MAKING A MINT 2020

EVERYTHING YOU NEED TO KNOW TO SUCCESSFULLY NAVIGATE THE MENTHOL BAN 20th LEGISLATION May RESEARCH The date the new ban ADVICE comes into THOUGHT force LEADERSHIP

YOUR OPTIONS AFTER MAY 20TH:

Q Q VAPING Q TOBACCO- FREE POUCHES Q FILTER TIPS Q LEAF WRAPPED CAPSULE Q MENTHOLATED CARD INSERTS AN SLR HANDBOOK IN ASSOCIATION WITH JTI

Menthol.indd 1 01/04/2020 14:47:24 Menthol.indd 2 01/04/2020 14:47:26 WELCOME / CONTENTS WELCOME

The Menthol Ban, as it has come to be known, is yet another This handbook is our attempt to help simplify the menthol major hurdle for Scotland’s local retailers to overcome in ban for you. It contains all the relevant rules and regulations; the tobacco category – but let’s not forget how resilient research, advice on what to expect and how to cope; the category has been in spite of ever draconian and a selection of the key products that the estimated legislation over the last decade or so. We’ve faced 26% of adult smokers who currently choose menthol or tougher challenges and we’ve come out the other end of capsule products might turn to from 20 May. them in one piece. The ban on characterising flavours, as the legislation is more formally described, is just the latest I urge you to set aside 20 minutes with a cup of tea to in a long line of challenges and, with a bit of planning, we go through this handbook and make sure that you and can navigate our way through it with a minimum of fuss your staff understand the implications of the ban and and disruption. know how to talk to your customers knowledgeably and helpfully about the ban. I would also ask you to check that Talking of fuss and disruption, the current Covid-19 you have a strong range of alternatives in-store by the pandemic is certainly not going to make the menthol time 20 May rolls around. No one knows how menthol ban transition on 20 May any easier. But we have no and capsule smokers will respond – so all we can do choice but to face up to life in retail as it currently is have as many alternatives available as possible. is and do the best we can to keep our customers supplied with the goods and services they Good luck. need. It’s what we do. It’s what we’ve always done. And, as we’ve learned in Antony Begley recent weeks, nobody does it better. Editor, SLR

4 INTRODUCTION 16 VAPING: LOGIC COMPACT Turning a fresh challenge into a fresh opportunity 18 VAPING: MYBLU 6 Q&A: JTI ADDRESSES INDUSTRY CONCERNS 20 TOBACCO-FREE NICOTINE POUCHES: NORDIC SPIRIT 8 THOUGHT LEADERSHIP: DUNCAN CUNNINGHAM, 22 TOBACCO-FREE NICOTINE POUCHES: ZYN UK CORPORATE AFFAIRS DIRECTOR AT IMPERIAL 24 MENTHOL FILTERS: SWAN RANGE TOBACCO AND BLU 26 LEAF WRAPPED: DUAL LEAF WRAPPED Embracing the menthol opportunity CIGARILLOS 10 THOUGHT LEADERSHIP: MARK YEXLEY, COMMUNICATIONS DIRECTOR, JTI 28 MENTHOLATED CARDS: INFUSIONS Here for you ahead of the Menthol Ban 12 YOUR OPTIONS FROM 20 MAY An overview of the key menthol replacement options for retailers

An SLR supplement produced for Scotland’s local retailers in association with JTI. Copyright 2020.

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Menthol.indd 3 01/04/2020 14:47:28 INTRO TURN A FRESH CHALLENGE INTO A FRESH OPPORTUNITY

THE BAN ON CHARACTERISING FLAVOURS IN THE TOBACCO CATEGORY THAT IS SET TO HIT THE UK ON 20 MAY IS THE LATEST IN A SERIES OF SIGNIFICANT CHALLENGES FOR LOCAL RETAILERS – BUT THERE ARE PLENTY OF OPTIONS OUT THERE FOR RETAILERS TO APPEAL TO THE ESTIMATED 26% OF UK ADULT SMOKERS WHO CURRENTLY USE MENTHOL OR CAPSULE PRODUCTS.

20th We have known for a long time that buy their May WHAT WILL MENTHOL the ‘menthol ban’ has been on its product The date the new way and that it will take effect on of choice ban comes into SMOKERS DO ON MAY 20TH? 20 May but what looked to be a any longer force A JTI survey of 350 retailers complex trading period has been – and having polled respondents on what made infi nitely more so by the current to decide what they thought their menthol- and capsule- Covid-19 pandemic. As time runs out to do next. shoppers were likely to do then, the need to be as prepared after the ban comes in. Here as possible for the ban has never And it’s not just consumers who are the responses: been more urgent if retailers want to have been confused about the Q 25% of retailers believe minimise confusion and disruption in implications of the ban. A recent current menthol and capsule smokers will stores across Scotland. survey conducted by JTI has revealed remain brand loyal within signifi cant levels of uncertainty the ready-made cigarette Technically, the ban is on all among retailers too. The survey of category (switch to plain from the same ‘characterising fl avours’ in tobacco over 350 retailers found that almost brand) products but in the UK that pretty a quarter (23%) didn’t know capsule Q 19% think consumers will much boils down to menthol products. cigarettes will be included in the switch to roll-your-own Here, menthol tobacco and capsule ban and a similar percentage (24%) tobacco products represent a very signifi cant didn’t know that there will be no sell- Q 45% believe their chunk of the category. It is estimated through period. customers will switch to that menthol and capsule products vaping or other reduced risk products account for more than a quarter Similarly, there also appeared to (26%) of all tobacco sales. be confusion around whether Q 11% assume smokers will leave the category non-tobacco products would be altogether That means a lot of adult smokers included in the ban. Over a third who are going to wake on the 21st (34%) incorrectly believed that of May wondering why they can’t mentholated smoking accessories

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Menthol.indd 4 01/04/2020 14:47:28 will be banned and one in five believed, again incorrectly, that menthol e-liquids will be included in the ban. HOW TO PREPARE One area where the survey found less confusion however was in the impact that the ban will have on local retailers. Some 57% think the ban FOR THE will reduce footfall while 77% were concerned it will have a negative impact on their business. MENTHOL BAN

The big question, then, is what exactly will that 26% of menthol tobacco smokers do on the TALK TO YOUR CUSTOMERS morning of the 21st of May? By engaging with menthol shoppers early on, retailers can raise awareness of the menthol ban and encourage The JTI survey mentioned above also asked them to consider what alternative retailers what they thought their customers products will be available to them would be most likely to do after the ban takes after 20 May. Having conversations with shoppers ahead of time will help effect. Of course, what retailers think their retailers gain valuable insights into what customers will do and what their customers action they might take once the ban actually do may be two entirely different things, is in effect and use this to shape their but the results were nonetheless revealing. range.

