Tobacco Crisis: Irish Cancer Society Accuses Big Tobacco of Illegal Trade

Introduction: The Irish Cancer Society has accused major tobacco companies of deliberately flooding newer markets with cigarettes, adding to turmoil in the tobacco market. Industry observers point out that whether tobacco company scandals will spark public anger, and whether the emerging industry of e-cigarettes can successfully win over consumers, remains to be seen.
China e-cigarette news reports: The Irish Cancer Society has accused major tobacco companies of deliberately flooding newer markets with cigarettes—cigarettes that ultimately end up as smuggled products in Ireland.

Kathleen O’Meara, head of advocacy and outreach at the Irish Cancer Society, said:

“The flow of smuggled cigarettes into Ireland shows that major tobacco companies are deliberately flooding lower-tax economies with their own cigarette brands, after which those cigarettes mysteriously make their way into economies such as the UK and Ireland, where cigarette prices are kept high in order to discourage smoking.”

In 2008, the four largest cigarette manufacturers in Ukraine produced and imported 30 billion more cigarettes than were needed for the local market. Those excess products are believed to have found their way into the black markets of Western Europe.

The Irish Cancer Society made these remarks after the Revenue Commissioners released a report stating that 12% of cigarettes in Ireland were illegal products. Of the illegal cigarettes, 11% were classified as smuggled products. This indicates that these cigarettes came from legitimate tobacco manufacturers rather than counterfeit products.

A survey report on illicit tobacco use commissioned by Japan Tobacco International in 2013 found that untaxed tobacco accounted for 28.3% of the Irish market. In the report, John Freda, general manager of JTI Ireland, said, “Combating illicit trade is a top priority for Japan Tobacco International.”

The survey found that Ireland had the third-highest proportion of untaxed tobacco products in Europe, behind only Norway and Lithuania.

An audit report investigating Ireland’s illicit tobacco trade also stated:

At Japan Tobacco International, we look forward to continuing in 2014 to work with law enforcement agencies, government, retailers, and other stakeholders to implement measures that can truly stop and reverse the growth trend of the illicit tobacco trade in Ireland.

In a statement issued earlier this year, a spokesperson for the Tobacco Manufacturers’ Advisory Committee of Ireland said:

As a country that considers itself a pioneer in tobacco control, the government must do more to tackle the black market—a market that cares nothing for any form of regulation, ignores age restrictions, and causes retailers and the state to lose millions in revenue.

For example, speaking to TheJournal.ie, Vincent Jennings, CEO of the Convenience Stores and Newsagents Association, said: “It is inappropriate to simply blame big tobacco companies without recognizing that their products must be eliminated in an organized way on a global scale, and without recognizing that Ireland cannot curb the cigarette black market on its own if that means enriching people who have no loyalty or responsibility to our country or civil society.”