Rolling Right Along

By Keller, Maura

Do-it-yourself tobacco continues to make strides in the c-store market

AS THE COST OF TOBACCO PRODUCTS continues to rise, consumers are looking for alternative ways to purchase their tobacco products, while also saving money. Enter roll-yourown/make-your-own merchandise.

“Due to the continued increase of cigarette taxes and prices in many states, the savings appeal has made RYO/MYO a natural option for many smokers,” said Mary Beth Glynn, marketing manager at Republic Tobacco, Glenview, Ill. MYO refers to making a filtered cigarette with a filter tube and injector-style machine. RYO is the traditional hand or machine-roller method using a cigarette paper with the tobacco.

“RYO/MYO tobacco category growth is healthy, demonstrated by a 20- percent increase in the past year alone, as compared to an increase of 10 percent for cigars and 8 percent for smokeless,” said Glynn. “According to Republic Tobacco, MYO is the fastest-growing segment in the entire tobacco category. It seems that not only are retailers recognizing the importance of offering MYO options to their customers, but they are also enjoying average profit margins of 35 percent.”

For Rudiger Stuhlmuller, president of Gizeh of North America, Brea, Calif., the last five years have seen periods of large and steady growth. “I cannot speak for other manufactures of RYO and MYO products, but it has been good for us,” Stuhlmuller said. “I expect that over the next 10 years people will realize even more that RYO and MYO is a total smoking experience. As more and better tobaccos become available, the consumer will also realize how great RYO and MYO smoke tastes and smells, and that they can save a great deal of money.”

Experts agree that the future of the category looks bright. “RYO/ MYO segments will continue to grow dramatically as more consumers turn to this alternative versus packaged filter cigarettes,” Glynn said. “It follows suit that its retail presence will strengthen, both with shelf space and displays as well as in-store promotions, support materials and increased distribution.”

So what are some of the hottest RYO/MYO products available on the market today? Simply put, they are working hard to deliver what consumers want and what will help you enhance your bottom line.

ROBERT BURTON ASSOCIATES

In mid-2006 Robert Burton Associates, Fairfield, N.J., expanded its flavored cigarette rolling papers to include a new lemon- flavored paper. Adding to its E-Z Wider and Joker brands, the lemon flavor joins the popular wild berry-flavored paper previously released.

“We’re seeing the flavor trend continuing to grow within the roll- your-own category,” said Kevin Dunn, executive director of trade marketing at Robert Burton Associates. “Consumers are looking for more products that will individualize and enhance their smoking experience. With the addition of flavor they can customize their own blend to fit their mood or personality.”

Robert Burton Associates is a U.S. subsidiary of Imperial Tobacco Group, the world’s fourth-largest tobacco company. In addition to its roll-your-own, make-your-own products, RBA also manufactures and distributes other brands of cigarette rolling papers and accessories under the brand names of Joker, Rizla, Premier Supermatic, El Rey, Club, Rayo, Escort and Canuma.

Appealing to a hip audience and to help the product “stand out from the crowd,” the lemonand wild berry-flavored papers are housed in bold, colorful packaging.

In response to consumers’ increased desire to enhance and customize their smoking experience, RBA recently introduced new line extensions to its Rizla and Premier Supermatic product brands. According to RBA, “cigarette tubes are one of the fastest growing make-your-own segments on the market.”

The new additions to the Rizla line include new menthol and light tubes. Packaged in refreshing contemporary designs, the Rizla Menthol tube delivers menthol taste through the filter tip, resulting in a refreshing, robust flavor. The Rizla Light tube allows more air into the tube, resulting in a mild taste.

Joining the Premier Supermatic family of products is the new Premier 100mm Menthol. The added length of the new Premier 100mm Menthol provides a longer-lasting smoke, extending the enjoyment of the smoking experience.

HBI INTERNATIONAL

Phoenix-based HBI International has recently made significant strides in its presence in the RYO/MYO market. Flavored rolling papers are all the rage and HBI has increased it well-known Juicy Jays brand to 30 flavors. Most recently, five new flavors have been added: Peanut Butter, Jamaican Rum, Chocolate Chip Cookie Dough, Strawberry Kiwi and Maple Syrup.

Juicy Jays boast the “triple-dipped” flavor strength, which has made them a favorite among smokers. The difference between true flavored and flavored gumline papers is that the flavored gumline papers only have some flavor on the gumline and when you smoke them you really only taste the paper. Juicy Jay’s, on the other hand, are made with HBI’s exclusive triple-dipped flavoring system. This system flavors the entire paper and adds amazing taste and flavor to your entire cigarette.

