Last month, B&W launched Kool Natural, containing 100 percent natural menthol and other natural flavors. "We believe that Kool Natural meets the taste preferences of consumers who are seeking natural flavors in their cigarettes," said Bob Bexon, senior vice president of marketing for the company, which accounts for about 16 percent of the U.S. cigarette market with its GPC, Misty, Capri, Carlton, Lucky Strike and Viceroy brands. Kool Natural will be available in Kings, l00s, Light Kings and Light 100s. B&W controls about 26 percent of the U.S. menthol market, according to company reports. Kool Natural will be supported with magazine, newspaper and billboard advertising, as well as in-store promotions. &W is also planning to re-position its Canton brand, which has 1.2 percent of the market, and up the profile of GPC, the best-selling discount brand with 6 percent of share.Lightening upEven the "microsmokes" are going light, as Santa Fe Natural Tobacco Co. extended its Natural American Spirit line this January with a light cigarette, which has already captured 80 percent of the company''s sales, and in August with a menthol light. An ultra-light is slated for launch next January, according to Ron Tully, vice president for public affairs, who explained, "There is a large segment of consumers who prefer lights, and we will have both."

To be sure, the merchandising contracts are not pushing minor brands out of stores completely. Retailers have found that some deep-discount brands offer attractive margins compared with the big boys. But for the smaller players, getting their products into the store can be an uphill climb."The big manufacturers make the contract requirements difficult for retailers to understand so they don''t know what is allowed," said Keith Grover, marketing manager for Sante Fe Natural Tobacco, maker of Natural American Spirit cigarettes. "We try to understand those programs and explain to retailers that, for instance, temporary price tags on the rack are permissible. But there''s a lot of ignorance about merchandising programs and retailers are unable to make an objective decision about profitability. Many times they don''t believe us."In a more recent development, the big tobacco companies have been pushing their merchandising away from tobacco-only outlets and toward c-stores, where price is secondary to availability for customers already used to paying a premium for other purchases, per a recent Convenience Store News survey.

Cigarette makers also invested in the desires of current smokers. According to the Attitudes and Behaviors Related to Smoking Cessation survey, conducted by SmithKline Beecham Consumer Healthcare, 53 percent of smokers are puffing non-regular cigarettes, hoping these light, low-tar and ultra-light varieties will satisfy their desire to smoke while doing less physical damage.Last year, R.J. Reynolds, which controls about one-quarter of the U.S. cigarette market, with its Winston, Camel, Salem, Doral, Monarch and Best brands, released the Eclipse reduced-smoke cigarette to select markets in Georgia, Nebraska and Tennessee, hoping to generate excitement for an as-yet untapped niche. The product, which took 10 years and about a billion dollars to develop, has not lived up to expectations, though, representatives said. Eclipse features a carbon tip, which produces less-lingering, lower-tar smoke, but consumers have found it difficult to light and puff despite instructions printed on the packaging. In addition, marketers have faced the difficulty of pitching the product without badmouthing its core commodity-regular cigarettes.

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