Sponsored by Cheyenne International
C-stores rely on tobacco products, especially cigarettes, for sales as they continue to dominate the industry. But with OTP (other tobacco products) sales growing, operators need to be aware of what consumers are looking for. A conversation with David Brinkley, vice president of sales at Cheyenne International, shed light on what smokers want and how operators can best supply those options.
Q: With the rise of other oral nicotine products, why is it still vital for c-store operators to be offering diverse cigarette options?
A: Many long-time smokers are unwilling to give up cigarettes altogether, so they’re seeking lower-priced alternatives rather than leaving the category. By stocking a broad assortment of cigarettes, including premium, discount, and fourth-tier options, retailers ensure they’re not leaving sales on the table. At the same time, this also communicates to customers that operators understand their needs and that their store is the one-stop shop. This kind of variety builds trust and keeps customers coming back.
Q: What is downtrading, and why is it important for c-store operators to be aware of it?
A: Downtrading occurs when consumers shift from higher-priced, premium items to more affordable alternatives, such as fourth-tier cigarettes. In the tobacco space, this behavior tends to accelerate when excise taxes increase or economic pressures rise. If a retailer doesn’t offer value options, adult smokers may walk out the door and find a store that does. Downtrading isn’t just a consumer behavior—it’s a profit-generating opportunity if retailers position themselves correctly.
Q: What opportunities for profit and growth do c-stores have now?
A: Right now, the biggest opportunity is in the value segment. When retailers lean into that space, they’re building repeat traffic. And it’s not just about the cigarette transaction, either. Shoppers are often picking up other items, which adds to the basket size. If operators think strategically about assortment and pricing, they can turn downtrading into a real growth driver.
Q: What role does pricing play in a consumer’s decision to choose Cheyenne over other brands?
A: Pricing is absolutely central. Today’s adult smoker is more price-sensitive than ever, but that doesn’t mean they’re willing to compromise on quality. Cheyenne delivers both. When adult consumers can find a cigarette that gives them a consistent, enjoyable experience at a fair price, the decision becomes simple.
Q: What advice would you give to a c-store operator looking to expand their tobacco product selection for maximum profitability?
A: Offer choice. That means having a balanced assortment across all tiers, especially in value. Too often, retailers lean heavily on premium or mid-tier and miss out on where a growing share of the business is happening. By giving consumers options at different price points, operators are protecting their sales and giving themselves the best chance at repeat business. Pair that with smart merchandising and competitive pricing, and they’ll maximize profitability.
For more information, visit theyearfor4thtier.com.
