Australia looks to have won a landmark plain packaging court case.
PANICKED by plain packaging and terrified by tumbling sales in western countries, the big tobacco giants are diversifying out of traditional cigarettes into smokeless products and even caffeine supplements.
But critics have said it’s a “smokescreen†to divert attention to the fact that deadly tobacco still accounts for the vast majority of cigarette companies’ profits.
On Friday, Bloomberg reported the World Trade Organisation were set to uphold a landmark Australian ruling on drab non-branded cigarette packaging.
The ruling is likely to see other countries follow Australia’s example.
Just days beforehand, UK tobacco giant Imperial Brands — the company behind Winston, West and Gauloises — said it was testing caffeine energy products as it moves away from being a pure tobacco company.
Marketed under the Reon brand, the energy boosters are billed as being ideal to “share a round with friends to see who gets a real kickâ€. The brand is currently only in the UK.
Reon caffeine powders, produced by a tobacco company, are marketed at younger people.Source:Supplied
They contain four flavoured sachets that deliver 80 milligrams of caffeine, about as much as a double espresso.
“We’ve been increasingly looking in other areas,†including focus on products that appeal to millennials, Matthew Phillips, Imperial’s chief development officer, told Bloomberg.
British American Tobacco, one of the industry’s largest players, says it has invested $1 billion over the past five years in what it terms “next generation productsâ€. E-cigarettes, including its brand Vype, are “potentially less risky alternatives†to tobacco, the firm says
One cigarette company has even said they might phase out cigarettes altogether.
Professor Steve Greenland, a marketing expert at Charles Darwin University who specialises in the tobacco industry, said the move into non-traditional products was not altruistic.
“The key challenge for the tobacco industry is the terrible image of their products,†he told news.com.au
“In Australia, smoking still counts for 15,000 deaths a year and is still regarded as the main drivers of non-communicable epidemic.
“So they’re trying to improve their image by coming up with more innovative products like e-cigarettes.â€
Australia looks to have won a landmark plain packaging court case.Source:News Corp Australia
By creating non-tobacco based products, companies move attention away from their legacy brands.
“They’re trying to appeal to millennials and an aspect of social responsibility appeals to a younger audience,†Prof Greenland said.
But aren’t pomegranate and chilli caffeine powders quiet a step beyond e-cigarettes?
“They’re not going to be aiming these at the traditional market of caffeine tablets to keep you up for exams,†said Prof Greenland.
“I would say caffeine is complementary as, like nicotine, it’s a mild stimulant. The target market is the young partying generation.â€
But while they might be high profile, these new generation products were only a tiny part of the tobacco firms’ business, he said.
“[Tobacco companies] may be distancing themselves from the traditional tobacco market, but the reality is not far off 99 per cent of their revenue comes from cigarettes and while we’re seeing this decline in smoking in Australia the company’s growth business is in emerging markets like Indonesia and East Timor.
Vaping is a growth area for tobacco companies.Source:Getty Images
“These new products are providing a bit of a smokescreen to what is going on with mainstream business.â€
According to the WHO, smoking is generally declining in western countries but on the increase in parts of Asia, South America and Africa.
Ethiopians smoke the least but Australians aren’t far behind with only around 17 per cent lighting up. In contrast, next door neighbour Indonesia is the world’s worst with 76 per cent of the population using tobacco.
This week, Imperial’s half year results showed global tobacco sales had fallen 5.7 per cent. Operating profit fell 10 per cent to 900 million pounds but worldwide revenue was up 9.3 per cent.
Imperial markets it’s e-cigarettes as blu while BAT sells there’s under the Vype name.
The ad campaign for blu is strikingly similar to the classic ‘Marlboro Man’ adverts which showed tough independent cowboys.
In a blu ad, a modern day farmer uses a helicopter to rustle cattle. It’s only when the helicopter lands — and the e-cigarette is lit — that it’s revealed the cowboy is in fact a cowgirl.
An advert for blu e-cigarettes shows a cow girl rustling cattle.Source:Supplied
“If watch that ad and you’re a young woman who would like to make a statement about being tough and independent why wouldn’t you smoke them?†asks Prof Greenland.
Across many western countries vaping bars — where you can happily smoke away with your e-cigarette — have thrived.
But a plethora of regulations has essentially made e-cigarettes illegal in Australia. Just last month, the Therapeutic Goods Administration upheld it’s ban on liquid nicotine that could be used in e-cigarettes.
The decision has had detractors.
Tobacco treatment specialist at the University of NSW, Professor Colin Mendelsohn, told Hack e-cigarettes can help smokers kick the habit
“We know that there a millions of people internationally who have quit with e-cigarettes and I really believe we can accelerate that decline.â€
But critics say by far the most effective way to quit is just to stub out the smokes, not move to alternatives.
Vaping enthusiasts (L to R) Maxim Fichkin, Lauren Chon and Shawn Adsett. E-cigarettes with nicotine are illegal in Australia.Source:News Corp Australia
In fact, their newfangled products could get them back in the good books, some warn.
“By positioning themselves as ‘part of the solution’, rather than the essence of the problem, the tobacco industry is seeking to claw back from its pariah status and to re-engage in the policy process,†Ross MacKenzie, a lecturer in Health Studies at Macquarie University, told The Conversation .
So what of the suggestion in 2016 by Philip Morris International, the company behind Marlboro, that they could stop selling cigarettes entirely? Although, only if customers embrace the alternatives.
“Talking about the future is a nice PR strategy but we’re not talking next week. Today and tomorrow tobacco will continue to be the mainstay of these companies,†said Prof Greenland.
“We’re being picky and cynical but you have to be with tobacco companies because for decades they’ve been saying smoking isn’t harmful.
“In growth markets deaths will be increasing.â€