WARNING: This product contains nicotine. Nicotine is an addictive chemical.
On September 18, Italian tobacco associations took the floor in front of the House of Representatives Finance Committee, presenting a list of demands aimed at protecting their businesses. With the rise of vaping and online nicotine sales, traditional tobacco shops have seen their revenues plummet, and these associations want to see some significant changes. But, as you’ll see, their wish list goes beyond just the typical complaints – it dives into online bans, outdated commissions, and even electronic payment systems. Let’s take a closer look at this fascinating (and sometimes head-scratching) debate.
In a world where you can order a pizza, book a holiday, and find love (or at least a decent chat) online, Italy’s tobacco retailers are taking a stand against one aspect of modernity: the sale of nicotine products on the internet. Demetrio Cuzzola, director of the National Tobacco Union, passionately argued that online vape sales are spiraling out of control, leaving tobacco shops behind. According to him, it’s a “wild west” of European and non-European platforms out there, and he’s got his sights set on shutting down this modern-day outlaw.
Why the fuss? Well, traditional tobacco sales have seen a steep decline – from 120 million kilograms to a mere 61 million in just 15 years. With that kind of drop, Cuzzola is feeling the heat and not just from the cigarettes. The solution? He suggests banning online sales of nicotine products, thus sending customers back into the friendly arms of brick-and-mortar shops. After all, who wouldn’t want to take a nice stroll to the store for a pack instead of a few clicks?
Remember the 90s? Good times, right? Well, maybe not if you’re a tobacco retailer in Italy. According to Cuzzola and other association leaders, the commission on tobacco products has been stuck at 10% since 1993. That’s right, while the rest of us moved on from floppy disks and dial-up modems, tobacco shops have been living in a commission time warp.
And it gets worse – for lotteries, the commission has actually dropped from 10% to 8%. Talk about a buzzkill! In a world where inflation and rising costs are the norm, these tobacco retailers are feeling like they’re being left out of the party. It’s like being told you’re only getting 90s-era paychecks while everything else is in 2024. It’s no wonder they’re asking for an increase in their commission rate – they need to keep up with the times and maybe afford a few more lattes.
It turns out that technology isn’t always a friend to the tobacco shop industry. While the rest of us are happily tapping away with our credit cards and digital wallets, tobacco retailers are feeling the pinch. Every time someone uses a POS (Point of Sale) machine to pay for their cigarettes or lottery tickets, retailers lose 1% of their profit. Now, that might not sound like much, but when your margins are already razor-thin, it’s enough to make anyone think twice about embracing the modern world.
Mario Antonelli, president of the Italian Tobacco Union, isn’t thrilled about this. In fact, he wants to scrap the mandatory use of POS machines altogether. He claims these extra fees are just another way for tobacco shops to lose money, and he’s not wrong. With fewer and fewer people paying with cash, it’s a lose-lose situation for the shops. So, what’s the solution? Maybe we all just start carrying around wads of cash again? Unlikely, but it’s clear the retailers want some sort of relief.
If there’s one thing that really ruffled feathers during the hearing, it was Antonelli’s final suggestion: all nicotine products should be sold exclusively in tobacco shops. That’s right, no more grabbing your favorite e-cig from an online store or corner shop – you’d have to go straight to the tobacco source. His argument? Tobacco shops are losing a whopping 120 million euros in revenue each year thanks to illegal sales and online competition.
Antonelli wants the government to guarantee that nicotine products, from cigarettes to vapes, are only sold in licensed tobacco shops. This would not only keep customers coming back but would also make sure the shops have a fighting chance against the booming illegal market, which apparently costs the country around 1 billion euros a year. Whether or not this idea will fly remains to be seen, but it’s a bold play from a desperate industry.
Italian tobacco associations recently presented their demands to the House of Representatives Finance Committee, aiming to protect traditional tobacco shops from declining sales and increased competition. With tobacco sales in Italy dropping from 120 million to 61 million kilograms in the past 15 years, the associations are calling for a ban on online nicotine product sales and higher commission rates for tobacco retailers, which have remained stagnant at 10% since 1993. Additionally, they seek the removal of mandatory electronic currency systems, which charge a 1% fee per transaction. The associations also highlighted the impact of online vape sales and the illegal tobacco market, which costs shops around 120 million euros annually. The government will now decide whether to involve vape industry representatives in future hearings. This news highlights the ongoing battle between traditional tobacco retail and modern nicotine distribution.