Around a quarter of retailers believe current DRIVE VISIBILITY menthol and capsule smokers will remain brand When it comes to vaping and some loyal within the ready-made cigarette category other non-tobacco menthol products, (i.e. switch to plain cigarettes from the same retailers can display, advertise and brand), 19% think consumers will switch to roll- promote them in and around the store. Dynamic displays, eye-catching POS your-own tobacco, 45% believe their customers and countertop display units will help will switch to vaping or other reduced risk drive visibility and grab the attention of products and 11% assume smokers will leave shoppers as soon as they walk through the category altogether. your door.

If these predictions are accurate, the biggest KNOW YOUR PRODUCTS percentage is the 45% of customers who will In order to succeed post-ban, it’s find alternative ways of finding their menthol hit, crucial that retailers and their staff and this opens up a set of new higher margin understand what changes are coming opportunities for retailers. and know what products and brands they have on offer in order to advise customers effectively. Training is key To help retailers figure out their options, we have to success in this regard so taking time produced this Handbook to take an in-depth to talk staff through the ranges on offer look at some of the solutions that could play an will go a long way to help protect and maximise sales post-ban. important role in helping local retailers retain that 26% of menthol tobacco smokers and potentially grow their margins into the bargain.

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Menthol.indd 5 01/04/2020 14:47:28 MENTHOL BAN Q&A / JTI

Q &A JTI ADDRESSES INDUSTRY CONCERNS

SLR CAUGHT UP WITH JTI COMMUNICATIONS DIRECTOR MARK YEXLEY TO HEAR HIS ADVICE ON THE MOST PRESSING CONCERNS OF THE LOCAL RETAILING SECTOR AS THE MENTHOL BAN APPROACHES.

legislation. They should also be familiar with the WE UNDERSTAND THAT, AS MUCH AS IS POSSIBLE, THE alternative options available after the ban, and MESSAGE FROM JTI IS THAT IT’S BUSINESS AS USUAL confident in their knowledge so that they are able to FOR RETAILERS? inform their existing adult smokers.” “This is correct, it is business as usual and we recommend that retailers maintain full availability COMMUNICATION IS CRUCIAL and range right up until the Menthol Ban deadline, “Existing menthol and capsule cigarette smokers in order to meet the needs of existing adult smokers. might have questions about the ban. Ensure staff Menthol and capsule ready-made cigarette are knowledgeable so that they can answer these currently account for approximately 25% of tobacco questions with confidence.” sales in the independent retail channel, representing a key profit opportunity.” FOCUS ON COMPETITIVE PRICING “Price will remain a key factor for existing adult smokers when choosing where to shop for tobacco. AS THE MENTHOL BAN CONTINUES TO DRAW EVER JTI recommends selling at RRP or below to maximise NEARER, WHAT ARE YOUR TOP TIPS FOR RETAILERS ON sales and avoid lost custom.” *Retailers are of course HOW BEST TO PREPARE? free to sell JTI products at whatever price they “It is important for retailers to be prepared for the choose.” changes that the Menthol Ban will bring. As with the Retail Display Ban, Plain Packaging and Track & MAINTAIN FULL AVAILABILITY AND RANGE Trace, those who prepare well will experience the “Retailers should maintain full availability and range, least disruption to their business. including menthol and capsule cigarettes, stocking key brands, to ensure they meet the needs of their “We encourage retailers to take note of the following: existing adult smokers pre-May 2020.”

KNOWLEDGE IS KEY BE AWARE OF ILLICIT TOBACCO “Retailers should ensure that they and their staff “We do have a concern that after the ban, some are aware of the details surrounding the upcoming menthol and capsule smokers who can’t buy

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Menthol.indd 6 01/04/2020 14:47:28 their usual brand through legal channels might be microsite – www.jtiadvance.co.uk/mentholban2020 tempted to look for those products on the black or through their JTI sales representative, in order to market. We all need to work together to educate feel comfortable in answering any questions their consumers of the dangers of illegal tobacco and I customers might have.” would encourage retailers to direct consumers to JTI’s Don’t Be Complicit In Illicit microsite – www. jtiadvance.co.uk/DontBeComplicit - where people ARE YOU LAUNCHING ANY NEW PRODUCTS TO FILL THE can find more information and report any instances GAP IN THE MARKET? of illegal trading anonymously to Crimestoppers.” “We have recently announced the launch of a series of new alternative products with distinctive tobacco blends plus product and pack innovations ahead of YOUR RECENT RETAILER SURVEY SUGGESTED MANY the Menthol and Capsule cigarette ban. From 20th MENTHOL AND CAPSULE SMOKERS MAY SWITCH TO May 2020, the ‘New Dual’ range (available across VAPING, ALTERNATIVE PRODUCTS LIKE NORDIC SPIRIT Sterling New Dual, Benson & Hedges New Blue Dual, OR PLAIN VERSIONS OF CIGARETTES WITHIN THE SAME Sovereign New Dual and Benson & Hedges New BRAND THEY NORMALLY SMOKE. HOW DO RETAILERS Dual) will provide adult smokers with a new distinctive MAKE SURE THEY ARE READY FOR THIS COME MAY 20TH? tobacco in a unique dual pack which now “We expect that most adult smokers will remain includes two sections of ten cigarettes. within the cigarette category and will also remain brand loyal. We have therefore worked to evolve our “The same distinctive blend will also be available portfolio to cater to these needs, with a raft of pack across Sterling New Green, Benson & innovations, distinctive new blends and unique taste Hedges New Superkings Green, Berkeley New alternatives across the Sterling, Benson & Hedges Superkings Green and New Green. In and Sovereign brands. addition, the new Sovereign Dual range also contains a new “Flow Tech” centre hole in the filter, “As a manufacturer of choice, JTI will continue which provides further product differentiation within launching new products that are in line with the market. consumer demand, to ensure that retailers have a full range available for their customers. In January 2020, “Retailers can also expect to see updates and we launched Sterling Dual Capsule Leaf Wrapped, innovation across JTI’s emerging product portfolio - an innovative new product, wrapped in from more adventurous vaping flavours, to nicotine tobacco leaf and containing a peppermint capsule salts and new and upgraded devices, retailers should that smokers can click to release a menthol flavour. stock a consolidated range to meet the needs of individual vaping styles.” “However, some adult smokers may choose to look for alternatives, therefore, it is key that retailers are armed with knowledge and stock up on popular HOW IMPORTANT IS IT FOR RETAILERS TO KEEP products that meet this demand, such as JTI’s Sterling COMMUNICATING THE MENTHOL BAN TO THEIR Hand Rolling Tobacco, cigarillos like Sterling Dual SHOPPERS? Capsule Leaf Wrapped, vaping products such as “The legislation makes is very difficult for manufacturers Logic Compact, or nicotine pouches such as Nordic to communicate directly with existing adult smokers Spirit. and therefore communication between retailers and their customers is vital. Many of their shoppers will “Ensuring that you and your staff have up-to-date have questions about the Menthol Ban and about the knowledge and keep up with trends in the category products available to them after its implementation. is crucial to ensure you are meeting the needs of your Retailers should ensure that their staff are aware of existing adult menthol or capsule smokers. We’d advise the alternative options on offer and are confident in retailers take the time to learn about the tobacco their knowledge so that they are able to inform their category, whether that is through our Menthol Ban existing adult smokers.”

