UK: Editor’s Comment: Still Profits to Be Made before 20 May Tobacco Deadline

Source from:  Talking Retail 04/24/2017

　　Time is running out for retailers to be compliant when the new tobacco regulations come into force on 20 May and it becomes illegal to sell branded and smaller-format packs in-store.

　　However, there are still five weeks to go and some profits to be made from selling cigarettes in 10s and roll-your-own tobacco packs under 30g while you can. The important thing to do is not to be left with these products after the 20 May deadline.

　　In the meantime, apparently, there are still plenty of smokers prepared to shop around to find a packet of 10 cigarettes on sale in their locality. After all, not everybody can afford a packet of 20. You can only spend what you have in your pocket and ￡4 or ￡5 won’t buy you much on the tobacco gantry these days.

　　The worrying aspect of all this is what these cash-strapped smokers will do when they can no longer buy 10s after 20 May. The likelihood is many of them will be tempted into the black market to buy contraband at knock-down prices.

　　It will certainly be interesting to see the impact on the market when small packs finally disappear. Some people in the trade are gearing themselves up for a rush of smuggled tobacco when the summer holiday season really kicks in during July and August.

　　Counterfeiters will also have a field day with plain packaging. Until now, most of their investment has been in making the packaging look as authentic as possible. The UK’s standardised packaging laws have made copying packs that much easier.

　　It is therefore important that law-abiding retailers do contact the authorities when they hear about smuggled or counterfeit tobacco being sold in their area. Enditem