The light at the end of tobacco is lighters. There may be a steady decline in cigarette consumption, but as far as lighters are concerned, it is offset by a steady increase in cigar consumption. And the trend of businesses handing out free matches is burning out quickly. All of this, along with category innovation, leaves lighters quite bright.
“Tobacco outlets sell a number of tobacco accessories, but none are more popular than butane pocket lighters,” asserts Adam Blumenthal, brand manager for Pocket Lighter Marketing at BIC Consumer Products USA. “With 2007 annual retail sales estimated at nearly $900 million, disposable lighters continue to be a profitable and growing product category, despite the steady decline in cigarette consumption.” He adds that lighters are a “high-profit-margin, fast-turning category” and they offer “a great return on investment.”
From Kretek’s perspective, “It would appear that the refillable market, particularly torch lighters, is making strides as new brands and licensed properties enter the market,” says John Geoghegan, director of brand development for Kretek International, Inc.
The Colibri Group has kept close watch on the correlation between strong cigar sales and lighters. “The best barometer that I can use is that at the recent retail tobacco dealers’ trade show, all of the major cigar companies were busy writing orders on new products and existing lines,” reports Les Mann, executive vice president of the Lighter Division at Colibri. “And the latest report on cigars imported into the U.S. is ahead of last year,” he continues. “This is great news for the lighter industry because when more cigars are being introduced and sold there is a parallel with lighters.” Mann adds that Colibri intends to continue to introduce new, innovative products to keep up with the rising demand of the cigar industry.
All this is the tobacco retailers’ cue to light up stores with the best techniques in lighter merchandising, highlighted by some of the major category players:
Be aware there are two major types of lighter customers...“One considers a lighter to be nothing more than a reusable match and won’t pay more than a dollar and doesn’t care if it gets lost,” says Geoghegan. “The other sees a lighter as a fashion accessory or at least something that he or she can be proud to pull out and lay on the bar with their packs of smokes. It’s about a 50-50 split.”
...And a multitude of lighter styles to suit them. “There are a lot of consumer choices in style, type, price, and quality,” says Geoghegan. “For a tobacco specialist, it’s always good to have a broad selection. Lighters don’t take up a lot of space, they’re profitable, and every smoker needs at least one.”
Even in disposables, BIC recommends offering a variety of lighter styles to suit smoking customers. “Consider this: a 46-year-old racing fan may have different tastes than a 23-year-old artist,” offers Blumenthal. “Each will be looking for a different look and design in their lighters.”
Open mouth, talk about lighters. “The Colibri Group just introduced eight new lighter designs,” begins Mann. “Tobacco retailers need to showcase these items the same way they are showcasing new cigar introductions.” He says that “word-of-mouth from the retailers to their customers is the single greatest way” to introduce consumers to new products. “As consumers buy new cigars, they need to buy a new lighter as well.”
Realize lighters are part of the art form. “Smoking cigars is a passion; it’s an art,” says Mann. He says that retailers who understand and convey to customers that the lighter is tied into that passion will sell more lighters. Here’s how he views the process: “From the cigar that you choose from your humidor to cutting it with a cigar cutter, it is similar to choosing a bottle of wine from your wine rack or cellar. Once the cigar is ready, sitting down in a nice chair, relaxing, the fun starts with using your Colibri torch in a circular motion to fully light the end of the cigar. This is all part of the romance of smoking a cigar.”
Their merchandising should be obvious, especially during fourth quarter. “Lighters should always be placed on the front counter next to the register for the impulse sale,” advises Blumenthal. “We suggest stocking lighters with a ‘little extra’ for the holidays. At BIC, we recommend products such as our C2 Select lighter ad case or the M Series lighter and case that is also available in a gift box for the holiday season. Both have a sophisticated and polished appearance that looks and feels great.”
“Disposable lighters continue pretty steady throughout the year,” adds Geoghegan. “Refillable lighters make the best gifts because of the perceived value. We schedule quarterly introductions for new designs from DjEEP. FSO is refillable and a much higher price point—our fall and holiday FSO promotions revolve around our NFL team logo line.”
Stay with the fashion. “Slim lighters are very popular right now,” observes Mann. “It’s really what is comfortable in the hand and in the pocket. Black and platinum remain hot colors. Similar to MP3 players and cell phones, we introduce colors to complement the electronic market as well.”
BIC is seeing “a growing trend toward lighter cases,” according to Blumenthal. “We offer cases in both metal and plastic and some with comfortable grips.”
BIC has also learned from company research that the No. 1 favorite BIC lighter color is blue. As for current trends, “what is hot in society tends to be hot in lighters,” says Blumenthal. “For example, custom cars and tattoos enjoy tremendous popularity. BIC launch these cultural icons in an exciting line of Classic lighters.”
Geoghegan adds that DjEEP’s saddle leather wrap line is doing very well currently. •
Safe -and- Sound
Safety will always be at the forefront of the lighter industry.
“Lighter safety should be the top concern of every manufacturer,” reports John Geoghegan, director of brand development for Kretek International, Inc. “It is not so much an issue as a focus of the industry.”
DjEEP, for example, is a member of The Lighter Association and works cooperatively with the Consumer Products Safety Commission, the Department of Transportation, and U.S. Customs to advocate compliance with safety standards, according to Geoghegan. “Retailers can request material safety data on lighters from their distributors and stay abreast of regulations by visiting the appropriate government Web sites on transport and consumer safety,” he adds.
“Safety should always be top of mind when it comes to lighters,” agrees Adam Blumenthal, brand manager of Pocket Lighter Marketing for BIC Consumer Products USA. “A retailer should always assure that the lighters they sell are 100 percent compliant with all governmental and industry laws and standards.”
BIC launched the “5 Points of Difference” program to help educate retailers on all aspects of the lighter business. Retailers are encouraged to ask the following of their lighter suppliers as a routine check for safety:
• Do you know the company that manufactures the products that you sell or distribute?
• Does the manufacturer have established quality procedures?
• Can your supplier show you that its product meet all industry standards?
• How much product liability insurance does your supplier have?
• What’s the rating of your supplier’s insurance company?
• Can your supplier show you that its product meets governmental requirements?
As an assurance of its name-brand lighters, every BIC lighter meets or exceed all standards for safety and undergoes more than 50 automatic quality checks, Blumenthal affirms. •