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Menthol.indd 7 01/04/2020 14:47:28 THOUGHT LEADERSHIP / IMPERIAL TOBACCO EMBRACING THE MENTHOL OPPORTUNITY WITH OVER A QUARTER OF ADULT SMOKERS CURRENTLY CHOOSING MENTHOL OR CRUSHBALL PRODUCTS, THE BAN ON FLAVOURED TOBACCO PRODUCTS ON MAY 20TH REPRESENTS A HUGE OPPORTUNITY FOR LOCAL RETAILERS.

BY DUNCAN CUNNINGHAM, UK CORPORATE AFFAIRS DIRECTOR, IMPERIAL TOBACCO AND BLU

loyal, especially within factory THE VOLUME AND VALUE OF THE made cigarettes. Shoppers that EXISTING MENTHOL TOBACCO MARKET want to continue smoking are Menthol and crushball sales are likely to keep buying the same collectively worth 26% of the total cigarette brand and just change UK tobacco market, according to to the closest variant to it. By Imperial Tobacco UK estimates, monitoring tobacco sales and which means they make up nearly talking to customers about the 1 in 4 cigarette sales. Given its ban, retailers can more effectively sizeable share of the tobacco advise customers on the most market and store sales, this is an suitable variant for them from important change that retailers their brand of choice. As well as and their customers need to be offering great customer service, prepared for to avoid missing out retailers can use this insight to on sales. help plan their range and stock requirements in the lead up to the 20th May. GUIDANCE AROUND THE LEGISLATION The UK Government began the For smokers that are keen to stick process of phasing out fl avoured with their fl avour preference, tobacco products in May 2016, there are a number of innovative with a complete ban due to be in solutions available, including our place by 20th May 2020. The ban new Rizla Flavour Infusions. The is part of the European Tobacco Rizla Flavour Infusions range Products Directive (EUTPD) includes two variants of menthol which places limits on the sale fl avour cards which you simply and merchandising of tobacco insert into a packet of cigarettes products in the EU. or roll your own tobacco and wait at least 60 minutes for the Many adult smokers are brand contents to mentholate.

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Menthol.indd 8 01/04/2020 14:47:29 It’s also worth remembering that brand, while others may switch CATEGORY ADVICE crushball fi lter tips, as a stand- to vaping. However, this shift in It’s really all about focusing alone smoking accessory product, consumer purchasing behaviour on three key elements: range, remain unaffected by the menthol may present signifi cant sales availability and education. ban, so products such as our Rizla opportunities for retailers who Q Retailers should offer a broad Polar Blast Crushball fi lter tips are prepared for the changes range of products from leading brands across all the different present another great option for and engage with shoppers ahead tobacco segments, as well as these shoppers. of the ban. Using the insight stocking a strong selection of accessories such as from conversations with smoker and other recent innovations While some adult smokers may customers, retailers can shape like Rizla Flavour Infusions and Polar Blast Crushball fi lter tips. simply switch to other traditional their range and ensure it’s fi t for Q tobacco alternatives, many purpose post-ban. Running regular stock checks and maintaining availability menthol consumers may also use at all times is also essential as this as an opportunity to explore nicotine shoppers are often brand loyal and can be easily new ways to stick with their HELP ON COMMUNICATING THE put off returning to a store if fl avour preference and move into POTENTIAL BENEFITS OF THESE the specifi c product or brand they’re looking for is out of vaping. PRODUCTS TO CONSUMERS stock. It’s vitally important that Q Probably the most important To prepare for this potential retailers talk to their customers. thing of all is education. If retailers and their staff know infl ux of ex-menthol smokers into By engaging with menthol the products well so they the vaping category, retailers shoppers early on, retailers can can talk comfortably to should ensure they stock up on raise awareness of the menthol adult smokers about them in answering any questions they easy-to-use pod mod systems ban and encourage them to may have, this will pay off like myblu. Any devices on offer consider what alternative massively in terms of sales and repeat visits. should be supported by a strong products will be available to range of menthol e-liquids and them after 20th May. As well as Liquidpods, especially those providing great customer service, including nicsalts like myblu having conversations with Intense, to help heavier smokers shoppers ahead of time will help KNOW YOUR PRODUCTS switch. Regardless of the ban, the retailers gain valuable insights In order to succeed post-ban, top-selling blu e-liquid fl avour is into what action they might take it’s crucial that retailers and menthol , so these variants are once the ban is in effect and use their staff understand what already very popular within the this to shape their range. changes are coming and know vaping category and well worth what products and brands they stocking up on. have on offer in order to advise DRIVE VISIBILITY customers effectively. Training is When it comes to vaping, key to success in this regard so ADVICE ON COMMUNICATING THE retailers can display, advertise taking time to talk staff through FORTHCOMING BAN EARLY AND and promote vaping products in the ranges on offer will go a long EFFECTIVELY and around the store. Dynamic way to help protect and maximise The ban on menthol tobacco displays, eye-catching PoS their sales post-ban. products will leave many existing and countertop display adult smokers without their units will help drive product of choice. Some current visibility and grab Retailers menthol and crushball smokers the attention of are free may move into roll your own, shoppers as soon at all times to others may opt for a different as they walk determine the variant of the same cigarettes through your door. selling prices of their products.

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Menthol.indd 9 01/04/2020 14:47:32 THOUGHT LEADERSHIP / JTI JTI: HERE FOR YOU AHEAD OF THE BAN WITH THE UPCOMING MENTHOL BAN SET TO BRING NEW CHALLENGES FOR SCOTLAND’S LOCAL RETAILERS, JTI HAS RESPONDED WITH A RAFT OF SUPPORT, ADVICE AND INNOVATIVE NEW PRODUCTS.

