The War on Illicit Trade in the Tobacco Industry

Illicit trade is often combated by higher prices in the tobacco industry, states Don Hedley, Tobacco Industry Analyst at Euromonitor International. However, higher prices often mean more smokers seek out illicitly traded cigarettes. Governments have stepped in to stop illicit trade with mandates such as the trafficking of all cigarettes act in the United States or the plain pack legislation that’s being discussed in Australia. Cigarette companies themselves state that illicit trade damages their pricing structures and brand integrity. Hedley states that until the mindset is changed that illicitly traded cigarettes are stolen property instead of benefaction, illicit trade will rise. 

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