Streeting promises ‘tougher’ Tobacco and Vapes Bill before Christmas
Health secretary Wes Streeting delivers a keynote speech on the fourth day of the annual Labour Party conference in Liverpool, north-west England, on September 25, 2024. (Photo by OLI SCARFF/AFP via Getty Images)
Labour has promised to introduce tougher anti-smoking laws in a new Tobacco and Vapes Bill before Christmas, claiming it will be "more ambitious" than previous legislation proposed by the Conservatives.
Health secretary Wes Streeting made the pledge at the launch of a new NHS consultation on Monday.
The previous Tory government had tabled a bill in the last parliament aimed at preventing anyone born after January 1, 2009, from ever legally purchasing tobacco. This would have been achieved by gradually raising the legal smoking age. The bill also covered restriction on display and sale of vapes.
Labour’s upcoming bill is expected to build on this approach and introduce stricter measures.
Speaking to reporters at a health facility in East London, Streeting said: “We will introduce the Tobacco and Vapes Bill before Christmas. Effectively, the debate has already begun, because people are already talking about what sort of measures would be effective, both on tobacco and on vaping.
“And we’re already kind of in that debate and listening to what people have to say.”
Labour has already faced some backlash from the hospitality industry after announcing plans to ban smoking outside pubs. Addressing these concerns, Streeting acknowledged the balancing act between public health benefits and potential impacts on personal freedoms and businesses.
“There’s always those choices and trade-offs,” Streeting said. “And you always have to weigh these things up, and we’ll do that.”
He added that Labour’s bill would aim to create the first smoke-free generation in the UK, calling it a transformational step to tackle one of the country's biggest killers.
“When the smoking bill is introduced, it will be more ambitious than the bill introduced by the previous government. Crucially, it will mean that children growing up in our country today will be the first ever smoke-free generation,” he said.
“This was a debate that we led in opposition, and now we’ll deliver in government.”
Premium food apart from clothing and technology purchases are expected to drive a 5 per cent jump in festive spending to £22.7 billion this year, according to figures that suggest UK consumers will outstrip the first post-pandemic Christmas in 2021.
The average spending on gifts and celebrations is expected to rise from £416 to £433 for each person, the survey of 2,000 adults by the accountancy firm PwC found.
The research suggested that spending will exceed the £21.6bn, or £426 for each person, recorded in late 2021, when consumers were able to return to more normal festive socialising after Covid-19.
Consumers named food and drink and Christmas dinner as the top spending priorities for 2024, suggesting that they might opt for more premium ranges, PwC said.
Clothing was the top spending priority for under-25s and third overall, according to PwC, giving hope to retailers that people will buy new outfits after several years of holding back.Strong spending on technology during the end-of-November Black Friday promotions is expected to continue through December.
PwC said British consumers have a “well-established habit of spending more than they initially plan during the festive season”.
Lisa Hooker, who leads PwC’s consumer markets work, said she was “cautiously optimistic about the outlook” after consumers showed “caution” during the autumn as they awaited tax increases from the government.
“After volume declines for most non-food categories in 2024, it is good to see a relatively strong end to the year with increased spending over Black Friday, which is expected to continue over the festive period,” she said.
“As usual the winning category is food and drink with growth in the premium ranges exceeding value ranges as customers want to selectively treat themselves and their family.”
PwC figures coincides with Kantar's report which states that grocery sales are expected to exceed £13 billion over the four weeks of December for the first time ever with Dec 23 expected to be the single busiest day.
Fraser McKevitt, head of retail and consumer insight at Kantar, said, "Sales of assorted sweet biscuits and biscuits for cheese both doubled in November compared with the month before, while 8 per cent of us bought a Christmas pudding."
McKevitt added, "Shoppers are grabbing the chance to spend that little bit more than usual on Christmas specials, and champagne, wine and spirits saw the biggest levels of buying on deal.”
Vape maker Chill Brands Group has announced a strategic pivot towards rechargeable, reusable vaping products and a new nicotine-free e-liquid range, positioning itself for growth ahead of the UK’s upcoming ban on single-use vapes.
Anticipating the ban's enforcement on 1 June 2025, Chill Brands has partnered with manufacturers to develop compliant, pod-based vape devices.
The company said “the appetite among retailers to stock single-use vape devices has diminished,” leading to a decline in its UK domestic sales. Meanwhile it is actively engaged in discussions with potential distribution partners to expand the global reach of its product range.