BY MARK YEXLEY, COMMUNICATIONS DIRECTOR, JTI

The Menthol and Capsule Ban is range to ensure they do not lose the next phase of the EUTPD2 out on sales. legislation that fi rst came into effect in May 2016. From May It’s clear that the Menthol Ban 20th, all Menthol and Capsule is one of the biggest changes cigarettes will be banned from the industry has faced in recent sale. It is important for retailers years, however we know from to be prepared for the changes experience that the tobacco that the Menthol Ban will bring. category is extremely resilient. As with the Retail Display Ban, JTI understand that retailers are Plain Packaging and Track & concerned about the impact the Trace, those who prepare well will ban will have on their business, experience the least disruption to but is committed in supporting their business. them to prepare for the changes ahead. As the Menthol Ban is approaching, JTI’s advice is A recent survey conducted by JTI for retailers to ensure the has revealed signifi cant levels of basic principles of category retailer uncertainty ahead of the management are put into practice upcoming Menthol and Capsule and make certain that they and cigarette ban, coming into force their staff are knowledgeable on 20th May. about the impending changes. Remember, research has shown The survey of over 350 retailers that almost a third of existing carried out via www.JTIAdvance. adult smokers choose to buy co.uk highlighted the need for elsewhere if their brand is further education and additional unavailable [Kantar, 2019]. support for retailers on the Therefore, it’s vital that retailers specifi cs of the legislation. Key maintain full availability and fi ndings include:

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Menthol.indd 10 01/04/2020 14:47:32 Q 23% of those surveyed did not JTI expect that the vast know that capsule cigarettes majority of adult smokers will be outlawed will remain brand loyal, Q A further 50% were not aware with some switching to of the penalties they could other alternatives based incur for non-compliance on their preference. As a Q 34% incorrectly believed manufacturer of choice, Having up- that mentholated smoking JTI continue to innovate to-date knowledge and keeping accessories will be banned to ensure the needs of up with trends in the category Q 24% did not know that there existing adult smokers is key. Taking time to will be no sell through period are met. The Menthol learn about tobacco, Q One in fi ve believed that and Capsule cigarette whether that’s through menthol e-liquids will be ban will also provide the JTI Advance portal or included in the ban a big opportunity for a knowledgeable sales force, Q 57% think the ban will number of exciting new retailers can show their reduce footfall, whilst 77% products – including expertise on the category were concerned it will have the Sterling Dual and NPD. Once a customer a negative impact on their Capsule Leaf Wrapped cigarillo, trusts a retailer, they are more business the Logic vaping range, plus likely to return, which allows the new tobacco-free nicotine retailers to profi t in this category. In response to the fi ndings, pouch, Nordic Spirit. We’ve also JTI has launched a dedicated launched a range of alternative For more information retailers microsite www.JTIAdvance.co.uk/ products with new tobacco blends should visit JTI’s new dedicated MentholBan2020, which includes and product and pack innovations microsite www.JTIAdvance.co.uk/ a host of practical information ahead of the ban. JTI will be on MentholBan2020. JTI’s sales and an educational trade video hand to help support its trade representatives will also be on to support retailers through the partners through the transition hand to communicate the changes change. The website also contains – and advise retailers to visit the and answer any questions a consumer facing page, which new microsite to ensure they are retailers may have in the lead up existing adult smokers can visit to fully prepared. to May 20th and beyond. fi nd out more about the upcoming ban. ILLICIT TOBACCO As part of the survey, retailers At this time of fl ux, it’s also worth bearing in mind that illicit tobacco remains also gave their thoughts on what a widespread issue in the UK. The government estimates that illegal tobacco current menthol and capsule makes up around 9% of the cigarette market and 32% of the hand rolling smokers could do after the ban: marking in the UK. Illegal trade caused £1.8bn of lost tax revenue in 2017/8, with a total revenue loss of £45.2bn since 2001, according to HMRC fi gures. Q 25% believe smokers will To help tackle illicit trade, JTI has a dedicated anti-illicit microsite – www. remain brand loyal within the jtiadvance.co.uk/DontBeComplicit - which features an easy-to-use ‘report’ RMC category function which anyone can use to anonymously report instances of illicit trade activity, including fl agging any illicit tobacco posts that they have seen. Q 19% think they will switch to Any retailer who is aware of anybody selling illicit tobacco should also contact roll your own tobacco the HM Revenue & Customs’ Fraud Hotline on 0800 788 887, Trading Standards Q 45% are certain their on 03454 04 05 06 or the independent charity Crimestoppers anonymously on customers will switch to 0800 555 111. vaping or other reduced risk The key to tackling the issue of illicit tobacco is the ability to work together; from the local authorities and police, to the manufacturers, retailers and wholesalers, products right down to customers. Co-operation from all those involved in fi ghting illicit Q 11% assume smokers will trade helps us be more effective in controlling it, both online and in stores. leave the category altogether.

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Menthol.indd 11 01/04/2020 14:47:35 MAY 20TH: THE OPTIONS WHAT ARE YOUR OPTIONS FROM MAY 20TH?

WITH THE SCENE SET FOR THE BAN, WHAT ARE THE MENTHOL ALTERNATIVES AVAILABLE FOR RETAILERS TO SELL FROM 20 MAY ONWARDS? SLR SUGGESTS A FEW OF THE SOLUTIONS MOST LIKELY TO APPEAL… 25% Remain brand loyal within the 11% 19% 45% cigarette category (choose plain Leave the category Switch Switch to vaping or tobacco versions of the brand altogether to RYO other reduced-risk they already choose) products

On the morning of Wednesday retailers what they thought their they stock a broad range of the 20 May, retailers will open their shoppers would do, their answers solutions that are most likely to stores to a brand-new world. From were illuminating. appeal to menthol and capsule that day forward, sales of smokers looking for a and capsule cigarettes will be If retailers are correct, the satisfying alternative. outlawed and around a quarter of big winner after 20 May will adult smokers will no longer be be vaping and other reduced- The great news is that there is able to buy their product of choice. risk products. The major no shortage of options on the manufacturers, however, market. The major manufacturers The big question is: what exactly including JTI and Imperial have been both busy and creative will those adult smokers choose Tobacco, say they expect “the vast over the last 12 months creating to do? majority of adult smokers will and launching innovative new remain brand loyal, with some solutions for adult smokers keen While no-one can possibly know switching to other alternatives to retain a menthol edge to their the answer that question, it is based on their preference”. consumption. reasonably safe to make several assumptions and build a new Only time will tell, but one thing To help you prepare for 20 May post-20 May range built on those is for sure: there will be some and the new menthol world order, assumptions. major shifts in buying habits from we have highlighted a number of 20 May. Possibly the best advice high-quality solutions over the When JTI asked over 350 to retailers is to simply ensure coming pages to make building

