An e-merging channel for turnover growth
The growth of the e-cigarette category is set to continue, with sales in Ireland expected to reach €46 million in 2016 – up 18.8% this year. With this in mind, we examine what the changes to be implemented under the EU Tobacco Products Directive (TPD2) will mean for the sector, as well as highlighting the top-selling brands
16 December 2016
In 2014, ‘Vape’ was the Oxford Dictionary’s Word of the Year. Since then, vaping has grown, with e-cigarette sales in Ireland expected to reach €46 million in 2016*, growing 18.8%** this year.
The growth of the e-cigarette category is projected to continue, driven primarily by retail and vape shops. Importantly, retail will be the key channel for vapers over the next three years, with the obvious benefit of driving footfall in stores.
The EU Tobacco Products Directive (TPD2) must be fully implemented from May 2017, and will place new restrictions on e-cigarettes. Ahead of the deadline next May, retailers and consumers will start to see changes to e-cigarette products and packaging over the course of the coming months.
As convenience retail will be the key channel it is important to know the regulations and help your customers through the transition.
For example, TPD2 will require e-cigarette packaging to carry text health warnings covering 32% of the two largest surfaces of the pack, while an accompanying leaflet containing extensive information must also be included by manufacturers. There will also be new restrictions on ‘descriptors’, so the names of some brands and brand variants will change.
There will be a limit of 10ml on refill container sizes. The maximum liquid volumes for disposable e-cigarettes and refill cartridges will be 2ml, while there will be a limit of 20 mg/ml on the strength of liquids. Currently, refills do not have a size limit, and the strength of liquids cannot exceed 24 mg/ml. Products must incorporate child proof and tamper proof features, and offer protection against leakage of e-liquid.
It is important to know the regulations, but it is also critical to know the category so you have the right products available for your customers.
Visibility is key – ensure e-cigarettes are located prominently in-store, preferably on the counter top in a bespoke countertop unit. To ensure existing adult smokers and vapers are aware of the choice and range on offer, it is important to keep a clear and tidy e-cigarette display.
Stay stocked up
It is vital that the e-cigarette merchandising unit remains well stocked to help guarantee repeat visits from local customers and maximise profit. Remember to re-stock each morning and prior to peak traffic times.
Think about your customers
Offering an e-cigarette range alongside traditional tobacco will ensure the store is a one-stop destination for existing adult smokers and vapers.
Educate your staff
Ensure staff are well trained on how to educate existing adult smokers and vapers about the e-cigarette category and range stocked in store and stay up-to-date with market information and new product launches.
JTI is committed to this category. Over the last 18 months JTI has changed the shape of the e-cigarette market by launching E-Lites Curv, providing vapers with a superior and convenient vaping experience, with extra reassurance on e-liquid quality.
Following this, in April 2016 JTI introduced Logic Pro, the new advanced vaping system with no mess, no fuss technology. Logic Pro combines the power and performance of open tanks with the simplicity and convenience of rechargeable, and is most suitable for existing adult smokers and vapers with high expectations for performance.
The focus on quality, breadth of range, and investments made by JTI has yielded unprecedented success for the brand, with Logic becoming Ireland’s number one electronic cigarette brand*** in less than 18 months since launch.
JTI’s salesforce is on hand to provide expert support and advice to help you maximise sales. Orders can be made through your local JTI trade marketer, cash and carry or you can place an order by calling 01-404-0200.
*(Source: JTI Internal Data)
**(Source: JTI Internal Forecast based on Nielsen Extended Scantrack Jan-Aug 16)
***(Source: Nielsen Scantrack Value Share 4 w/e 30 Oct 2016)
Building on consumer insights
Aqua Vape is the new name for Liqua Lites. Ampersand has presented the brand on the Irish market for the last four years. The name change was part of an overall brand refresh with an update to the product range that coincided with changes made to comply with EU TPD2 requirements.