The company’s vaping portfolio will soon include a new line of nicotine-free e-liquids, set to launch in early 2025. These shortfill e-liquids come in 10 flavors and are designed for refillable vape devices, catering to both nicotine and non-nicotine users. The products' minimalist branding aligns with potential future marketing regulations.
Chill Brands has also established a new division to support third-party brands in entering the UK and European markets. The company has secured its first partnership agreement to represent an international brand offering oral nicotine pouches and natural energy drinks, with additional brand partnership discussions currently in progress.
“Having launched and grown our own brand in the UK within a nascent category we know what it takes to persist and prosper as a product-led business in this complex market,” Callum Sommerton, chief executive of Chill Brands, said.
“By partnering with emerging brands and utilising our established sales and marketing infrastructure, we are transforming our previous limitations into a unique opportunity. This model allows us to diversify our commercial interests, generate new revenue streams, and put our accumulated market knowledge and sales resources to productive use.”
The company’s trading suspension since June 2024 persists due to delays in finalising its 2024 audit, now expected in Q1 2025. Additionally, legal proceedings regarding the recovery of the chill.com domain are ongoing, with a key hearing scheduled for 19 December.
The British Independent Retailers Association (Bira) has been invited to participate in crucial Treasury discussions on business rates reform, marking a significant step forward in the association's long-standing campaign to reduce the rates burden on independent retailers.
This invitation follows the government's recently published discussion paper on reforming business rates, released in the wake of the Autumn Statement. The consultation process, running until March 2025, will help shape reforms set to be announced in the 2025 Autumn Statement and implemented from April 2026.
The talks come at a critical time for independent retailers, following October's Autumn Statement which announced a reduction in business rates relief from 75% to 40% (capped at £110k) from April 2024, adding further pressure to an already challenging trading environment.
Andrew Goodacre, CEO of Bira, said, "We have been lobbying for meaningful business rates reform for many years, with the ultimate aim of permanently reducing the rates burden on independent retailers.
"It is extremely positive that Bira will play a prominent role in these discussions, ensuring our members' voices are heard at the highest level."
The association, which works with over 6,000 independent retailers of all sizes across the UK, has consistently highlighted the need for a fairer business rates system.
This consultation process provides a genuine opportunity to influence long-term reform of a system that has long been criticised by the independent retail sector.
Goodacre added, "We understand the importance of these discussions to our members and will keep them fully informed throughout the consultation process. This is a real chance to shape a rates system that better serves independent retailers and our high streets."
Take-home sales at the grocers increased by 2.5 per cent over the four weeks to 1 December as shoppers get ready for Christmas, according to the latest data from Kantar. Supermarket sales are expected to continue growing, exceeding £13 billion over the four weeks of December for the first time ever, the market researcher added.
“Monday 23rd December is likely to be the single busiest day for the supermarkets this year, although there are clear signs that shoppers are already stocking up their cupboards. Sales of assorted sweet biscuits and biscuits for cheese both doubled in November compared with the month before, while 8 per cent of us bought a Christmas pudding,” Fraser McKevitt, head of retail and consumer insight at Kantar, said.
“Many of us take the chance to treat ourselves at this time of year and retailers are rolling out seasonal product lines to help us celebrate in style. The proportion of spending on premium own label products reached 5 per cent over the latest four weeks and we expect it to climb even higher in December to nearly 7 per cent.”
Outside of the food and drink aisles, retailers’ general merchandise lines are also predicted to get a boost. Spending on non-grocery items in the supermarkets leapt by 21 per cent in December 2023 versus the monthly average for that year.
The cost of an average Christmas dinner for four has risen to £32.57, up by 6.5 per cent, largely driven by the price of turkey and Christmas vegetable staples. Wider grocery price inflation remains relatively stable at 2.6 per cent, with grocers prioritising low pricing over multibuys.
“Sales on promotion reached 30 per cent in November, the highest since Christmas last year. It’s retailer price cuts, often accessed through loyalty cards, that are really driving this,” McKevitt explained.
“While multibuy promotions have stayed flat, spending on price cut offers has grown by 14 per cent, worth £355 million more than last year. Shoppers are grabbing the chance to spend that little bit more than usual on Christmas specials, and champagne, wine and spirits saw the biggest levels of buying on deal.”
Britain’s largest grocer Tesco achieved its highest market share since December 2017 at 28.1 per cent, up from 27.4 per cent in 2023. Its sales grew by 5.2 per cent in the 12 weeks ending 1 December. Sainsbury’s share increased by 0.3 percentage points to 15.9 per cent, and spending through its tills was 4.7 per cent higher than last year. The UK’s two biggest grocers now have a combined market share of 44 per cent.
