This article first appeared in the September issue of NACS Magazine.
We all have that product—the one we’re proud to show that we’re using, eating, drinking or otherwise engaged with. For a growing number of existing adult tobacco users who are at least 21 years old, the product they’re proud to leave on the bar top, kitchen counter or their vehicle cup holder is Black Buffalo.
If you haven’t heard of Black Buffalo, you’re about to. What began 11 years ago in a one-bedroom apartment in Chicago as nothing more than a PowerPoint presentation has exploded into one of the fastest-growing nicotine products in the country. The company currently has 6,500 locations that sell its alternative moist smokeless tobacco products, and that number is expected to reach 10,000 by the end of the year. In the summer of 2022, the number of locations selling the product was around 800.
“I think we’ve pulled off what a lot of people said for many years was not possible, which was that you just can’t replicate moist smokeless,” said Matt Hanson, chief growth officer, Black Buffalo.
A True Differentiator
The company’s moist smokeless tobacco (MST) alternative products are truly unique. All of them start with a variety of edible leaves in the cabbage family, and this plant species, when grown, harvested and processed according to Black Buffalo’s methods, behaves just like tobacco across every important dimension—texture, aroma, color, flavor—except that Black Buffalo’s leaves have no naturally occurring nicotine or unwanted compounds specific to the tobacco plant.
“We deliver the full MST experience just without the tobacco leaf or stem, and that includes the ritual, the tradition and the authenticity that goes with that experience,” said Hanson. “It has the same bold taste, aroma and pack, whether in a pinch or a pouch.”
Black Buffalo has been able to stand out among some of the most traditional and time-tested OTP brands not only because of what it’s made of but also because of its diverse lineup. The brand offers the traditional MST varieties in long cut and pouches, including wintergreen, mint, straight, peach and blood orange. They also have nicotine-free long cut and pouches.
“We live in the sweet spot that overlaps the best of what smokeless has and the best of what modern oral has, and we don’t bring anything to the table that people don’t want,” said Hanson.
That sweet spot has shone a light on Black Buffalo in an otherwise crowded back bar where innovation is scarce. However, offering products that break the mold can be a differentiating factor for retailers.
“Retailers have to evolve with the times. The MST consumer is actively seeking alternatives to traditional tobacco products for a variety of reasons,” said Hanson. “Adult consumers’ preferences are not cast in stone, and any business that keeps doing things the same way and not evolving to meet consumers’ changing demands is destined to suffer over the long term.”
In general, MST consumers are migrating away from traditional tobacco products, according to Hanson, which is evident in the unit declines in both the cigarette and smokeless subcategories over the past decade or more. There have been novel entrants into the category, including Black Buffalo, and there also has been a shift in societal norms surrounding modern oral nicotine use. There are now fewer places where it’s permissible to smoke and even use smokeless tobacco, which has pushed consumers to become poly-users, perhaps switching between nicotine pouches and cigarettes based on the setting. Or they’re changing their tobacco and/or nicotine products altogether.
“There’s a situational evolution of what’s considered acceptable in terms of tobacco and nicotine usage, which leads people to novel forms and functions like Black Buffalo,” said Hanson.
It’s also evident that consumers are growing weary of constant price increases that have plagued the category over the past few years, and this is where Black Buffalo makes another point of differentiation.
“Black Buffalo has always been positioned to be a premium product available wherever consumers want to buy at a fair price, and so while the rest of the industry seemingly takes price increases simply because they can, we’ve always sought to give our adult consumers a break,” said Hanson. “Black Buffalo has taken just one price increase in its entire company history.”
To continue reading, check out the September issue of NACS Magazine.