SLR p53-54 Tobacco Jun09.qxp 29/05/2009 17:01 Page 53
tobacco
All going up in smoke
More legislative changes combined with a budget rise have been pushed through by
Governments to reduce tobacco consumption, despite little or no evidence that this will
work and despite the fact they it will lead to increases in counterfeiting and smuggling.
SLR takes a look at the state of play, while also taking a look at new product launches.
T
he recent budget marked reviewing the tax
another bad day for retailers structure and
selling tobacco as, fresh from a bring taxes into
deluge of proposals that will make line with the rest
selling tobacco, – perfectly legal product of Europe.”
– even more difficult, the Government This isn’t the
announced a further increase on duty, a only topic the
move that JTI (formerly Gallaher) says Government is
was a huge own goal that could lead to being lobbied on
even more counterfeit products hitting in terms of
the market. making it easier
The company says the 2% increase for counterfeiters
will seriously undermine the progress to sell their wares.
made in reducing the level of tobacco The proposed
smuggling as the current economic display ban is one
climate will see many more smokers iece of legislation
will seek out cheaper, illicit sources of that isn’t just
tobacco, undermining both health upsetting the
policy objectives and revenue collection. tobacco firms, but
Daniel Torras, JTI’s UK general the wider market.
manager says: “We remain totally In its submission
opposed to tobacco smuggling and play to the
an active part in attempting to combat it Parliament’s Health and Sport Adult smokers available on the black market and make
wherever it occurs. However, as long as Committee, the Scottish Grocers’ have proven to it an offence for adults to provide
the price of tobacco products in the UK Federation suggested that rather than be a resilient tobacco to under-18s.
remains out-of-line with much of the applying sanctions to retailers to reduce bunch. SGF Chief Executive John
rest of the EU the conditions that youth smoking the focus should be on Drummond said: “We welcome the
encourage smuggling will continue to taking action in the areas more likely to Scottish Government’s aim to reduce
exist. The Government must return have an impact on youth smoking – the level of smoking in Scotland;
order to the UK tobacco market by tackling the shocking level of tobacco however, a tobacco display ban will
burden a typical c-store with additional
Crème de la crème
costs of up to £10,000, despite there
being no proven evidence that a ban
Retailers should never underestimate the sales power of would have the desired effect on
cigars – miniature cigars are driving growth in the cigar smoking levels. SGF is concerned a ban
market and continue to appeal to a huge number of is more likely to increase young
consumers because it’s easier for time poor / venue restricted people’s fascination with tobacco and
smokers to smoke miniatures rather than small size cigars, a could encourage smokers, who do not
trend that has been developing in recent years. In addition to see tobacco on display in legitimate
this, many miniature cigars are being bought on impulse or are stores, to buy from rogue traders who
selected if cigarette smokers decide to try a cigar. are prepared to sell illicit products.”
The leading name in miniature cigars is Henri Winterman’s Meanwhile, Fiona Barrett, the
Café Crème range, which accounts for almost 60% of all Scottish representative for the Tobacco
miniature sales. Retailers Alliance and a Glasgow
Whilst some brands in this sector have struggled, the Café Crème family continues to go from strength shopkeeper comments: “Local retailers
to strength, and Café Crème Blue is the number one brand in the miniature sector, with 34.4% of total – like most other small businesses – are
sales. This means that more than one in every three miniature cigars sold in Scotland is a Café Crème going through their most difficult
Blue cigar. period in living memory. To inflict on
James Higgs, head of commercial marketing at Henri Wintermans UK, comments: “Miniature cigars retailers such an additional burden as a
continue to drive growth in the Scottish cigar market, and much of that is due to the continued success tobacco display ban across Scotland will
of the Café Crème family We feel the stylish tins reflect the brand’s worldwide status and heritage, and not only cost jobs, it will cost votes. We
help make the Café Crème family absolutely integral to every Scottish retailer’s tobacco unit.” firmly believe a ban will displace
smokers to obtain their tobacco either
WWW.55NORTH.COM JUNE 2009 l SCOTTISH LOCAL RETAILER l 53
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