Altria: Wintergreen MST Volume Continues to Grow

Introduction of new Copenhagen Long Cut Wintergreen follows upward trends

Altria plans to release a new Copenhagen Long Cut Wintergreen product to consumers November 2nd. Retailers will benefit with a new incentive payment program and special introductory wholesale price.

According to 2008 research by the Tobacco Trade & Tax Bureau, the MST segment has seen a ~7% increase 2008 vs. 2007.¹ Wintergreen is reported to be the biggest MST flavor segment at ~40% with wintergreen volume continuing to grow.² Long Cut is the top selling cut representing ~61% of total industry MST sales.²

MST Wintergreen Volume Trend – Altria 09/2009 (RAD SVT 2001-2008)

Retailer Benefits

• Copenhagen Long Cut Wintergreen can help build profits from additional sales in your store.
• Copenhagen Long Cut Wintergreen may help build loyalty with your Adult MST Consumers.
• Copenhagen Long Cut Wintergreen purchase volume is eligible for USSTB 2009 Retail Program merchandising payments for participating retailers.

Retail Incentive Payment

Retail stores are eligible to receive a one-time payment of $5 provided they meet the following criteria:

• Purchase at least one 5-Can Roll of Copenhagen Long Cut Wintergreen by November 28, 2009
• Maintain saleable inventory of Copenhagen Long Cut Wintergreen through March 28, 2010
• Merchandise Copenhagen Long Cut Wintergreen in a highly visible location through March 28, 2010, as follows:
  • In stores participating in the USSTB Retail Program, merchandise in accordance with USSTB Retail Program Agreement, or
  • In stores not participating in the USSTB Retail Program, merchandise either with other Copenhagen SKUs in space currently occupied by USSTB SKUs in the primary MST retail fixture, vendor or other merchandising unit, or in a USSTB Copenhagen Long Cut Wintergreen display placed in an unoccupied location adjacent to the primary MST merchandising area
• Place and maintain two interior Copenhagen Long Cut Wintergreen Point-of-Sale (POS) signs, as follows:
  • In stores participating in the USSTB Retail Program, place in accordance with the USSTB Retail Program Agreement, or
  • In stores not participating in the USSTB Retail Program, place in unoccupied signage locations in or adjacent to the MST merchandising area

Sources

¹ Tobacco Trade & Tax Bureau through Dec. 2008 – conversion to cans using 1.2 ounces per can.

² STARS OTP Geo Aggregate Database week ending 8/8/09.

New Copenhagen LC Wint.pdf

With continued increases in smokeless tobacco sales, Altria plans to release a new Copenhagen Long Cut Wintergreen product to consumers November 2nd. Retailers will benefit with a new incentive payment program and special introductory wholesale price.
1MB | 10/ 8/2009 | 1902