Australia will be the first country to adopt plain packaging of tobacco products from December this year. To get a retailer view of how tobacco control legislation has effected them and their customers I have spoken two newsagents.
The first store owner I spoke to was Peter Stewart who runs a family owned village newsagency in Bundanoon, New South Wales, 150 km from Sydney. He told me that the price for his best seller, Winfield 25′s is A$17.20, that’s £11.69 or the equivalent of £ 9.35 for 20. With a 25% hike in tax in April 2010 the Australian Government has moved significantly ahead of the UK on this issue, but Peter does not see a problem with smuggled or counterfeit cigarettes in his community.
The ban on open cigarette displays came in to force across Australia on 1st January 2011. He told me that his shop has a 1m by 1.5m display and the tobacco company retro fitted two doors shortly before the ban took effect. The law demands that tobacco retailers display health warnings on the gantry doors. He uses the blank areas to display magazine posters that publishers regularly supply him with. As for impact on sale, Peter said “I haven’t noticed one and there has been no additional time cost in serving his customers.”
Next we talked about the up and coming change to plain packaging he told me that he has received no information through the trade or supply chain. He doesn’t expect any details until much closer to 1st December when the change becomes law. Although he has seen pictures of what plain packs will look like he isn’t expecting them to enter the supply chain until very close to the day and then as with previous changes to packaging the tobacco companies will clear up the ‘non legal’ packs a few months later.
When asked which pieces of the Tobacco Control legislation had effect his sales most, he said: The only change that has made any difference to my customers has been the escalation of tax, but even that has lost it’s edge as smokers have become immune to these changes.’
He viewed the changes to legislation with a high level of scepticism. He said “The rush to more and more legislation to control tobacco is doing nothing to stop children who want to experiment with cigarettes.”
Steven Denham
15/08/2012
Australia is another step closer to forcing tobacco companies to use plain packaging on their products. The High Court has dismissed a legal challenge by cigarette companies to the government’s right to impose the new packaging rules. From 1st December this year, all cigarettes sold will now have to have tobacco company logos and branding removed. Instead, they will be sold in olive green-coloured boxes. The only images allowed will be graphic photos of people suffering the effects of smoking-related diseases.
Read the BBC report here: http://www.bbc.co.uk/news/business-19264245
JUNE CARTER
17/08/2012
Hi Steve, June in Oz again. We stopped selling cigs a long time ago (family
values and all that stuff, together with health issues) but I have a lovely range
of Cigarette packet covers (leather, floral, shiny (night use) etc) and they sell
like hot cakes. 150% markup which is way better than ciggies ever were.
Out of every cloud there is a silver lining. For every threat we have to find an opportunity.
If I sold $1k of cigs in the past I made approx $200
If I sell $100 of cig covers I make $250. for only outlaying $100.
We have to work smarter.
Plain packaging is just tokenism by our govt. They receive far too much
revenue to do the real job and ban cigs altogether – how can they when it
is a legal substance?
ps. I don’t and have never smoked so the decisions don’t affect me or my
business.
Joe Sweeney Dublin Ireland
17/08/2012
Hi June
That is very interesting (the cig covers) Im surprised they havent banned them too In Ireland they banned candy sticks because they looked like cigs.
I want to know where I could get those over here. On the subject of plain packs I have four sons and they have helped out in the business since they were small kids. They along with my wife and myself have been handling all sorts of tobacco products, all colours,shapes, nice flashy designs etc and none of us smoke. If coloured packs caused young people to smoke how did my kids escape.
Regards
Joe
JUNE CARTER
23/08/2012
Hi Joe, I firmly believe that the more govt intervention into things like smoking
and drinking and drugs the more the kids will want to try them.
The purists in Oz love to say “alcohol is legal and cigs are legal so ergo it is
ok but drugs are illegal so we MUST intervene.”
Truth be known all kids want to try all 3 of the above and some (sadly) will
go on and mainline or become alcoholics – it is a numbers game.
Make it all legal and let them do their best or worst.
We have 6 children (grown up) and 8 grandchildren and like you, we have been
in business with our kids for years and they are all good kids and yes, one smokes. We don’t like it but we recognize that the law of averages dictates
this outcome – not govts.
Our federal govt is obsessed with the idea of changing the world – carbon pricing etc and being world first tobacco banning. Tasmania (smallest
state in Oz) is discussing banning cigs for anyone who was born in 2000
or later so that they will have a generation of kids (they hope) who will never
be able to legally buy a cigarette.
Personally I think it is idealistic.
Nice to talk to Ireland.
My father was a Scot, but don’t hold that against me.
regards
June