Background and challenges to implementation: The UK is
now a 'dark market' as such the supply chain and availability of tobacco has
become a more important part of the marketing mix for tobacco companies.
A key
tactic of tobacco companies has been to seek to persuade small tobacco
retailers that their interests align with those of tobacco manufacturers and to
encourage them to oppose tobacco regulations and participate in the promotion
of products.
This
project sought to better understand the extent to which tobacco retailers and
tobacco manufacturers share interests and identify where they diverge.
Intervention or response:A report
and infographic was produced using three sources:
- Analysis
of retail trade publications to assess the claims being made by tobacco
companies regarding the retail environment.
- Analysis
of point of sale data from independent tobacco retailers testing the claims of
tobacco companies regarding the importance of tobacco sales to small retailers.
- Survey of
independent tobacco retailers in Britain. This sought to better understand the
existing relationship between retailers and manufacturers, attitudes of
retailers towards tobacco control policies and the extent to which they agreed
with the positions taken by tobacco manufacturers regarding the retail
environment.
Results and lessons learnt:While tobacco
sales accounted for 25% of total income, margins were around 6% compared to an
average 24% for the other products. As such average weekly profit was only 1.6%
of income. Little evidence to support manufacturers claims that tobacco drives
footfall or that retailers should stock full range of brand variants.
Conclusions and key recommendations:We
demonstrated that the existing and future interests of small retailers and
manufacturers are not aligned. We identified opportunities to encourage a more
responsible approach to tobacco retailing aligning with public health
interests.