Canadian government ignores evidence and moves ahead with failed plain packaging policy

Majority of Canadians believe it to be a waste of government resources

MISSISSAUGA, ON, May 11, 2018 /CNW/ - Yesterday, the Canadian government passed legislation to introduce plain packaging for tobacco products despite evidence that the policy doesn't work and is not supported by Canadians.

A study by Forum Research shows Canadians believe requiring plain packaging for cigarettes is an unnecessary waste of government resources. The research, commissioned by JTI, found that:

• Eight out of ten Canadians (81%) believe that 'Branding on products matters as it gives consumers information about a product and helps distinguish one product from another.'

When applied specifically to cigarettes:

• 74% of Canadians believe that as tobacco is a legal product that adults are allowed to buy, tobacco companies should be allowed to brand their products.
• The majority of Canadians (65%) think plain and standardised packaging is unnecessary; almost as many (64%) believe it to be a waste of government resources.

"Canadians are right to believe 'plain' packaging on tobacco products won't work," says Igor Dzaja, General Manager of JTI-Macdonald Corp. "The policy has failed in Australia, where it was introduced over five years ago – the government's own data shows that the long-term decline in smoking has stalled¹ and the overall illegal market is now at 15% – its highest level on record."²

The Australian experience shows that consumer choice is now reduced to price when it comes to purchasing a tobacco product, and the cheapest product will always come from the illegal market. Untaxed and unregulated cigarettes already make up one-third of all cigarettes sold in Ontario and a ban on branding will only make this problem worse.

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¹ On May 31 2017, the Australian Institute of Health and Welfare released its figures for the first full three-year period since plain packaging was introduced on tobacco products in December 2012. Figures show that "…while smoking rates have been on a long-term downward trend, for the first time in over two decades, the daily smoking rate did not significantly decline over the most recent 3 year period (2013 to 2016)": https://www.aihw.gov.au/reports/illicit-use-of-drugs/ndshs-2016-key-findings/contents/highlights-from-the-2016-survey

² 'Illicit Tobacco In Australia'. KPMG 2017 Full Year Report, April 2018: https://assets.kpmg.com/content/dam/kpmg/uk/pdf/2018/05/australia_illicit_tobacco_report_2017.pdf

Note to editors

Methodology

Forum conducted 2,000 interviews online with Canadians aged 19 or older between August 22 and September 1, 2017.

Data was weighted to ensure that the sample reflects the actual population according to the latest Statistics Canada Census data.

About Forum Research

Forum Research is one of Canada's leading market research and public opinion polling firms. Its clients include the Bank of Canada, Microsoft, Samsung, Porsche, Volkswagen, AT&T, Verizon, Elections Ontario and various political parties. Forum Research is a member-in-good-standing of the Marketing Research and Intelligence Association, the self-regulatory Association which governs and represents the market, survey, and public opinion industry in Canada. In addition to satisfying conditions related to core focus and business continuity, professional conduct and compliance with MRIA Professional Standards, Forum Research has successfully completed a rigorous, independent assessment of its research practices by a third-party Certification Reviewer.

Full research tables and methodology can be found at www.letsthinktwice.ca

About JTI-Macdonald Corp.

Founded in 1858, JTI-Macdonald Corp. employs approximately 500 people. The Company has manufacturing facilities in Montreal, administrative offices in Mississauga and sales offices across the country. In 2018, JTI-Macdonald Corp. was awarded the #1 Top Employer in Canada by the Top Employer Institute, an independent organization studying the employee offerings of significant employers around the world and comparing them against the international standard. 

SOURCE JTI-Macdonald Corp.

JTI-Macdonald Corp. Press Office, T: 905-804-7469, E: [email protected]