BAT has launched new budget-oriented tobacco brand in Australia
British American Tobacco Australia has declared about launching budget-oriented cigarette brand, one more action that runs counter to governmental position that in its' turn has accused Company of choosing teenagers as target group.
BAT that has initiated legal action against Australian law about mandatory unification of cigarette packs has declared that it had to launch new brand for winning back market positions from counterfeit products.
Company said that from the moment the government increased excise tax on tobacco products by 25 % in 2010, sharp increase of cheap cigarettes and contraband inflow was marked.
"They are trying to reduce level of smoking with the help of excise taxes, however instead of this people make their decision in advantage of cheap or counterfeit brands", - BAT representative Scott Mcintyre told.
"Apparently, the entire issue is in demand and offer. Our Buyers started to acquire cheaper and counterfeit products, that is why we were forced to adapt", - he has marked.
Company has launched on the market brand under name Just Smokes price of which makes 11.5 Australian dollars (11.43 USD) for pack of 25 cigarettes what is much lower than average price of 16 Australian dollars.
Counterfeits are sold at 8-10 Australia dollars for one pack. Australian Minister of Health Tanya Plibersek has declared that she hasn't believed this argument. "Bu reducing prices, British American Tobacco, evidently, has determined vulnerable teenagers as target group", - she said.
"We know that young population is more sensitive to change of prices on tobacco products", - Minister has marked.
"The thing BAT is really interested in is involvement of new smokers and keeping old Customers and Company will make everything she needs to reach the goal", - Plibersek added.
Government of the country and big tobacco Companies were involved in long dispute of new law according to which all cigarettes will be sold in unified olive-green pack with health warnings from December 1st 2012.
Four Companies under BAT leadership dispute law of High Court, considering that it infringes their intellectual property rights, putting under ban use of brands and trade marks.
Companies also affirm that law will reduce their profit and will lead to market inundation with counterfeit products as plain pack is easier to be falsified.
Australia is the first country in the world that is going to introduce such law, however on such innovative action keep a close eye other countries that consider such methods, including Great Britain, Canada and New Zealand.