Tobacco Firms Fight Plain Packaging Idea

Source from:  ShareCast 11/24/2010

LONDON (ShareCast) - Tobacco giants British American Tobacco (Virt-X: BATS.VX - news) and Imperial (Berlin: IOD.BE - news) are both lobbying against UK government plans to force them to sell cigarettes in plain packaging because they say that it would be playing into the hands of counterfeiters. Worries about the government plan have knocked the share prices of the two companies. The plain packets would not require the counterfeiters to copy logos and designs and the tobacco firms' argue that cigarettes would be more easily available. Without brands competition could be based on price. This was originally an idea of the Labour government but it never brought it into force. The current administration appears to be pushing ahead with it. The idea might even be included in a forthcoming White Paper on public health due to be published by the Department of Health (IXSHL.NX - news) . The packs would still carry health warnings and basic information. Health Minister Andrew Lansley said: "The evidence is clear that packaging helps recruit smokers, so it makes sense to have less attractive packaging." Enditem