One factor I don't remember being discussed is that chain and convenience stores may not be too enthusiastic about carrying Swedish snus for a simple reason. We all know that the beginning snus user almost always cuts his cigarette usage way down and most vets hardly smoke at all. A can of snus will sell, at most, for about the same as a pack of premium cigs but snus usage averages about one can every three or four days as opposed to one to two packs a day for cigs. This clearly means that a retailer's gross sales will fall as snus usage increases. This will be the case even if snus is priced at up to twice what we pay online and may not be a very attractive proposition for the typical retailer, even one whose cig sales have been falling.
This may sound short sighted but it could take quite a few years for snus to achieve a market penetration worthy of the attention of convenience stores, liquor outlets, smoke shops etc. Virtually all snus sales will displace other tobacco sales and will likely reduce a shop's bottom line. Snus profit margins may be higher than cigarettes or dip but they would have to much much higher for this effect to not occur. It likely will be a commercially viable product in the fullness of time but it may take a decade for this to happen.
This may sound short sighted but it could take quite a few years for snus to achieve a market penetration worthy of the attention of convenience stores, liquor outlets, smoke shops etc. Virtually all snus sales will displace other tobacco sales and will likely reduce a shop's bottom line. Snus profit margins may be higher than cigarettes or dip but they would have to much much higher for this effect to not occur. It likely will be a commercially viable product in the fullness of time but it may take a decade for this to happen.
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