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TOBACCO TabSol takes on changing industry The Australian tobacco industry, according to tobacco supplier TabSol, has been impacted by “significant changes” in the past 12 to 18 months. These include: • Changes to under-bond warehousing of tobacco products in Australia. • A new method of tobacco excise collection: payable at port on arrival, effective July 1, 2019. • Introduction of newer brands in the sub-value segment. • Proliferation of vape products and the controversy surrounding this. • Consumer brand loyalty erosion as price becomes the key determinant in the purchase decision. • Recent COVID-19-related challenges. The high tobacco excise rates, says TabSol, have made Australian cigarette prices some of the highest in the world, which has encouraged illicit tobacco trade. The general forms of illicit tobacco products in the market include: • Non-plain packaging or coloured tobacco/cigarette packs. • Plain packaging packs that are non-compliant with the legislation, due to packaging, cigarette paper, etc. • Counterfeit packs which are ‘copies’ of existing brands with non-genuine and usually cheaper, lower quality products. • Chop chop which is illegally sourced tobacco leaf or other leaf that is sold as loose tobacco leaf. The common theme across all forms of illicit tobacco products, says TabSol, is that they’re cheap – usually priced lower than the tobacco excise rates. Excise amount for a carton of cigarettes is $208.91 (including GST), according to TabSol, which adds that those being offered any product priced lower than or close to the excise rate need to question whether it’s legal. TabSol opposes the illicit tobacco trade, strongly advising retailers to refrain from buying and selling these products. Instead, the supplier says, providing better value products in chosen consumer segments is the best way. “We identified opportunities within various consumer segments to provide consumers with quality products at value-for-money prices,” TabSol Managing Director Pradeep Kumar said. JUN, 2020 RETAIL WORLD