Maximising seasonal sales? Close… but no cigar

Some 88 per cent of retailers are failing to capitalise on the potential profits from cigars, new research has found.

While nearly a quarter of retailers notice increased cigar sales over Christmas, only 11 per cent take advantage of the profit opportunity by stocking up.

Cigar sales can increase by as much as 10 to 15 per cent the week before Christmas compared to the preceding weeks, while research shows a further 15 per cent see an increase in dual smokers during the festive run-up.

The independent research commissioned by JTI and carried out by CheethamBell JWT strengthens the argument retailers should stock-up on the most popular cigar brands and formats to up-sell to their existing adult smokers.

Some 72.5 per cent of retailers reported Hamlet is the most recognisable cigar brand – more than five times that of the nearest competitor – while miniatures remain the most popular cigar size with 63 per cent stating this as their most successful format.

Jeremy Blackburn, JTI head of communications said: “Hamlet is a long-standing success story for retailers and an absolute must stock in the run up to Christmas.

“As the figures suggest, cigar sales typically increase over this period, so retailers need to take advantage of this trend and prepare accordingly.

“Those retailers who aren’t seeing an increase need to stock up with the most recognisable cigar brand and take advantage of the Hamlet half-outer allowing them to tap into the profit opportunity without tying up funds.”

Introducing new pack designs and formats across the Hamlet house earlier this year, Hamlet holds a 38 per cent share of the cigar category in the independent trade and is one of the top three cigar houses in the UK.

Offering PORs of up to 21.3 per cent, retailers are able to take advantage of the impressive profit margins that Hamlet offers along with the additional benefit of the Hamlet half outer, which 40 per cent of retailers surveyed found useful for reducing cash outlay.

For more information on Hamlet cigars, retailers should speak to their local JTI representative or call the JTI Customer Careline on 0800 163 503 to arrange a visit.

Retailers can also visit www.jtiadvance.co.uk for further information, support and guidance on tobacco retailing.

Hamlet pack sizes and price points

Hamlet Large Whiff 5s – RRP £5.15

Hamlet Large Whiff 10s – RRP £10.24

Hamlet Large Whiff 50s drum (cigars sold as singles) – RRP £1.07

Hamlet Miniature 5s – RRP £2.50

Hamlet Miniature 10s – RRP £4.86

Hamlet Blue Miniature 10s – RRP £4.86