emerging cigar trend in North America over the last few years has been the rising popularity of little, flavored cigars. In Canada, these products are commonly referred to as cigarillos (strictly for classification purposes). Unlike the U.S., the key issue surrounding little cigars/cigarillos in Canada has nothing to do with the wider revenue ramifications of tobacco tax policy. Taxes on cigar products in Canada are much higher — resulting in a retail selling price for a little cigar/cigarillo of about 4–6 times higher than the price of a cigarette.
For anti-tobacco lobby groups in Canada, the product’s packaging and use of flavors remain the easier targets and leverage with government, the media, and the general public. More to the point, with next year’s anti-tobacco program funding proposals going into government shortly, these groups need to prop up their stale agendas with mouth-watering, tantalizing and exciting new products and flavored little cigars/cigarillos are it.
A few months ago, an influential anti-tobacco lobby group in Canada (Coalition Québécoise pour le Contrôle du Tabac) filed an official complaint with both federal and provincial governments. Their complaint called for immediate action against little cigars/cigarillos. Partly arguing that retailers in Québec (a key tobacco market in Canada) aren’t great at “not selling” tobacco to children, action was needed to stop this product which (based on what they at least acknowledge was anecdotal evidence) was apparently and overwhelmingly being consumed by high school kids. And why are the children smoking cigarillos? In their opinion, the use of and reference to flavors are to blame. Flavors like cherry, strawberry, peach, and so on.
Well now I’ve heard it all: The almighty fruit — destroying the very fabric of our society while uniquely spellbinding our children into becoming rebellious, tobacco-smoking misfits.
Since cigars in general have long been on the “hit” list for most anti-tobacco groups in Canada, dating back to 1998, the time has never been more ideal for them to secure successful, concerted action on this front. In response to the emerging market estimated at over 260 million units in 2006, broader-base support for the coalition’s initial complaint is absolutely certain to follow.
Within the group’s formal complaint, they suggested the following:
- The number of cigar products sold in Québec had increased 300% from 2000 to 2005 (from 20.2 million to 83.5 million cigars);
- All available evidence suggested that this significant increase was the result of the emerging market for little cigars/cigarillos;
- The incidence of cigar consumption among high school kids in Québec had increased 30% from 1998 to 2004 (i.e. from 14.3% to 18.5% said they had consumed a cigar product in the previous 30 days);
- The legal unit sale of little cigars/cigarillos (which they argue makes for a more affordable tobacco product), combined with appealing visual colors and flavorings specifically targets/encourages youth smoking access and uptake – eventually leading to the consumption of cigarettes; and that;
- With an unacceptable compliance rate of only 70.4% (2005) Québec retailers are proving (unfortunately) to be effective distribution outlets for kids.
Furthermore, the anti-tobacco lobby group then makes very specific demands. They want governments to make use of their existing regulatory authority to immediately:
- Ban single stick sales of little cigars and cigarillos;
- Regulate a minimum packaging requirement for little cigars and cigarillos to 20 units — as for cigarettes;
- Require more prominent cigarette-type warnings on little cigars and cigarillos;
- Ban the use of flavorings in all tobacco products — except traditional cigars and pipe tobacco; and
- Ban all visual references (on the packaging) to flavorings used in little cigars and cigarillos, descriptors like “Sweet” and “Honey Roasted.”
While their complaint is not a direct threat to governments, governments have come to know exactly what they can expect in terms of heat from the tobacco control industry when it doesn’t get what it wants. So we should expect Canadian governments to offer some form of payoff to the anti-tobacco lobby — soon enough.
Since the Canadian government has already been setting the regulatory stage for new more prominent and graphic health warnings on cigar products by 2008, the ideal opportunity to concede on some (if not all) of the anti-tobacco lobby’s recent demands on little cigars/cigarillos will be ripe. The Canadian government is already set to position cigars in general as a much more harmful product to health than cigarettes. Throwing in a few extra blows to little flavored cigars/cigarillos, on anecdotal if not fabricated (skewed) evidence shouldn’t be much of a problem.
So while the star has been shining quite brightly for little cigars/cigarillos in Canada over the last few years — it is now set to eventually fade and disappear, unless the industry takes immediate action towards defending itself. That Canada continues to prove a reliable testing ground for, and springboard to, irreparable anti-industry measures world-wide will hopefully not fall on deaf ears.