From: CompaniesAndMarkets.com
Charles Shaw
Last week Australia marked the second anniversary of its ban on cigarette branding. Given that the ban was, in essence, a virgin policy with little known consequences, it is worth reflecting on these last two years and see what lessons can be drawn from the introduction of the ban.
First of all, the plain packaging rules, combined with the more stringent legislation, including tax excise increases, plain packaging, retail display bans and advertising bans have certainly added pressure on the Australian tobacco industry. The Australian government’s stated aim is to reduce the national smoking rate to 10% by 2018 and will work towards this goal with anti-smoking campaigns and consider further regulations. Tobacco retail volume and value sales were anticipated to decline, in line with decreased smoking prevalence and consumer shift to roll-your-own tobacco or economy brands.
But has the policy helped to achieve the government’s stated aims? The
situation is far from being clear cut, as some have reported in the
media. Sales data from the first year of plain packaging shows that
sales volumes in Australia have increased by 59 million cigarettes. In
addition, data from the Australian Government’s National Drugs Strategy
Household Survey 2013 indicates that the number of 12 to 17-year-olds
who smoke daily increased from 2.5 per cent in 2010 to 3.4 per cent in
2013….
