Other tobacco products (OTP) continued to deliver strong performance for major U.S. convenience-store operators in the third quarter of 2025, according to earnings reports from Arko Corp., Murphy USA, and CrossAmerica Partners.
According to CSP, Arko Corp. CEO Arie Kotler reported OTP sales up 16% year over year, with same-store sales rising 6.6% and category margins improving by more than 300 basis points, driven by store redesigns and enhanced promotions. CrossAmerica Partners also cited OTP as a key contributor to its higher merchandise gross margin, which grew by about 100 basis points. Meanwhile, Murphy USA highlighted strong gains in traditional smokeless and nicotine pouch sales. CEO Andrew Clyde said total merchandise margins rose 11.3%, while COO Mindy West noted nicotine pouch volumes surged 45%, jumping to 120% of prior-year levels in October through aggressive promotions.