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Australia deprives tobacco giants of their brands

Politics / Austrailia Nov 24, 2011 - 01:13 PM GMT

By: Pravda

Politics

Best Financial Markets Analysis ArticleAustralia is introducing a single design model for cigarette packs of all the brands sold in the country. The respective law has been adopted by the country's parliament, and after approval by the Governor-General it may come into force. Tobacco corporations have already sent their representatives to courts, and a number of countries are observing the attempt to null the cigarette brands.


Australia is delivering the final blow to cigarette smoking. Only 17% of the adult population is smokers, and if the youth will not be involved in smoking, and the flow of migrants will be monitored, this habit will soon become a rarity on the continent.

Despite the apparent well-being, the Australian authorities are uncompromising in their attitude towards tobacco workers and are quite successful in their anti-tobacco campaign. According to the adopted law, all packaging will be of dark-olive color, the brand names must be written in the same font and placed in a clearly defined place. Horrible pictures and warnings will occupy 75% of the front of the packaging and 90% of the back.

Incidentally, similar requirements regarding packaging design were discussed in other Commonwealth countries (New Zealand, Canada and Britain), but those countries have not yet decided to take this step. The Australian experience can be crucial.

"We know that for tobacco companies packaging is one of the last powerful marketing tools, helping to attract new smokers to consuming their deadly products. In the future, a pack of cigarettes will only serve as a vivid reminder of the devastating consequences of smoking to health," Health Minister of Australia Nicola Rokson explained the logic of the initiators of the Law to BBC.

After the adoption of the law by the Senate tobacco company Philip Morris informed the public that a court would require Australia to repeal the law on the introduction of a standard design for all brands of cigarette packs. A lawsuit was filed by the Asian subsidiary of Philip Morris. Tobacco companies still have time as the law will come into force in December of 2012.

According to the company representative Enna Edwards, the company appealed to the court because the government failed to explain the need to unify cigarette packs to counter the spread of smoking. Philip Morris Asia speaks about possible claims of several billion dollars.

"The new packaging robs Philip Morris, denying us the ability to differentiate our products from the brands of competitors, thereby significantly reducing the cost of Australian investment of Philip Morris", said the representative of the tobacco giant. Thus, he acknowledged that the goods from various manufacturers, that is, cigarettes, do not differ in their characteristics.

However, tobacco companies do not always suffer defeat. In the U.S., this Mecca of tobacco control, the court of District of Columbia allowed U.S. tobacco companies not to use frightening images on packages.

Judge Richard Leon ruled that the requirements are an attempt to place official mini-billboards and represent an anti-smoking campaign, rather than an attempt to inform. The illustrations evoke emotion, which, in conjunction with the text, provoke a consumer.

Lobbyists of tobacco companies almost always operate at a high level, demonstrating the sophistication of the Jesuits to promote products. The "anti-fire" initiative of the European Union conducted on the World Day of Quitting Smoking may even increase the number of cigarettes smoked by the Europeans. In Europe only self-extinguishing cigarettes are allowed for sale. They will extinguish if the smokers do not inhale.

Since smokers will have to inhale more, tobacco use will increase. However, according to official data lung cancer kills more people than cigarette fires. Self-extinguishing cigarettes are expensive in production, and their price will increase by 10-20 cents.

Anatoly Miranovsky

Bigness
Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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