An analyst with Wells Fargo Securities has said that the UK's decision to implement the plain packaging of tobacco products will not likely lead to similar legislation being adopted in other countries.
Bonnie Herzog, managing director of Wells Fargo's Beverage, Tobacco and Convenience Store Research division, said, "There are two key reasons that we don't believe plain packaging will more broadly spread to other markets -- firstly, the threat of litigation will likely deter other countries from pursuing plain-packaging legislation.
"Secondly, the plain-packaging 'experiment' in Australia has not been successful in that it has failed to lower combustible consumption dramatically."
The UK government announced last week that it "backs the public-health case" for introducing plain packaging, with legislation planned for May 2016.
Commenting on the decision, Imperial Tobacco issued a statement saying that it was 'surprised and disappointed by the [UK] Government’s decision to rush ahead with plain-packaging legislation. [...] It is regrettable that this issue has been caught up in knee-jerk electioneering at the expense of evidence-based policymaking.'
Hinting at a potential legal challenge, the manufacturer of John Player added, "As we’ve always said, we have a fundamental right to differentiate our brands from those of competitors. Legal action is always a last resort, but when legislation is published, we will be considering our options."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article written by Stephen Wynne-Jones.
