For simple reasons of economics, RYO has lost its cloth cap image and become socially acceptable ­ even trendy among young smokers. The number of converts has risen to an estimated 5.5 million, according to Swedish Match, and duallists (those who smoke RYO and cigarettes) have increased to more than a million. "Research shows that once a smoker has crossed over they are likely to stay with RYO," says Swedish Match trade marketing manager Duncan Kerr. These trends augur well for the sector and for retail profits. Margins on RYO tobacco are 11%, a significant improvement over the 6%-7% on cigarettes at Q5 rate, while accessories such as papers offer 45%-50%. With sales in this area looking so positive, there has been plenty of innovation. Market leader Imperial Tobacco has added a 25g pouch to its Drum range to appeal to younger smokers, and says sales of Concept, its make your own kit, which came out in October 2000, have been impressive. Over one million smokers now own a tubing machine, while Concept tubes are selling at the rate of 20 million a month. The only disappointment has been Concept tobacco which smokers failed to take to because it lacked sufficient moisture. Sales director Geoffrey Couchman says after a relaunch in the summer with a higher moisture content and lower price, sales now are encouraging. Gallaher relaunched its Samson brand with a continental blend and the brand's RYO market share has doubled. "Shopper trends show that a high level of future growth will come from continental blends," says trade communications manager Jeremy Blackburn. Its innovative Amber Leaf flip top tobacco-and-papers pack now has a 13% share of the RYO market and Blackburn says it's been vital in encouraging trial. Papers, led by Imperial's brand leader Rizla, has seen a lot of activity. Zig-Zag has achieved phenomenal sales growth' in the last 12 months, according to commercial director Andrew Armstrong, following trade and consumer advertising. But the real sales growth key, he says, is the high margins it offers retailers. Next month it launches a premium paper at even higher margins. Sales of Swedish Match's Swan papers rose six fold after the launch of a 5-pack in Asda in March which has now been rolled out to other multiples. JMB Europe reports healthy sales for its Bullbrand papers. Both companies' filters have romped away, particularly the newer extra slim variety which Swedish Match says now has 26% of the sector. {{FOCUS SPECIALS }}