YOUR GUIDE TO TOBACCO LEGISLATION

Transcription

1 YOUR GUIDE TO TOBACCO LEGISLATION EFFECTIVE MAY 2016 YOUR DEFINITIVE GUIDE ON THE NEW TOBACCO LEGISLATION NO BRANDED PACKAGING NO PRICE MARKED PACKS NO PACKS LESS THAN 20 NO PACKS UNDER 30G

2 NEW TOBACCO LEGISLATION TOBACCO PRODUCTS DIRECTIVE From May 2016, the EU is introducing a number of legislations on the production and subsequent sale of tobacco. These laws are referred to as the Tobacco Products Directive and will be more commonly called TPD. WHAT S CHANGING? The packaging of tobacco will be standardised. Shape, size, material and opening mechanism of the packs will be the same across all tobacco products and brands and the packaging will be plain, with no branding. Under the Plain Packaging initiative, PMP packs will no longer be permitted and are subject to the same timelines and sell though restrictions as the TPD legislation. Minimum pack sizes will be prescribed. For factory made cigarettes, this will mean a minimum pack size of 20, and for rolling tobacco (RYO) the minimum pack size will be 30g. Current information on tar, nicotine and carbon monoxide yields will be replaced with an information message which will cover 50% of the side of the pack. There will be no more characterising flavours (except menthol which remains until 2020). WHEN WILL THESE CHANGES HAPPEN? The changes come into force starting May 2016 for manufacturing, there will be a year s sell through period, meaning that manufacturers and retailers have until May 2017 to sell through non-compliant stock.

3 TIMELINE OF EVENTS / ACTIONS WHAT S HAPPENING DATE ACTION HMRC Budget March 2016 April 2016 Start of manufacturing ban of less than 20 cigarettes and 30g RYO. May 2016 June 2016 PMP s start to run out July 2016 Retailers begin to sell through PMP s August 2016 September 2016 October 2016 Begin staff training Inform customers of changes 10 s, 14 s, 17 s, 18 s 19 s start to run out November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 Review & consolidate range Review & consolidate range Review & consolidate range Range to be fully compliant Menthol s banned 2020 STAY INFORMED Watch out for the weekly Budgens Retailer Bulletin and the updates via the Daily for the latest up to date information regarding product changes, substitutions and delists as they happen.

4 WHAT DOES THIS MEAN FOR RETAILERS? The TPD will be imposed on manufacturers from May 2016 but retailers have a year of sell through period, meaning you have until May 2017 to sell through any non-compliant stock. This means that from May 2017, you are not allowed to stock or sell any of the following packs to consumers: Price marked packs Any visibly branded tobacco Compliant packs: Cigarettes minimum 20 s RYO minimum 30g No PMP s Plain packaging Roll Your Own - Any packs under 30g Ready Made Cigarette - Any packs with less than 20 sticks (slide & slims pack formats) Any flavoured tobacco products (except Menthol which can be sold until 2020)

5 ACTIONS AND BEST PRACTICE: Make sure you are not left with any non-compliant stocks after May Start trying to sell through now and talk to your tobacco reps about swapping out any old products for products you can sell. STAFF TRAINING: Train your staff to offer your customers packs that will be non-compliant in a year s time. Make sure your staff are fully trained on the new restrictions and aware of what range you carry; as SKUs disappear they need to be able to offer substitutes swiftly and knowledgeably. MERCHANDISING: Make sure you know where to find your top selling lines where they are positioned, and ensure they are on the shelf 100% of the time. Understand your peak times and days for tobacco purchasing and ensure your unit is restocked prior to these periods. Who has access to the stock room? Ensure the unit is full before that person goes home. Merchandise your stock room to maximise efficiency when restocking. Talk to your customers about the changes. Know your range well, so that you can clearly help customers with making informed choices. Remember that availability is key. This will be particularly important under restricted market and TPD conditions. Know your cheapest on display and high margin products. Ensure all shelf edge labels/price labels or auto feed reminder to order stickers are correct. Ensure your planogram compliance is up to date as we transition through these changes.

6 SUNDRIES AND E-CIGARETTES: On 6th April 2015, the restricted display ban came into effect, in England and Wales, it is still legal to display sundries (in Scotland they will be subject to the same rules as Tobacco products). This category comprises of filters, rolling papers, lighters, gas lighter fluid and matches. Make sure that there are no sundry items merchandised on your Tobacco Gantry, as it is illegal to open the gantry doors to sell these independently to Tobacco products. Make space on a couple of shelves adjacent to your tobacco fixture and create a really impactful sundry and E-Cig display. Customers recognise these products they act as a signpost to tell your customers that you sell tobacco. Make the most of this opportunity to signal to your customers that you are open for their business. E-Cigarettes and Vaping products are not restricted by the display ban, but are subject to new EUTPD legislation: Under the EUTPD new E-Cigarette regulations require: - Refill containers no larger than 10ml. - Cartridges are a maximum size of 2ml. The strongest permissible nicotine strength will be set at 20mg (down from 24mg). E-cigs and refill containers must have a mechanism to ensure leak-free refilling and they must provide a consistent dose. Check over your range and see if you have any gaps or can identify any opportunities.