Category Focus: Tobacco

Tobacco is a very important category for all retailers as it drives customer footfall to stores.

According to him! research, smokers tend to purchase tobacco once a day and often make secondary purchases such as confectionery, soft drinks, newspapers and magazines.

The proposed point of sale ban

In May 2008, the Government released a strategy paper that set out a range of proposals regarding tobacco, including the restriction of tobacco product displays at the point of sale.

Within the consultation, the Government is specifically proposing to ban the display of all of tobacco products from a visible gantry, to prevent the sale of packs of cigarettes smaller than 20 and to outlaw tobacco in vending machines.

In Canada, a ban on the display of tobacco products has already come into force in some provinces and the results of the ban have not been positive for businesses, tobacco retailers argue.

On a recent visit to the UK the President of the Canadian Convenience Stores Association, Dave Bryans, urged independent retailers in the UK to fight this issue head on and tell their side of the story.

He claims that about 30% of all convenience stores will be forced to close within the next five years in Canada.

Jeremy Blackburn, head of communications at tobacco manufacturer Gallaher, comments: “The Government proposes that the display of tobacco is banned from a visible gantry. If adult smokers can't see their chosen brand the likelihood is that they will go elsewhere, meaning independent retailers will lose vital custom.

“There may also be significant costs associated with implementing any changes to display which could affect their ability to trade.”

He adds “Banning display of tobacco products may also encourage adult smokers to purchase counterfeit or smuggled tobacco from rogue traders – not from legitimate retailers.

“If enough retailers take action now, it could quite literally mean the difference between your business surviving or suffering severe financial consequences as a direct result.”

The UK Government is giving interested parties until 8 September 2008 to respond to the proposals and could be the last chance that independent retailers and small business have to make their opinions count.

Gallaher is urging retailers to write to their local MP or MSP. To find out who your MP/MSP is, retailers can visit www.writetothem.com or call the Tobacco Alliance on 0800 00 82 82.

Views can also be submitted to: [e=mailto: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ] This e-mail address is being protected from spambots. You need JavaScript enabled to view it [/e].

The Tobacco Alliance's Responsible Retailers initiative has set up a petition on the Downing Street website.

Pictorial health warnings

From 1 October, 2008, UK legislation requires pictorial health warnings (PHWs) to be displayed on all tobacco products, manufactured for the UK market.

Retailers have until 30 September 2009 to sell through cigarette packs with the existing text health warning on the back of packs and until 30 September 2010 in relation to all other tobacco products.

What does it mean for retailers?

• PHWs will appear on the BACK of cigarette packs (40% of back of pack excluding black border) and will replace the current rotational text warnings on the back of the pack
• The rotational text health warnings on the FRONT of the pack will remain the same
• The last day of sale for cigarettes with text health warnings on the back of packs is 30 September 2009. From 1 October 2009 it will be illegal to sell cigarette packs without PHWs
• The last date for the sale of other tobacco products (cigars, roll your own and pipe tobacco) for packs with written health warnings on the back is the 30 September 2010. From 1 October 2010 it will be illegal to sell other tobacco products (cigars, roll your own and pipe tobacco) packs without PHWs
• Retailers should be aware that cigarette packs containing existing text health warnings on the back of packs will continue to be supplied by manufacturers until all stock manufactured prior to 1 October 2008 is exhausted. It is perfectly legal to sell these in store until 30 September 2009.

Gallaher has developed a website to provide retailers with information on Pictoral Health Warnings containing details of all the important legislative dates and timings, images of the new UK PHWs and a Question and Answer section.