scholarly journals Changes in roll-your-own tobacco and cigarette sales volume and prices before, during and after plain packaging legislation in the UK

2019 ◽  
pp. tobaccocontrol-2018-054734 ◽  
Author(s):  
Magdalena Opazo Breton ◽  
John Britton ◽  
Ilze Bogdanovica
Keyword(s):  
Linear Regression ◽  
Mean Difference ◽  
Downward Trend ◽  
Sales Volume ◽  
Average Price ◽  
Tobacco Products ◽  
Pack Size ◽  
Plain Packaging ◽  
The Uk ◽  
Tax Changes

BackgroundPlain packaging and minimum pack size legislation for tobacco products was introduced in the UK in May 2016, with a 1-year sell-off period until May 2017, during which both fully branded and plain packs of various sizes were legally available. This study investigates trends in prices of roll-your-own tobacco (RYO) before, during and after implementation of this legislation, and compares trends with those observed in the cigarette market.MethodsWe used Nielsen Scantrack data for the period from March 2013 to June 2018 to describe trends in UK inflation-adjusted prices and volumes of both RYO and cigarettes, and linear regression to estimate changes in prices associated with the introduction of plain packaging and the minimum pack sizes of 30 g RYO and 20 cigarettes.ResultsIn contrast to a downward trend in cigarette sales volumes, RYO volumes rose throughout the study period. By the time plain packs accounted for 75% or more of sales, the average price of products sold in equivalent pack sizes had increased, relative to average prices in the year before implementation and with adjustment for tax changes, from 34.9 to 38.8 pence per gram for RYO (mean difference 4.26, 95% CI 3.99 to 4.53 pence, 12% increase), and from 38.6 to 41.13 pence for cigarettes (mean difference 2.53, 95% CI 2.24 to 2.83 pence, 7% increase) per cigarette.ConclusionsNew legislation resulted in higher prices for RYO and manufactured cigarettes. However, sales volumes of RYO continued to increase throughout the study period, perhaps because RYO remains a less expensive means of smoking tobacco.

scholarly journals Quantile regression of tobacco tax pass-through in the UK 2013–2019. How have manufacturers passed through tax changes for different tobacco products?

2020 ◽  
pp. tobaccocontrol-2020-055931
Author(s):  
Luke Brian Wilson ◽  
Robert Pryce ◽  
Rosemary Hiscock ◽  
Colin Angus ◽  
Alan Brennan ◽  
...  
Keyword(s):  
Quantile Regression ◽  
Tobacco Industry ◽  
Tax Rates ◽  
Tobacco Products ◽  
Price Distribution ◽  
Tobacco Tax ◽  
Quantile Regression Analysis ◽  
Pass Through ◽  
The Uk ◽  
Tax Changes

BackgroundThe effectiveness of tax increases relies heavily on the tobacco industry passing on such increases to smokers (also referred to as ‘pass-through’). Previous research has found heterogeneous levels of tax pass-through across the market segments of tobacco products available to smokers. This study uses retail sales data to assess the extent to which recent tax changes have been passed on to smokers and whether this varies across the price distribution.MethodsWe use panel data quantile regression analysis on Nielsen commercial data of tobacco price and sales in the UK from January 2013 to March 2019 combined with official UK tax rates and inflation to calculate the rate of tax pass-through for factory made (FM) cigarettes and roll your own (RYO) tobacco.ResultsFollowing increases in the specific tax payable on tobacco, we find evidence of overshifting across the price distribution for both FM and RYO. The rate of the overshift in tax increased the more expensive the products were. This was consistent for FM and RYO. Additionally, our findings suggest that the introduction of standardised packaging was not followed by changes in how the tobacco industry responded to tax increases.ConclusionsFollowing the repeated introduction of increases in specific tobacco tax as well as standardised packaging, we show that the tobacco industry applies techniques to keep the cheapest tobacco cheaper relative to the more expensive products when passing on tax increases to smokers.

scholarly journals Editorial - Plain Packaging Special issue

2018 ◽  
Vol 17 (2) ◽  
Author(s):  
The Honourable Nicola Roxon
Keyword(s):  
Tobacco Industry ◽  
Research Front ◽  
Special Issue ◽  
Political Debate ◽  
Great Pleasure ◽  
Tobacco Products ◽  
Plain Packaging ◽  
The World ◽  
The Uk ◽  
Front Groups

It gives me great pleasure to write a forward on this topic at a time when there is such a groundswell of international support for plain packaging of tobacco products.  World No Tobacco today in 2016 had as its tag line “Get ready for plain packaging” and the world’s health ministers are doing just that.When Australia became the first country in the world to remove all colours and logos on tobacco packs in 2011 – recognising their allure to young new smokers – the tobacco industry tried every move in their book to stop us.  Lobbying, donations, advertising campaigns, threats, dodgy research, front groups, overblown claims and legal action dominated our political debate for two years.  When all these local manoeuvres failed, the industry switched its effort to ensuring we were the only country to take this step.  Writing in November 2016, it is clear that those efforts, both local and international, have manifestly failed.  Country after country – France, the UK, Ireland, Canada, Norway, New Zealand – are implementing plain packaging, passing their laws or consulting with the community before introduction and many more countries will move this way in the coming months and years.Plain packaging of tobacco products is now truly an international movement.  It is an epidemic of the best sort, as countries catch on to its value, purpose and ease of implementation.  We will now see its introduction spread like wildfire around the world.

