A covert operation conducted by Japan Tobacco International (JTI) in Wolverhampton has highlighted the prevalence of illicit tobacco and vapes in the area, with 22 stores found to be selling illegal products.
Undercover operatives carried out multiple test purchases across Wolverhampton in October 2024 and found that counterfeit and contraband tobacco products were easily obtained, whilst illegal vapes were also common.
All 22 stores visited had illicit tobacco readily available, including packs of cigarettes, rolling tobacco and illegal vapes, with some vapes boasting puff counts of 15,000. The cheapest pack of ready-made cigarettes (RMC) was bought for just £2.50.
All evidence and information gathered has been made available to Trading Standards in anticipation that it will support their efforts to enforce and prosecute anyone found to be selling illegal products.
“This undercover operation in Wolverhampton provides further evidence of the substantial threat of illicit tobacco across the UK," said Ian Howell, Public Affairs Manager at JTI UK. "Not only does illicit trade diminish the income of legitimate retailers, but it also funds criminal activity in our neighbourhoods.
“We’ve conducted hundreds of test purchases in the past 12 months and unfortunately our findings show that illicit tobacco is prevalent in every large town and city we investigate. Lack of sufficient funding and powers for enforcement agencies, combined with years of escalating tobacco duty has contributed to the rapid growth of this black market.
“We also fear the problem will only get worse if the Government proceeds with the proposed generational smoking ban, taking footfall and profit away from law-abiding stores and giving illegal operators an increased customer base. As we look to the year ahead, stamping out the illicit tobacco market should be the top priority for the Government.”
The operation revealed that the typical price for a 50g pack of counterfeit roll your own tobacco (RYO) was between £4, with the operatives’ most expensive purchase being £5. For comparison, the recommended retail price of JTI’s lowest price 50g RYO product is £31.25*.
If retailers know of a store that is selling illicit tobacco or vapes, they should report them by calling Trading Standards through the Citizen Advice consumer helpline on 0808 223 1133 or contact HM Revenue & Customs’ Fraud Hotline (0800 788 887), or Crimestoppers (0800 555 111).
A substantial quantity of illicit tobacco and cigarettes have been seized by Northumberland County Council’s Trading Standards officers from a location in southeast Northumberland.
Following intelligence, Trading Standards officers attended a business location where they discovered and seized 8,875 pouches of illicit Turner tobacco along with 76,000 illicit cigarettes with a potential retail value of over £400,000.
A criminal investigation into the suppliers of the tobacco and cigarettes is now underway.
“This illicit tobacco and cigarettes were destined to be sold across Northumberland. A seizure of this size will make a huge impact on the organised crime gangs who were set to profit from it and will significantly disrupt the illicit tobacco supply chain across our region,” Cllr Gordon Stewart, cabinet member with responsibility for Looking after our Communities at the council, said.
“I hope this sends out a strong and clear message, that we will not tolerate this criminal activity and there is no hiding place.”
Two-thirds of retail leaders respondents say they will raise prices in response to increased NI costs while food inflation could hit 4.2 per cent by the end of 2025, a leading retailers' body has said citing a recent survey.
British Retail Consortium (BRC) today (15) released the findings of a survey of CFOs (Chief Financial Officers) at 52 leading retailers, revealing significant concern about trading conditions over the next 12 months.
Sentiment languished at a concerning -57 with 70 per cent of respondents “pessimistic” or “very pessimistic” about trading conditions over the coming 12 months, while just 13 per cent said they were “optimistic” or very “optimistic” (17 per cent were neither optimistic nor pessimistic).
The biggest concerns, all appearing in over 60 per cent of CFO’s “top 3 concerns for their business” were falling demand for goods and services, inflation for goods and services, and the increasing tax and regulatory burden.
When asked how they would be responding to the increases in employers’ National Insurance Contributions(NICs) (from April 2025), two-thirds stated they would raise prices (67 per cent), while around half said they would be reducing ‘number of hours/overtime’ (56 per cent), ‘head office headcount’ (52 per cent), and ‘stores headcount’ (46 per cent). Almost one third said the increased costs would lead to further automation (31 per cent).
The impact of the Budget on wider business investment was also clear, with 46 per cent of CFOs saying they would ‘reduce capital expenditure’ and 25 per cent saying they would ‘delay new store openings.’ 44 per cent of respondents expected reduced profits, which will further limit the capacity for investment.
