New figures a cause for concern
ILLICIT tobacco sales have become a real cause for concern, with the introduction of covered gantries and standardised packaging appearing to have heightened demand for illegitimately-sourced products.
That’s the view of a number of tobacco firms who point to their own research into illicit sales as evidence that more and more consumers appear to be buying tobacco from illicit sources.
Research conducted by the Tobacco Manufacturers’ Association (TMA) ahead of the May implementation of TPD2, found there was a 14.5% increase in smokers buying packs of 20 cigarettes from illicit sources and abroad in the five months to May 2017, while large pack rolling tobacco purchases from illicit sources almost doubled, up 91.7%, over the same period.
TMA also found changes in the ways in which consumers are sourcing illicit tobacco, with a 31.6% increase in smokers buying online through social media and websites advertising cheap tobacco, and a 21.1% increase in smokers buying tobacco products from abroad, thereby avoiding UK duty.
It is clear that plain packaging and the small packs ban are already having an impact on behaviour.
The survey, conducted by TMA between December 2016 and May 2017, also found the average price paid for a pack of 20 cigarettes from an illegal supplier was £5.63, £1.72 less than the £7.35 sum which the UK Government has used to set the minimum excise tax on a packet of 20 cigarettes.
Giles Roca, director general of the TMA, said: “It is clear from this research that plain packaging and the small packs ban, measures imposed by Europe and adopted by the UK Government, are already having an impact on smokers’ behaviour as they seek out cheaper alternatives from the black market and abroad.
“It’s no surprise that our research points to a rise in the illicit market – this is exactly what happened in Australia when plain packaging was introduced in 2012.”
The research conducted by TMA seems to match up to the most recent findings from an undercover operation conducted by Japan Tobacco International (JTI), investigating illicit tobacco sales in London.
JTI found one in eight London retailers selling illegal tobacco products from under the counter, with early research said to have found such products containing asbestos, mould, dust, dead flies, rat droppings and human excrement.
JTI’s research conducted among smokers in London also revealed that 37% have purchased illegal cigarettes, with 28% having been offered illegal tobacco products in the last year. Over one quarter of smokers in London admitted to buying illegal tobacco because it saves them money.
JTI also found that one in 10 smokers in London admit to having purchased illegal tobacco through social media channels, including Facebook.
Following the conclusion of its undercover operation, JTI has suggested its research raises concerns that the illicit tobacco market may grow now that plain packaging regulations have come fully into force.
The tobacco firm highlighted research conducted by HMRC which suggests the illegal tobacco market currently accounts for close to 13% of the ready-made cigarette market, and 32% of roll-your-own tobacco in the UK, numbers which JTI reckons could rise.
Steve Wilkins, JTI anti-illegal trade operations director, said: “This research reveals worrying statistics on the illegal tobacco trade in London, which could be exacerbated by the onset of plain packaging as packs become easier to duplicate and the legal requirement to produce only larger pack sizes lead to consumers looking for cheaper alternatives on the black market.
“JTI is committed to tackling the sale of illegal tobacco, and continues to work with law enforcement bodies to find and punish those selling illegal tobacco, both in stores and on social media channels, as part of a commitment to law abiding tobacco retailers and the category as a whole.”
