TobaccoReporter logo

Tag: New Zealand

  • Cessation Trust Breaks from Health NZ Over Harm-Reduction Stance

    Cessation Trust Breaks from Health NZ Over Harm-Reduction Stance

    Wellington stop-smoking provider Takiri Mai Te Ata Trust ended its partnership with Health New Zealand after refusing to promote vaping as a smoking cessation tool. The trust, which has helped people quit smoking for more than 30 years, said it could not continue delivering services in a way that conflicted with its values. Regional manager Catherine Manning said the organization did not support helping people quit cigarettes by transitioning to another nicotine product.

    Health New Zealand said it worked extensively with the trust to find a solution that would allow the service to continue without directly supplying vapes, but no agreement was reached, and the contract ended by mutual consent. Health New Zealand maintains that vaping is less harmful than smoking and can help smokers quit, while stressing that non-smokers should not vape. Action for Smokefree 2025 director Ben Youdan said evidence shows vaping can be an effective cessation tool, adding that vaping is “not risk-free” but “dramatically” reduces the risk of death compared with smoking.

    Youdan said that while he recognized the trust’s concerns, many organizations have seen real benefits from using vaping as part of smoking cessation efforts.

  • NZ Retailers Want Action as Illicits Climb

    NZ Retailers Want Action as Illicits Climb

    A retail industry report by FTI Consulting estimates illicit tobacco accounts for 33.5% of total consumption in New Zealand, up from 27.2% a year earlier, though anti-smoking advocates dispute the methodology and argue it does not align with tax revenue trends. Official data from Stats NZ shows no dedicated national study of illicit tobacco consumption, while Treasury figures indicate tobacco excise revenue fell to $1.47 billion ($852 million) in 2024–25, down about $2 million ($1.2 million) from the previous year.

    Customs and government agencies have formed an interagency action group with police and health authorities to target illicit tobacco supply chains, while enforcement penalties include up to six months’ imprisonment or a $20,000 ($11,600) fine for illegal sales. Australia is cited in comparison, where the Bureau of Statistics estimated 80% of nicotine products consumed in 2025 were illicit, up from 12% in 2017.

  • Survey: New Zealanders Think Nicotine is the Problem

    Survey: New Zealanders Think Nicotine is the Problem

    A survey of more than 1,200 adults conducted on behalf of Health Coalition Aotearoa finds strong public support in New Zealand for tighter nicotine regulation, including the reintroduction of very-low-nicotine cigarettes, while also highlighting widespread concern about industry influence on policy. The research shows that over half of respondents favor bringing back low-nicotine cigarettes and roughly two-thirds believe the tobacco industry influences government decisions, while support for newer products such as nicotine pouches remains limited, with more respondents opposing than supporting their retail sale.

  • BAT NZ Revenue Down 29% Amid Rising Illicit Trade

    BAT NZ Revenue Down 29% Amid Rising Illicit Trade

    British American Tobacco New Zealand reported a sharp decline in financial performance in 2025, with revenue falling nearly 29% year over year to NZ$180.7 million ($106.6 million), which the company attributed in part to the growth of the illicit tobacco market. According to The Post, industry estimates suggest illicit products accounted for 27.2% of consumption in 2024, equating to roughly NZ$600 million ($354 million) in lost excise revenue, as high cigarette taxes continue to push consumers toward the black market.

    The downturn was reflected across key business indicators, including a significant drop in inventory levels and reduced tax payments, while dividend payouts to the parent company remained stable. BAT has called for stronger enforcement measures, including tougher penalties and retailer licensing, as illicit trade expands alongside broader market shifts such as declining smoking rates and rising vape use.

  • Illicit Cigarettes Undermine Health Warnings in New Zealand

    Illicit Cigarettes Undermine Health Warnings in New Zealand

    A Radio New Zealand investigation found black market cigarettes widely sold in Auckland without mandated health warnings, often at prices as low as NZ$13 ($7.67) per pack—less than a third of legal products. Under New Zealand law, tobacco packaging must carry graphic health warnings covering at least 75% of the pack, but most illicit products lack these labels, making enforcement more difficult for authorities.

    Public health experts say the absence of warnings and lower prices are undermining efforts to reduce smoking, particularly among low-income groups and young people. Officials note that non-compliant packaging is a key indicator used to identify illegal products, while penalties for violations include fines of up to NZ$600,000 ($354,000) for manufacturers and prison terms or fines for retailers.

  • NZ Retailers Want Crackdown to Avoid Australia’s Illicit Tobacco Crisis

    NZ Retailers Want Crackdown to Avoid Australia’s Illicit Tobacco Crisis

    Retail NZ is calling for the government to establish an urgent multi-agency task force to combat the growing illicit tobacco trade, warning that New Zealand risks facing the kind of organized crime activity seen in Australia if enforcement is not strengthened. In a report released April 13, Chief Executive Carolyn Young said black-market cigarettes are now being sold openly in some Auckland shops at steep discounts, undermining tobacco control measures and exposing retailers to criminal pressure.