Recent UK tax changes and their effect on trust structures in the UK and abroad

2005 ◽  
Vol 11 (3) ◽  
pp. 27-30
Author(s):  
G. Laming ◽  
J. Cook
Keyword(s):  
The Uk ◽  
Tax Changes

scholarly journals Introduction of standardised packaging and availability of illicit cigarettes: a difference-in-difference analysis of European Union survey data 2015–2018

Thorax ◽  
2020 ◽  
Vol 76 (1) ◽  
pp. 89-91 ◽  
Author(s):  
Anthony A Laverty ◽  
Christopher Millett ◽  
Nicholas S Hopkinson ◽  
Filippos T Filippidis
Keyword(s):  
European Union ◽  
Survey Data ◽  
Tobacco Industry ◽  
Difference In Difference ◽  
Tobacco Products ◽  
Difference Analysis ◽  
Illicit Trade ◽  
European Union Countries ◽  
Before And After ◽  
The Uk

Standardised packaging of tobacco products is intended to reduce the appeal of smoking, but the tobacco industry claims this increases illicit trade. We examined the percentage of people reporting being offered illicit cigarettes before and after full implementation of standardised packaging in the UK, Ireland and France and compared this to other European Union countries. Reported ever illicit cigarette exposure fell from 19.8% to 18.1% between 2015 and 2018 in the three countries fully implementing the policy, and from 19.6% to 17.0% in control countries (p for difference=0.320). Standardised packaging does not appear to increase the availability of illicit cigarettes.

Little filtered cigars: US sales, flavours, package sizes and prices

2018 ◽  
Vol 28 (3) ◽  
pp. 346-349 ◽  
Author(s):  
Doris G Gammon ◽  
Todd Rogers ◽  
Ellen M Coats ◽  
James M Nonnemaker ◽  
Lisa Henriksen
Keyword(s):  
Regional Differences ◽  
Sales Volume ◽  
The South ◽  
Sales Data ◽  
Pack Size ◽  
Cigarette Taxes ◽  
The Us ◽  
The Usa ◽  
State And Local ◽  
Total Sales

ObjectiveAt least four varieties of little filtered cigars (LFCs) violate the US prohibition on flavoured cigarettes other than menthol. This study characterises the sales of prohibited products and other LFCs by flavour category and pack size, as well as the price of LFCs relative to cigarettes.MethodsUsing retail sales data for 2016, we computed the sales volume in dollars and equivalent units and the percentage of total sales by flavour and pack size for the USA by region and state. Paired t-tests compared the prices for LFCs and cigarettes sold in same-sized packs and cartons.ResultsLFC sales totalled 24 033 equivalent units per 100 000 persons in 2016. Flavoured LFC varieties accounted for almost half (47.5%) of the total sales. LFCs were sold in 12 different pack sizes, but 79.7% of sales were packs of 20. The price of 20-packs averaged $2.41 (SD=$1.49), which was significantly less than cigarettes (M=$5.90, SD=$0.85). Regional differences suggest a greater proportion of menthol/mint LFCs and lower prices in the South than in other regions.ConclusionClassifying all LFCs as cigarettes would require that they be offered in a minimum package of 20, eliminate flavoured varieties other than menthol and increase prices through applicable state and local cigarette taxes.

scholarly journals Difference between recommended retail price and sales price for tobacco products in independent and convenience (small) retailers before and after the introduction of standardised tobacco packaging in the UK

2018 ◽  
Vol 28 (4) ◽  
pp. 449-456 ◽  
Author(s):  
Nathan Critchlow ◽  
Martine Stead ◽  
Crawford Moodie ◽  
Kathryn Angus ◽  
Douglas Eadie ◽  
...  
Keyword(s):  
Retail Price ◽  
Price Sensitivity ◽  
Brand Positioning ◽  
Average Difference ◽  
Product Positioning ◽  
Tobacco Products ◽  
Sales Price ◽  
Point Of Sale ◽  
Before And After ◽  
The Uk

AimRecommended retail price (RRP) is a marketing strategy used by tobacco companies to maintain competitiveness, communicate product positioning and drive sales. We explored small retailer adherence to RRP before and after the introduction of the Standardised Packaging of Tobacco Products Regulations in the UK (fully implemented on 20 May 2017) which mandated standardised packaging of cigarettes and rolling tobacco, set minimum pack/pouch sizes and prohibited price-marking.MethodMonthly electronic point of sale data from 500 small retailers in England, Scotland and Wales were analysed. From May 2016 to October 2017, we monitored 20 of the best-selling fully branded tobacco products (15 factory-made cigarettes, 5 rolling tobacco) and their standardised equivalents. Adherence to RRP was measured as the average difference (%) between monthly RRPs and sales prices by pack type (fully branded vs standardised), price-marking on packaging and price segment.ResultsThe average difference between RRP and sales price increased from +0.36% above RRP (SD=0.72) in May 2016, when only fully branded packs were sold, to +1.37% in October 2017 (SD=0.30), when standardised packs were mandatory. Increases above RRP for fully branded packs increased as they were phased out, with deviation greater for non-price-marked packs and premium products.DiscussionDespite tobacco companies emphasising the importance of RRP, small retailers implemented small increases above RRP as standardised packaging was introduced. Consequently, any intended price changes by tobacco companies in response to the legislation (ie, to increase affordability or brand positioning) may be confounded by retailer behaviour, and such deviation may increase consumer price sensitivity.

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