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Menthol.indd 12 01/04/2020 14:47:35 your new post-ban range as discreetly and easily. in packs of 10 (minimising out of straightforward as possible. pocket spend) and can still come JTI led the way in the UK with in branded packs. The solutions can broadly be its Nordic Spirit products but broken down into seven categories there are now several rivals on JTI was first to market with its as follows: the market like Swedish Match’s Sterling Dual version last year ZYN, Imperial’s Zone X, and while cigar giant Scandinavian PLAIN TOBACCO BAT’s Lyft. Tobacco has recently launched its The leading manufacturers Signature Dual range. expect most menthol and capsule It’s a category that has the cigarette smokers to simply potential to grow significantly if MENTHOLATED CARD INSERTS shift into plain versions of their consumers can be tempted to trial An interesting solution from preferred brand. Retailers are the product. cigarette paper giants Rizla, the less confident of this outcome, as Rizla Flavour Infusions range highlighted above, but it is highly FILTER TIPS includes two variants of menthol likely that at least a significant Republic Technologies recently flavour cards which consumers proportion of smokers will take launched a suite of six new simply insert into a packet of this route. To be prepared, make filters under its market-leading cigarettes or RYO tobacco and sure that your range is solid and Swan brand. These include two wait for around an hour for the availability is 100% in all key crushball filters, a carbon paper contents to mentholate. brands. filter for enhanced filtration, a Swan Long Extra Slim Filter and The flavour cards are packed and VAPING the most environmentally friendly wrapped separately. Smokers can The vaping category is one that filter in the Scottish market. choose to leave them in longer is likely to see major growth in The filters market is currently for a stronger flavour. They the wake of the smoking ban growing at almost 10% and this come in two varieties: Menthol with menthol e-liquids and pods new range is set to drive that Chill, which gives a more intense already the top-selling lines in growth even faster. flavour; and the slightly smoother Scotland. Public Health England and mellow Fresh Mint. has steadfastly maintained its Rizla also offers menthol filter belief that vaping is “95% less tips including Rizla Polar Blast HEAT-NOT-BURN harmful” than smoking and the Crushball and this category looks Currently dominated by PMI’s category is now well bedded-in likely to grow significantly after IQOS product, the heat-not-burn with many high-quality devices the menthol ban. category has been simmering and liquids available these days. away for a while in the UK There are many good reasons for LEAF-WRAPPED CAPSULE CIGARILLOS now. The category is massive in consumers to give vaping a go A relatively new solution, leaf- countries like Japan but it hasn’t and they have numerous menthol wrapped capsule cigarillos could quite taken off here yet, although options available to them in an be the ideal alternative for many the menthol ban may prove a array of formats, strengths and menthol or capsule cigarette catalyst for more adult smokers to different flavour profiles. smokers as the look, feel and give IQOS a go. smoking experience will be TOBACCO-FREE NICOTINE POUCHES comfortingly familiar for many In terms of smoking experience, Nicotine pouches are extremely menthol or capsule cigarette it’s very similar to a traditional popular in other parts of the smokers. cigarette but the innovative world, particularly Scandinavia technology means it’s a far less and the US. The ultra-convenient As these products are not covered harmful alternative. This could format means consumers can get by the EUTPD rules governing be the year that IQOS moves up their nicotine and menthol hits cigarettes they can still be sold a gear.

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Menthol.indd 13 01/04/2020 14:47:36 PRODUCTS / TOBACCO / NEW JTI RANGE ‘NEW DUAL’ RANGE TO UNLOCK SALES

WHAT ARE THEY? WHAT ARE THE NEW PRODUCTS? JTI is launching a series of new alternative products ‘New Dual’ range with new distinctive blends with distinctive tobacco blends plus product and pack Q New Sterling Dual (previously Sterling Dual Capsule, innovations ahead of the Menthol and Capsule cigarette Sterling Dual Double Capsule and Sterling Dual Triple ban. The new products will be available from 20th May Green) 2020. Q New Benson & Hedges Blue Dual (previously Benson & Hedges Blue Dual Double Capsule) WHAT DOES THE NEW RANGE INCLUDE? Q Sovereign New Dual (previously Sovereign Dual) – A ‘New Dual’ range (available across Sterling New Dual, includes new “Flow Tech” filter centre hole Benson & Hedges New Blue Dual, Sovereign New Dual Q Benson & Hedges New Dual (Benson & Hedges Dual) and Benson & Hedges New Dual) provides adult smokers with a new distinctive tobacco blend in a unique dual New distinctive blends only: pack which now includes two sections of 10 cigarettes. Q Sterling New Superkings Green (previously Sterling Superkings Green and Sterling Dual Superkings The same distinctive blend will also be available across Capsule) Sterling New Superkings Green, Benson & Hedges New Q Benson & Hedges New Superkings Green (previously Superkings Green, Berkeley New Superkings Green and Benson & Hedges Superkings Blue Dual) Mayfair New Green. Q Berkley New Superkings Green (previously Berkley Superkings Green) ANY OTHER DEVELOPMENTS? Q Mayfair New Green (previously Mayfair Green) In addition, the new Sovereign Dual range also contains a new “Flow Tech” centre hole in the filter, which provides WHERE ARE THEY AVAILABLE? further product differentiation within the market. The Dual range will be available from all major wholesalers and symbol groups in Scotland. WHAT DOES JTI SAY ABOUT THE NEW RANGE? Stephane Berset , JTI’s Marketing Vice President, comments: “The upcoming Menthol and Capsule cigarette ban will mean that adult smokers will be looking for a range of new alternatives. Therefore, we’ve worked to evolve our portfolio to cater to these needs with a raft of pack and filter innovations, distinctive new blends and unique taste alternatives, so adult smokers can continue to choose quality tobacco products they know and trust.”

14 MAKING A MINT

Menthol.indd 14 01/04/2020 14:47:36 THE ‘NEW DUAL’ RANGE 1 2

A new distinctive blend in a unique dual pack. Features 2 non detachable chambers, Available in the following brands: improving freshness perception

NEW NEW NEW NEW

Sterling Benson & Hedges Benson & Hedges Sovereign ‘New Dual’ ‘New Blue Dual’ ‘New Dual’ ‘New Dual’

This new distinctive blend is also available in:

NEW NEW NEW NEW

Sterling Benson & Hedges Berkeley Mayfair New Superkings Green New Superkings Green New Superkings Green New Green

Menthol.indd 15 01/04/2020 14:47:39 PRODUCTS / VAPING / LOGIC COMPACT THE COMPACT MENTHOL SOLUTION

WHICH FLAVOURS AND STRENGTHS ARE THE E-LIQUID PODS AVAILABLE IN? E-liquid pods are available in a range of fl avours and strengths, helping retailers provide a more personalised vaping experience for their customers. As well as Menthol, fl avours include Tobacco, Berry Mint, Cherry and Strawberry to cater to every taste. All pods are available in 12mg or 18mg strengths. WHAT IS IT? Logic Compact is the latest addition to JTI’s WHAT ARE THE RSPS? extensive range of Logic vaping devices. The Logic Compact device is available at the market-leading RSP of just £4. The WHAT ARE ITS USPS? Logic Compact Starter Kit, which includes Logic Compact, as the name suggests, a device, a USB charger and two E-liquid is a sleek, pocket-sized design making it pods carries an RSP of just £10. The E-liquid a convenient and modern alternative to pods are available with RSPs of £5 for a traditional vaping devices. Its user-friendly pack of two. design and cutting-edge technology delivers a combination of fl avour, power WHAT DOES JTI SAY ABOUT LOGIC COMPACT? and simplicity that will appeal to existing Nick Geens, Head of Logic and Reduced vapers and menthol cigarette smokers Risk Products at JTI UK, says: “A key trend looking for a satisfying, easy to use device that will continue to grow in popularity after May 20th. across 2020 - is the rise of closed tank devices, or pod mods – now the fastest HOW EASY IS IT TO USE? growing vaping segment in the UK [IRI, The device couldn’t be simpler for users. Dec 2019]. In line with this, Logic recently No buttons to press, no tanks to fi ll – users announced the expansion of the Logic simply insert a magnetic e-liquid pod and Compact range into the convenience they’re ready to vape. channel offering the richest fl avour from the simplest device.”

