Britain proposes banning cigarettes for younger generations

MANCHESTER, England (Reuters) – The British government on Wednesday proposed banning younger generations from buying cigarettes, a move that would give the country some of the strictest tobacco rules in the world and hurt sales for major tobacco companies. .

If passed into law, the smoking age would rise by one year each year, potentially eliminating youth smoking almost entirely by 2040, according to a briefing document.

“A 14-year-old today will never be legally sold a cigarette,” Prime Minister Rishi Sunak said at the Conservative Party conference, where he announced the plan.

Smoking costs Britain’s health services 17 billion pounds ($20.6 billion) a year, he said, adding that the government also needed to act against vaping among young people.

It would consult on restricting flavors and descriptions of vaporizers and examine regulation of packaging and presentation of vaporizers, according to the briefing document.

The Action on Smoking and Health campaign group welcomed Sunak’s plans, adding that they could hasten the day when smoking became obsolete.

The tobacco industry criticized the proposals. The Tobacco Manufacturers Association said they were a “disproportionate attack” on adult rights and would fuel the black market.

“The ban on legal products always has dangerous side effects and opens the door for criminal gangs to sell illegal products,” he said.

imperial marks (IMB.L), which makes Winston cigarettes and Golden Virginia rolling tobacco, also warned that the ban threatened “unintended consequences.” Lucky Strike and Dunhill, maker of British American Tobacco (BATS.L) He said the proposals would be difficult to implement.

GRADUAL IMPACT

The anti-smoking policy would have to be approved by a free vote in the British parliament. This means lawmakers can vote however they want rather than according to party policies.

If approved, Britain would become the first country in Europe to join new zealandwhich announced a similar plan last year to ban smoking for future generations.

Academics said increases in the smoking age have successfully reduced smoking rates among young people around the world.

The change could hurt companies that generate a relatively large portion of their profits from British tobacco sales, analysts said, such as Japan Tobacco. (2914.T)maker of Camel and Benson & Hedges, and Imperial Brands.

Although the short-term effects are likely to be minimal, over time the ban’s impact “could gradually become material,” said Owen Bennett, an analyst at Jefferies, adding that people between 18 and 25 years old make up about 10% of the current adult smokers in Britain.

Imperial Brands shares fell 3.2% to their lowest level since March 2022, while shares in BAT, which has less exposure to the British cigarette market, fell 1.2% by 1357 GMT.

A risk for all companies is that other nations follow suit, Bennett said. Denmark is already considering a similar measure, and several nations also have goals to reduce smoking to minimal levels in the relatively near future.

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