Online retailer Ocado boosted sales by 8.7 per cent over the period, achieving a 1.8 per cent share of the market. It outpaced the total online market which grew by 3.6 per cent, with shoppers spending £4.2 billion on the channel overall across the 12 weeks.
Lidl was the fastest growing bricks-and-mortar grocer, with sales up by 6.6 per cent. Its share climbed 0.3 percentage points to 7.7 per cent. The retailer’s footfall stepped up by nearly 10 per cent in comparison with a year ago.
Spending at Morrisons rose by 2.0 per cent, and it now takes 8.6 per cent of the market. Its average transaction value nudged up by 4.8 per cent over the 12 weeks, helped by strong online sales. This was significantly ahead of the average growth in basket spend across the grocers as a whole, which edged 0.7 per cent higher to £24.51 this period.
Waitrose grew slightly ahead of the market, with spending increasing by 2.6 per cent. It maintains a 4.4 per cent share. Spending at Aldi grew by 2.1 per cent, and the retailer retained 10.3 per cent of the market. Iceland also held its share of 2.2 per cent.
Asda has a 12.3 per cent market share, and Co-op’s portion of the market is now 5.5 per cent, but both retailers saw sales declining in the 12-week period, by 5.6 per cent and 1.1 per cent respectively. Symbols and independents also experienced an year on year sales drop of 3.7 per cent.
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Oreo biscuits and a Toblerone Swiss milk chocolate are seen displayed in front of Mondelez International logo in this illustration picture taken July 26, 2021.
Cadbury-parent Mondelez International is exploring the acquisition of chocolate maker Hershey, Bloomberg News reported on Monday, citing people familiar with the matter, in what would create one of the world's largest confectioners.
Shares of Hershey, which has a market capitalisation of about $35 billion (£27.45bn), rose as much as 19 per cent to $208.03, while those of Mondelez were down about 4 per cent in morning trading.
Mondelez, which is valued at around $84 billion, has made a preliminary approach about a possible combination, Bloomberg reported, adding that deliberations were in the early stages and there was no certainty that discussions would lead to a deal.
Both Mondelez and Hershey declined to comment.
The Hershey Trust Company, a charitable trust that has as its sole beneficiary the Milton Hershey School, maintains voting control over The Hershey Company and its approval is key in any deal.
This is not the first time that Mondelez has tried buying Hershey.
In 2016, the maker of Oreo cookies and Cadbury chocolates abandoned the pursuit of Reese's Peanut Butter Cups owner after the latter rejected a $23 billion takeover bid.
At the time, Reuters had reported that Hershey would not be willing to enter into deal negotiations for an offer of less than $125 per share.
Chocolate companies as well as packaged food firms have been under pressure from rising input costs, especially cocoa prices, forcing firms to raise prices, which have in turn led to weakening demand.
The Hershey Company chocolate factory in downtown Hershey, Pennsylvania, USPhoto: iStock
Last month, Hershey trimmed its annual revenue and profit forecasts after its quarterly revenue dipped to nearly $3 billion due to weak demand. In contrast, Mondelez reported a near 2 per cent rise in sales to $9.2 billion in the latest quarter.
The stalling growth at packaged food companies after years of price hikes has created opportunities for deal-making.
Earlier this year, family-owned candy giant Mars said it would buy Cheez-It maker Kellanova in a nearly $36 billion deal, bringing together brands from M&M's and Snickers to Pringles and Pop-Tarts in what was at the time the year's biggest deal to date.
"We are likely to see more of these types of announcements as executives become more confident that a Trump administration won't pull the rug out from underneath tie-ups," said Brian Jacobsen, chief economist at Annex Wealth Management.
President-elect Donald Trump's return to the White House is expected to fuel a dealmaking revival. Bankers have said that Trump is likely to wave more deals through that were blocked under the previous administration over competition or US strategic importance concerns.
A potential deal with Hershey will also give Chicago-based Mondelez a stronger presence in the chocolate market in the US, the world's biggest consumer of the cocoa-based confection. Mondelez's chocolate brands, Cadbury and Milka, are top sellers in Europe.
Hershey had the biggest chunk of the US chocolate market in 2022, with nearly 36 per cent share, according to a report from data firm Statista, followed by Mars, which had a near 30 per cent share of the US market.
Mondelez's forward earnings multiple for the next 12 months, a benchmark for valuing stocks, was 18.40, compared with 21.61 for Hershey, according to LSEG data.