Photo courtesy of Phillip Morris U.S.A. |
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FEATURE STORY
From Snuff to Smokeless: History of a Segment
By Tracy Cox
Snuff is in the midst of a metamorphosis. While the original product is technically still on the store shelves, it is accompanied by the most recent transformation of this category—today’s smokeless, spitless pouches, which translate to a more convenient and socially acceptable tobacco use. And the word snuff is being rapidly, well, snuffed out. Notably, many manufacturers are moving away from the term snuff, using “smokeless” in its place. Perhaps a good place to begin is with the definition—what is snuff?
Snuff tobacco is a fine grain tobacco, which comes in moist (MST), dry or nasal blends, according to Allen Roth, general manager of H.J. Bailey Co. in Neptune, N.J. The composition of the tobacco delineates whether it is moist or dry, and nasal powder is inhaled. Chewing tobacco, made up of long strands of tobacco, is a category separate from MST. Roth says MST is the most popular of today’s smokeless blends.
Photo courtesy of U.S. Smokeless Tobacco Company |
Mark Smith, media relations representative for R.J. Reynolds, says he uses a presentation with talking points to explain the differences among products. “There is the smokeless category overall, with the moist and dry variations of snuff as segments within smokeless,” he says.
Jennifer Golisch, spokesperson for Philip Morris, says the company does not manufacture or market snuff, and uses the term “smokeless” for their new spitless pouches. And U.S. Smokeless Tobacco Co. says the issue is one of semantics. “USSTC prefers to use the term ‘moist smokeless tobacco,’ because it best covers all the ‘cuts’ of tobacco in the products that we market,” says Andy Lee, media relations representative for USSTC. Lee says the company believes the term ‘snuff’ is most accurate when used to describe the finely cut tobacco used in products such as USSTC’s original Copenhagen Snuff (which dates back to 1822).
The product’s evolution has called for a change in term, Lee says. “Although it would not be factually incorrect to refer to products in this category as moist snuff, we feel that with so much innovation happening throughout the category, the umbrella term of ‘snuff’ used for all smokeless tobacco is outdated,” he says.
“With more and more restrictions, people are looking for alternatives, and they are turning to smokeless tobacco,” Roth says. “Smokeless tobacco is very innovative today. Companies are developing new flavors, and consumers are responding. Smokeless has quite a future, and it’s interesting, because it really has been around forever.”
Photo courtesy of R.J. Reynolds |
Snuff to smokeless
Snuff tobacco is one of the oldest tobacco customs, with a 500-year history in Europe (see sidebar). The aristocrats were the first to use snuff, and then snuff popularity increased in London in 1700. Since this time, the snuff category has evolved, to bits of tobacco placed between the cheek and the gum and then to pouches, with recent transformations moving to spitless versions of the product.
This year has been a banner year for smokeless tobacco. In April, R.J. Reynolds purchased Conwood, a company that specializes in MST and makes and markets a variety of smokeless tobacco products, snuff and loose-leaf tobacco. Two days later, Reynolds announced the test market of Camel SNUS, a new smokeless, spitless pouch product manufactured in Sweden. Next, Philip Morris USA announced the launch of its own spitless, smokeless pouch product, Taboka. Finally, USSTC announced in May its launch in test market of its new spitless, smokeless pouch product, Skoal Dry.
USSTC’s primary smokeless brands include Copenhagen, Skoal, Red Seal and Husky. Lee says that USSTC’s new products started earlier this year with Copenhagen Long Cut Straight. In August, Skoal Bandits made a retail debut, with improvement in product quality and packaging. “The new Bandits MST pouch product features USSTC’s advanced Flavor Flow™ pouch paper, and it is more flavorful, moist, and comfortable in the mouth, providing a more satisfying experience than the original,” Lee says.
In early July, USSTC began the test-market of new Skoal Dry Tobacco Packs in Louisville, Ky. and Austin, Texas. This product is Skoal’s first-ever spit-free smokeless tobacco pouch product designed specifically for adult smokers, Lee says. “Skoal Dry eliminates the need to spit and, using patented flavor technology, gives adult smokers the flavor and satisfaction they seek,” he says. The product is available in regular, menthol and cinnamon flavors; each can of new Skoal Dry Tobacco Packs contains 20 pouches of 100 percent American-grown tobacco. Like the new Skoal Bandits, Skoal Dry is packaged in sleek beveled cans with lithographed metal lids and features a “guaranteed fresh-until” date stamp.
