Retail Intelligence

Cigarettes To Be Targeted In Budget And Packaging Legislation

By Donna Ahern
Cigarettes To Be Targeted In Budget And Packaging Legislation

Minister for Health Simon Harris introduced the Health (Miscellaneous Provisions) Bill to the Dáil last week, and said that plain packaging on cigarette and tobacco products will come into effect in May of next year.

Mr Harris said the regulation is aimed at improving public health by reducing the appeal of tobacco products to consumers, and increasing the effectiveness of health warnings on the retail packaging of tobacco products.

An opinion piece on the CSNA website has responded to this news by arguing that plain packaging will not reduce the number of smokers, but will only spur customers to ‘trade down to value brands’. This will pose a problem for retailers as to whether they should stock fewer premium brands, the unattributed piece claims, because such a shift would reduce retailer margins.

The CSNA also predicts that the 2017 budget will continue the Government policy of adding 50c to the cost of a packet of 20 cigarettes, and asserts that this ‘most certainly will affect [retailer’s] sales’. News reports from the Irish Independent and the Sunday Business Post concur, and it appears likely the budget will include some measure increasing the costs of cigarette and tobacco products.

© 2016 - Checkout Magazine by Donncha Mac Cóil


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