TOBACCO: OVERVIEW/NEXT-GEN
the products better and more safer for consumers. What I would not agree with is the complete banning of vaping.” Responding to a question on the
messages travel retail suppliers are receiving from retailers on next-generation products, including e-cigarette and heated tobacco variants, Tania D’Souza, General Operations & Marketing Manager Worldwide Oriental General Trading tells TRBusiness: “It depends on the region or country’s rules and regulations on vaping and e-cigarettes. “The UAE has recently made
e-cigarettes legal for sale in duty free departures,” says D’Souza. “Retailers are open to the idea of
e-cigarettes as there is high demand for these products especially via the duty free channels. Regulations are not only a challenge for next- generation products but for traditional tobacco and cigarettes.”
Market still evolving KT International Global Marketing Manager Stuart Buchanan says the footprint for next-generation products are very much driven by Europe, the US and specific markets in Asia, and the company continues to watch the numbers. “On a global level we still see
contestable space in combustible cigarettes and our volume performance stands testament to this,” he explains, noting an ‘exceptionally good’ 2018 for the
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company with volumes growing at high-double digit levels. “We believe all products
across all categories require sensible regulation. As an adult category, we believe this stands for both traditional and non-combustible products.” Japan Tobacco International
(JTI) confirms the majority of demand from duty free shops is on conventional tobacco products, with potentially reduced-risk skus considered an evolving business. “We believe conventional tobacco
products will continue to coexist alongside potential
reduced-
risk products for some time to come,” observes Gemma Bateson, Corporate Affairs & Communications Director Worldwide Duty Free. In a year in which the company
gained market share and experienced volume increases for its Winston, Camel and Mevius brands, it equally maintained its commitment to protecting the category itself, outlines Bateson. “The tobacco category continues
to perform, growing sales value by 2.2% in 2018 versus 2017 (NPD ETRC Index) and continues to be a key cornerstone of the travel retail environment. We expect this to continue for 2019 as passenger numbers are predicted to grow.” Addressing
next-generation
products, she adds: “The regulatory framework around vaping products varies internationally and is an important topic of discussion in
Vape Duty Free taps e-liquids boom
Established in 2017, e-liquid brand Vape Duty Free currently supplies retailers in the UK in addition to 10 other countries including Spain, Poland and Japan. While not currently listed in travel
Corset display from KT International.
“Retailers are open to the idea of e-cigarettes as there is high demand for these products especially via the duty free channels.”
Tania D’Souza, General Operations & Marketing Manager Worldwide, Oriental General Trading
the media. “As with other consumer
goods, vaping should be subject to appropriate product safety requirements. “However, excessive regulation
could be detrimental to competition, innovation and consumer choice.” A number of the other ‘big’
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tobacco companies were not available to comment on next- generation products in duty free when approached by TRBusiness for this report. «
retail, the brand tells TRBusiness it harbours ambitions to offer its products in duty free lounges globally as part of a three-year business plan. At present, the company stocks a
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2017 by the government under the EU Tobacco Products Directive,” says Ash Mehmood, Managing Director. “Many brands and companies offer
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range of nicotine-free e-liquids but it has plans to launch its first nicotine-based product, Nic Salts. “Nicotine-free e-liquids are a product
which is mass consumed in the UK and EU due to the legislative changes in
FEBRUARY 2019
nicotine-free propositions and it is a fiercely competitive market. Due to the vaping market still being fairly infant and even governments and health institutions still figuring out the long-term effects of vaping on consumers, it has a created an opportunity for businesses to operate in this market due to the lack of regulation. “We are expecting further regulations
in the future which will offer a level playing field for smaller businesses like mine. The industry continues to grow
Ash Mehmood, Managing Director, Vape Duty Free.
TRBUSINESS 47
and will do for the foreseeable future which excites myself and people within the industry.”
Above: Gemma Bateson, JTI.
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