Scandinavian Tobacco Group UK has expanded its value for money Moments range into the small cigar sector with the launch of Moments Panatella.
STG UK first launched Moments as a miniature cigar five years ago and the company believes it has spotted a gap in the small cigar market for a ‘value-for-money’ offer.
Moments Panatella is the first major cigar launch since the advent of new EU rules for tobacco packaging. Under EUTPD 2, all packs must feature combined pictorial and written health warnings covering 65% of the front and back of packs. These must also be positioned at the top of the pack. The rules came into force for new stock last May and retailers have until 20 May to sell though any old stock, after which date all tobacco products must be EUTPD 2 compliant. However, cigars are currently exempt from the UK government’s plain packaging legislation, which comes into force on the same day.
The new Moments Panatella is available in an Original variant and is being rolled out to stores this month. The range will be available to buy in packs of five with an rsp of £4.20, which STG UK said made it the cheapest product on shelf within the small cigar segment.
“Price continues to be a major focus for shoppers, especially within the tobacco category, and as the next raft of restrictions come into effect, we expect the value for money trend to gain even further momentum. Worth £80.2m but showing 16% decline in volume sales year on year, we believe with the right product, there is a huge opportunity for the small cigar segment to capitalise on this demand for value and drive growth back into the category,” said STG UK head of marketing & public affairs Jens Christiansen.
“The Moments brand has already seen significant success in the miniatures segment with its value for money positioning. In fact, since its launch only five years ago, the brand has grown to become the fastest-growing cigar brand in the UK, accounting for a 15.3% market share of miniatures. By harnessing the strength of the Moments brand, we see a gap in the market for a VFM proposition that we can fill with Moments Panatella and drive growth back into small cigar segment and deliver strong sales for retailers.”