Industry NewsSupply Chain

Legislation Changes and The Effect on a Supply Chain.

The UK and Ireland has seen varying changes to legislation on consumer goods by many governmental departments but one that has really been affected is that of tobacco. http://www.legislation.gov.uk/uksi/2016/507/contents/made

Tobacco has been in the sights for many lobby groups . WDL has embraced the changes to ensure compliance for the traders that are effected and also the relevant government departments

The following are the surmised points in relation to Tobacco Legislation.

  • Tobacco firstly had in 1995 been advised that all single cigars should have a health warning and any related tobacco product
  • Australia, with the enactment of the Tobacco Plain Packaging Act on 12 December 2011, became the first country in the world to require tobacco products to be sold in plain packaging. Products manufactured after 1 October 2012, and all on sale after 1 December 2012 must be in the plain packaging.
  • Following Australia’s lead (2012) a number of other countries also began requiring standardized packaging including France (January 2017), United Kingdom (May 2017), New Zealand (June 2018), Norway (July 2018), Ireland (September 2018), Saudi Arabia (May 2019), Mauritius (June 2019), Thailand (September 2019), Canada (November 2019), Singapore, Belgium and Turkey (2020). Hungary, Slovenia [8]
  • Then came the display ban of all tobacco products which meant that no items could be on display to the public came into effect April 2015 an example below

What this meant for suppliers/clients and consumers was a change in their process and way of purchasing.

  • Next was a ban on 10 packs of cigarettes in 2015 Then Menthol Cigarettes to be withdrawn from the market during 2020 

Added to this was the minimum sale of tobacco being increased to 30 g with the market previously focusing on Value for Money 12.5g. This changed the dynamics for everyone.

  • Then there is track and trace set in 2 phases. More on this in our blog.

What this added was the fact that the market was being restricted in what it could sell to the consumer.  The value of retailer’s business was hit, as the category which represented over 40% of their turnover had been constrained.

However, the demand is still there although smoking population is now at around 8 million smokers some of which  have started vaping, the supply chain had to alter its flow of goods.

  • Change the pack formats
  • Change the outer formats
  • Promote with consumers via traders only and this had to be legal and price drive
  • Costs of differing health warnings on individual packs

Below is a time plan example for manufacturing on this legislation from a producer in the EU

Its complex and time consuming for all parties, however with communication and people its achievable

With all this WDL and our partners  worked  place  products in a marketplace
with a display ban.

Working with Davidoff Distribution during 2017-2018, WDL launched a Roll Your Own tobacco in the UK based on the
following with minimum size of 30 g

  • Value
    for Money
  • Retailer
    Engagement
  • Consumer
    Demand
  • The
    market requirements
  • Target
    areas

Davidoff were good enough to support and help us drive this brand and to be able to gain
distribution based on face to face relationships which we have said is always
key.

The following results were achieved in excess of 400 retailers stocking
the brand plus 4 wholesalers.

This can prove in a market that’s restricted what can be done. Could you imagine what you can achieve in the market with an item that isn’t restricted?

Keep going and believing despite adversity !!!

Andy Logan MIOM CMILT

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