This survey comes only a few weeks after 81 retail CEOs wrote to the Chancellor with their concerns about the economic consequences of the Budget. The letter noted that the retail industry’s costs could rise by over £7 billion in 2025 as a result of changes to employers’ NICs (£2.33 bn), National Living Wage increases (£2.73bn) and the reformed packaging levy (£2 billion).
The Budget is not the only challenge retailers are facing, with weak consumer confidence and low consumer demand also an issue. As part of the survey, CFOs offered their forecasts for the year ahead. These suggest that shop price inflation, currently at 0.5 per cent, will rise to an average of 2.2 per cent in the second half of 2025. This would be most pronounced for food, where inflation is expected to hit an average of 4.2 per cent in the second half of the year.
The forecast for sales was more muted. While sales growth is expected to improve on the 2024 level of just 0.7 per cent , at just 1.2 per cent this would still be below inflation. This means the industry could be facing a year of falling sales volumes at the same time as huge new costs resulting from the Budget.
Helen Dickinson, Chief Executive at the BRC, said, “With the Budget adding over £7bn to their bills in 2025, retailers are now facing into the difficult decisions about future investment, employment and pricing.
"As the largest private sector employer, employing many part-time and seasonal workers, the changes to the NI threshold have a disproportionate effect on both retailers and their supply chains, who together employ 5.7m people across the country.
“Retailers have worked hard to shield their customers from higher costs, but with slow market growth and margins already stretched thin, it is inevitable that consumers will bear some of the burden.
"The majority of retailers have little choice but to raise prices in response to these increased costs, and food inflation is expected to rise steadily over the year. Local communities may find themselves with sparser high streets and fewer retail jobs available. Government can still take steps to shore up retail investment and confidence.
"Business rates remain the biggest roadblock to new shops and jobs, with retailers paying over a fifth of the total rates bill. The Government must confirm the planned reforms will make a meaningful difference to retailers’ bills and that no shop will end up paying more.”
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Façade of the Brown-Forman Corporation building in Louisville, Kentucky
Jack Daniel’s owner Brown-Forman Corporation has announced a series of measures including the restructuring the executive leadership team and an approximately 12 per cent reduction in its global workforce.
The company will also close its Louisville, US-based barrel-making operation, Brown-Forman Cooperage.
“In 2025, Brown-Forman celebrates 155 years of delivering Nothing Better in the Market. We have achieved this impressive milestone in part because of our relentless focus on evolving our strategy, our portfolio, and our organisation to grow and thrive,” said Lawson Whiting, president & chief executive officer.
“Today’s announcement will ensure we have the structure and teams in place to continue on this path, while also making investments that we believe will facilitate growth for generations to come.”
Brown-Forman has restructured its executive leadership team, consolidating and streamlining its commercial structure to leverage greater synergies and effectiveness in its markets.
Under the changes, Jeremy Shepherd has been named chief marketing officer. Shepherd previously led the company’s USA & Canada commercial division.
Michael Masick has been named president, Americas. Masick will continue commercial leadership for Mexico, South and Central America, and the Caribbean. In his expanded role, he will add USA & Canada to his remit.
Yiannis Pafilis has been named president, Europe, Africa, Asia Pacific. Pafilis currently leads teams across Europe. In this expanded role, he will add Africa, the Asia Pacific region, and global travel retail.
Chris Graven has joined the executive leadership team as chief strategy officer. Graven has held roles in Brown-Forman’s HR, finance, marketing, and commercial organisations in her 20 years with the company.
Brown-Forman said it has made the “difficult decision” to reduce its global workforce by approximately 12 per cent of its 5,400 employees worldwide. The company added that it is “deeply committed” to supporting departing employees with comprehensive transition agreements.
The closure of Brown-Forman Cooperage, set to take effect by 25 April, is expected to impact approximately 210 hourly and salaried employees, part of the overall 12 per cent workforce reduction. The company added that it will source barrels from an external supplier in future.
Collectively, these actions are projected to deliver approximately $70 to $80 million (£65m) in annualised cost savings, a portion of which is expected to be reinvested to accelerate growth. In addition, the company will receive more than $30 million in proceeds in connection with the sale of the cooperage assets. The company expects to incur approximately $60 to $70 million in aggregate charges for severance and related costs associated with the workforce reduction and cooperage closing.
“I want to express my sincere gratitude to our employees, particularly those impacted by these changes, for their dedication and contributions to Brown-Forman,” said Whiting. “We are committed to supporting them through this transition and are confident that these strategic initiatives will ensure the company endures for generations to come.”
