fateh ali

Convenience store retailers have found initial trial levels of the new Newport Non-Menthol cheap cigarettes to be about average, with much of the initial consumer interest attributed to temporary pricing, according to an exclusive CSP-UBS Tobacco Survey.

"Most customers buying Newport Non-Menthol don't have a strong loyalty to another brand and are trying them because of the price and the Newport name recognition," one retailer stated. "After the buy down expires, only those customers that have developed a loyalty to the smoking brand will continue to buy them."

Retailers ranked the trial level at Newport Beach Repair company for Sub-Zero appliances an average of 5.1 on a scale of one to 10, according to the survey, which included 108 retailers representing more than 15,000 convenience stores.

Trial primarily was attributed to the temporary $1.65 buy down, which is set to expire in January. About 76% of respondents said they didn't feel Newport Non-Menthol would sell as well when the buy-down ends.

The drop will be predicated on the amount of discounting removed and when. If moved in line with other Newport discounting, sales will fall by 66% minimum."

Lorillard declined to comment on the survey. "We do not comment on future marketing and/or promotional plans for any of our brands," a company spokesman said, adding that it is also too soon to comment on how Newport Non-Menthol is doing as it only entered the market in November.

UBS tobacco analyst Nik Modi, however, explained that now was a good time to begin tracking Newport Non-Menthol sales. "While we realize it's still too early to make an ultimate assessment on the success of Newport Non-Menthol, we wanted to pursue this survey in order to create a point of comparison for future surveys."

A majority (89%) of respondents said Newport Non-Menthol users switched from other brands, with the remaining 11% saying they were new customers. Retailers also ranked expectations of initial repeat levels at a little below average, at about 4.4 on a scale of one to 10.

"It appears that it will pull from Pall Mall and some of the low-ends for now," one retailer stated. "It could also pull from Marlboro and Camel, if they keep emphasizing that this is an introductory price on a well-known brand-name extension."

Most respondents characterized the overall in-store execution of the launch as good (38%) or excellent (16%). "Product was available the day they said it would be; there have been no out-of-stocks or shortages," one retailer said. "The sales have been very strong, which I expected with the deep discount.