Tobacco and Vape Bill is “highly confusing, unenforceable and unfair”, feel independent retailers who are calling on the government to take better and uncomplicated ways forward like simply raising the legal buying age and licensing of tobacco-selling shops.
Most independent retailers feel Tobacco and Vapes Bill, if it comes into effect, will have profound consequences and long-term deep impact on businesses as the stores will be exposed to confusing legal hassles as well as public anger.
Under current law, it is illegal for anyone under the age of 18 to buy tobacco products, but under the new Tobacco and Vapes Bill, children who are turning 15 this year, or anyone younger, would never be able to legally buy tobacco as the bill would make it an offence anywhere in the UK to sell tobacco products to anyone born on or after Jan 1 2009.
Backers of the legislation, including Prime Minister Rishi Sunak, say the aim is to create the UK's "first smoke-free generation."
The Smokefree Generation policy will come into force in 2027 when current 15-year-olds turn 18. In other words, post 2027, the age of sale will have to be raised by one year each year to prevent future generations from ever taking up smoking.
Superficially, the bill sounds like a perfect plan, but it has confusing layers and is expected to become a huge challenge for local stores with limited means, a major share of whose footfall and sales come from this category.
Unenforceable
Independent retailers are clueless at the moment at how they are going to enforce this regulation (if they have to), thanks to its sheer confusing and constantly-shifting timelines.
Owner of BB Nevison Superstore and Post Office in Pontefract, retailer Bobby Singh, feels that the legislation is “not practical and is totally unfair”.
“I personally do not smoke and feel education is the key to health awareness,” he told Asian Trader.
Scotland-based retailer Girish Jeeva who runs two stores around Glasgow, said, “I am not sure how the system will be placed and how difficult it will be when it comes to selling tobacco products. It seems unfair and very complicated.”
Retailer Nishi Patel, owner of Dartford’s Londis Bexley Park store, said, “I am a third generation shopkeeper. We always had tobacco products in the store. It's like cornerstone of a corner shop.
“Honestly, at the moment, we don't really know how we're going to implement this new law. I am not sure if the government is going to support us or give us grants for any age-recognition software.
“A lot of retailers are not happy with this bill because it is complicated and does not help us in any way at all.
Retailer Nishi Patel
“I am young so I will eventually work it out and get my staff trained to allow us to be able to enforce it. But I know a lot of other elderly shopkeepers who are saying that they will be forced to sell their businesses because it is too much legislation complexity for them to handle,” he told Asian Trader.
The bill will see that post-2027, every year, the legal minimum age of buying tobacco will be raised by one year, implying a few years down the line, a retailer and his staff will be held responsible if he is not able to prohibit sales to 36-year-olds while granting the same to 37-year-olds, thus creating a breeding ground for conflict with customers.
Stores are already reeling under record crime rates and abuse levels, as reflected by wider industry reports. The 2024 Crime Report by Association of Convenience Stores (ACS), released in early March revealed that an overwhelming majority (87 per cent) of people working in convenience stores have faced verbal abuse over the last year with "enforcing the law on age restricted sales” as top triggers for abuse.
The proposed legislation of generational smoking ban will further require retailers to decline sales to otherwise some fully-grown adults (but who can buy alcohol!), thus creating conflicting situations.
Retailer Eugene Diamond, owner of Diamond’s in Ballymena, said, “I asked a youngster to behave in the shop yesterday afternoon he’d been lifting and throwing products. His language and thoughts about me in reply was unbelievable. I can’t imagine what his reaction will be when he is 20 and refused cigarettes. I see that as a big problem.”
Patel too expects steep rise in cases of conflict and abuse from shoppers.
He said, “We are going to probably have increased problems in the shop from antisocial behavior. There is a cliché too that we talked about in Parliament too that someone could be born on the last month of December 2008 and his friend is just a month younger as he is born in January 2009. In this case, former would be able to buy tobacco while his friend would not!
“We are definitely going to have ugly issues in store as we are the ones who would be facing the shoppers and denying them sales, thus facing their rage and not the government,” he told Asian Trader.
Black market and loophole
Sadly, illegal trade of cigarettes and tobacco products is not new in the country. The trade, its logistics and supply chain exist and is flourishing already, as reflected by regular media and councils’ reports. Such a ban will only further boost underground trade.
Association of Convenience Stores chief James Lowman also stated that rogue sellers, who are supplying dodgy products to anyone who wants them, are operating without fear of reproach from Trading Standards teams that are already stretched beyond their limits.
“What we need is a coherent strategy focused on enforcing the rules that we already have and providing enforcement teams with enough resources to be able to do their jobs properly. New regulations that only affect responsible retailers will do nothing to deter the criminals that are importing and selling illicit products,” he said.
