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Keith Spinks: The industry in Europe should mobilise to fight off this latest duty free tobacco threat |
EUROPE. The European Travel Retail Council (ETRC) is urging industry action to ward off the potential threat of an EU-wide tobacco display ban, which could include travel retail.
The European Commission recently opened up a public consultation on a review of the EU’s Tobacco Products Directive, which runs until 17 December. Currently national states decide on whether and how to implement any display bans but a directive from the Commission would force them to comply with EU-wide policy.
The ETRC said: “Because of the unique market they serve, European airport duty free shops would be disproportionately affected by a tobacco display ban. Children and minors represent a very small proportion of airport users. We also only sell tobacco products in bulk and for export only, so typically products can only be consumed many hours after purchase. We do not believe therefore that there is a need for a ban on the display of tobacco products in airport duty free shops.”
There is still good reason for the industry to be positive, noted ETRC Secretary General Keith Spinks. He said: “We have good arguments. Airport duty free shops are almost always accepted as being a unique environment. We need stakeholders, including retailers and airports, to engage constructively with decision-makers to ensure duty free is not included alongside the domestic market in the new directive. We need all branches of the Trinity to stand shoulder to shoulder on this.”
In a briefing paper, the ETRC noted how many countries had introduced derogations for airport duty free from tobacco display bans.
In Canada duty free shops are excluded from self-service restrictions on tobacco product display. In Mauritius duty free shops are fully exempted from the tobacco display ban. The UK has provided an exemption for the duty free industry from the tobacco display ban by defining them as “˜bulk tobacconists’ and allowing tobacco display areas (TDAs). Poland also recently exempted airport duty free from self service tobacco restrictions.
Ireland has a different system that only allows limited pictorial representation of tobacco products. Since the introduction of this system in July 2009, sales of duty free tobacco have dropped by -35%, the ETRC noted. This is compared to a domestic market where tobacco sales have remained relatively static.
The ETRC also noted that a display ban might discourage purchases at a passenger’s departure airport, but would only serve to delay the purchase until their airport of arrival or to their airline.
The ETRC concluded: “[We] advocate that an airport duty free shop is an environment where product display is the only practical way to address unique airport specific problems of customer knowledge, language barriers, stock-holding and limitations of time.
“Duty free shop operators have always been recognised as responsible retailers. ETRC suggests that the EU consider an adaptation to any future legislation with regard to airport duty free which will ensure policy objectives are met whilst protecting a much needed revenue stream for Europe’s aviation industry.”
Pointedly, Spinks added: “It’s also vital that we don’t see battle fatigue around the tobacco issue in the industry. Organizations such as the WHO or others that threaten our existence will still be here in ten years’ time, and we too must be willing to continue the fight.”
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