Time Is Of The Essence
With smoking regulations meaning that people often have less time to smoke, it stands to reason that the ‘quick smoke’ cigar is on the rise. Chloe Gold takes a look at how the trend for cigarillos and related products is evolving in the tobacco industry
IT is no surprise that since the European-wide smoking ban was introduced in bars, restaurants and working places, people have had less time to enjoy cigars and smoking moments have become rarer and shorter. Yet, despite the restrictions imposed by the smoking and advertising regulations, the current trend within the tobacco industry is showing a growing demand for small-sized ‘quicksmoke’ cigars, particularly in travel-retail.
Adapting to this development is German manufacturer Arnold André, which added two new products to its brand – the Clubmaster Mini Vanilla and the Clubmaster Mini Vanilla Filter – to cater for the worldwide demand of cigarillos. Josef Wiese, director of sales at Arnold André, reveals that the company is focusing on developing a core assortment in all travel-retail outlets as cigarillos are currently the most important volume driver for the cigar industry.
“More than 90% of the worldwide volumes are cigarillos,” says Wiese. “They consist of filler (blend), binder and wrapper, just like cigars, but since cigarillos consist of relatively higher wrapper weight – the most expensive part of the product – usually cigarillos have a much more intensive taste.”
Wiese argues that the mini cigarillo not only offers the same satisfaction as large cigars and is much more accessible for a larger consumer group, but that the time to consume is shorter and the out-of-pocket price is lower.
“Despite the smoking bans more and more people have learned to appreciate the unique taste and flavour experience a small cigar can give,” says Wiese, who stresses that although cigarillos are smaller in size, they have not been produced to be smoked quickly. “Cigars and cigarillos are all about tobacco enjoyment and smoking pleasure. They have been developed so that people can still indulge themselves, even if they have little time,” he says. “For sure, some smokers of traditional cigars are switching to cigarillos because of the shorter smoking moments available. However, we believe that with cigarillos we attract totally new consumers to the category.”
These new purchasers, according to Wiese, consist of younger consumer groups between the agesof 20 and 40 who buy cigarillos complementary to cigarettes – what might be called the dual smokers. In times where advertising is hardly possible in domestic markets any longer, travel-retail remains an important platform for Arnold André and the most suitable outlet to showcase its brands and see the results. Due to the higher ‘instant appeal’ it has seen its duty-free sales go up by more than 20% in tested outlets over the last 12 months.
“If people are travelling they are usually in a good mood, they have time to shop and it’s often the ideal occasion to try something new,” notes Wiese. “Duty-free is often one of the few opportunities where people can buy international established cigarillo brands.”
Needless to say, packaging and design have become more important than ever for tobacco products due to the limited possibilities of advertising, and after extensive market research Arnold André decided to re-design its total Clubmaster range. In duty-paid areas it focussed on very attractive counter top displays, while in duty-free it occasionally works with hostess promotions.
“We are working on a product totally fitting into the travel-retail channel,” says Wiese. “A product that you cannot find everywhere, only in selected outlets. What it will be exactly should still be a surprise.” He adds: “We expect that in general, dutyfree sales of cigarillos are developing fastest in outlets in the East and Central Europe, Asia and the Middle East, due to the fact that the number of travellers to and from these regions is increasing and because the distribution infrastructure in the domestic market has not developed that well yet.”
Also responding to the demand for cigarillos within the travel-retail sector is Henri Wintermans, which is soon to launch its new Piccolini mini-cigar to the French duty-free market. Only last year at the TFWA World exhibition, Henri Wintermans launched two new products in the Café Crème cigarillo range: the Café Crème Tip and Café Crème Tip Arôme. The Piccolini range, which is a sub-brand of Café Crème but incorporating a shorter and thinner design, is presently sold as Finos in its domestic markets of Spain, Portugal and Italy. Karin Linders, head of brands at Henri Wintermans, states that the cigarillo is currently the most important type of cigar, with about 70% of overall category of sales.
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“This segment is the growing segment,” explains Linders. “A mid-sized cigar, like Panatella’s, represents around 20% and is currently decreasing. Large cigars, such as half-corona and bigger, represent around 10% and show a stable development.”
Linders explains that small cigars cater for the consumers who traditionally would have smoked cigarettes but are now switching to cigars: “Although overall the majority of cigar smokers are men, who make up 90% of the consumer mix, small cigars cater for younger adults as well as women who are becoming more and more interested in smaller cigars, especially aromatic cigars.”
Indeed, the unfolding trend of cigarillos is leaning towards flavoured versions according to Chris Pfister, the director for export sales at Villiger, who reveals that the most popular flavours are Vanilla, Cherry, Mocca and Chocolate, to be followed by new flavours in the near future. Villiger, which will be introducing a special limited edition cigar celebrating its 120th anniversary this year on September 5th, has introduced different flavoured cigarillos in various sizes in order to adapt the product to the market needs. The latest invention is sweet cigarillo product Premium Sweets Filter, with a sweetened tip and a filter, which Pfister reveals is particularly popular among young female smokers.
“The cigarillo is becoming a major part of the cigar business,” says Pfister. “In today’s world, the cigar smoker has less and less time to enjoy a good cigar, especially during working hours. Hence he is going for the short version which can give him the typical cigar taste, but for a shorter period.” He adds: “Cigarillos are targeting a target group than smokers of traditional cigars. Hence we create to a certain extent new target groups by attracting people interested in a full flavour smoke but not ready yet for a traditional large cigar.”
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