“If you looked at the smokeless category a few decades ago, it looked a lot different,” says Tony Vengrove, new products director for USSTC. “We are spending a lot of effort to create products that help change social acceptability among smokers. We believe a key component to growth in the moist tobacco category is through innovative products that will improve social acceptability among adult smokers. That’s where these pouches come into play, because they are more discreet and easier to use. They may soon put to rest people’s perceptions of what this category is about.”
Photo courtesy of R.J. Reynolds |
In the meantime, Vengrove says that the company doesn’t generally comment on test performance. “Given the complexities of this category and the whole proposition of converting adult smokers to the category, it is a little untraditional,” he says. “You can’t run something for six months and expect to have a good read on it.” However, Vengrove says that flavor is a new change that should appeal to smokers. “With Skoal Dry, our regular flavor is similar to one that cigarette smokers already know,” he says.
Philip Morris also chose to flavor their smokeless product introduced this year, Taboka Tobaccopaks™. The Tobaccopaks™ are smoke-free, spit-free, pasteurized tobacco pouches that come in two versions, Original and Taboka Green, the menthol version. Taboka is manufactured in Richmond, Va. and uses pasteurized, U.S.-grown tobacco. Taboka, which does not need to be refrigerated, is intended to be merchandised in the cigarette category.
Philip Morris began test marketing this product in the Indianapolis area in July to understand adult smoker acceptance of this new product. Golisch says she cannot yet comment on the status of this test, but she says the company’s investment in smokeless is grounded in the potential for growth. “Varying estimates from different data sources would suggest modest growth in the smokeless tobacco product category in the low single digits,” she says.
 R.J. Reynolds, as evidenced by its purchase of Conwood, reflects the industry’s desire to provide this variety of products to adult tobacco consumers. Camel SNUS are currently test marketed in Austin, Tex., and Portland, Ore. This is a smokeless tobacco product for today’s consumer, according to Smith. “This is a convenient tobacco product that can be used in a variety of settings,” he says. Camel SNUS are pasteurized, with low salt and moisture content, which means it requires no spitting, Smith says. The tobacco comes in a small convenient pouch, packed 15 to a tin container, and it is kept refrigerated to maintain freshness from the product’s point of manufacture in Sweden to its purchase at retail in the United States.
Smith says it’s too soon to tell how the Camel SNUS are testing. But he says R.J. Reynolds is gaining good insight. “We’ve got good retail coverage, and we’re seeing good consumer trial of product,” he says. “Consumers like that the product is cold—it’s refrigerated at retail in small refrigerators we provide free to retailers. The product appeals to smokers, less so with traditional moist snuff users. Again, we are learning a lot.”
Marketing smokeless
Retailers should frequently review strategies, tactics and category plans to ensure that they are getting maximum profitability out of their MST offerings. There is much variety to the category, and retailers should make sure to stay current, manufacturers advise. For example, Smith points out that R.J. Reynolds provides retailers with small, counter-top refrigerators that are a great marketing device as well as a practical way to the keep the Camel SNUS product fresh.
Golisch emphasizes that Taboka is marketed to adult smokers who are interested in smokeless tobacco alternatives to smoking. “Our marketing campaign is intended to communicate that Taboka is a new way to enjoy tobacco for adult smokers who are interested in smokeless tobacco alternatives to smoking,” she says.
“This product appeals to adult tobacco users who want tobacco pleasure and the convenience of a spitless tobacco product that can be used almost anywhere, anytime,” agrees Smith.
Photo courtesy of Philip Morris USA |
With smokeless products still in test and companies unable to comment on sales success, retailers are on the front lines of smokeless tobacco’s revolution. Camel SNUS are selling well at Express Food Market locations in Austin, Texas, according to Iqbal Ali, owner of these stores. “The marketing behind this product has worked well,” he says. “People don’t miss it and they are willing to try it. They are hearing about it and coming in and asking about it.” Ali says retailers are advised to closely track sales of smokeless products, in order to have appropriate stock. “We have been having problems keeping up with the sales of it,” he says.
With all of its benefits, smokeless may be the bright spot on the horizon for the tobacco industry. Smokeless tobacco is currently the only growing tobacco category, and has been increasing at 4 to 6 percent per year since 2002, according to Lee. “Research indicates that the category is experiencing even greater growth in 2006, and is up 6 to 8 percent so far this year,” he says. “USSTC believes that continued product innovation, both in forms and flavors, combined with adult smokers making the switch to smokeless products will continue to drive the growth of the category. We expect the smokeless tobacco category to continue growing.” |
