Cigarette retailers bought off by big tobacco companies

Smoking might be on the wane, but the tobacco companies aren’t going down without a fight, with their latest shock tactics to boost sales revealed.

TOBACCO companies are offering cash and gift incentives to retailers to boost sales of cigarettes, with one shop owner admitting to getting a $1000 bar tab to throw a party for staff, new research out today reveals.

A national Cancer Council probe into 800 tobacco retailers found that a third were offered at least one benefit from a tobacco company for doing something in return.

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Over 40 per cent of retailers reported being provided with a tobacco cabinet but price discounts, cash payments, prizes and gifts such as tickets, gift cards and coupons were very common incentives.

“The tobacco industry is exploiting gaps in Australian tobacco advertising, promotion and sponsorship legislation, which undermines public health measures put in place to protect people,” lead author Christina Watts said.

“While overt tobacco advertising was banned nationally on TV since the late-1970s, in print since 1990 and outdoors including at most sporting events since 1993, tobacco companies have continued tobacco marketing activities in retail outlets.”

Retailers getting big incentives from tobacco firms to boost their sales

Retailers reported offers of prizes and incentives for increasing sales or demonstrating product knowledge. In return, retailers reported giving companies benefits such as prominence on the price list and/or in the tobacco cabinet and/or influence over the product range and stock levels.

One retailer described receiving a $1000 bar tab allowance from a tobacco company to be spent on a staff party at a chosen venue that also sells cigarettes.

“While this type of business-to-business marketing in the retail sector is often used by companies to enhance product sales, this type of marketing is unacceptable in the sale of tobacco, given the significant health costs associated with smoking. The retail environment remains a key avenue of tobacco marketing and communication to consumers and needs better regulation,” Ms Watts said.

Cancer Council Australia director (cancer control policy) Megan Varlow said the new research came as the Australian Government looked to further reduce the harms of smoking and was consulting at an unprecedented level to find evidence-based policy options.

“The federal Minister for Health, Greg Hunt, has committed to reducing smoking rates to below 10 per cent by 2025 and is leading a landmark national preventive health strategy,” Ms Varlow said.

“His department is undertaking a thematic review of tobacco control legislation in Australia to help ensure they are effective and up to date.

“Publication of this new research is therefore timely.”

Ms Watts said: “Despite smoking rates halving over the past 25 years, the tobacco industry continues to undermine public health policies – increasingly through retailer incentives.

“For example, the most effective measure to reduce smoking prevalence has been pricing, so it’s no surprise that price discounting is the most frequently reported benefit rewarded by the tobacco industry.”