British American Tobacco (BAT), the owner of Dunhill, Lucky Strike and e-cigarette group Vuse, warned on Thursday proposed changes to smoking laws will entrench the illicit trade of cigarettes in SA, potentially forcing its exit.
Regulatory changes that could force sales in plain packaging would remove brand identifiers and make price the primary consumer consideration. This will prompt a shift to cheaper, predominantly illicit options, and further boost an illegal cigarette trade that is already estimated to make up 70% of the market, the tobacco giant said in a statement.
"It is beyond comprehension that the Department of Health wants to introduce measures like plain packaging and retail display bans that will simply incentivise remaining smokers of legal cigarettes to migrate to illicit products," said BAT SA's general manager Johnny Moloto.