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NANA misstates tobacco regulation situation

NANA sent out an email Friday last week saying The Federal Government has introduced a new tobacco standard (called the Competition and Consumer (Tobacco) Information Standard 2011) which will come into effect on 1 December 2013. This statement is not accurate.

As the explanatory statement accompanying the legislation notes, The Standard commences on 1 January 2012, with full implementation from
1 December 2012. The ‘new’ standard was introduced well over a year ago.

NANA’s email agitates around what it says a “new” standard. There is no new standard. The requirement to blend in tobacco packs with new images is not new. It will occur annually.  Newsagents using a just in time approach to inventory management will find that they have the new images in time.  There is a four month cross over period of the old and new pack images.

It is time consuming to manage pack changes in line with the requirements of the legislation – but plain packaging is all part of the government / community commitment to reduce smoking in Australia.

While I understand NANA lobbying to make wholesalers responsible for package compliance, retailers are the last line in ensuring compliance, the public face. I think retailers have to suck it up. I guess that’s easy for me to say – I don’t sell tobacco products in my newsagencies.

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  1. Chiang Lim

    Respectfully Mark, retailers should not have to “suck it up”. Retailers do not need any more obstacles in their way, especially those imposed by governments who don’t always understand small businesses. This is a NEW imposition because the OLD standard used to allow Newsagents to sell leftover tobacco stock with OLD graphic health warnings past 1 December. The NEW standard will not allow this by retailers after 1 December 2013. I hope this helps you and your audience.

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  2. Mark Fletcher

    Chiang there is no more obstacle than was passed with bipartisan support well over a year ago when plain packaging was legislated. The time for lobbying was back then during the consultation period. The standard applied today has not changes since the legislation was first passed as I understand it.

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  3. Chiang Lim

    Notwithstanding Mark, bad/stupid laws and regulations must be challenged. Courage, persistence and lobbying are required to change laws and regulations. Thankfully, we still live in a country where there are avenues to make common sense changes. Otherwise, we will be forever stuck in the past with bad/stupid laws that never change, and in reality that actually doesn’t occur. Mark, would you like to join us as a retail advocate of Newsagents?

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  4. john

    I understand a new regulatory requirement to come into effect in August 2013:

    • that requires the images on all packaging to be replaced by August each year (hence manufacturers will have to produce new stock), and
    • that only those (new) stock with these new images can be sold
    • thereby rendering those already plain packaged stock with the old image no longer sell-able.

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  5. Mark Fletcher

    john, there is nothing new, only timing outlined a year ago. The key to to manage stock with far more care.

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  6. Mark Fletcher

    Chiang I am already an advocate for newsagents. My issue is not so much with NANA’s lobbying but the representation of the situation as being new.

    There is an opportunity here for newsagents to manage tobacco products in a way their competitors do and thereby not be impacted by the regulations. Carry less stock, manage it by the data and take control away from suppliers. This is a better solution.

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  7. Jarryd Moore

    NANA only makes themselves and the industry look backward by publishing this. Any time for lobbying was back in 2011.

    Most of the points raised by NANA are ridiculous.

    Point 1 says that newsagents usually purchase tobacco products in “shippers (branded boxes of cartons)”. That’s a blatant lie. A store would have to be selling massive amounts of tobacco to be buying the shippers – this would not be the majority of newsagents. Our store turns over more tobacco than most in the newsagency industry and even we rarely purchase a shipper.

    Point 3 indicates that newsagents have to conduct stocktake after hours. I do not believe that this is the case. It is my understanding that the provisions that apply to re-stocking would also apply to stocktake – that is, retailers are only required to ensure that exposure is minimised.

    Point 6 indicated that slow moving lines can take more than 6 months to sell. If a product takes this amount of time to sell it should not be in a retailers inventory. If it is, they need to improve their stock management.

    Yes managing stock is more difficult with plain packaging. But instead of NANA publishing what reads as a lobbying piece (2 years too late), they would be better placed publishing advice on how to best manage the situation.

    If NANA wants to lobby, set an achievable target. Push for a small change that would allow retailers to better manage stock and help them comply with changing GHWs. Something such as a tiny coloured mark on the corner/top of each packed (from a set of pre-defined colours) would help retailers immensely in managing stock.

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  8. john

    I think the point everyone has missed is that the packets will change again this year.
    last year their were many newsagents left with stock they could not sell and could not return for credit.
    NANA is only making Newsagents aware so they will not be trapped again. – yes, it does come down to stock control – but some people are better at it than others.
    Do they say nothing and let people get caught again?

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  9. Mark Fletcher

    John and again next year. This was announced in 2011. NANA’s announcement is less about newsagent awareness and more about beating its chest over lobbying for something decided two years ago.

    Stock control for tobacco products is easy in terms of time and knowledge. All it takes is will.

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