You will be aware that the Association has long held the view that the tobacco companies are incapable of ignoring the smallest of market advantages. While most observers would have considered that when Minister Donoghue announced a 0.50 cent (inclusive of VAT) increase on the pack of 20 cigarettes, and pro rata increases to other tobacco products, that would have indicated that such increases would be made across the full range of tobacco products sold by the companies to the retail trade. This was once again not the case, as retailers noted the new price list had each of the four brands that have Big Boxes had held off on any increase and continue to supply existing stock at the current wholesale price.
In turn retailers will (because the law forces them) to adhere to tobacco company RRP, continue to give “value“ to their customers buying the promoted Big Box. There is no other word to use other than promoted. B& H 27’s and 34’s, the Silk Cut Blues and Purple 27’s and the Mayfair 33’s will continue to be sold at pre budget prices, tempting those customers that ordinarily buy the 20s pack or the 23’s (which have increased) to migrate to the Big Box. Can anyone with our retail experience believe that this migration does not risk additional personal consumption?
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