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Menthol.indd 16 01/04/2020 14:47:41 logicvapes.co.uk MENTHOL REIMAGINED

COMPACT VAPES MENTHOL FLAVOURS

Menthol.indd 17 01/04/2020 14:51:50 PRODUCTS / VAPING / MYBLU INTENSE INTENSITY CONTINUES TO GROW FOR MYBLU

WHAT IS IT? WHAT DOES IMPERIAL TOBACCO UK SAY ABOUT myblu intense portfolio MYBLU INTENSE? Explaining the rationale behind the latest launch, WHAT’S INCLUDED IN THE PORTFOLIO? Chris Street, Head of Trade Marketing at blu The range of myblu Intense products includes an UK comments: “Our latest market insights show innovative Starter Kit which features the popular that adult smokers need to experience different pod-mod device, a USB charger and 2 x Intense fl avours in order to really commit to vaping and Liquidpods: Menthol and Golden Tobacco, two make the switch a permanent lifestyle change. of blu’s best-selling e-liquid fl avours). Adult smokers also want and expect a nicotine delivery that is more similar to that of a traditional The myblu Intense range also includes a wide cigarette, something which our Intense range selection of Liquidpods in an array of fl avours and looks to satisfy, thanks to the inclusion of nicsalts. strengths. Launched in direct response to this growing demand, our new Intense Starter Kit offers a range WHAT SETS MYBLU INTENSE APART? of fl avours with a rapid nicotine delivery that will Designed to help more adult smokers make help adult smokers switch to something better.” the switch to vaping, the mybu Intense ranges features Nicotine Salts (nicsalts) which allow WHERE ARE THEY AVAILABLE? nicotine to be absorbed into the body faster than The myblu Intense portfolio ise widely available normal e-liquids. This rapid absorption of nicotine through all major wholesalers and symbol groups allows myblu Intense to more closely replicate the in Scotland. experience of smoking a traditional cigarette, appealing to adult smokers looking to switch for the fi rst time, or those who have tried vaping in the past and haven’t been completely convinced.

HOW MUCH DO THE PRODUCTS COST CONSUMERS? The myblu Intense Starter Kit has an RSP of £19.99 while the Intense Liquidpods have a RSP of £5.99 for two pods.

WHICH FLAVOURS ARE AVAILABLE? myblu Intense Liquidpods are available in a range of fl avours with 18mg/ml strength. The most popular are: Q Menthol Q Blueberry Q Golden Tobacco Q Strawberry Mint Q Cherry

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Menthol.indd 18 01/04/2020 14:51:58 why not buy ? shoppers do. NEW MYB LU. H A N DY A N D E A SY VA PI N G.

This product contains nicotine. 18+ only. Not a smoking cessation product. © Fontem 2020.

Menthol.indd 19 01/04/2020 14:51:58 PRODUCTS / TOBACCO-FREE NICOTINE POUCHES / NORDIC SPIRIT AN ALTERNATIVE CHOICE FOR SMOKERS AND VAPERS

WHAT ARE THEY? WHAT IS THE RSP? Nordic Spirit is a range of 100% tobacco-free nicotine Each can of Nordic Spirit contains 20 tobacco-free pouches from JTI and was the fi rst product in this new pouches and the RSP is £6.50. category to achieve mainstream distribution in the UK. WHAT DO JTI SAY ABOUT NORDIC SPIRIT? HOW DO THEY WORK? Stephane Berset, JTI’s Marketing Vice President, Consumers simply pop a pouch under their top or says: “This is an exciting and innovative launch into a bottom lip for smooth delivery of tobacco-free nicotine. category that is still growing. We see Nordic Spirit as Each pouch can be enjoyed for up to an hour. the next big thing in the tobacco-free market, presenting a huge opportunity for independent SO THEY CAN BE USED ANYTIME AND ANYWHERE? and convenience retailers, as the consumer demand Developed in Sweden, Nordic Spirit provides a for alternative nicotine products increases and the convenient and discreet nicotine product that can be category evolves.” enjoyed in situations where smoking or vaping might not be possible. Whether on a long-haul fl ight, in the WHERE ARE THEY AVAILABLE? offi ce or just hanging out with friends, this smoke, vape, Nordic Spirit pouches are available from all major and odour-free offering can be enjoyed anytime, wholesalers and symbol groups in Scotland. anywhere and responds to the evolving preferences of adult smokers and vapers who are looking for an alternative nicotine product.

WHAT ARE THE POUCHES MADE OF? Nordic Spirit pouches contain a blend of plant-based fi bres, nicotine, additives and fl avourings together with a gum-base, all commonly used in the food industry.

WHICH VARIANTS ARE AVAILABLE? Nordic Spirit is available in both Mint and Bergamot Wildberry fl avours and in two strengths (6mg and 9mg).

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Menthol.indd 20 01/04/2020 14:52:00 Contains Nicotine nordicspirit.co.uk MENTHOL REIMAGINED

NEW DESIGN COMING SOON! NICOTINE POUCHES

FRESH MINT FLAVOUR

100% TOBACCO FREE

NO SMOKE NO DEVICE

EXPERIENCE NICOTINE THE NORDIC WAY

Menthol.indd 21 01/04/2020 14:55:02 WHEN WAS LAST TIME 18 YOU TRIED SOMETHING NEW?

STRENGTH: 1 2 3 4 STRENGTH: 1 2 3 4 3mg nicotine/pouch 6mg nicotine/pouch

ZYN gives you: Why ZYN: –Discreet white pouches –Tobacco-free –Refreshing flavours –Does not stain teeth – In a variety of strengths –Nothing inhaled, nothing exhaled

ENJOYING ZYN IS EASY!

1. 2. 3. 4. Break perforation Pop pouch under For maximum Discard the pouch in on side label. your upper lip. enjoyment use the waste compartment minimum 5–10 after use. minutes up to an hour.

Use whenever & wherever Wait for the tingling sensation!

ZYN.COM TOBACCO-FREE NICOTINE POUCHES This product contains nicotine which is a highly addictive substance.

Menthol.indd 22 01/04/2020 14:55:05 WHEN WAS LAST TIME 18 YOU TRIED SOMETHING NEW?

