Academic site The Conversation has published an analysis of the impact of plain packaging on tobacco sales.
This analysis is a must-read for anyone interested in the plain packaging debate as it challenges reports we see in mainstream media saying the plain packaging is failing to impact tobacco sales and use. It is also a must-read fort newsagents thinking about the future of tobacco products in their businesses.
National Accounts data just released show that for the 11 quarter-year periods since March 2013, consumption of tobacco products in aggregate fell an unprecedented 20.8%, while the previous 11 quarters it fell 15.7% and in the 11 before that, only 2.2%.
While I understand retailers, including newsagents, will be concerned about the loss of revenue as a result of falling tobacco sales, it can be replaced. It is not as if pressure to reduce tobacco use is new. For years, there has been no evident upside in tobacco for retailers.
Tobacco companies fight the plain packaging legislation, saying it is not slowing tobacco use, claiming illegal tobacco sales are in the increase. However, customs and other authorities say there is no evidence of this.
To any newsagent who asks my opinion I say: stop selling tobacco. Your business will be healthier and probably better off as a result of the healthier decisions you make. It is better to quit products on your own terms than getting out late in the play and with a cost to the business.
If your newsagency would not survive without tobacco sales – work on your business urgently, introduce new product categories that attract new shopper traffic. If you do not do this, tobacco could/will lead to your closure. Even if you are making good money from tobacco today, working now on a replacement is vital.