Big Tobacco Groups and The Issue on Packaging

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The large tobacco groups of the world doubt if the novel rules on the simple packaging take hold in Britain and Australia, they might expand to the elevated growth and possibly more attractive upcoming markets and put their prospect profit growth at halt. The health sponsors are forcing for tobacco groups to pack their cigarettes in simple packs showing the name of the product in standard font along with the graphic health warning to discourage the young people from smoking. Australia targets to become the 1st country in the world to push the tobacco companies to sell their cigarettes in the simple packs – brand free from this December, whereas Britain this week has launched a 3 month consultation for the problem.

It appears inevitable that must Australia accomplish in simply implementing the simple packaging which other regulators shall discover the possible to do likewise.

The next battle ground of Britain:

Observers say that in case Australia implements these plans then the other battle ground are possibly Britain, New Zealand and Canada. This will result in concern to the tobacco companies which have witnessed their shares perform better in 2012. With the stocks of tobacco back on elevated relative valuations, doubts are of the simple packs contagion spreading from the country Australia, The researchers have seen a threat that the emotional climate on tobacco once more has become much skeptical and questioning. The researchers say that the actual threat from simple packs to the industry profits shall be if it increases to the upcoming markets like Russia, Brazil and Indonesia. Therefore this will slow the procedure of the smokers moving to profitable and pricier cigarette brands.

Upcoming market smokers desire to western brands like Lucky Strike, Marlboro and Camel.



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