Retailer Patel feels the new legislation is more like a self-sabotage.
He said, “The government is going to lose out on revenue that tobacco makes. However, the market will be pushed into the black market more than it ever has been and the government is not going to get any revenue from there.
“Since tobacco sales will go down every passing year, money generated from tobacco will also go down. It looks like the government is putting themselves in a really big hole. The illicit trade is going to go up, which means they're not getting the taxes from it.”
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What about the retailers buying tobacco from wholesalers for their stores? What rules will apply to them?
Sometime in future, let’s say in 2040, can a retailer (born after 2009) buy cigarettes and tobacco to stock in his store for his client base (pre-existing smokers born before 2009) or will the wholesaler be criminalised in this scenario?
Federation of Wholesale Distributors (FWD) is seeking clarity from the government and is yet to hear on this matter.
James Bielby, Chief Executive of FWD, said, “There must be an exemption to allow retailers to purchase tobacco from their wholesalers, whatever their age. There is a precedent for a wholesale exemption on displays and packaging – both of which are permitted in wholesale depots. These successes on tobacco policy, won by FWD, need to be replicated in the legislation.”
The wholesale body is also concerned over potential increase in the illicit trade.
“This policy must not lead to an increase in the illicit market controlled by organised crime gangs, hitting our members’ legitimate sales, tax revenues, and driving unregulated youth access to tobacco,” he added.
Better ways forward
Anti-smoking rules in the UK are among Europe’s strictest, with only Sweden having tougher regulations. The country already has the continent’s second-lowest smoking rates owing to some of the toughest laws and highest taxes on cigarettes in Europe and it has been slowly winning the war over smoking organically with the correct shift in mindset.
Based on APS data, the proportion of smokers in the UK in 2022 was 12.9 per cent, or 6.4 million people. This is a decrease from 2021 (13.3 per cent) and a considerable decrease in current smokers compared with 2011 (20.2 per cent). Comparing with peers, in France and Germany, smoking rate is 33.4 per cent and 22 per cent, while in Bulgaria, it is 39 per cent.
Demand for cigarettes fell by 54.3 per cent between 2010 from 38.3 packs/capita and 2022 to 17 packs/capita, according to analysis Smokefree World based on annual Population Survey data from the Office for National Statistics.
So, the question arises is do we even need a ban of such complexity and scale?
Retailer Patel feels that Sunak is seemingly only focused to be “remembered for bringing in generational smoking ban and thus saving future of the UK from cigarettes”.
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“Truth is some people are still going to smoke; there is no way that a whole generation cannot be smoking. He (Sunak) is not being practical. And as a human, we don't make choices for people who are old enough to make their own decisions. This generational smoking ban is nothing but just another red tape that we're going to deal with,” the retailer said.
New Zealand, whose policy reportedly inspired Sunak to introduce similar smoking restrictions in the UK, has scrapped its landmark smoking in November last year, even before it fully came into effect. Scrapping the plan, New Zealand Prime Minister Christopher Luxon stated that the ban would have created "an opportunity for a black market to emerge, which would be largely untaxed.
Many retailers also believe that the government does not have the required funding or resources to police a generational ban of such a scale.
Retailers are calling on the government to consider better ways forward like increasing the legal age and licensing the tobacco shops.
Patel added, “Why don't they move the age of smoking to 21? And why don't they license every tobacco shop? That way, they cans still generate some money as well as some control on the market and a check on underage sales. Instead of doing a complete blanket ban, the government is bringing this generational thing which is so confusing.
“Training standards are already under massive budgetary crisis, they don't have enough money nor people on the floor to check each shop. Whereas if they license tobacco-selling shops, they will have some funds to go into the Trading Standards.”
The idea that one should not smoke, or smoking is injurious, should be inculcated at home, school and in society and not from a neighborhood shop owner. It seems like government, authorities, charities, schools and even parents are somewhere failing to bring awareness in young people and are trying to pass the buck on stores through this confusing law, disproportionately criminalising them in the process.
Clearly, the onus of making the UK “smoke-free” seems to be unfairly falling entirely and solely on the shoulders of retailers!
Scottish business conglomerate Glenshire Group has hired Daniel Arrandale as its new Property Director.
Starting in the newly created role last week, Arrandale brings a wealth of industry experience to the business, including his most recent position as Acquisitions Manager for Asda and his previous position as Development Manager at EG Group.
“I am thrilled to be joining Glenshire Group in a period of tremendous growth, with many exciting opportunities on the horizon,” said Arrandale. “I’m looking forward to working with the existing development team to maximise the opportunities within our current estate, whilst also growing the business further with the acquisition of new sites.”
As part of Arrandale’s remit, he will oversee acquisitions, development, and growth for Greens Retail, Pizza Hut, and wider Glenshire Group property development and investment interests.
