Yesmoke Tobacco S.p.A.

Philip Morris Declares War on "Plain Packaging"

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In Australia starting from the first of July, all packs of cigarettes will be white and anonymous; besides the omnipresent health warning, only the name of the brand in standard letters will be printed on the plain background, according to a regulation introduced by Parliament.

Philip Morris promptly launched legal action against the government and declared “We would anticipate that the compensation would amount to billions", Philip Morris spokeswoman Anne Edwards told The Associated Press; this move ... would essentially amount to confiscation of our brand in Australia”. Australian Premier Gillard responded severely, “We’re not going to be intimidated by big tobacco’s tactics” and the minister of health Nicola Roxon added, “We won't be deterred by tobacco companies making threats or taking legal action."

Following Australia’s example, the United Kingdom wants to be the first European country to obligate the sale of cigarettes in anonymous packaging in spite of the strong pressure of the tobacco industry; London has also decided not to abrogate the law that prohibits showing packs of cigarettes in shops, effectively hiding them from the sight of customers.

Julia Gillard, the Australian premier promoting the “plain” cigarette packaging to protect public health, declared, “We’re not going to be intimidated by big tobacco’s tactics”.

The ASH Organization (Action on Smoking and Health) complimented the politicians: “We appreciate the efforts of the English government; they show its commitment to give more importance to the health of its people than to the profits of the tobacco industry”. In the meantime following the trend, the United States Food and Drug Administration, starting from July will oblige cigarette makers to feature shocking pictures and gigantic health warnings that will have to cover the packs of cigarettes sold in the U.S.

The “plain“ pack is the bone of contention, generally between those countries that want it to protect public health, and the manufacturers who do not want it and claim that it violates international agreements on the protection of commercial brands, and risks leading to the counterfeiting of their products.

That’s the direction things are going in all over the world… but not in the European Union. Here the introduction of the “plain pack” is being studied, but hampering the effort, more than the tobacco producers, is Italy. Rather than showing its determination to defend the interests of the Italian people and safeguard public health, Rome is calling for the protection of the cigarette manufacturers’ commercial brands. In fact, the Ministry of Economic Development, diverging from its Anglo-Saxon colleagues, has invited the EU to “reflect” on the risks deriving from anonymous cigarette packaging.

According to Nomisma, the economic studies group, which in Italy is a leader and a point of reference and is tied to our good Romano Prodi: “Introducing the obligation of neutral packaging on the cigarette manufacturers, besides creating perverse commercial dynamics, could lead to a greater spread of counterfeit products benefitting organized crime; it also violates international treaties that regulate the protection of commercial trademarks”.

The studies that the United Kingdom is basing its policies on, affirm that cigarette packaging without brand names and colors is less attractive, and the colors would reduce the awareness of their potential threat to health. On the other hand, in Italy, the press reports only what concerns Nomisma, more attentive to Philip Morris’s wallet than to the nation’s health; it claims that that in 2010 the counterfeiting market allegedly damaged the tobacco production chain to the tune of over 650 million euro.

But it is hard to understand what tobacco production chain Nomisma is talking about, seeing that today 99% of the cigarettes sold in Italy are manufactured outside the country.

• June 29th, 2011
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