UK to force tobacco companies to scrap branded cigarette packaging

29 Nov 2013

The UK yesterday indicated it would force tobacco companies to scrap branded cigarette packaging in a bid to cut the number of children who might take to smoking, attracted by the striking and brightly coloured packs.

In a surprise decision that was hailed by cancer research charities and slammed by tobacco companies, the government said it was appointing a paediatrician to examine whether plain packaging would reduce the human and financial cost of smoking.

The development had been least expected as prime minister, David Cameron had in July appeared to shelve plans to force companies such as Imperial Tobacco, Japan Tobacco Inc, British American Tobacco and Philip Morris International to sell cigarettes in plain packaging.

The government decision led to the wiping off of $1.6 billion from the value of London-listed Imperial Tobacco, which has a 44 -per cent share of the UK cigarette market, and British American Tobacco (BAT) in mid-morning trading.

Marlboro maker Philip Morris was not trading yesterday due to the Thanksgiving holiday in the US.

The latest aboutturn comes following a cross party group of peers tabling amendments to the bill that would have brought in standardised packaging.

The group, led by Lord Faulkner, was confident of winning the vote in the Lords due to the prestigious medical support, they enjoyed in the Lords for the measure.

The evidence review, which will be led by Sir Cyril Chantler, a distinguished doctor, academic and NHS administrator, would report by the end of March.

Subject to the findings, plain packaging could be introduced ahead of the 2015 general election.