The new EU Tobacco Products Directive completed its discussion period just before Christmas, and confirmed that cigarettes will no longer be able to be sold in packs containing less than 20 sticks. The minimum weight for rolling tobacco packs will be 30g. Slim sized packs will be banned, as will menthol cigarettes – though not until 2020. In addition, all reference to taste or flavour will be banned on packs.
The EU also gave states that want to introduce plain packaging the go ahead, meaning that ifScotlandgains independence and subsequently secures EU Membership, the introduction of plain packaging will be easier.
The plans will now be voted on before being formally adopted. Members states will than be required to implement the changes within two years.
As the news broke, a report published by Oxford Economics predicts that convenience stores would lose between 10-30% of incidental sales, while supermarkets would lose 2-10% of incidental sales.
The report says: “Small shops which typically generate 20% of their turnover from tobacco, would suffer disproportionately from the removal of smaller, lower cost packs of cigarettes and hand-rolled tobacco, with marginal businesses threatened by the loss of turnover and cash flow.”
Jorge da Motta, UK Managing Director, JTI said: “Banning 10s and smaller pack sizes of RYO will mean the lowest price will now be the street price sold by criminals who peddle to anyone, including children. Meanwhile the Government’s exchequer will have to plug the gap left from the flood of non-duty UK paid cigarettes and roll your own tobacco which will come in to the UK.”
Imperial Tobacco’s UK Communications Manager, Gayatri Barua-Howe commented: “Currently, one in six corner shops in theUKis at threat of closure due to lost sales from tobacco smuggling and cross border shopping. The EUTPD proposals, if agreed, will act as an open invitation for criminals to peddle more illicit tobacco onUKshores. This will further erode Scottish retailers’ incomes and deprive the Treasury of much needed revenue for public services.”
