Better regulation will raise the bar of responsibility

Not many people choose to return to their old job, but after five years away working on global issues for Philip Morris International, Peter Nixon returned at the end of last year to serve once again as the managing director of Philip Morris Limited – the UK arm of PMI. He sets out why he has returned
Peter Nixon, Managing Director at Philip Morris Limited

Since I last performed this role, a lot has changed in the tobacco and nicotine world in the interim. When I left the role, the UK was regarded as a global leader in its progressive approach to supporting smokers to switch to better alternatives, smoking was on a rapid decline, and the introduction of smoke-free products enjoyed overwhelming backing from government and civil society. That support instilled confidence in newer alternatives, such as vapes and heated tobacco, which helped many adults turn their backs on cigarettes.

But five years on the picture isn’t as rosy. The market I have returned to today is profoundly different – our once enviable decline in smoking rates has stagnated, with more than five million adults still smoking, and our market is being flooded by irresponsible and illegal activity. It is clear we need a step change in our approach to tobacco and nicotine, which is why I have chosen to step back into
the market at this critical time.

Well intentioned, but poorly conceived legislation has had serious consequences. The disposable vape ban, introduced last year, was a good idea, but the government ignored clear warnings that it was riddled with loopholes, and now the market is awash with products that meet the letter of the law while brazenly violating its spirit. Our data shows that nine out of 10 customers are still disposing of their vape devices after a single usage. Consumers now find devices with charging ports that do not work and ‘replaceable’ pods that are nowhere to be found. These are sold at the same price as disposables and, consequently, are still being littered by consumers in the same way.

Meanwhile, the illicit cigarette market is booming, and the sale of illegal disposable vapes is widespread. Organised criminal gangs, which proliferated during the pandemic, have tightened their grip, exploiting weak border controls and under-resourced enforcement teams. Take our best-known brand, Marlboro. Our estimates show that around two-thirds of what people are buying is illicit in its various guises, and communities are being flooded with poor quality, often contaminated goods with no safety standards. These illegal products are being sold at pocket money prices without excise, denying the Treasury and our country much needed revenue which could be spent on public services.

This is the reality of the market I have returned to: proliferating illegal supply chains, loophole-laden regulation, youth-targeted illegal vape products, and enforcement stretched too thin. Responsible retailers are losing thousands of pounds a week in sales; consumers are being put at risk; and we’re kidding ourselves if we think we’ve solved the problem of smoking.

Against this challenging environment, I believe that the UK tobacco and nicotine market needs an urgent reset. What we need is better, tighter, evidence-based regulation that prioritises the needs of adults who smoke, protects children and local businesses. While the Tobacco and Vapes Bill goes someway towards this, more needs to be done. The most significant step we could take is the introductionof a comprehensive licensing regime for all tobacco and nicotine sales. To be effective, it must be set at a level which raises the bar of responsibility, drives out bad actors, and the proceeds could even be used to raise the revenue needed to fund greater enforcement.

We also need high product standards that protect society from irresponsible manufacturers and our children from harm. No more loophole vapes, strictly enforced nicotine levels, and flavours that only appeal to adults. This must be combined with robust action against anyone circumventing these rules. The UK has unfortunately lost its way, and I see it as a significant part of my job to support the government to get us back on track.

To find out more about how we are delivering a smoke-free future visit: www.pmi.com

Read the most recent articles written by Philip Morris Limited - A ‘smoke-free country’: The secret to success

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