AACS: RESTRICING TOBACCO SALE AN INSULTING JOKE

MEDIA RELEASE
January 27 2015
The Australasian Association of Convenience Stores (AACS) has labelled suggestions by an adult shop lobby group that the sale of tobacco in the ACT should be restricted to adult shop premises as absurd, unethical and insulting to responsible retailers.
AACS CEO Jeff Rogut said the suggestion is not only opportunistic, but insulting to the many honest, responsible retailers in the community already faced with heavy regulatory burdens when it comes to the sale of tobacco.
“The suggestion to restrict the sale of tobacco to adult shops is absurd. To force consumers to enter adult shop premises to buy a legal, non-related product is as ridiculous as it is unethical,” Mr Rogut said.
“Tobacco is already out of sight and there is no advertising or signboards to promote its sale in convenience stores. It is also in plain packaging, making it harder for both consumers and retailers to identify. To even consider this suggestion will be the most obvious admission from a Government yet that plain packaging has not had the desired effect.
“On behalf of the many convenience store operators out there who rely on the sale of legal tobacco as a key product category in their businesses, we trust the ACT Government will view this suggestion with the contempt it deserves,” he said.
Mr Rogut said the extreme regulatory burden already placed on the sale of tobacco was having a genuine negative impact on retailers, small businesses in particular, and to further restrict the sale of legal tobacco is unwarranted.
“Excessive tax hikes and plain packaging have directly contributed to the explosion of the illicit tobacco market in Australia, robbing honest retailers of important sales,” Mr Rogut said.
“The latest independent research from KPMG shows that one in every seven cigarettes consumed in Australia is illegal. When you consider that tobacco products account for approximately 36% of a typical Australian convenience store’s sales, the disastrous consequences of the growing illicit market is clear to see.
“To add another level of unwarranted regulation by further restricting the sale of legal tobacco, and providing exclusivity to adult shops in the meantime, would be one of the most absurd and damaging courses of action ever taken by a Government in Australia, or internationally.”

Further information:
Jeff Rogut
Chief Executive Officer
Australasian Association of Convenience Stores
Ph: +61 467 873 789
Media enquiries:
Stephen Naylor
Wise McBaron Communication
Ph: +61 (2) 9279 4770