It is fascinating now to watch the battle that's emerging between governments and the tobacco industry. The future of the tobacco industry is in doubt. Given that it's peddling drugs that kill people, that has to be a good thing.
Australia is likely to become the first country in the world to bring in a law, effective from January 2012, that will require all cigarettes to be sold in plain packages. That means no logos, no shiny finishes, no bright colours and no nice pictures. For the first time, there will be truth in cigarette advertising. Along the way, the Australian government has announced that tobacco prices will go up immediately by 25%, and that will generate an extra $5 billion over four years for the country's hospitals.
Governments have a vested interest in pushing this line because of soaring health costs. But don't expect the tobacco industry to keel over. Tobacco companies say they will fight it in the courts, although it's hard to see what their case would be based on.
Will other countries follow suit? It must be scaring the hell out of Big Tobacco. Fewer people are smoking and sales are down. British American Tobacco, the company behind the Dunhill and Pall Mall cancer sticks, has reported a 4% drop in volumes,
Still, the tobacco industry is digging in for a fight. Alison Cooper, the new chief of Imperial Tobacco, makers of Gauloise and Drum tobacco, has refused to say whether smoking causes cancer and tobacco companies are targeting the youth market by selling smokeless tobacco.
Whether this is a dying industry remains to be seen, despite the best efforts of governments and regulators. Unlike the people they sell cigarettes to, it's not guaranteed to die.
no comment untill now