Smokin’ Hot

Grocery Headquarters’ Trailblazer Awards recognize the companies that are leading the way in the tobacco category. Grocery Headquarters magazine has a long-standing reputation for honoring innovative companies that are leaders in their respective fields through our prestigious Trailblazer Awards. This month, we have chosen to recognize leaders in the tobacco industry. Innovations in the tobacco industry—primarily via alternative options such e-cigarettes—have pumped life into the mature category. These onetime unconventional products, many of which come in unique flavors, have caused the category to explode in popularity and retailers have enjoyed incremental sales gains. E-cig manufacturers’ move to offer customized POS materials and eye-catching signage has also helped brick-and-mortar retailers successfully capture the attention of adult smokers. Industry observers say the category in general has seen such tremendous growth and fast turning trends that they expect this to lead to less volatility and more targeted offerings in the coming year. This evolution, they add, will also help in consumers’ education and understanding of the category and in the end, lead to a much more paced and sustainable growth path. As for the category’s long-term growth prospects, industry members say just how much growth the category sees going forward is likely to be influenced by a number of factors, including manufacturer consolidation, retailers’ due diligence and continued high profile placement and innovation. Without further delay, the winners of the 2015 Tobacco Trailblazer Awards are: blu eCigs blu eCigs’ journey began in 2009 with a few people working out of a tiny office in North Carolina. Today, Charlotte, N.C.-based blu eCigs has grown into a large company with modern offices in downtown Charlotte and a state- of-the-art R&D facility in Silicon Valley. Company founder Jason Healy says, the blu electronic cigarette was designed by a team of smokers, former smokers and engineers. “As smokers, our team understands users’ love for smoking—but we also understand the negative stigma that comes with it,” says Healy. To help with this dilemma, Healy says blu works to give smokers what they love about smoking—without the things they hate. Listening to what consumers want, says Healy, has been one of the secrets of the company’s success. “We know that if the product isn’t good enough for us, it’s not good enough for the consumer. They are our inspiration and the reason we are constantly innovating,” says Healy. The company’s latest innovation is the blu PLUS product, which is available in a Rechargeable Kit, as well as a convenient and cost-saving Xpress Kit. Company officials say the blu PLUS e-cig has been designed to combine all the aspects users love about the blu brand—the unique design, the satisfying vapor, the robust flavor—yet improved to bring a new level of satisfaction to adult smokers looking to make the switch to electronic cigarettes. PLUS offers a pre-filled tank system that holds more e-liquid and provides a more robust, consistent drag as well as a new battery that lasts twice as long and recharges faster than ever before. Cheyenne International Cheyenne International was founded in 2002 as a full-line tobacco product manufacturer. Since its startup, the Grover, N.C.-based company has continued to create exciting tobacco products made to quality standards in its modern facility. As its business continues to grow, Cheyenne remains focused on its retailer partnerships and providing customers with a quality product at a fair price, say company officials. Jessica Fratarcangelo, marketing director, says that in today’s environment, tobacco companies must offer more than attractive, quality products. She says they must create a dynamic relationship with the channel that will deliver value to adult consumers, convey the certainty of strict regulatory compliance and the added extra of a government interface effort that delivers a level of representation for the channel. “The way we do business is simple, operating on three key elements: partnership, quality and compliance,” says Fratarcangelo. Viewing their distributors and retailers as partners instead of just as customers allows the company to create progressive and effective strategies and solutions. Despite the challenges the tobacco industry faces with government regulations, Cheyenne officials believe it is imperative to work with everyone, including regulators, to achieve success. The company actively lobbies on behalf of itself, its customers and vendors as well. “We’re all in this together and we truly believe that a collaborative effort is necessary to withstand the challenges we face as an industry,” says Fratarcangelo. National Tobacco Co. Reputation and product quality are hallmarks of National Tobacco Co. For instance, the company provides retailers with a 100% guarantee return policy in order to maintain confidence relative to other brands. National Tobacco offers products across a wide spectrum to satisfy the needs of consumers—from a classic product, like Beech-Nut chewing tobacco, to the latest open system vapor product innovation, such as the V2 Series 7. With brands like Zig-Zag and Stoker’s, National Tobacco is able to afford retailers the ability to capitalize on a promise of quality that customers recognize when faced with an overwhelming amount of product choices. Brittani Cushman, vice president of external relations for the Louisville, Ky.