Licensed, Tobacco & Vaping 2023

Tobacco and Reduced Risk Tobacco & E-Cigarettes represents 33.8% of the basket spend in independent retailers (followed by alcohol 23.2%). Tobacco is hugely important and drives footfall for retailers with increased margins on e-cigarettes. (ACS The Local Shop Report) This category is in +14% growth in Symbols & Independents outperforming the Total Market which is growing at +5% . Total Market Value £1.2b. The tobacco category is declining and the rate of decline is set to accelerate with the governments SmokeFree 2030 objective. However, E cigarettes are offsetting this decline. (RI Value Sales 4 wks to 16th April 2023) E-cigarettes is the key category that is driving growth, however, in Symbols and Independents market probably over trades in Disposables so some moderation of ranging split is required, see below breakdown of system type with leading brands: Disposables 91.5% - Elf Bar, Lost Mary, Crystal Heat Not Burn 3.4% - Iqqs Heets Open System 3.0% - Edge, Liberty Flights, Blu Closed System 2.0% - Vuse Epod, Juul2, Elf Bar Elfa Cig-a-like 0.1% Proactive essential steps for retailers to ensure you are operating responsibly: Operate a rigorous Challenge25 programme Purchase from official wholesale route to markets Consider the responsibility of brands and flavours ranged and their potential youth appeal Ensure that products are MHRA registered and approved for sale. The MHRA website has a search function for retailers. It’s important for Retailers to take responsibly when selling this category: The Government is increasingly concerned by the increase in youth vaping, non compliant and illicit vapes. They have invested £3m to create a ‘flying squad’ to tackle illicit vapes. Minister Neil O'Brien speech on achieving smokefree 2030: cutting smoking and stopping kids vaping – 11th April 2023 Total Market Value Sales split by sub category (IRi Total Market Tobacco Data - Value Sales 12wks to 23rd April 2023) Cigarettes Roll Your Own Tobacco E-Cigarettes Nicotine Pouches All Other 62.7% 22.2% 10.8% 0.4% 3.8% Challenge25 programme Scan Me MHRA Website Scan Me +14%