Over the last 12 months the team has spent a lot of time talking to consumers to gain insight into what they were looking for to satisfy their vaping needs. It was found that vapers wanted simplicity, especially new entrants into the vaping category. Education and how best to use and maintain the kit was also important along with good quality components that offer flexibility as you become a more experienced vaper. From this, the Series Range was developed.
The Series range is true to the mission statement; providing simple, safe and satisfying starter kits that meet the needs of the vaper from entry level to a more experienced user. The colourful packaging design clearly displays the contents of each kit and the tanks, batteries and coils within the kits have also been upgraded to provide a better vaping experience.
Ampersand will be supplying the Series 1 and Series 2 kits from the range onto the Irish convenience sector.
Series 1 – This is ideal if you are new to vaping or a vaper that just wants a simple but effective vaping device. This has been specifically designed so the user can enjoy vaping without any fuss…just fill the tank, connect and go. Included in the pack is a spare clearomiser to provide some flexibility to try other flavours or to just have a backup for your favourite e liquid.
What’s in the Series 1 Kit?
- 1 x 900 Universal Battery
- 1 x USB Charger
- 2 x Disposable Tanks
- 1 x User Guide
The Series 2 kit was designed to provide an enhanced vaping experience. This is achieved through the provision of a dual coil tank which gives a smoother more controlled vape. The kit has a perfect combination of power and resistance plus a spare coil to replace when required.
What’s in the Series 2 Kit?
- 1 x 900 Universal Battery (also compatible with the Series 1 Tank)
- 1 x USB Charger
- 1 x Dual Coil Tank (reusable)
- 2 x Replacement Dual Coils (1.5 ohm)
- 1 x User Guide
All the accessories and spare component parts which can be purchased separately have also been branded with the relevant Series numbers. In simple terms a Series 1 coil is compatible with a Series 1 tank and a Series 2 coil goes with a Series 2 tank.
Both the Series 1 and Series 2 can be used with any e-liquid from the 50% VG 50% PG Aqua Vape range. Manufactured in the UK, Aqua Vape e-liquids are TPD2 compliant and made to the very highest standard with graded pharmaceutical ingredients to produce exclusive flavours across a selection of strengths.
Positioned right at the forefront of the vaping revolution, the Aqua Vape range of products includes all the best-selling flavours, hardware and key accessories a vaper requires and continues to evolve and expand to meet the varying needs of their consumers.
For more information or to place an order, contact your Ampersand representative or call the sales line on 01 4130150.
Solutions for all types of retailers
Hale is a distributor and manufacturer of e-liquid, vaping devices and accessories. From the company’s distribution centre in Dublin, it supplies retailers all over Ireland, the UK and mainland Europe.
The company offers point of sale solutions to suit all types of retailers including specialised vaping shops, supermarkets, convenience stores and independents.
Hale’s popular brand of e-liquid is now sold in over 400 retail locations, servicing a loyal customer base. The company manufactures its own brand of e-liquid at a production facility in Ireland. Using only high quality ingredients, Hale says this ensures the quality achieved in its finished product is unrivalled in the marketplace. The factory operates under the good manufacturing code and all of its products are EU 2016 compliant. In producing its own e-liquid, Hale guarantees quality standards are being met at every stage of the manufacturing process.
Despite rapid growth there is great potential to increase the number of ‘vapers’. Currently 18% of smokers and ex-smokers use e-cigarettes, leaving plenty of new potential customers ready to convert. Unlike the lower margin levels from tobacco, Hale products can provide retailers with a margin exceeding 40%.
Hale also has the largest and most authentic range of e-liquids in the marketplace. Currently the company stocks 80 different flavours that are available in five nicotine strengths. This includes 12 types of tobacco flavours that have all been designed to profile the taste of popular filtered tobacco brands, making it as easy as possible for the customer to make the switch.
For more information or to place an order, contact Creative Distribution, Hale’s exclusive distributor for Ireland and the UK.
Hale also offers a full range of hardware and accessories catering from the beginner to the advanced vaper. Its professional customer service experience can help select and stock the most profitable range for a retailer’s customers.