High street retailers may be negatively affected by government proposals to change the packaging and display vapes and nicotine pouches, according to new research from BAT.
An ongoing government consultation is seeking input into measures which look to standardise the packaging, appearance and flavour of nicotine products, in addition to how these goods are displayed in retail settings. The proposed measures would bring the rules governing smokeless alternatives closer in line to those applied to combustible tobacco.
However, a new survey of 2,000 former smokers, commissioned by BAT and conducted by Censuswide, suggests that the proposals would not only hinder adult consumers in selecting reduced-risk alternatives to tobacco, which have helped millions of smokers put down their cigarettes, but could hit small retailers’ revenues if the proposals negatively impact sales.
Nearly a third (31%) of respondents stated that they purchase nicotine products from either corner shops or local newsagents.
The survey data suggests that choice of flavour, distinguishable packaging and the ability to clearly see a range of products on display are considerable factors in the consumer decision-making process. Any restrictions on these features could have an unintended impact on legitimate, law-abiding retailers, particularly smaller, local stores that rely on convenience purchases.
Nearly 8 in 10 respondents (79%1) reported that having a choice of flavours was important when it came to choosing their products.
Moreover, flavour continues to influence consumer purchasing after selection, with over half of respondents stating that flavour was a significant factor in the continued use of their product of choice. This finding suggests that reducing the availability of a wide range of product flavours could not only impact initial product selection but repeat purchasing and a wider demand for a broader stock range.
The survey also found that how nicotine products are displayed was important to consumer choice. 31% of respondents said they selected their product of choice because they saw multiple available options on display.
This suggests that if products become less visible, distinguishable or varied through the restriction of flavour choice and the implementation of standardised packaging, consumers may be less likely to purchase from small retailers.
Jan Louw, BAT Head of Sales UK: "While we fully support the aim of preventing children and young people from accessing nicotine products, the government must consider the unintended consequences for adult
consumers and retailers. This study clearly demonstrates how important the flavour, distinctive appearance and display of nicotine products are when it comes to consumer purchasing.
“Poor product visibility makes it harder for consumers to find and purchase the products they want, whilst also making it more difficult for shopkeepers and staff to manage the right range, maintain the appropriate amount of stock and serve customers efficiently. Ultimately, this creates friction for both the consumer and the retailer, increasing the risk of out-of-stocks, missed purchases and further sales losses.
“Retailers deserve regulations that are workable, proportionate and deliver their intended objectives without creating unnecessary financial and operational burdens. That's why with time running out, we urge every retailer to take the opportunity to make their voice heard and respond to the consultation before Friday’s deadline”.
The consultation closes on Friday 2nd October. Those wishing to respond can access it here: https://consultations.dhsc.gov.uk/tobacco-and-vape....