The bulk of Arrandale’s career has been as Retail Director at commercial agents Christie & Co, focussing on the convenience, forecourt and franchise markets. Arrandale served at Christie & Co. for 23 years.
Harris Aslam, Managing Director at Glenshire Group added: “We are very excited to welcome Dan into the Glenshire family. Having worked with Dan many times over the years on several transactions, I can confidently say his breadth of knowledge and experience in this sector will give us a huge advantage as we continue to expand our portfolio.”
Currently operating 27 convenience stores and 20 Pizza Hut franchises in Scotland, Glenshire Group has committed to significantly furthering new location openings in Scotland as well as bolstering their property portfolio.
Brewer Carlsberg is shifting some of its marketing focus to cheaper brands, it said on Thursday (31), as consumers in major markets bought cheaper beer and in reduced quantities.
The maker of Kronenbourg 1664, Tuborg and Somersby said beer sales volumes fell by 1.3 per cent in the third quarter, noting declines in China, France and the United Kingdom. Premium sales fell 0.5 per cent in the quarter."In Western Europe, there's no doubt that the average consumer is holding back," CEO Jacob Aarup-Andersen told Reuters.
"In Asia, China stands out as a market where the consumer is very weak. Most other Asian markets are actually okay," he said, adding the company had not yet seen Chinese stimulus measures having any impact on consumer behaviour.For years, brewers have relied on a strategy of developing and promoting their more expensive premium brands to offset an overall decline in drinking.
Aarup-Andersen said he remained confident in the long-term growth potential of premium beer and that the category will comprise a significantly larger portion of Carlsberg's business in a decade.For now, however, the company is adjusting its marketing.
"In markets where we are seeing a significant pressure on premium, we are reallocating some of our focus into making sure that we are promoting properly around the right mainstream brands," he said.
The world's third-largest brewer behind Anheuser-Busch Inbev and Heineken said third-quarter sales rose 1 per cent to 20.5 billion Danish crowns ($2.98 billion), compared with 20.7 billion expected on average by analysts in a poll gathered by the company.
Despite the shift in consumer behaviour, Carlsberg said it still expects full-year organic operating profit growth to be between 4 per cent and 6 per cent. The company lifted its full-year guidance in August.
Also on Thursday (31), the world's largest beer maker Anheuser-Busch InBev reported third-quarter profits, revenues and volumes behind forecasts. AB InBev's third-quarter statement highlighted stronger growth for its more expensive beers, like Corona, which grew 10.2% outside of its home market, Mexico, during the period.
Consumers now want a greater commitment from retailers in cutting food waste, refilling stations, sustainable packaging, and partnering with social purpose organisations, states a recent research, which also highlights that a good majority (69 per cent) of younger consumers are more likely to shop with what they see as socially responsible retailers though price sensitivity still plays a crucial role.
According to the findings, published in Vypr’s Consumer Horizon Report, reducing food waste is the most important factor for the majority of UK consumers (29 per cent), especially for Gen Z women aged 18-24 (38 per cent). More than a third (37 per cent) of men aged 18-24 said they needed food storage advice. A similar number of women aged 18-24 (33 per cent) want meal kits with the exact amount of ingredients included for them to cut down on food waste.
Refill stations for personal care, cleaning products, dry goods, and beverages are also in high demand. Consumers, particularly Gen Z women, are keen to use these stations, provided they offer a cost-saving of 6-10 per cent compared to packaged goods. The study indicates that older shoppers are less likely to use refill stations unless prices are reduced by 15 per cent or more, which Vypr said shows the importance of price in driving consumers to adopt sustainable shopping habits.
The third priority for brands and retailers is to adopt sustainable packaging. Awareness of eco-friendly packaging is high, especially among younger generations. Two-thirds of UK consumers say they expect to pay more for sustainably packaged products, and that figure rises to 86 per cent among Gen Z and Millennials. However, Vypr’s research suggests that while shoppers express willingness to pay more, price sensitivity still plays a crucial role.
Ben Davis, founder of Vypr, said: “There’s often a disconnect between consumer intentions and actions. Brands need to understand that simply offering sustainable options may not be enough if price points don’t match consumer expectations.
“For Gen Z and Millennials, sustainable products need to be competitively priced or risk losing long-term loyalty. We tested this by presenting products with and without the label ‘100 per cent Recycled Packaging’ and found price remained the key purchase decision-making factor for most consumers.”
Another factor in building loyalty among younger consumers is to showcase social responsibility. The research reveals that 60% of shoppers are more likely to shop at retailers that partner with food rescue organisations or promote a charitable cause. Among Gen Z and Millennials, this figure jumps to 69%, showing a strong preference for brands that demonstrate a social purpose.