    Retail NZ is urging coordination between police, customs, and the Ministry of Health, tougher penalties, and an independent roundtable to address the issue, noting that current enforcement is fragmented and sanctions remain low. Under existing law, selling illicit cigarettes can carry penalties of up to six months’ imprisonment or a NZ$20,000 ($11,800) fine, while importing tobacco without paying excise duty violates customs regulations.

  • IMF Calls for Risk-Proportionate Nicotine Taxes

    IMF Calls for Risk-Proportionate Nicotine Taxes

    A report by the International Monetary Fund earlier this month called for risk-proportionate taxation of nicotine products, arguing that excise policies should better reflect relative health harms. The IMF paper states that while newer alternatives such as vapes, nicotine pouches, and heated tobacco products are not risk-free, they expose users to fewer toxicants than combustible cigarettes and therefore warrant lower tax rates that can be adjusted as evidence evolves. The authors suggest that aligning fiscal policy with health outcomes could support smoking reduction by incentivizing consumers to shift toward less harmful products.

    Writing for Filter, Kiran Sidhu said the report has drawn support from tobacco harm reduction advocates, who say it reinforces longstanding arguments that price differentials can accelerate declines in cigarette use, citing examples such as New Zealand where lower-risk products and tax gaps have coincided with falling smoking rates. The report also implicitly challenges approaches backed by the World Health Organization that favor equal taxation across nicotine categories, warning that misaligned policies may sustain cigarette consumption or push users toward illicit markets, while emphasizing that taxation remains a key lever for shaping public health outcomes.

  • New Zealand Partners with Vape Company That Sued it Five Times

    New Zealand Partners with Vape Company That Sued it Five Times

    Health New Zealand has partnered with Alt NZ Limited to supply free vape kits through 29 national stop-smoking services, distributing over 7,000 kits thus far. The NZD 500,000 ($295,000) procurement followed an open process requiring compliant closed-pod devices and refills, with strict adherence to tobacco control policies. Alt previously challenged the Ministry of Health in five court cases between 2023 and 2025 over nicotine limits, arguing its best-selling products exceeded 28.5 mg/mL and accounted for 85% of revenue. The courts largely upheld the Ministry’s regulatory changes, which lowered the maximum nicotine level from 50 mg/mL to 28.5 mg/mL.

    Alt director Jonathan Devery said higher nicotine strengths are more effective in helping smokers quit, while Health NZ noted the program begins users on 28.5 mg/mL for six weeks before tapering down. All products meet legal and compliance standards, with the Ministry emphasizing that regulated levels are sufficient to support cessation.

  • South Korean Ring Smuggling to ‘High-Priced’ Markets

    South Korean Ring Smuggling to ‘High-Priced’ Markets

    Authorities in South Korea referred 11 people to prosecutors after uncovering a smuggling ring that shipped 900,000 packs of genuine and counterfeit cigarettes to high-price markets, including Australia and New Zealand. According to Incheon Regional Customs, the group exploited price gaps between countries, buying cigarettes domestically for around 4,500 won ($3.06) per pack and reselling them abroad, where prices can exceed 41,000 won ($27.88). The operation allegedly generated about ₩1 billion ($680,000) in profit from more than 70 shipments between March 2024 and March 2025. Investigators say the ring recruited convenience store owners to source legitimate cigarettes and also purchased large quantities of counterfeit products through illegal channels, disguising shipments as items such as rubber mats before sending them overseas by courier.

  • Stores in Stores Finds Loophole in NZ Vape Regs

    Stores in Stores Finds Loophole in NZ Vape Regs

    Many general retailers in New Zealand have found a loophole to flavored vape restrictions by setting up stores within stores, research from Massey University has found. Regulations permit only specialist vape retailers to sell the full range of vape flavors if vaping products make up at least 70% of their sales, while general retailers are limited to mint, menthol, and tobacco flavors. The study found that 44% of 160 specialist vape outlets surveyed operated within larger stores, such as dairies and gas stations.

    Casey Costello said specialist retailers are not allowed to display products outside their stores or allow under-18s to enter, adding that enforcement activity has increased and youth vaping rates are reportedly declining. Meanwhile, the Vaping Industry Association of New Zealand (VIANZ) acknowledged the store-within-a-store model as an unintended loophole and expressed support for closing it, stating specialist vape retailers should operate as standalone premises with strict age-verification and compliance standards while preserving adult access to regulated smoke-free alternatives.