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Tag: OTP

  • OTP Driving Q3 Growth for U.S. Convenience Retailers

    OTP Driving Q3 Growth for U.S. Convenience Retailers

    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.

  • OTP Growth Hits 2.6% for Major Retailer

    OTP Growth Hits 2.6% for Major Retailer


    Arko Corp., one of the largest operators of convenience stores and wholesale fuel in the U.S., reported strong second-quarter results in its Other Tobacco Products (OTP) segment, with sales up 2.6% and margins rising 170 basis points. CEO Arie Kotler credited expanded assortments, better merchandising, and refreshed “back bars” in nearly 1,000 GPM Investments stores.

    OTP—including cigars, smokeless tobacco, nicotine pouches, and heated tobacco—now accounts for 10% of store assortment, with margins on par with cigarettes, according to Arko’s executive vice president and CFO Robert Giammatteo.

  • Survey: Convenience Stores Expanding OTP Displays

    Survey: Convenience Stores Expanding OTP Displays

    In an editorial for Convenience Store News,editor-in-chief Linda Lisanti talked about the ever-changing tobacco category and encouraged retailers to rethink their “backbar,” the area behind the register. She said in the magazine’s 2025 survey, that half of convenience store operators plan to add more other tobacco product (OTP) SKUs this year and 47% plan to increase the square footage they devote to OTP.

    “Despite the industry’s increasing focus on providing high-quality prepared foods and innovative dispensed beverages, tobacco products are still a crucial part of the convenience store business, comprising roughly 30% of the industry’s annual in-store sales,” she wrote. “As I sit here pondering over the tobacco category, I can’t help but think of the saying, ‘Nothing worth having comes easy’ — because selling tobacco products is anything but easy. It’s a challenging, always-changing business, especially when it comes to regulation.” 

    Lisanti’s article touches on FDA regulation and links to numerous stories written on similar topics.