Cajun Cigar Czar LLC has reached an agreement with Laika Brands to sell Laika hemp cigarettes in stores across the United States.
The Current Crop of Tobacco and Nicotine Products
The withdrawal of Juul’s vape pens and pods from retail shelves still leaves other e-cigarettes and noncombustible products on the market. Brands including Logic, Njoy and Vuse (from R.J. Reynolds Vapor Co.) have been authorized by the FDA and are available at select retail locations. In fall 2021, Vuse was granted marketing orders for its original flavored Vuse Solo e-cigarette.
Given the controversies and concerns about e-cigarettes, some retailers have gotten out of the business of selling them. In 2019, Walgreens said that it would cease sales of such items nationwide as health officials and agencies across the federal and local government evaluated the effects. That same year, The Kroger Co. and Walmart also halted sales of e-cigarettes.
Although that segment has been shrinking, e-cigarettes aren’t the only alternative to traditional cigarettes. The broader tobacco market also includes smokeless tobacco and at least 23 other electronic nicotine delivery system (ENDS) products authorized by the FDA, including hookah pens and e-pipes.
The basic cigarette market is also undergoing a bit of a makeover, as usage waned to a rate of 12.5% of the U.S. population in 2020, from 20.9% in 2005. Among youths, the rate sank to 2.3% in 2021, according to research from the University of Michigan.
New additions are providing other options for smokers. For example, in addition to mainstay cigarette brands and products from Philip Morris and R.J. Reynolds, the market has widened to include offerings like organic tobacco products from the American Spirit brand, known for its colorful packaging.
Another new entry is described as the market’s first cigarette authorized by the FDA to help smokers cut down. Containing 95% less nicotine than conventional cigarettes, VLN was developed by the agricultural biotech company 22nd Century Group, following a decade of research and independent clinical trials.
The FDA classifies VLN a modified-risk tobacco product (MRTP), making it the first of that kind, according to the company. “We believe that the MRTP set will be the latest innovation in tobacco merchandising as displays shift from cigarettes to OTP [other tobacco products] to ITP [investigational tobacco products] and now to MRTP, and that grocers are uniquely positioned to capture a large share of this emerging category,” asserts John Miller, who directs the growth of the reduced-nicotine tobacco business for Buffalo, N.Y.-based 22nd Century Group.
VLN was initially available through a pilot program at select Circle K convenience stores in the Chicago area. In addition to the convenience factor, Miller cites other reasons that retailers, including traditional grocers, can do well with these new products. “Although early in the program, the trends are leading us to believe adult VLN customers purchase larger quantities of product per transaction,” he says. “The belief is that an adult smoker who is desiring to smoke less wants to purchase an entire carton of VLN Cigarettes and avoid the temptation of regressing back to old habits and focus on their VLN journey.”
Miller adds that some states, including Colorado and Connecticut, are already creating taxation advantages for MRTP products.
As for demand, Miller makes a comparison to other commonly consumed products. “Based on the experience and results in the nonalcoholic beverage category, as well as the decaffeinated coffee category, it’s understood adult consumers want choices and solutions,” he says.
Big Tobacco companies are also venturing in new directions with cigarette offerings. The Altria Group Inc’s. Richmond, Va.-based Philip Morris USA, the famous company behind traditional cigarette brands such as Benson & Hedges, Lark, Marlboro, Merit and Virginia Slims, has developed the Iqos line of heated tobacco products, including Iqos Veev.
Akin to an e-cigarette and billed as an alternative to vaping, Iqos is described as a “heat stick” that heats up instead of burning tobacco. To avoid the backlash that erupted over marketing flavored tobacco products to kids, Iqos products are restricted to adult use.
Finally, as consumers look for alternatives to traditional cigarettes, non-tobacco and nicotine-free herbal cigarettes increasingly have a place. In June, for example, Charlotte, N.C.-based Cajun Cigar Czar LLC reached an agreement with Las Vegas-based Laika Brands to sell Laika hemp cigarettes in stores across the United States. Although herbal and hemp cigarettes are commonly sold at independent shops that specialize in tobacco and cannabis in states where use of the latter is legal, retail giant Amazon sells herbal cigarettes on its website.