-based company says both legislative forces and shifting consumer desires guide National Tobacco’s product innovations. She says as retailers are likely aware, several states have recently chosen to increase cigarette taxes relative to other tobacco products. As a result, the acceleration in sales of these product categories is likely to further increase. “National Tobacco is perfectly positioned to respond to these shifts in consumer needs by providing a range of other tobacco products (OTP),” she adds. New product offerings in the OTP category have seized the attention of the tobacco product consumer as well, and Cushman says that the vapor product category has grown significantly in recent quarters. “Consumers are excited by the wide variety of other tobacco product options available to them outside of the traditional cigarette category,” she says. NJOY NJOY has a diverse portfolio of e-cig and vaping products and is dedicated to providing the ultimate in vaping pleasure through the relentless pursuit of innovation, say company officials. NJOY’s portfolio includes NJOY King disposable e-cigs featuring an easy pull for perfect vapor, NJOY Recharge rechargeable e-cigs featuring an elegant all-in-one pack containing two batteries, room for five Flavor Chambers and a self-contained USB charger. Its full line of vaping products include a Vape Pen, Top Fill Tanks and 20 E-Liquids in a variety of specially crafted adult oriented flavors and nicotine levels. For instance, NJOY has partnered with five of the leading artists in the vape industry to create the Artist Collection, an exclusive new line of liquids. In support of retailers, NJOY offers a variety of merchandising solutions and retailer-friendly margins. According to Vito Maurici, senior vice president of sales and distribution, NJOY products are currently available in more than 120,000 stores in seven countries around the world including the U.K., Ireland, France, Spain, Portugal, Holland, Germany and the U.S. The company is based in Scottsdale, Ariz. with additional offices in New York and London. Smokey Mountain Chew Smokey Mountain Chew (SMC) develops and markets alternative products for the oral tobacco consumer. The Sandy Hook, Conn.-based company, which is best known for its Smokey Mountain Snuff line of products, is a recognized leader in the tobacco-free smokeless segment. “Through a dedication to R&D, category-friendly marketing and sales programs and superior customer service, SMC will continue to be the model in the tobacco-free segment,” says Dave Savoca, president. Smokey Mountain officials understand it is their responsibility to provide retailers with versatile vending systems, innovative merchandising programs and superior service. Smokey Mountain also implements national advertising campaigns, retail promotions, sampling programs and special events that have a lifestyle appeal to the target consumer. “Together these components comprise a marketing campaign with the objective of expanding our customer’s business as well as Smokey Mountain’s,” says Savoca. Savoca adds that the company’s culture is one that encourages employees to “do the right thing.” For instance, the company has been involved in disaster relief that supports its communities. Also, Savoca says Smokey Mountain is very selective about the people they choose to represent their brand. Their national spokesperson is Pro Football Hall of Famer Randy White. “As tobacco restrictions continue to grow, I believe there will be an increased demand for tobacco alternatives,” says Savoca. “We look forward to continuing to be the leader and innovator in the tobacco-free smokeless segment.” Tantus Tobacco Tantus Tobacco embraces innovation by encouraging all employees to share new ideas and concepts. The Russell Springs, Ky.-based company manufactures some of the highest quality tobacco products on the market using Kentucky Burley leaf. The Tantus lineup consists of Red Buck Filtered cigars, Red Buck cigarillos, Richwood Filtered Cigars, Bacco Pipe Tobacco, Sport, Berkley, Main Street, GSmoke and 24/7 cigarettes, to name a few. Tantus is bringing innovation to the tobacco category by introducing products that exceed consumer expectations through design, functionality and quality while keeping prices down. The company’s latest innovation is 24/7 pre-filled tanks. The product has a contemporary design that provides a sophisticated feel. Founded in 2003, Tantus stands on the firm principal that quality is the most important ingredient in any product. Company officials point out that tobacco processing is one of the most important attributes to producing the highest quality standards on the market. The final component to delivering quality products, add officials, is in the hands of its dedicated employees, many of whom have been with the company since the doors first opened. Competing against some of the biggest names in the business across all tobacco categories, Tantus’ dedication to the entrepreneurial spirit is part of what makes them stand out. Trendsettah USA Since its inception in 2011, Trendsettah USA has built successful brands through imagination, innovation, execution and a willingness to create trends, not follow them. Calling itself a “lifestyle brands manufacturer” the company’s products appeal to a varied and large market of consumers, including the music and arts communities. Today, the Doral, Fla.