Category: Packaging

  • Plain-talking packaging

    North Korea photo
    Photo by (stephan)

    Production in North Korea of a popular brand of cigarettes has been suspended on the orders of the country’s leader, Kim Jong Un, according to a story in The Daily NK.

    The brand in question is ‘Kumsugangsan’, which in Korean means ‘land of natural beauty’.

    The Daily NK reported that a source in Pyongyang had told it that, during a meeting to promote the production of domestic goods, Kim Jong Un had said that the name of the cigarettes, which were produced in collaboration with China, did not accurately reflect the “real state” of North Korea.

    “Soon afterwards, the cigarette was no longer produced and was replaced with the ‘Pyongyang’ brand cigarette,” the source said.

    Each cigarette factory in North Korea produces their products according to an annual tobacco production target.

    But the factory manufacturing Kumsugangsan was forced to produce Pyongyang instead despite the production targets.

    To maintain profit levels at the factory, Pyongyang is retailing at, 4,000 KPW, on a par with the price of Kumsugangsan.

    Kim Jong Un reportedly told cadres at a gathering that Kumsugangsan conjured an image of verdant land and pristine waters, which was not in line with the reality of the country.

    The source said that this was a criticism of the country’s extensive deforestation and its insufficient protection or maintenance of waterways.

  • Even plainer packaging

    plain packaging photo
    Photo by Michael 1952

    Australia’s Federal Health Department has said it will not be taking any action against Imperial Tobacco for breaching Australia’s standardized packaging legislation, according to a story by Lachlan Thompson for the Ipswich Queensland Times.

    The department has instead chosen to take what it calls a ‘conciliatory’ approach.

    In July, Thompson revealed that Imperial was selling packs of 20 Peter Stuyvesant cigarettes with a lift-out soft pack inside the ugly, olive boxes mandated by the government.

    Imperial said at the time the packaging was intended to ensure the cigarettes were ‘fresh’ – not a deliberate attempt to enable smokers to carry around a more aesthetically pleasing pack of cigarettes.

    On Monday, the Department revealed, for the first time, that it had been aware of what the tobacco company was doing since late February 2016.

    The Health Department’s deputy secretary, Wendy Southern, said the department had engaged with the manufacturer through correspondence and the company had undertaken to remove the product from the market.

    Thompson wrote that under the Plain Packaging Act the Commonwealth was able ‘to pursue tobacco companies for small fines in the first instance then civil penalties – which can amount to millions of dollars and finally criminal prosecution – if companies wilfully break the laws’.

    In the past three financial years there had been 135 breaches of plain packaging legislation, he wrote.

  • Factory closure threat

    Closed photo
    Photo by gagilas

    British American Tobacco has said that it might close its South African cigarette plant if plans to ban branded tobacco packaging are implemented, according to a story by Thembisile Dzonzi for Bloomberg News.

    BAT’s Heidelberg factory is situated south of Johannesburg.

    The proposed ban would threaten the financial viability of the Heidelberg operation, Joe Heshu, BAT’s head of external affairs in Southern Africa, said in an e-mailed response to questions from Bloomberg.

    Standardized packaging threatened the closure of the factory and posed a threat to the viability of the legal tobacco industry in South Africa, Heshu said.

    The move would make it harder to distinguish licit cigarettes from black-market cigarettes and “the illegal market will benefit from having a cheaper product,” he added.

    South Africa is cracking down on industries and products viewed as harmful to consumers, including through a planned tax on sugar-sweetened beverages, which Finance Minister Pravin Gordhan said last month would be implemented later this year.

    In his budget speech, Gordhan announced higher taxes on tobacco and alcohol products.

    The full story is at: https://www.bloomberg.com/news/articles/2017-03-01/bat-says-planned-south-african-tobacco-rules-may-close-plant.