Evolution
Next
THE
Tobacco
IN
Tobacco remains the
product category in
C-stores based on sales per store. What’s the next step to maintaining tobacco sales in
C-stores?
of shoppers usually purchase tobacco in C-stores during a typical month.
41%
A new brand on the horizon delivers the solution.
C-stores maintain their leadership position by adapting to changing consumer lifestyles and tastes, such as broadening the assortment of other tobacco products (OTP). Gear up now for the next growth opportunity — Modified Risk Tobacco Products (MRTP).
MRTP products appeal to the roughly 70% of adult smokers who want to quit or reduce tobacco use for a variety of reasons ranging from improving their health to cost cutting. However, substantially fewer than 10% actually succeed. One reason is options such as OTP still deliver significant levels of nicotine, an addictive chemical.
22nd Century Group, Inc. (Nasdaq: XXII), a pioneer in the MRTP category, is on a mission to reduce the harm caused by smoking with its VLN brand — a cigarette with 95% less nicotine than conventional cigarettes. VLN cigarettes smoke, taste and smell like a conventional cigarette. The brand is the first cigarette in the world that is not designed to create or sustain nicotine addiction.
less nicotine
95%
Stocking VLN helps retailers offer a more complete tobacco assortment — it is the right and responsible action to serve your customers’ evolving tobacco purchases. Retailers who get ahead of the changes, making Modified Risk Tobacco product (MRTP) available, will have a competitive edge. More states are even granting tax reduction for MRTP-authorized products.
Natural American Spirit
Yellow Mellow King
Newport
Menthol Green
Camel
Full Flavor Filter King
Marlboro
Red 100
Marlboro
Gold 100
VLN
< 0.5mg
12mg
12mg
13mg
15mg
19mg
Changing Tobacco for Good
Offering VLN satisfies the lifestyles of today’s tobacco consumers. It is also the responsible thing to do. Stocking VLN is a relationship-builder between retailers and customers.
Good for Consumers: Good for Business
In June 2022, the Biden administration announced a proposed rule to establish a maximum nicotine level in cigarettes and other tobacco products that will essentially lower the amount of nicotine in products available in the U.S. VLN is not only authorized for sale but already meets impending regulations.
Other recent regulations have also eliminated categories in
C-stores that do not impact MRTP.
Education is paramount and 22nd Century Group hosts a website called Reducednicotine.com to help people on their journey. The company has initiated major statewide public relations campaigns to gain exposure.
22nd Century successfully piloted VLN with a key C-store retailer with research results that indicated more than a 70% product acceptance.
Best New Product in the Tobacco category
Product Acceptance
VLN Acceptability vs Usual Brand (UB)
Willing to Tell Others About VLN ?
Willing to Switch Exclusively to VLN ?
Willing to Use VLN with Usual Brand?
Willing to Use VLN with NRTs or Cessation Products?
Willing to Share Personal Journey with Media?
+70%
+70%
98.2%
36.4%
n/a
n/a
n/a
+70%
+70%
97.6%
33.7%
45.8%
19.3%
36.8%
**n=80; on-going
*n=28
Aided Trial
(M/A/R/C Research)*
Post Purchase
(Capstone Research)**
Key VLN® Consumer Demographics
How Did They Become Aware of VLN®
HS Grad + Some College – 65.9%
$25k - $100k Annual Income – 61.1%
Bought 2 pack + of VLN® – 37.0%
Signage + Shelf Position – 56.4%
Store Clerks + Circle K Promotions – 21.9%
Media – 12.8%
Promotional Offers/Others – 8%
Other key findings include:
70%
VLN is uniquely positioned to blaze the trail. The FDA created a regulatory process for products that have the potential to be MRTPs, taking into consideration everything from health risks to the likelihood that existing users of tobacco would switch.
The landmark decision not only cleared the path for VLN King and VLN Menthol stand out in the market, but also to prominently display “Helps You Smoke Less,” on every pack and carton.
There is pent up demand:
of adult smokers said they are likely to buy VLN.
More than
60%
Regulations are Coming:
22nd Century Group
is ready to bring its VLN products to your stores.
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The future of MRTP products replicates what has occurred in other categories such as non-alcoholic beers and organic foods. In both cases, these novel “better for you” products served up options rather than eliminating the existing business in beverages or foods.
#1
SURGEON GENERAL'S WARNING: Quiting Smoking Now Greatly Reduces Serious Risks to Your Health.
Nicotine is addictive.
Less nicotine does NOT mean safer. All cigarettes can cause disease and death.
See why VLN was awarded the
for Convenience Store News.
The MRTP set is the future of the category. MRTP provides an opportunity to improve profit margins without taking away from existing tobacco and tobacco-related products. MRTPs present the path to net higher margins.
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Sources:
1. Convenience Store News 2022 Realities of the Aisle Study
2. Convenience Store News Industry Report 2022 Deep Dive: Tobacco
3. CDC
4. 22nd Century consumer research
5. CNN
of adult smokers said they are likely to buy VLN.
2
1
3
5
Interested retailers willing to go where we go, please contact 22nd Century Group at SALES@XXIICENTURY.COM