p. i_ n ;T-.. C 6 ........ .. ........ International Tobacco Infonnallon Center INFOTABCenlre International Offlonnation du Tabac ................. January 30, 1986 .................... TO: Mr. H. Cullman Mr. R.L.O. Ely. Mr. T.C.H. King Mr- R.J. Marcotullio --S~ [C~ Mr. C. Vogel 'Mr. J.W. Webb Mr. A. Whist cc: Mr. D.K. Hoel 16 Bans Booklet To let you know that we have just received the updated manuscript from Paul Bingham of BAT Hillbank, including figures for 1983 and 1984, which continue to support the basic position. A copy of this is enclosed for your information together with a marked up copy of the 1983 booklet from which you can see where the changes are. We are in touch with the IAA and plan to have the updated booklet available just as soon as possible. Our thanks go again to Paul Bingham and BAT for putting togeCher the data. This has -proved to be an invaluable item in the advertising debate and much used by our outlets. Best regards, You sincerely,- R.M. Cornl~ Deputy Secretary General RMC/n,nn DSG-396.86 CD CD Rue Mortoyer 10 - Bte 2 B-1040 Brussels Belgium Tel. 02,511 .91 .10 Telex 24218 TVA 419.753.543 BATCo document for Legal Services : Health Canada 21 October 1999 2. EXEcuT[VE SUMMARY A. IN'I'RUUU(r LON V j The aim of this paper is to examine the evidence of the market place to see what impact, if any, tobacco advertisinS bans have had. The Information provided covers a range of marketing variables but varies from country to country according to what is available. The two sides in the tobacco advertising debate use a variety of arguments to support their opposite positions. Both have sought to use the evidence of the market place, quoting selective figures In support of their different objectives. This analysis is not intentionally selective, but seeks to present comprehensive and real information which is most relevant to the debate. B. COVERAUC Eight Centrally Planned Economics and eight Free Market Economies are included. In all but one of these countries tobacco advertising has been banned. The inclusion of one country - Sweden - where tobacco advertising continues, is a benchmark for comparison. C. HIGHLIGHTS Centrally planned Economies Despite tile absence of any tobacco advertising for a long period of time in the eight countries covered, the overall and per capita cigarette consumption trends remain steadily upward. Between 1970 and 1934 overall cigarette ' consumption in these countries Increased by 30% and per capita consumption by 16%. The nature of cigarettes sold in Centrally Planned Economi-1-1; has chan e little. Considerably less progress has been made in the development and sale of more modern products e.g. FilLerS, lower tar, than in those Free *,1-jarkets where advertising continues to be permitted. Free Market Economics In those markets ~jhere tobacco advertising has been banned there is no evidence o[ any significant change in the trends for consumption oc Incidence. By and large, tile Lreads apparent prior to the introduction 'of any advLrtleing ban have continued in the period foLlowing it. tn ThniL.-ind, Talwall and Ic'11a"11v where advertUsIng bans have been in force fur su:zc Ye;lrs Cie nd i ly ,rette c~)Ijsumptlon has continued to Increase stez - III Sillprore and It'ly 'jiler'! tjI,! adverLir-itig ban effectiveLy amounts to ;1I near ball as opponed to a toUll oize, --igarette consumption has also 1,rown Tn Fitil-Ind, Givre hn., been itt) dincernible ititerruptton to the t-c'IdS PC-'-)r to 010 wjj1Ljj r,9,-ejItialty cuncinued. En fact alLholigh Per er)nL1Ijtjc,,1 tk) dccL1,11-1 Utrutigh to 1131, the paSt 01MC to tile pre-atIvertising ban a revi-i-sat or this trend and a return lon. C, BATCo document for Legal Services: Health Canada 21 October 1999 - 2 - In Sweden, where tobacco advertising is permitted, albeit on a restricted barsis, the penetration of lowLr tar cigarettes is significantly higher than in Norway and Finland, where tobacco advertising is banned. In Norway, which is perhaps the best single example of a total advertising ban, there has been a steady growtit in overall consumption since the ban in 1973, and since 1931 per capita consumption has begun to Increase, contrary to the trends present prior to the introduction of the ban. Conclusions There is no evidence from those countries where tobacco advertising has been banned, that the ban has bcen accompanied by any significant reduction In overall consumption, per capita consumption or incidence of smoking. The market trends apparent prior to the Introduction of a ban have largely continued unchanged in the years following it. There is soine evidence that the absence of advertising can significantly hold back the development of new and more ad-..lnced products. 0 40 Ul-~ U4 r1j CD CD (ili BATCo document for Legal Services : Health Canada 21 October 1999