Two important events occurred in cigarette packaging in the last week.
A study in NSW of hundreds of thousands of people provided an unequivocal answer to the damaging effects of smoking on human beings. And British American Tobacco warned the UK government it will mount a legal challenge if tobacco plain packaging is introduced there.
This is the era of corporate, social and environmental responsibility. The packaging industry in general, and those involved in cigarette packaging in particular, are involved in the process of resolving a worldwide dilemma.
The data obtained from the NSW study indicates that smoking is likely to kill two thirds of regular smokers. In Australia that translates to 1.8 million Australian smokers likely to die because they smoke.
Meanwhile, British American Tobacco (BAT) director of corporate and regulatory affairs, Jerome Abelman, told The Wall Street Journal, “If regulation comes through, we will be forced into the position of a legal challenge. Once the regulations become law, we expect the lawsuits will follow very quickly.”
British politicians will vote next month on whether to mandate plain packaging on all tobacco products sold in the country. This would make it mandatory for cigarettes to be packaged in unbranded cartons adorned with graphic health warnings.
The law has received widespread support from Britain’s three main political parties and is expected to pass. If passed, the law could come into effect next year.
BAT, that makes Dunhill and Lucky Strike cigarettes, is the first tobacco manufacturer to state publicly that it would definitely take legal action if the plain packaging vote is passed. Other manufacturers, including Philip Morris International and Japan Tobacco International, have questioned the legality of the plans.
Philip Morris has paid lip service to its working with the new legislation, announcing details of its proposed plain packaging for Malboro last month.
According to The Australian Financial Review, pre-tax tobacco profits in Australia increased 30% ($1.17 billion) last year, mostly because cigarette manufacturers pushed up price rises before the anti-smoking rules were introduced. Profits for the big three Australian tobacco companies, British American Tobacco Australasia, Philip Morris Australia and Imperial Tobacco Australia, more than doubled over the last five years to $2.2 billion, even though the number of smokers continues to fall sharply.
