Cigarette brand diversity and price changes during the implementation of plain packaging in the United Kingdom

Abstract

Background and aimPlain packaging of cigarettes appeared in the United Kingdom in July 2016 and was ubiquitous by May 2017. The change coincided with another legislative change, raising the minimum pack size from 10 to 20 cigarettes. Laws imposing plain packaging on cigarette packs remove another promotional route from tobacco companies, but the effect of such laws on brand diversity, pricing and sales volume is unknown. This study aimed to (1) describe and quantify changes in brand diversity, price segmentation and sales volumes and (2) estimate the association between the introduction of plain cigarette packaging and cigarette pricing in the United Kingdom.DesignWe used a natural experiment design to assess the impact of plain packaging legislation on brand diversity and cigarette prices. The data comprised a sample of 76% of sales of cigarettes in the UK between March 2013 and June 2017.SettingUnited Kingdom.MeasurementsCigarette prices, number of brands and products and volumes of sales.FindingsDuring the period analysed, there was a slight decrease in the number of cigarette brands. There was also an initial increase observed in the number of cigarette products, due mainly to an increase in the number of products in packs of fewer than 20 cigarettes sold before July 2016, which was then followed by a rapid decrease in the number of products that coincided with the implementation of the new legislation. Cigarette sales volumes during this period did not deviate from the preceding secular trend, but prices rose substantially. Regression results showed that price per cigarette, regardless of pack size, was 5.0 [95% confidence interval (CI) = 4.8–5.3] pence higher in plain than in fully branded packs. For packs of 20 cigarettes, price increases were greater in the lower price quintiles, ranging from 2.6 (95% CI = 2.4–2.7) GBP in the lowest to 0.3 (95% CI = 0.3–0.4) GBP per pack in the highest quintile.ConclusionsThe implementation of standardized packaging legislation in the United Kingdom, which included minimum pack sizes of 20, was associated with significant increases overall in the price of manufactured cigarettes, but no clear deviation in the ongoing downward trend in total volume of cigarette sales.

Pricing of tobacco products during, and after, the introduction of standardized packaging: an observational study of retail price data from independent and convenience (small) retailers in the United Kingdom

“…Our findings are consistent with reported increases in RRPs, advertised prices and self‐reported prices paid by consumers following the introduction of standardized packaging in Australia , and reported increases in large retailers in the United Kingdom . The results do not suggest that the affordability of leading tobacco products increased in response to standardized packaging, contradicting tobacco companies’ claims or that tobacco companies preserved or increased affordability by absorbing duty increases.…”

“…Consistent with other UK research, the price‐per‐cigarette and price‐per‐gram increases exceed those expected if only moving in line with tobacco duty escalation . For RYO, the March 2017 escalator increased the duty payable per‐gram by approximately £0.012 (from £198.10 per‐kilogram to £209.77) .…”

“…Our product sample also only included 20 of the leading tobacco products and their 19 standardized equivalents, and more than half (eight of 15) the sample of cigarettes were ‘mid‐price’. Consequently, our results are not representative of price changes in the wider tobacco market, although they are consistent with UK studies which have monitored a broader product range over a longer retrospective period . Further research should explore pricing for smaller products (e.g.…”

“…The results are only representative of price changes in a sample of small retailers, although similar price rises are reported in larger UK retailers . Our product sample also only included 20 of the leading tobacco products and their 19 standardized equivalents, and more than half (eight of 15) the sample of cigarettes were ‘mid‐price’.…”

Changes in roll-your-own tobacco and cigarette sales volume and prices before, during and after plain packaging legislation in the UK

“…We have previously reported the effect of the UK legislation on cigarette product diversity and prices in the UK, demonstrating that in the lead-up to the implementation period the tobacco industry introduced many new and low-price products in packs of less than 20 cigarettes, and that the transition to plain packs of at least 20 cigarettes was associated with a significant increase in cigarette prices. 8 However we did not investigate trends in prices of RYO, to which many price-conscious smokers in the UK turn when manufactured cigarettes become less affordable. 9 This study uses similar methods to our earlier study 8 to describe RYO price and sales trends in relation to pack sizes before, during and after the UK transition to plain packaging, and in relation to cigarette sales volume and prices.…”