STRENGTH: 1 2 3 4 STRENGTH: 1 2 3 4 3mg nicotine/pouch 6mg nicotine/pouch

ZYN gives you: Why ZYN: –Discreet white pouches –Tobacco-free –Refreshing flavours –Does not stain teeth – In a variety of strengths –Nothing inhaled, nothing exhaled

ENJOYING ZYN IS EASY!

1. 2. 3. 4. Break perforation Pop pouch under For maximum Discard the pouch in on side label. your upper lip. enjoyment use the waste compartment minimum 5–10 after use. minutes up to an hour.

Use whenever & wherever Wait for the tingling sensation!

ZYN.COM TOBACCO-FREE NICOTINE POUCHES This product contains nicotine which is a highly addictive substance.

Menthol.indd 23 01/04/2020 14:55:06 PRODUCTS / FILTER TIPS / SWAN RANGE ROLL UP FOR NEW SWAN MENTHOL FILTERS

WHAT ARE THEY? WHAT DOES REPUBLIC TECHNOLOGIES (UK) SAY ABOUT THE Swan’s range of three new menthol filter tips NEW SWAN MENTHOL RANGE? “We know that menthol cigarette smokers will be looking WHAT’S INCLUDED IN THE RANGE? for alternatives and turning to retailers for guidance As part of its biggest ever NPD programme, market- after May 20th,” says Gavin Anderson, General Sales leading filter tip experts Swan have recently unveiled Manager. a brand new range of six innovative filter tips including three new menthol options in a variety of formats to “Our four menthol filters provide choice, quality and appeal to a broad range of adult RYO smokers. The three menthol flavour delivery which will enable them to easily menthol lines are Cool Menthol, Cool Burst Crushball and transition to menthol filters. Fresh Burst Crushball. “As rising numbers of smokers are looking at alternatives HOW BIG IS THE TOBACCO MARKET? to factory made cigarettes, and the emerging vaping In Scotland the market is worth a huge £29m and filters sector is still under some scrutiny, timely, relevant NPD are growing fast, up 9.2% year on year [IRI, Dec 2019]. of this kind enables retailers to meet demand amongst These new products will help accelerate that growth. menthol smokers whose preference is to continue with their preferred flavour.” WHAT ARE THE KEY SELLING POINTS FOR THE NEW LINES? COOL MENTHOL EXTRA SLIM WHERE ARE THEY AVAILABLE? Q Cool menthol flavour for a cool sensation The Swan range of menthol filter tips are available from Q Sister product to the best-selling Menthol Extra Slim all major wholesalers and symbol groups in Scotland. Q In handy pocket-sized pack, containing 120 filters Q RSP £1.09

COOL BURST CRUSHBALL Q Cool Burst flavoured capsule filters Q Crush capsule to create cool menthol sensation Q No animal products used Q Unique 2-part sliding pack containing 54 filters Q RSP £1.29

FRESH BURST CRUSHBALL Q Fresh Burst flavoured capsule filters Q Crush capsule to create strong peppermint flavour Q No animal products used Q Unique 2-part sliding pack containing 54 filters Q RSP £1.29

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Menthol.indd 24 01/04/2020 14:55:12 Menthol.indd 25 01/04/2020 14:55:14 PRODUCTS / LEAF WRAPPED CIGARILLOS / JTI LEAF WRAPPED INNOVATION BROADENS CHOICE

WHAT ARE THEY? For more information, retailers should visit the Sterling Dual Capsule Leaf Wrapped is an refreshed jtiadvance.co.uk site, or speak to innovative new king size cigarillo product their local JTI sales representative.” containing a Virginia blend tobacco and unlike conventional cigarettes, wrapped WHERE ARE THEY AVAILABLE? in tobacco leaf. The cigarillos contain a The Sterling Dual Capsule Leaf Wrapped mentholated capsule in the fi lter, which cigarillos are available from all major existing adult smokers can click to release a wholesalers and symbol groups in Scotland. peppermint fl avour.

WHY MIGHT THEY APPEAL TO MENTHOL OR CAPSULE CIGARETTE SMOKERS? They are part of the successful Sterling Dual family, which has a sector share of over 40% [IRI, Dec 2019]…. Available in branded 10-packs, the cigarillos allow retailers to tap into the current value trend, with an RSP of £4.50*.

WHAT DOES JTI SAY ABOUT STERLING DUAL CAPSULE LEAF WRAPPED? Ross Hennessy, JTI UK Sales Vice President, says: “We are committed to providing retailers with as much choice as possible by launching innovative new products that respond to current trends.

“We expect that Sterling Dual Capsule Leaf Wrapped cigarillos will become a popular choice for adult smokers and appreciated * Retailers are of course free by those looking for value-for-money to choose to sell JTI products at whatever price they tobacco options. choose.

26 MAKING A MINT

Menthol.indd 26 01/04/2020 14:55:16 Menthol.indd 27 01/04/2020 14:55:16 PRODUCTS / MENTHOL FLAVOUR CARDS / RIZLA INFUSIONS A FRESH OPTION FROM THE WORLD’S NO.1 BRAND

WHAT ARE THEY? WHAT DOES IMPERIAL TOBACCO SAY ABOUT RIZLA Rizla Flavour Infusions menthol fl avour cards FLAVOUR INFUSIONS? Chris Street, Market Manager UK at Imperial HOW DO THEY WORK? Tobacco comments: “When the menthol ban Rolled out into stores in January, Rizla Flavour arrives in May, many adult smokers will be left Infusions is an innovative new product range from without their fl avour of choice. This revolutionary the world’s most popular rolling paper brand. new proposition from the world’s leading rolling The new range offers menthol shoppers a fresh paper brand will allow these shoppers to discover new proposition that will allow them to discover a whole new way to fl avour their tobacco great fl avours and help retailers protect their sales products with Rizla Flavour Infusions.” ahead of the menthol ban in May. WHERE ARE THEY AVAILABLE? Rizla Flavour Infusions comprise fl avour cards that Rizla Flavour Infusions are widely available can be used to mentholate traditional factory through all major wholesalers and symbol groups made cigarettes or roll your own tobacco in Scotland. products. The new Rizla Flavour Infusions are incredibly easy to use. Simply insert a fl avour card into a packet of cigarettes or roll your own tobacco and wait at least 60 minutes for the contents to mentholate, or leave it in longer for a stronger, more intense fl avour.

WHICH VARIANTS ARE AVAILABLE? The Rizla Flavour Infusions range of fl avour cards includes two different variants: Q Menthol Chill which provides a stronger, more intense fl avour Q Fresh Mint which is slightly smoother and more mellow.

WHAT IS THE RSP? The new range is packed and wrapped separately, allowing retailers to sell them individually at an RSP of just 25p each.

28 MAKING A MINT

Menthol.indd 28 01/04/2020 14:55:16 *RRP: For the avoidance of doubt, retailers are free at all times to determine their selling price.

