ASH Daily News 12 June 2017



  • ASH sees positive future for retailers under new tobacco laws
  • West Yorkshire: Warning after cigarette causes fire in Blackburn home
  • Tax hikes in emerging markets put brake on tobacco growth
  • Germany: Judge gives couple strict timetable for smoking on their own patio after complaints from neighbours
  • New Zealand: New standardised tobacco packaging regulations approved
  • Australia: International tobacco retailer’s claims held to be misleading and deceptive under the Australian Consumer Law

 

ASH sees positive future for retailers under new tobacco laws

In a letter to The Grocer, Hazel Cheeseman, Director of Poilcy for ASH, writes:

“We are heartened 95% of retailers are now only selling tobacco in the new standard packs (‘Unsold packs weigh heavy on indies as tobacco laws hit,’ 3 June, p4).

In the short term the new 20-cigarette minimum pack size seems to be changing adult behaviour, with retailers reporting that 13% are choosing not to purchase. This need not be bad news for retailers. A recent ASH report found tobacco makes up less than 8.5% of weekly profit, four out of five transactions don’t involve tobacco, and profit margins on non-tobacco products are much higher. If customers don’t smoke they have more money to spend on products better for their health and for the retailer’s bottom line.”

Source: The Grocer, 9 June 2017
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West Yorkshire: Warning after cigarette causes fire in Blackburn home

Firefighters have issued a warning after a cigarette caused a fire in a home.

An elderly man had emptied an ashtray into a bag of waste paper before falling asleep not knowing that a cigarette in the tray was still lit, firefighters said.

A spokesman said: “The occupier was alerted by the fire alarm activated and he left the flat, the fire service was automatically mobilised by the alarm system. Always make sure that cigarettes are properly extinguished in especially at bed time. Smoke alarms save lives. You are more than twice as likely to die in a fire at home if you haven’t got one. A smoke alarm is the easiest way to alert you to the danger of fire, giving you and your family precious time to escape.”

Source: Lancashire Telegraph, 10 June 2017
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Tax hikes in emerging markets put brake on tobacco growth

Aggressive tax hikes in emerging markets are holding back the number of cigarettes some of the world’s largest tobacco companies are able to sell. Owen Bennett, tobacco analyst, cited Brazil, the Philippines, Pakistan and Malaysia as among those which had quickly put up government levies on tobacco.

Major companies such as British American Tobacco, Philip Morris International and Imperial Brands have been facing challenging conditions in emerging markets, which has cooled growth in terms of the number of cigarettes they are able to sell there.

There appears to be a rising trend among emerging market economies to hike taxes on the sector in a bid to raise money for their respective treasuries, something which has now been identified as a major brake on cigarette volumes.

Source: The Telegraph, 11 June 2017
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Germany: Judge gives couple timetable for smoking on their patio

A German judge has ruled that a couple may only smoke on their patio at certain times of the day, following complaints from their neighbours. Judge Steven Kensy decided the couple can only smoke from 6am to 9am, 12pm to 3pm, 6pm to 9pm, and midnight to 3am.

Source: This is Money, 10 June 2017
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New Zealand: New standardised tobacco packaging regulations approved

The Government of New Zealand has approved new regulations to standardise the packaging of tobacco products. Under the new regulations, all cigarettes and tobacco products will be available in a brown / green-coloured packaging with enlarged health warnings to cover at least 75% of the front of tobacco covers.

Tobacco manufacturers are allowed to print their brand name and variant on tobacco packaging, but it should follow the standardised look, size, font and colour.

The tobacco standardised packaging regime is set to become effective from 14 March 2018.

Source: Packaging Gateway, 9 June 2017
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Australia: International tobacco retailer’s claims held to be misleading and deceptive under the Australian Consumer Law

Elusion, a company registered in New Zealand, promoted and sold e-cigarette products to consumers in Australia, including on its website. Between August 2015 and June 2016, Elusion made representations on its website that its e-cigarette products did not contain harmful chemicals, cancer-causing chemicals or carcinogens, among others.

The Australian Competition and Consumer Commission (ACCC) found that the representations had the ability to mislead consumers about the health effects of non-nicotine e-cigarettes. More specifically, the ACCC argued that, by making the representations, Elusion had breached the Australian Consumer Law.

Source: Mondaq, 11 June 2017
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