The report also reveals that 85% of shoppers are willing to pay a deposit for reusable products, though it is younger consumers, particularly those aged 18-24 who express the strongest support for such initiatives.
The Consumer Horizon report which provides insights shaping retail, product innovation, and consumer behaviour going into 2025, can be seen here.
Sugro UK, the number one buying and marketing buying group*, in partnership with b2b.store, is thrilled to announce a further expansion of its existing E-Loyalty scheme programme, which has proven to be very popular with its members and retailers, by introducing E-Loyalty Extra Compliance and Execution scheme as well as E-Coupons.
The E-Loyalty Extra is aimed to boost compliance and execution at retail store level to drive new product launches, core range compliance, some exciting fixture trials with its supply partners and more! It will be available to all member owned and member affiliated retail stores within the group.
The E-Loyalty Extra loyalty scheme will be accessible by retailers via WhatsApp platform and will allow retailers to capture evidence of compliance by simply clicking “take photo” button.
With the addition of another digital enhancement introduced to the group recently – Coupon - based loyalty mechanic, members are now empowered to incentivise and reward customers, driving stronger consumer connections and fostering brand loyalty at a granular level. Retailers can now simply redeem a coupon at the point of check out. Another key digital development within the group is WhatsApp E-Presell which enables Sugro UK’s retail partners to provide advance product volume commitments for new product launches. This functionality is particularly powerful as it ensures that suppliers have accurate forecasts before product launches, enabling better stock availability from day one of product being available on the market.
The ease and speed of using WhatsApp for these commitments simplifies the presell process, ensures accuracy and strengthens relationships across the supply chain.
While other industry players may soon consider introducing similar digital tools, Sugro UK are proud to be at the forefront of enhancing retail-focused digital solutions. This early adoption not only ensures that Sugro UK members remain competitive but also guarantees them access to the best digital tools available in the market. These efforts are part of Sugro UK's ongoing commitment to delivering value to its members and empowering them with innovative solutions for growth and success in an increasingly digital retail environment.
Sugro Head of Commercial and Marketing, Yulia Petitt said: “I am delighted that Sugro UK members are now able to provide photographic evidence of retail compliance and in-store execution to our supplier partners, using a wide range of display and compliance criteria such as planograms, secondary displays, trials, and new product developments (NPDs).These digital features allow members to share real-time proof of execution, enhancing accountability and building supplier confidence. The launch of E-Presell functionality opens a huge digital advantage for the group which will benefit all – members, retailers and suppliers in gaining accurate forecast and ensuring product visibility in store from day one of product being on the market and with the ease of using WhatsApp, the entire pre-sell process becomes a much quicker and easier process to manage for all parties.
"The Group has had 18 consecutive years of growth and, once again, on track to deliver in 2024, with the year-to-date performance of +15% year on year and growth across all categories.” Rob Mannion, CEO of b2b.store, added: “The rate of innovation in the wholesale sector is increasing and these launches are further great examples of that. We’re particularly excited about the developments and different uses of WhatsApp in the industry, with more coming in the pipeline for 2025 – it’s a tool no wholesaler or buying group can afford to ignore because of the level of influence it’s having in the sector and there’s no sign of that direction of travel changing any time soon.”
Sugro UK is proudly owned by its 90 plus independent wholesale members, with a combined turnover of over £2.5 billion.
Expanding its footprint in the World Foods category, Paulig has acquired Panesar Foods, a prominent UK-based producer of sauces and condiments.
Founded in 1992 and headquartered in Tipton, Panesar Foods is a family-owned business with three production facilities, employing 308 staff and achieving a turnover of £59 million in the 2023 fiscal year.
This collaboration is expected to accelerate product launches and drive growth in diverse offerings, including sauces, salsas, marinades, dips, and condiments.
"We have collaborated with Panesar Foods for 17 years, and we are very pleased to welcome the company to Paulig," said Rolf Ladau, CEO of Paulig. "Today, our combined taste expertise and innovation skills unite around a shared ambition: to accelerate our international growth and expand our World Foods offerings."
Bill Panesar, CEO of Panesar Foods, expressed confidence in the partnership, stating, “As Panesar Foods becomes part of Paulig, I am confident that our ambitions for international growth will be realised, and the business will continue to thrive. We share a strong commitment to innovation and delivering high-quality, flavourful products, and I look forward to bringing even more delicious products to the market, together."
Jas Panesar, MD of Panesar Foods, echoed, “This partnership will allow us to reach new markets and deliver our authentic World Food flavors to a broader audience. We look forward to combining our passion for quality food with Paulig’s commitment to sustainability and innovation.”
All 308 Panesar employees will transition to Paulig’s team. Financial details of the transaction remain undisclosed.