Menthol.indd 29 01/04/2020 14:55:19 Your Guide Through Change

“JTI is committed to supporting you during and after the implementation of the Menthol Ban and will be on hand to help you over the coming months, providing support and guidance through a number of channels. Following the implementation of the ban, JTI will continue launching innovative new products that are in line with consumer demand.”

Mark Yexley, Communications Director, JTI UK

Knowledge is key 20 MAY What is the Retailers should ensure that they and their Where should I 2020 Menthol Ban? staff are aware of the details surrounding the upcoming ban. They should also be familiar go for support? What should I do with It’s the next phase of the EUTPD2 that with the alternative options available after the ban, and confident in their knowledge so JTI will continue to support retailers via leftover stock? first came into effect in May 2016. that they are able to support their existing JTI Advance and our newly launched JTI will exchange stock held by retailers as part From 20th May 2020, all menthol and adult smokers. Menthol Ban microsite of its standard 12 week call cycle. www.jtiadvance.co.uk/MentholBan2020 capsule cigarettes will be banned Communication is crucial For now though, JTI’s advice is to rotate stock, from sale. Our sales force will also provide regular maintain full range and availability in order Existing menthol and capsule cigarette smokers updates and advice to retailers about to continue to benefit from the profitability of might have questions about the ban. Ensure staff are knowledgeable so that they are able to changes to the tobacco category. this category. What should I do now? answer these questions with confidence.

As with previous legislation such as the Retail Display Focus on competitive pricing Ban, Plain Packaging and Track & Trace - those who Price will remain a key factor for existing adult prepare well will experience the least disruption to Retailers and consumers should not be tempted smokers when choosing where to shop for their business. You should continue to ensure the by illicit Menthol or Capsule alternatives as this tobacco. JTI recommends selling at RRP or basic principles of category management are put into below to maximise sales and avoid lost custom1. invites criminality into our communities and funds practice and make certain that you and your staff are serious and organised crime. To see the other aware of the impending changes. Maintain full availability & range work JTI is doing to combat the illicit trade, visit www.jtiadvance.co.uk/DontBeComplicit The popularity for menthol and capsule segments continues to grow, with capsule How should I prepare? now responsible for 17.2% of total cigarette sales in the UK2, representing a key profit Don’t wait for the ban to happen, be prepared. opportunity. You should maintain full Some adult smokers may choose to look for other availability and range, stocking key brands, to Any questions? alternatives including hand-rolling tobacco, such as ensure you meet the needs of existing adult the Sterling Rolling Tobacco range, cigarillos such as Scan the code to the right with your smartphone camera to access smokers pre-May 2020. Sterling Dual Capsule Leaf Wrapped, the Logic vaping www.jtiadvance.co.uk/MentholBan2020 range or Nordic Spirit nicotine pouches. 1. Retailers are of course free to sell JTI products at whatever price they choose. Or speak to your JTI sales representative. 2. IRi Market Place, Volume Share, Total RMC, Total UK, Sep 2019.

Menthol.indd 30 01/04/2020 14:55:20 Your Guide Through Change

“JTI is committed to supporting you during and after the implementation of the Menthol Ban and will be on hand to help you over the coming months, providing support and guidance through a number of channels. Following the implementation of the ban, JTI will continue launching innovative new products that are in line with consumer demand.”

Mark Yexley, Communications Director, JTI UK

Knowledge is key 20 MAY What is the Retailers should ensure that they and their Where should I 2020 Menthol Ban? staff are aware of the details surrounding the upcoming ban. They should also be familiar go for support? What should I do with It’s the next phase of the EUTPD2 that with the alternative options available after the ban, and confident in their knowledge so JTI will continue to support retailers via leftover stock? first came into effect in May 2016. that they are able to support their existing JTI Advance and our newly launched JTI will exchange stock held by retailers as part From 20th May 2020, all menthol and adult smokers. Menthol Ban microsite of its standard 12 week call cycle. www.jtiadvance.co.uk/MentholBan2020 capsule cigarettes will be banned Communication is crucial For now though, JTI’s advice is to rotate stock, from sale. Our sales force will also provide regular maintain full range and availability in order Existing menthol and capsule cigarette smokers updates and advice to retailers about to continue to benefit from the profitability of might have questions about the ban. Ensure staff are knowledgeable so that they are able to changes to the tobacco category. this category. What should I do now? answer these questions with confidence.

As with previous legislation such as the Retail Display Focus on competitive pricing Ban, Plain Packaging and Track & Trace - those who Price will remain a key factor for existing adult prepare well will experience the least disruption to Retailers and consumers should not be tempted smokers when choosing where to shop for their business. You should continue to ensure the by illicit Menthol or Capsule alternatives as this tobacco. JTI recommends selling at RRP or basic principles of category management are put into below to maximise sales and avoid lost custom1. invites criminality into our communities and funds practice and make certain that you and your staff are serious and organised crime. To see the other aware of the impending changes. Maintain full availability & range work JTI is doing to combat the illicit trade, visit www.jtiadvance.co.uk/DontBeComplicit The popularity for menthol and capsule segments continues to grow, with capsule How should I prepare? now responsible for 17.2% of total cigarette sales in the UK2, representing a key profit Don’t wait for the ban to happen, be prepared. opportunity. You should maintain full Some adult smokers may choose to look for other availability and range, stocking key brands, to Any questions? alternatives including hand-rolling tobacco, such as ensure you meet the needs of existing adult the Sterling Rolling Tobacco range, cigarillos such as Scan the code to the right with your smartphone camera to access smokers pre-May 2020. Sterling Dual Capsule Leaf Wrapped, the Logic vaping www.jtiadvance.co.uk/MentholBan2020 range or Nordic Spirit nicotine pouches. 1. Retailers are of course free to sell JTI products at whatever price they choose. Or speak to your JTI sales representative. 2. IRi Market Place, Volume Share, Total RMC, Total UK, Sep 2019.

Menthol.indd 31 01/04/2020 14:55:20 CIGARETTES THE ‘NEW DUAL’ RANGE A NEW DISTINCTIVE BLEND IN A UNIQUE DUAL PACK PLUS: This new distinctive blend is also available in Mayfair New Green Sterling New Superkings Green Berkeley New Superkings Green Benson & Hedges New Superkings Green

CIGARILLOS NEW STERLING DUAL CAPSULE LEAF WRAPPED TOBACCO LEAF WRAPPED STICK WITH A PEPPERMINT CAPSULE FILTER

VAPES LOGIC COMPACT NEW EXTENDED RANGE NOW INCLUDES 9 MENTHOL FLAVOURS LOGIC EPIQ E-LIQUID AVAILABLE IN 5 MENTHOL FLAVOURS

NICOTINE POUCHES NORDIC SPIRIT 100% TOBACCO FREE WITH A FRESH MINT FLAVOUR

WE’VE GOT THE ALTERNATIVES

Menthol.indd 32 01/04/2020 14:56:20