is due to the detailed triple-dip process that the company uses to flavor products.
“The difference is all in the flavor,” Kesselman says. “Other manufacturers don’t want to devote the time or the expense to the flavoring process the way we do. Some companies only flavor the edges or the rims of the products. When you lick our paper, it tastes like candy. There is no comparison.”
Flavored cigarette papers are HBI’s top-selling product. The Juicy Jay’s product line is one of the top-selling paper brands on the market. Juicy Jay’s papers are available in more than 30 flavors, including Raspberry, Blackberry Brandy, Watermelon, Coconut, Chocolate and Blueberry. HBI also carries The Original Spanish Flavored Papers line, which is available in eight flavors.
An extension of the Juicy product line includes Juicy Blunts wrappers. These products are made with the same triple-dip flavor system used to make Juicy Jay’s papers. Popular flavors for the blunt wrappers include Tequila Gold, Apple Brown Betty, Chocolate Chip Cookie Dough, Peach Cognac and Cherry Vanilla.
Heavenly Cigar Company offers a premium flavored cigar line called Heaven. These cigars are available in 12 flavors, the most popular being Vanilla. Other flavors include Honey Nut, Celestial Cognac, Midnight Mocha Creme, Orange Dreamsicle, Cupid’s Cherry Cream and Raging Rum.
Phillips says that Heaven cigars have a very unique taste that sets them apart from competitors’ products. “We have managed to create a cigar that is like no taste on earth,” she says. “Many aromatic cigars tease your pallet with hints of this and that. Our products are the most straight-forward flavored cigars available. When you smoke our cherry creams, for instance, there is no mistaking the up-front flavors of ripened cherry and earthy tobacco.”
More is less
Although flavored tobacco products are more popular now than ever before, there are actually less flavors to choose from than there were in the past. When manufacturers first began competing with flavored products, the market became overloaded with multiple flavors.
“For a while it felt as if we were operating a Baskin-Robbins ice cream store,” Goldman recalls. “We had the top 64 flavors from Altadis and everyone else, or at least it felt that way.” New flavors were hitting store shelves every month, but there were too many products to choose from and most of them did not survive. Since then, many flavors have been discontinued and manufacturers are focused on marketing items that will sell well in stores.
Strawberry has always been a popular flavor among tobacco products, and it continues to sell well today. One of the most popular new flavors on the market right now is grape. Kesselman also reports that fusion flavors are gaining popularity.
“We have a Mango Papaya Twist that’s doing very well,” he says. “Seasonal flavors are also good sellers. At Christmas we have a Candy Cane-flavored paper, and at Valentine’s Day we offer a Candy Heart flavor. The seasonal products always sell.”
Goldman thinks that there are still too many flavors on the market, but he believes that trend will continue to taper down. “I think we will see more concentration in items in the near future, with more concentration on the bigger, more sustainable flavors such as strawberry, peach and grape,” he says.
Kesselman believes that the flavored tobacco industry will continue to thrive in the future. “I’m a smoker, and the fact of the matter is that flavored cigarettes taste better than regular cigarettes,” he says. “That’s the bottom line. It’s like comparing regular bottled water to flavored bottled water. The flavored water tastes better, and as more people try it, it’s going to become even more popular.”
Who are flavors for?
While different cigars target a variety of markets, all flavored tobacco products tend to appeal primarily to younger consumers. However, any smoker who is seeking something different is a potential buyer of flavored tobacco products.
“People like the aroma and taste better than some traditional cigars,” Goldman says. “A lot of flavored cigars are actually flavored on the tip so that the smoker not only smells the flavor, but actually tastes it.”
Photo courtesy of HBI International |
Flavored products also appeal to smokers who are looking for a new product to enjoy. Phillips says that cigarette smokers are more willing to try a flavored cigar over a traditional cigar. “A lot of people who are cigarette smokers are more inclined to try a flavored cigar because they are generally mild- to medium-bodied cigars, and cigarette smokers have a hard time breaking the inhalation habit,” she explains.
Flavored tobacco products tend to come under even more scrutiny than regular tobacco products. Many states and municipalities have proposed legislation outlawing all types of flavored tobacco. The argument being used is that flavored products are being directly marketed to kids, a claim that Goldman vehemently denies.
“Flavored products, like all others, are targeted at responsible smokers,” he says. “If the retailers are being responsible about whom they sell to, why should we need bans? We just need to make sure that the retailers follow existing age verification laws.”
Selling flavor successfully
How can tobacco retailers expand the sales of flavored products in their stores? Goldman says that product selection and quality are the keys to success.
“Offer a good selection of fresh products at a reasonable price,” he says. “There is nothing worse than buying a stale product....The customer will never come back.”
Kesselman agrees. “People like this kind of change, they like to shake things up,” he says. “A customer might want to try a cherry-flavored product the first week. Then he’ll come back and want to try banana or marshmallow or cotton candy. If you’ve only got two different flavors to choose from in your store, you’re not catering to the customer’s needs.”
Green says that retailers need to find a balance between a wide selection of products and items that sell well. “Carry enough flavors to offer smokers the variety they desire, but be careful not to burden the set with slow-moving items,” she warns. “Sales trends vary from region to region, so it’s important to customize the plan for each store location.”
Kesselman notes the importance of distinguishing your store from the competition. “If you carry a good selection of flavored products, you’ll become known for that and people will continue to visit your store,” he says. “You can’t carry the same stuff as the convenience store down the road. You need to attract customers with a wide selection of premium products.”
To be successful with flavors, retailers also need to do what they can to become more educated about flavored products. “The most important thing that tobacco retailers can do is to contact their manufacturers and become educated on the exact differences between the flavored products they sell,” Phillips says. “By having more information, you are capable of truly helping someone pick out the flavored cigar for them.”
HBI International routinely provides stores with product information packs including T-shirts, samples and literature. “We want to educate store employees about our products so they’re better equipped to answer questions from the consumers,” Kesselman explains.
HBI also offers several different marketing options to retailers, including signage and product display cases. Kesselman points out one display unit that has eight tiers and adjustable shelves. The unit doesn’t feature a branding design: it’s decked out in basic black with a general slogan that says “Rolling Supreme.” Retailers are encouraged to use the display to showcase a variety of products, including the competition.
“We’re so confident in our products that competing products really aren’t a concern to us,” Kesselman says. “Retailers need to present a variety of items to the shopper. They’ll make a lot of money that way, and so will we.” |
