Tobacco Price Hikes – Tobacco industry suffers, Electronic Cigarette benefits
It is not just Quit Smoking help lines who have seen a massive increase in activity since the increase in tobacco excise was passed in the New Zealand parliament in April 2010. The top New Zealand operated Electronic Cigarette Company, Elusion (selling around the globe) experienced a massive 200% increase in sales since the announcement.
As New Zealand smokers are frantically seeking out alternatives to normal tobacco products, Electronic Cigarettes are getting more well known as a healthy option for smokers who can no longer tolerate the crippling cost of their habit. With tax on cigarettes increasing by 10% immediately, with a further 10% increase scheduled yearly for next two years, some tobacco smokers are using the price increase as an reason to quit smoking.
Electronic Cigarettes containing nicotine are not currently being sold in New Zealand, as the resultant health claims or benefits (in comparing to traditional tobacco products) would class the device as a health product. However, nicotine-free Elusion branded Electronic Cigarettes have been available in supermarkets across the country and online for the past three years. In Australia up to 3 months supply of nicotine Electronic Cigarettes can be imported for individual use. Elusion Electric Cigarettes have enjoyed a impressive increase in sales since the excise tax increase on traditional tobacco products. CEO Paul Medarov commented:
“It’s an exciting opportunity for the Electronic Cigarette Industry. Understandably, smokers have been influenced by the recent research carried out by the Clinical Trials Research Unit at the University of Auckland, which showed that electronic cigarettes are beneficial as a device to quit smoking. The outcome of the tax increase was unprecedented. New Zealand tobacco smokers are moving on, and they’re moving quickly.
“We have been working hard to push for the availability of Electronic Cigarettes containing nicotine in Australasia over the past three years. We will continue our efforts and communications with the Ministry of Health to do everything we can in this respect.”
The same legislative issues around the classification of Electronic Cigarettes also exists in Australia, where the excise tax on tobacco products also skyrocketed by 25%. The Australian government has gone even further in enforcing advertising restrictions and investing NZ$33 million in anti-smoking campaigns.
Elusion sells Electronic Cigarettes into the Canada, United States of America, United Kingdom continents via the ElusionElectronicCigarette.com internet web site in addition to unique websites for Australia and New Zealand.
With these drastic changes taking place in the tobacco industry, all eyes are focussed on the fast moving Electric Cigarette market.
