Smoking, once an accessory to upmarket glamour, has evolved over the past year.
That's not just to say it has rolled with the punches it faced head-on when the smoking ban hit the hospitality industry, but it has also conjured new trends from the recession.
Smokers are now starting to adjust to the post-ban climate. Not just to smoke-free pubs, it seems, but also to the pinch of the economy on their purse strings.
Tobacco companies have had to work harder. Customers have begun trading down to value ranges. But they will not compromise on quality. No, smokers are very proud. For them, it's as much about image as it is about cost.
According to Imperial Tobacco company spokesman Paul Bird: "There are around 12 million adults in the UK who choose to smoke tobacco products and last year they spent almost £12bn on their preferred brands." A pretty sizable market, then. For the pub trade, smokers are still incredibly important.
Jeremy Blackburn, head of communications for JTI, which owns brands including Benson & Hedges, Silk Cut and Camel, says that "around 40 per cent of a pub's patrons are likely to be adult smokers" and "72 per cent of smokers believe that their pub is an important part of the community, while up to a third of smokers could be likely to buy cigarettes from a pub if they are available".
The recession effect
What publicans need to know now about the changes in their smoking clientele is actually most likely connected to the recession and not the smoking ban. Even if smokers decide to trade down, they still want their choice to have the hallmarks of good quality.
As a result, value brands are undergoing packaging redesigns. Crests, embossed logos and image-led elements to show the smoker is making a refined selection are now massively important and something publicans need to note when stocking their ranges.
"The value and economy priced cigarette sectors are growing rapidly and they should account for over 50 per cent of total UK cigarette sales by 2012," points out Imperial Tobacco public relations manager Iain Watkins.
"Those operating in the pub trade should be aware of this and they should regularly review their ranges to ensure they reflect the UK market as a whole and also the dynamics seen within the pub environment."
He adds that the economic downturn and ensuing market trends have seen "brands such as Richmond, Windsor Blue and the JPS Silver range return remarkably successful market performances".
Watkins continues: "It is inevitable in these tough economic times that smokers will look for brands offering the best value but Imperial Tobacco believes they will also maintain a strong propensity for the high quality-assurances offered by longstanding and established brand names."
One example of a value brand that has updated its image through design is JTI's Sterling range.
The packets, which recently received "a modern new look" across king size, super kings and menthol variants "now accounts for nearly one in every 10 cigarettes sold, and is the leading value brand in the UK with a 43 per cent share of the value sector," says Blackburn.
The redesign supports the idea that what smokers are after from brands is actually value which still boasts the hallmarks of quality.
"While the product itself remains unchanged, and will continue to offer quality at a value price, the pack has been given a modern refresh," he says. "Changes to the pack include an updated brand lozenge, an embossed crest and hallmark finished off with a subtle silver, all over two-tone finish."
Watkins agrees that smokers are image-conscious, particularly in the pub where their choices are open to the scrutiny of others. In many cases, popular brands take centre stage, because often, people don't like to be seen to be buying cheaper brands.
"The premium priced cigarette sector, including established brands such as Marlboro and Embassy, is popular in the on-trade," observes Watkins, agreeing that this is due to the fact that some adult smokers will "trade up to more expensive brands" when they are in the company of others.
Size matters
One way tobacco companies have tackled smokers downtrading has been to introduce a new pack size, rather than see their customers migrate to cheaper options.
Offering more choice in the number of cigarettes a person buys from their favourite range is one way to keep a quality offering on your back-bar with a range of prices. For now, 14s are the new pack size of choice.
"Mayfair 14s are available nationally from this month, and Silk Cut 14s will be available later in the year," says Blackburn. "The new size launches will provide more choice to price-conscious adult smokers and offer an alternative to adult consumers who choose to trade down."
The new pack sizes will not require additional space on the gantry and are designed to fit alongside existing facings, he adds, conscious that licensees don't want the fuss of reorganising their back-bars.
"At a time when consumers are looking for greater value for money, the new 14s range will provide greater choice from big, trusted brands, while at the same time generating competitive profit margins for retailers, and will help to drive footfall," Blackburn says.
The premium end
Innovation and a modern, more premium take on heritage products has also seen the cigar category flourish with a bout of miniature cigars pushing forward as the new trend for the sector and an area of the tobacco market that pubs would do well to note.
"In recent years, miniature cigars have become an increasingly popular cigar, and now represent 57 per cent of volume cigar sales," says Blackburn.
"Hamlet Miniatures and Hamlet Smooth Miniatures are both key lines for licensees, and should be stocked as part of a wider cigar portfolio, alongside large cigars."
Similarly, coinciding with the trend for miniature cigars and a refined focus on image, Scandinavian Tobacco Group UK has launched the new Café Crème Silver Filter to its range of Café Crème miniature cigars which claims to offer "an even smoother smoking sensation", says sales and marketing manager of specialist brands, Mike Adams.
The new line, which launched in August, offers 10 cigars in silver crush-proof tins for £4.02 and follows the launch of Café Crème Express miniature cigars in 2009.
Do it yourself...
Alongside innovation such as miniature cigars, other categories within the tobacco industry, such as the roll your own (RYO) sector, are also experiencing renewed interest.
"The UK RYO tobacco market has demonstrated remarkable resilience and success over the last decade and the last 12 months saw retail volumes increase by over 16.5 per cent," says Watkins, explaining that "RYO brands generated £920m in turnover last year across all channels and it has recently become a £1bn segment". Imperial Tobacco leads the market, with successful brands including Golden Virginia Green and Drum.
The RYO market is worth £1.1bn a year and is benefiting from increased purchases, making it the fastest-growing tobacco sector in the UK.
Growth is predicted to continue for the next three years, as adult smokers continue to seek greater value for money, believes Blackburn. "Licensees have the opportunity to benefit from this growing demand by offering RYO tobacco as part of their back-bar," he says - JTI offers the Amber Leaf brand which accounts for "52 per cent of volume sales within its segment".
Give them some space
With the smoking ban's introduction three years ago, sparking vigorous debate about its impact on the hospitality industry, and, particularly, the rate of Britain's pub closures, it is clear that properly catering for smokers with a comfortable outdoor area is paramount.
After the introduction of the ban, what emerged was a divide in social co