Following the massively successful relaunch of Kensitas Club at a significantly reduced RSP, JTI is now launching a new RYO version of Kensitas Club, as RYO Portfolio Brands Manager Bruce Terry tells SLR.
Relaunching Kensitas Club at a much lower RSP was a very bold move. Did you know it would work?
As with any new launch, we did extensive research to identify consumer demand, and we were confident that due to the brand’s existing customer loyalty and the increased demand for Ultra Value tobacco brands among adult smokers in Scotland, the re-launch would help retailers drive incremental sales.
The re-launch has been a success, then? What has the feedback from retailers been like?
It’s been hugely successful! It’s clear that the new low RSP and the introduction of a Superking variant has met consumer demand and in turn led to a huge uplift in retailer sales. The figures speak for themselves; Kensitas Club is now the fastest growing tobacco brand in Scotland1, seeing a 1019% increase in volume since January2. Feedback from retailers has also been overwhelmingly positive, with one store-owner in Edinburgh calling the re-launch an ‘overnight success’.
And now you have a new product to add to the Kensitas Club range?
Indeed, we do! Last month we launched Kensitas Club’s first rolling tobacco offering, designed to allow retailers to capitalise on the growing value RYO segment – which has gained 15% share since August 20153. Kensitas Club RYO will be available across all channels in 30g and 50g pouch formats.
Are you hoping for similar levels of success in the RYO sub-category with this new line?
We’re anticipating that this latest extension to the Kensitas Club portfolio will allow retailers to capitalise on the huge sales momentum of the re-launch earlier in the year, as well as tapping into Scotland’s growing RYO segment, that is now worth an estimated £189m4.
Will the pricing be similarly ultra-value?
Yes, the new Kensitas Club Rolling Tobacco is our lowest-priced offering in the category, launching at a competitive recommended price point of £10.90 for a 30g pouch and £17.80 for a 50g pouch. The Value rolling tobacco sector is growing 34% year-on-year5 in Scotland and we are sure that the launch will provide retailers with a competitive product to meet demand from existing adult smokers. We expect to see the Kensitas Club RYO variant continue to boost volume sales in a similar fashion to the success of the brand re-launch earlier this year.
- Nielsen Market Track January 2018 to July 2018 (based on slope calculation)
- Nielsen Market Track July 2018 vs. January 2018
- Nielsen Market Track July 2018 vs. August 2015
- Nielsen Market Track MAT July 2018
- Nielsen Market Track MAT July 2018 vs. MAT July 2017 (Increase in Sales Value) (Value RYO in Scotland)