Join our community of smart investors

Tobacco showdown set

Four tobacco majors are readying themselves for a High Court battle with the government over its forthcoming implementation of plain packaging
December 10, 2015

Four major tobacco players are squaring up to the government in a bid to challenge the spectre of plain packaging.

Imperial Tobacco (IMT), British American Tobacco (BAT), Philip Morris International (US:PM) and Japan Tobacco International have teamed up to try to halt the implementation of a ban on branded cigarettes due to begin next year.

MPs voted for the ban in March on the view it would help reduce the rate of children taking up smoking. Under the rules, companies have until May 2017 to replace packs with dark brown or green boxes that are entirely plain except for health warnings and a brand name in a standardised type face.

The companies will claim in their High Court hearing that the ban infringes property rights and will be ineffective in reducing levels of smoking.

A spokesperson for BAT said the government made a "serious error of judgment" by not properly considering data from Australia - where plain packaging has been implemented - showing the move is not achieving its public health objectives.