For cigar lovers, the newest addition to HBI’s Juicy Blunt wrapper Une is the Dominican-made Super Saturated Orange. Described as “orange overload,” these new blunt wrappers offer a new twist in this top-selling brand.

In addition to its flavored rolling papers, HBI International has received rave reviews on its newest natural unbleached rolling papers. Called Raw Natural Rolling Papers, these papers are hard to keep in stock because of the unique attributes they provide. Similar to traditional rolling rice paper, Raw papers burn clean and even and are so thin that they exude a translucent, natural color. The papers are made of raw unbleached rolling paper and are free of harsh chemicals.

Perhaps the “hottest” product among HBI’s new product releases are the TRIP Transparent Rolling Papers. These clear papers are totally transparent, allowing consumers to see exactly what they are smoking.

“These are all the rage,” said Josh Black of HBI International. “People are fascinated with them and our customers are having a very hard time keeping them on the shelves.”

Made with clear plant cellulose, TRIP papers are available in 1- 1/2 and King Size and are available in countertop retail displays.

GIZEH OF NORTH AMERICA

The world of Gizeh is all about RYO/MYO. Since 1920, Gizeh has been a world leader in the manufacture of RYO and MYO smoking products. Gizeh believes that RYO and MYO are proof positive that the best things in life are handmade.

“Gizeh offers an extensive selection of the finest rolling papers, filters and hand rolling machines,” said Stuhlmuller. “In addition we offer a broad range of make-your-own filter tubes and highquality, long-lasting personal tube filling machines. Gizeh enables the smoker to produce his own RYO and MYO smoking products individually and economically.”

One favorite product is Mascotte Special, an extra-thin, extra- strong, perfectly burning cigarette paper. Mascotte’s new Menthol Filter Cigarette Shells are fitted with a fresh-tasting menthol filter and the Mascotte Filter Tips have an edge lined with glue, allowing consumers to roll their own filter cigarette. Gizeh also offers a variety of rolling papers, including Gizeh Help, Sphinx Extra Fine and the Twister Rolling Papers. The Silver Tip and Mascotte tube series are also proven favorites among consumers.

REPUBLIC TOBACCO

Republic Tobacco offers a series of premium, value premium and value level RYO/MYO products. According to Glynn, RYO/MYO cigarette tobacco now falls into four niches: premium, value premium, value and discount (non-MSA product).

“On the premium level, you will find specialties and European blends such as our Drum Halfzware Shag, which is priced slightly higher than the value premiums,” she said. “The value premiums, such as our Top Cigarette Tobacco, have excellent (quality, mid-range pricing and full line accessory support. The value niche is primarily represented by bagged product with lower pricing and good quality, such as Gambler, which we also offer. Drum, Top and Gambler are each the country’s No. 1 sellers in their respective niches. Importantly, all of our brands are protected by the security of our MSA participation.” Republic Tobacco’s Wildfire rolling papers are also a favorite among tobacco consumers. These rolling papers offer the perfect length and width and provide the utmost hi flavors, including Blueberry Frost, Vanilla Cream and Sunrise Strawberry.

According to Glynn, a variety of modular floor and counter displays are available from Republic Tobacco to meet the best merchandising strategy for a c-store’s particular trading area.

“These merchandisers give the category an organized, space- saving and attractive home,” she said. “Additionally, companies such as ours offer brochures and videos to educate consumers on how to make their own.”

M&R HOLDINGS

M&R Holdings, Inc., Pink Hill, N.C., is one of the largest RYO/ MYO companies in the industry. One it’s most popular product lines is Farmer’s Gold roll-your-own tobacco. Farmer’s Gold is available in a number of varieties, including full flavor, light, ultra- light, menthol, menthol light and additivefree. A new line ofFarmer’s Gold value blends is also available in full flavor, light and menthol.

M&R Holdings also produces Zen.the top-selling brand of cigarette tobacco for HBI International. HBI recently grew the Zen line with the addition of ZEN tobacco tins. Each tin contains 454 grams of pure Zen tobacco and 200 sheets of rolling paper.

“RYO/MYO segments will continue to grow dramatically as more consumers turn to this alternative versus packaged filter cigarettes.”

Mary Beth Glynn

REPUBLIC TOBACCO

Copyright Adams/Hunter Publishing, Inc. Feb 2007

(c) 2007 NPN, National Petroleum News. Provided by ProQuest Information and Learning. All rights Reserved.