BAT introduces Rothmans cigarette to address illegal tobacco trading

By MARK HAIHUIE
BRITISH American Tobacco PNG has been slowly introducing the Rothmans cigarette brand into the country since last November to address the growing illicit tobacco trade in the country.
The company’s head of external affairs George Panao, pictured, said Rothmans had been an international product for more than a 100 years and they were monitoring its introduction and expansion in Papua New Guinea.
“Rothmans of London is one of our most celebrated brands in the British American Tobacco group. It has over 125 years of international heritage,” he said.
“Rothmans was launched in Port Moresby in early November and is sold in packets of 25.
“Rothmans may also be launched in other regions in Papua New Guinea, including those where illicit tobacco is prevalent. We are monitoring its performance very closely.”
Panao, while describing the relationship between the rise in tobacco tax and increase in illicit tobacco trade, told The National that Rothmans was targeted at the lower priced market segment
“Before Rothmans was launched, illicit tobacco products were predominantly being sold in the lower priced segment of the market,” he said.
“We believe excise is not being paid to the Government in relation to such products allowing them to be priced lower than excise-paid products.
“The lower priced segment of the market had grown since 2012 when the first adhoc excise increases were announced by the Government.
“These increases resulted in legitimate tobacco products becoming more expensive, forcing consumers to switch to cheaper and mostly illicit tobacco products.”
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