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Observed retail price of Australia’s market-leading cigarette brand before and up to 3 years after the implementation of plain packaging
  1. Sam Egger1,
  2. Suzan Burton2,
  3. Rebecca Ireland1,
  4. Scott C Walsberger3
  1. 1Cancer Council New South Wales, Kings Cross, Sydney, New South Wales, Australia
  2. 2School of Business, Western Sydney University, Sydney, New South Wales, Australia
  3. 3National Heart Foundation of Australia, Sydney, New South Wales, Australia
  1. Correspondence to Professor Suzan Burton, School of Business, Western Sydney University, Sydney, NSW 2006, Australia; S.Burton{at}westernsydney.edu.au

Abstract

Objective Despite claims by tobacco companies that plain packaging would lead to lower cigarette prices, recommended and observed real cigarette prices in Australia rose in the 9–11 months after plain packaging was introduced. However, little is known about trends in prices longer term. In this report, we assess whether inflation (Consumer Price Index; CPI) and tax adjusted (‘CPI-tax-adjusted’) prices of the market-leading Australian cigarette brand changed in the 3-year period after plain packaging, and whether price changes were associated with retailer characteristics.

Method Cigarette prices were ascertained from a panel of tobacco retailers at three time points: (1) in November 2012 (n=857) (before full implementation of plain packaging, compulsory in retail outlets from December 2012), (2) between October 2014 and February 2015 (n=789) and (3) between November 2015 and March 2016 (n=579). Generalised estimating equations were used to estimate percentage change in mean CPI/tax-adjusted cigarette prices over time.

Results CPI/tax-adjusted adjusted mean stick prices rose by 13.7% (95% CI 13.0 to 16.0) and 15.2% (95% CI 14.3 to 16.0) at 2.1 and 3.1 years after plain packaging was introduced, respectively. Increases in mean CPI/tax-adjusted stick prices varied by outlet type (p<0.001), socioeconomic status (p=0.013) and remoteness of retailer’s area (p=0.028) and whether twin packs were sold (p=0.009).

Conclusions Contrary to tobacco company predictions of a fall in prices, the price of the market-leading Australian cigarette brand increased significantly in the 3 years after plain packaging was introduced, and these increases were above the combined effects of inflation and increases in excise/customs duty.

  • Price
  • Packaging And Labelling
  • Public Policy

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Footnotes

  • Contributors All authors contributed to the design and write-up of the study, and reviewed and approved the final version.

  • Competing interests None declared.

  • Patient consent Not required.

  • Provenance and peer review Not commissioned; externally peer reviewed.

  • Data sharing statement At this time, we have no additional data to share.

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