Cigar price comparison – Pricewatch
With plenty of extra margin available on cigars, Tamara Birch breaks down everything you need to know
Our cigar price comparison tools below will help ensure you make the most of this key category.
The cigar category can present a wealth of opportunities to convenience stores. Unaffected by many of the restrictions placed on cigarettes, it’s growing in popularity with consumers while seeing innovation from suppliers.
Of the 12 lines analysed, three-quarters have more than 50% of retailers charging above the most common price, and with one exception, no line has more than 5% of retailers charging below the most common price. A sure sign that this is not only a flexible category, but one where it’s possible to eke out extra margins.
For instance, 70% of retailers are charging above the most common price of £6.72 on Castella Classic 10s, going up to £7.89. Meanwhile, JTI’s recently launched Sterling Dual Capsule Cigarillos has 62% charging above the most common price of £4.55, going as high as £6.50, showing the potential in new menthol-flavoured products in this category in the wake of the menthol ban.
Store & location: Budgens, Meriden, Coventry
Size: 1,400sq ft
Top cigar products
“Scandinavian Tobacco Group’s Signature range sells well for us, and Castella Classics perform well, too. We often charge above the RRP on a lot of our miniature cigars, but it varies from product to product. We’ve found that cigar customers are willing to pay extra and, on some cigar lines, we make up to 18% margin.
“We offer a lot of premium cigars, such as Havana and Romeo y Julieta cigars, which we price at £19 each. We removed our gantry after our refit, which enabled us to use the space to focus on more profitable categories.”
Store & location: Premier Smeaton Stores
Size: 1,000sq ft
Top spirits products
“Cigars is a steady category, but cigarillos have made it stronger. When the menthol ban was introduced, shoppers were trying everything, and most have settled on cigarillos. Cigarillos have filled a gap in the market because it’s a dual filter and a smaller pack size, making it more affordable for shoppers.
“Sterling Dual is our bestselling line, but we also stock the Signature range, which is picking up. Since Covid-19 restrictions, reps haven’t visited, so I use the trade press to find new products, which has helped me to stay ahead.”
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