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Major Tobacconists Criticize UK Plain Tobacco Packaging ProposalEvery smoker in United Kingdom has been aware of a pledge made by the Chairman of Public Health Ministry Andy Burnham to cut nationwide smoking rates by 50 percent by the end of the next decade. There is one controversial provision in their plan – a requirement to pack tobacco products in generic black-and-white packs. Nevertheless, the bold plan has many been under criticism from many authoritative entities, such as Business Department and of course, all major tobacco companies, represented on the UK market. Japan Tobacco, Philip Morris, Imperial Tobacco and British American Tobacco had expressed their strong opposition of the proposal, claiming it would have a dramatic impact on their products and facilitate counterfeiters’ life. The lawmakers have assured tobacco companies they would estimate the bill and its effects on the industry. Meantime, the government has adopted several regulations, which could as well help in halving the number of smokers across the nation by the year of 2020. The government decided to consider the plain tobacco packaging proposal once again a week after United Kingdom’s number one cigarette-maker, Imperial Tobacco had revealed its 2009 Revenues Report. The tobacco giant demonstrated a 1% rise in sale volumes in 2009 to December. This impressive performance is also landmark for the industry, as it is the first sales growth after four years of continuous decrease. In addition, another important segment - rolling tobacco - as well rose significantly, coming up to a 21percent growth in comparison to 2008, with 4.650 tons of fine cut tobacco, sold throughout the last year. These groundbreaking numbers account for the most dramatic growth in the history of tobacco market in UK. It is also the first growth in more than 40 years. Tobacco industry analysts acknowledge that such a significant rise in sales of tobacco products can be explained by two reasons, associated primarily with recession: firstly, tobacco-lovers opt for loose tobacco since it is two times less expensive than branded cigarettes, and permits them to have a smoke for less; and secondly, they stopped going on holidays in Europe, in order to reduce spending, and thus, don’t have the opportunity to buy cigarettes in bulk in Europe, where they cost less than in UK. Cigarette industry has been opposing the black-and-white packages requirement, claiming it would not stop adolescents from starting to smoke, if they are willing to try cigarettes. The Communications Director for Imperial Tobacco stated there has been a lack of reliable proof that teenagers take up cigarettes because of colorful pack designs. Thus, demanding products of different companies to be wrapped up in identical generic packages would only help cigarette smugglers, giving them the opportunity to falsify branded products much easier what would result in failure of the efforts to shut down the black market. Imperial Tobacco’s rival, Philip Morris International even founded a specialized website www.plain-packaging.com, so that to attract public attention to the grave consequences of plain cigarette packaging law on both simple smokers and industry as a whole. |
