With nicotine alternatives such as smoke-free nicotine pouches growing in popularity, it’s important for retailers to understand the product so that they can communicate information to their customers and maximise their sales. Here, JTI gives the lowdown on the category.
The nicotine pouch category in the UK is growing and is now worth £3.8m a month1, equating to an annual figure of approximately £45.8m a year2. With 45% of nicotine pouch sales in the UK coming through the convenience and independents channel3, there is a huge opportunity for retailers to be part of this category growth.
When it comes to flavours, mint is king for nicotine pouches. In fact, a huge 81.6% of sales are mint-flavoured, with fruit variations making up the rest of the demand4.
Consumers also lean towards stronger strength nicotine pouches, with Extra Strong having a 49.3% share of the market, followed by Strong with 33.8% and Regular with 15.5%5. With 83.1% of nicotine pouch sales in traditional retail from the Extra Strong or Strong strengths, retailers should ensure they have these variations in stock. Earlier this year, Nordic Spirit unveiled a new Spearmint Strong variant to cater for this growing demand for higher strengths and menthol products.
There is still an education process required for the nicotine pouch category, with many shoppers confusing them with nicotine gum or patches. Retailers who learn more about the role of nicotine pouches, as well as the products available will be able to cater for those consumers who are looking for a smoke-free nicotine alternative.
What is a nicotine pouch and what to stock
As the name suggests, they are small pouches that can be placed discreetly under your lip. You’ll feel a tingle as you start to absorb the nicotine and they can be used for up to 60 minutes with a single pouch.
Nordic Spirit is the biggest nicotine pouch brand in the convenience and independent channel, with a 53.6% market share6. Capitalising on the recent popularity of the category, the Nordic Spirit brand is also in growth and is now worth approximately £19.7m across all channels7.
What to communicate to customers in-store around nicotine pouches
● Nicotine pouches are a new way to enjoy nicotine. This is important as there’s currently less category awareness, with some consumers thinking it is a chewing gum or nicotine patch.
● They are free from smoke, vapour and smell, so customers can enjoy them whenever and wherever. Most people use them in situations when they cannot smoke or vape, such as when travelling or during meetings.
● Pouches are easy to use – all you do is take a pouch and place it discreetly under your lip. You’ll feel a tingle as you start to absorb the nicotine and then you can enjoy for up to 60 minutes with a single pouch.
● Nordic Spirit is the UK’s most popular brand in the independent channel8 and comes in a range of flavours and strengths. For consumers who haven’t tried it before, we recommend starting with Mint Regular strength.
Nordic Spirit’s Perfect Store
Last year, Nordic Spirit launched a nationwide search to discover the ‘perfect’ Nordic Spirit stores among its independent retail trade partners. Stores were judged against five simple pillars to generate awareness of nicotine pouches in-store, entice new customers and boost sales of nicotine pouches.
Coming out on top in each region were:
● Daniel Ryan, Hiccups Off Licence, Stoke-on-Trent
● Depan Patel, Bon Bon, Canterbury
● Hanif Master, Ribble Valley, Burnley
● Shantha Kumar, Premier Downend, Bristol
Each retailer excelled in JTI’s points system and received a prize bundle worth up to £20,000 per store. This included an all-expenses-paid trip to the Nordic region, £2,000 wholesaler credit, tickets to events and much more.
But how did they do it? Follow the five Perfect Store pillars to boost your sales:
● Distribution & availability: Maintain full distribution and availability to meet demand. We’d recommend stocking at least three cans per SKU. Recommended variants include Nordic Spirit Mint (Extra Strong, Strong and Regular), Bergamot Wildberry (Extra Strong and Strong) and Spearmint (Extra Strong and Strong).
● Visibility & merchandising. Ensure clear visibility of products in-store. Placing a Nordic Spirit unit on the countertop with clear visibility, along with the price point communicated on the display can help support sales.
● Presence: Increase brand presence via in-store POS materials. Showcase assets at front of store, point of purchase and back wall to maximise awareness.
● Retailer engagement: Build up brand and nicotine pouch category knowledge to educate customers. You can learn more about Nordic Spirit on www.jtiadvance.co.uk.
● On-shelf pricing: Tactical on-shelf pricing ensures consumer confidence: Sell at the RRP of £6.50 for 20 pouches and make pricing clearly visible*.
Retailer testimonials
Hear the experiences of some of the Perfect Store competition winning retailers about selling nicotine pouches in their stores.
Nordic Spirit Perfect Store Winner – Ribble Valley Forecourt, Burnley
Hanif Master from Ribble Valley Forecourt in Burnley (pictured) saw an immediate sales increase after implementing the Nordic Store Perfect Store guidelines. “We were the only shop in a busy location selling Nordic. In the first six weeks of following the Nordic Spirit Perfect Store model, our sales increased from 30% to 65%. Even now, we restock twice a week. We are finding same customers are coming back and, at the same time, we are generating new customers.
“The selection of flavours has appealed to our shoppers. The great thing about Nordic Spirit is there is no smoke, no vapour, and you can enjoy it indoors, outdoors and even when travelling. We have invested time in educating staff about Nordic Spirit and therefore they are confident talking to customers on a daily basis.”
Hiccups Off Licence, Stoke-on-Trent
Daniel Ryan from Hiccups Off Licence saw the retailer’s Nordic Spirit sales double and bring in new customers.
“Following the Nordic Spirit Perfect Store Guidelines has seen our sales of Nordic Spirit increase to 4-5 outers a week, up from 1-2. We have also had comments from our customers about how good it looks – and it has enabled us to increase our sales because of the visual effect.
“We have picked up a number of new customers who know we are never out of stock, and they have become regulars not only for Nordic Spirit but for other products as well. This means we have increased our turnover with these new customers.”
For more information on nicotine pouches, retailers can contact their local JTI Business Adviser. Retailers can also reach out to JTI’s Customer Care line on 0800 163503 or visit JTI’s trade retailer website, www.JTIAdvance.co.uk for more information.
*Retailers are of course free at all times to sell JTI products at whatever price they choose.
Sources
1 IRi Market Place, Value Sales, Nicotine Pouch Category, Total UK, Dec 2022
2 IRi Market Place, Value Sales, Nicotine Pouch Category, Total UK, Annualised Figure Based on Dec 2022
3 IRi Market Place, Value Sales, Nicotine Pouch Category, Convenience Channel, Dec 2022
4+5 IRi Market Place, Volume Share, Nicotine Pouch Category, Total UK, Dec 2022
6 IRi Market Place, Volume Share, Nicotine Pouch Category, Convenience Channel, Q4 22. For more information or to verify comparison contact Nordic Spirit on Facebook or Instagram: @nordicspirit_uk or using our details at nordicspirit.co.uk/contact
7 IRi Market Place, Value Sales, Nordic Spirit, Total UK, Dec 2022 [ii] IRi Market Place, Value Sales, Nordic Spirit, Total UK, Annualised Figure Based on Dec 2022
8 IRi Market Place, Volume Share, Nicotine Pouch Category, Convenience Channel, Q4 22. For more information or to verify comparison contact Nordic Spirit on Facebook or Instagram: @nordicspirit_uk or using our details at nordicspirit.co.uk/conta
