Smoke ban leads to drop in cigarette sales

The health authorities are patting themselves on the back seeing that the smoking ban in public places, coupled with hard-hitting awareness campaigns, resulted in a drop in cigarette sales as hundreds kicked the habit.

The Health Promotion Department believes smoking was down by about 20 per cent since strict smoking regulations came into force last October. However, tobacco producers estimated a more conservative drop of five per cent.

"It's a phenomenon. The anti-smoking campaign and the war of words over the matter is prompting many to quit," Mario Spiteri, director of the Health Promotion Department, said.

For the last few years, tobacco importers and producers have faced a barrage of measures aimed at making smokers stub out their cigarettes. Excise duty on cigarette packets imposed by successive governments, a ban on print advertising, the beefing up of warnings about the health hazards posed by smoking and the recent smoking ban in public places are paying off.

Regulations outlawing smoking in entertainment spots measuring more than 60 square metres came into force last October. Smaller establishments have to come in line by April.

Judging by the overwhelming response to the smoking cessation classes, and by his "contacts" in the field, Dr Spiteri estimates that smoking was down by a "conservative" 20 per cent.

About nine smoking cessation classes were held in 2003 - last year 25 were held and the interest this year is bigger than ever.

"The effect of the smoking ban and its impact on sales is very clear from the price war the tobacco makers have engaged in," he said, referring to some cuts in the price of certain cigarette brands.

Studies are showing that the prevalence of smoking was down even among Maltese juveniles.

According to Euromonitor International, a market-research firm, cigarette sales in Ireland fell 8.7 per cent last year, when the smoking ban was introduced. France and Germany experienced even sharper drops after the tax increases - 15 per cent in France and 12.8 per cent in Germany - last year.

Dr Spiteri believes that the conspicuous stern warnings on cigarette packets have also left the desired results as well as reduce the value of branding.

"Several smokers have called the Quitline, citing the telephone number from their own cigarette packet."

He believes that the drop in cigarette sales will be accentuated further with the introduction of a total ban on smoking in public places on April 5.

This drop is reflected in the explosion in sales of nicotine replacement products, which are meant to curb the cravings of those determined to stub out for good.

Both Glaxo Smith Kline (GSK) pharmaceuticals and V.J. Salomone Ltd, importers of nicotine replacement products, reported an increase in sales, especially since the smoking ban took effect.

"Sales have increased and smokers are enquiring about these products," a spokesman for GSK said.

The owner of a popular confectionery in San Gwann said cigarette sales from the beginning of 2004 were down by about 20 per cent, though he believes the drop was down due to the increase in taxation.

No less than 76 per cent of the cost of a packet of cigarettes goes into the government's coffers in the shape of VAT and excise duty. A packet of Rothmans cigarettes now sells at Lm1.55, up from 45c 10 years ago.

Ronnie Abela, managing director of Central Cigarettes Ltd, admitted there was a reduction in consumption since the smoking ban.

"The industry is under attack. The measures in the last few months are bound to affect sales, especially in the winter months. But even though the market is shrinking, there is still a market for cigarettes in Malta," he said.

He said cigarette sales had dropped by 20 per cent if one were to compare the figure with the sales figures of 10 years ago, adding that the drop since the smoking ban was of about five per cent.

No measure will ever stamp out smoking, Mr Abela said. He feared that further increases in cigarette taxation would drive the tobacco market underground.

The tobacco industry has tried to come out with new products, like tobacco-less cigarettes to counter the wave of bad publicity but these have had little effect.

Ultimately though, it is difficult to establish the exact drop in smoking unless the contraband market is wiped out, Mr Abela said.

Last year, Central Cigarettes tried to establish the prevalence of the black market by collecting discarded cigarette packets from the streets at the end of a village feast and found out that 15 per cent of the packets were counterfeit.