Asda has announced a revamp of its leadership team as the beleaguered retailer refocusses on its mission to “satisfy the daily and weekly shopping needs of ordinary working people and their families who demand value”.
The retailer said Liz Evans will take up the position of chief commercial officer, non-food and retail, leading its large store operations on a permanent basis, alongside her continued leadership of the George clothing brand.
Asda has also created a new position on its executive team – chief supply chain officer – to oversee all its food and general merchandise operations. The position is yet to be filled.
To bolster the food team under Kris Comerford, chief commercial officer – food, Ade McKeon rejoins Asda as vice president – ambient, with beer wines and spirits, core grocery, impulse grocery, non-edible and healthcare teams reporting to him.
McKeon previously spent four years with Asda in commercial and brand leadership roles, before joining Accolade Wines as UK and Ireland general manager in 2017. He left Accolade in 2020.
Gemma Lightbody will also be rejoining Asda from Marks and Spencer as business unit director for impulse grocery reporting to McKeon.
Matt Shields will join from Aldi in due course as business unit director for core grocery and current Asda colleague Matt Wood will take on the role of SD commercial operations reporting directly to Comerford with immediate effect.
Commenting on the revamp, Allan Leighton, Asda's executive chairman, said: “Asda's mission is to deliver the value ordinary working people, and their families demand from us. To do this, we need to be and are rediscovering our 'Asda-ness'. I'm delighted to be announcing these leadership changes as we start this journey.”
Asda continues to face significant challenges, with sales declining by 5.8 per cent in the 12 weeks to December 29, 2024 - the steepest fall among the major multiples. This marked nearly a year of consistent sales decline for the supermarket, which has struggled to maintain momentum since early 2024.
As UK and European retailers gear up for 2025, the grocery sector is poised for transformation, driven by renewed focus on fundamental retail practices, new revenue opportunities, and the growing demand for health and sustainability initiatives., highlights a new report.
A new report from IGD outlines six key trends that are set to shape the future of the grocery sector across the UK and Europe.
1. Optimising Retail Fundamentals for Success
While new technologies capture attention, UK and European retailers are reinforcing core retail fundamentals like stock availability, pricing, and promotions. Innovations like shelf-edge cameras and AI-driven stock management are improving these essential areas, ensuring a seamless shopping experience.
2. Exploring New Revenue Streams
As operating costs rise, UK retailers are diversifying their revenue sources by leveraging e-commerce technology, data monetisation, and B2B services. Tesco’s launch of Transcend, enabling other grocers to use its fulfilment tools, exemplifies the growing interest in non-traditional retail income streams.
3. Evolving Store Formats for Greater Flexibility
Retailers are adopting adaptable store designs that cater to evolving consumer needs and seasonal trends. The rise of modular store formats that feature event spaces, like FairPrice Finest in Singapore, is gaining traction in Europe, offering dynamic, customer-focused shopping experiences.
4. Seamless Connected Commerce
UK and European retailers are enhancing the integration of physical and digital retail, focusing on omnichannel experiences, loyalty programmes, and smart checkout solutions. AI-powered tools, like Target’s Store Companion, are simplifying store operations while enhancing customer engagement.
5. Health and Wellness Products Lead the Charge
Driven by growing health-conscious consumer demand, retailers in the UK and Europe are introducing more functional foods and health-focused products. The rise of initiatives like Cycle.me demonstrates a shift towards combining wellness with convenience, offering consumers greater choice in healthy, sustainable products.
6. Accelerating Sustainability Commitments
Retailers are intensifying their sustainability efforts, with a focus on reducing food waste, plastic packaging, and energy usage. Germany’s EDEKA Dorfmann sustainability store sets a new benchmark for eco-conscious retail, inspiring UK and European retailers to meet ambitious sustainability goals through innovative practices.
Stewart Samuel, Director of Retail Futures at IGD, commented, “As we move towards 2025, retailers must build on the foundation of global trends while ensuring they stay agile to rapidly evolving consumer demands.
"Focusing on the basics – stock availability, pricing, and promotions – remains critical to success. But at the same time, leveraging new revenue streams, embracing technological innovation, and championing health and sustainability are no longer optional; they are essential to staying competitive.
“Retailers who can successfully integrate these areas will not only future-proof their businesses but also build stronger relationships with increasingly conscious and demanding consumers.”