-based company employs 100 people and operates five major brands and divisions. “With demand for Splitarillos continuing to grow, we have maintained focus on quality control and operational efficiencies as well as added new flavors and products to meet our growing consumer demand,” says Christina Lauren, brand manager. Of all the top cigarillo products sold in the U.S. today, Lauren says the Splitarillos brand is one of the highest quality cigarillos available. Splitarillos are sold in a resealable three-to-a-pouch package and are available in a variety of unique and full-bodied taste profiles from its signature TrendBlendz collection. Newly launched flavors include white grape flavored Purple K, ultra-sweet blend Loud and maple syrup flavored 18K. Trendsettah’s newest innovation, Extendos, was launched in April. At 8.5 inches long, Extendos are extended cigarillos—double the length of a standard cigarillo. According to Lauren, Extendos are a direct response to tobacco enthusiasts’ request for a product that allows them to enjoy twice as much from one cigarillo. “As the longest cigarillos on the market today, Extendos establishes category leadership for retailers seeking a new opportunity in the ever-growing cigarillos market,” she says. The company is dedicated to community involvement and education, by helping to reduce underage tobacco use and supporting programs that positively influence children. Tryst Group The Tryst Group has been selling electronic smoking and vapor products since 2013. As electronic cigarettes’ popularity took off, the owner of the company felt the time was right to take his passion for cigars and blend it with the vapor business. Tryst’s signature product is its Robusto Electronic Cigar. The company spent more than a year developing the product’s feel, and most importantly, the flavors. “We feel that a cigar is as much as a social product as it is a smoking product,” says Will Squier, vice president of product marketing for the New York-based company. “Even though this is a product for the casual cigar smoker, we wanted it to be every much the same experience of sitting and puffing on a fine cigar.” Tryst has a number of new products in the pipeline that Squier says will provide consumer freedom, flexibility and control while still ensuring the Tryst quality and safety promise. “Tryst has always focused on products that ensure the experience is exactly what we intended it to be,” says Squier. This is one of the reasons, note officials, why the company only currently offers disposable products. “We put so much focus on the flavor and consumer satisfaction, by using a disposable system we can maintain that experience throughout the product lifecycle,” he says. VMR Products VMR Products is the among the industry’s most vertically integrated e-cigarette and vaporizer companies, with a focus on developing and distributing the latest in vapor technology. Under the V2 brand, it is most known for products that offer authentic flavor and high quality, long-lasting performance. Adam Kustin, vice president of marketing for the Miami-based company, says they also create deep consumer trust by directly sharing with consumers the ongoing results of its e-liquid quality control program. Kustin says under the V2 Pro brand, VMR has pioneered the three mediums-in-one vaporizer category. For example, V2 Pro vaporizers offer unique, magnetically coupled cartridges, for different mediums, which automatically set the vaporizer to the optimal vaping temperature. “No other company can match the depth, breadth and performance of our assortment,” says Kustin. Within the vapor category, he predicts we will continue to see a rise in the adoption of larger, open devices. These devices, says Kustin, will permit consumers to customize their experience and to explore new flavors or mediums. In addition, going forward he says the foundational micro-cig will see an improvement through pre-filled cartridges that deliver a higher puff count and from longer-lasting batteries. “I also foresee companies continuing to experiment with Bluetooth and apps to provide advanced users with feedback on their usage,” says Kustin. At retail, he says operators will continue to investigate ways to differentiate vapor products from traditional tobacco, while working within the limits of their existing merchandising schemes.