Weekly news summary 22nd January 2015

HEADLINES THIS WEEK:

– EARLIER DATE POSSIBLE FOR PLAIN PACKAGING LEGISLATION
– BOOKER BOOSTED BY INCOME INCREASE
– BIDVEST 3663 LOBBIES FOR 75% REDUCTION IN VAT TAX
– MATTHEW CLARK ‘DELIGHTED’ WITH RECORD RESULTS

PLAIN PACKAGING LEGISLATION TO BE BROUGHT FORWARD

Standardised packs of cigarettes and RYO tobacco products could come into force in 2016, after public health minister Jane Ellison announced that MPs would be asked to vote on the legislation before May’s general election.

In a statement, Ellison explained that introducing plain packaging was “a proportionate and justified response” to the health risks associated with smoking tobacco.

The proposed regulations, which follow a series of public consultations on the issue, would replicate similar restrictions imposed on tobacco manufacturers in Australia.

Ellison said: “I now propose that we lay regulations for standardised packaging in this parliament to allow for them to come into force at the same time as the European Tobacco Products Directive in May 2016.”

Several health organisations have since welcomed the news, with health charity ASH heralding the decision as an important step in enforcing “the most important public health reform of this parliament”.

Meanwhile, tobacco manufacturers have fiercely contested plans to impose the new regulations, with JTI head of communications, Jeremy Blackburn, branding plain packaging as an “unlawful” measure.

He said: “It is inexplicable that the Government is rushing to legislate on this important issue, which was opposed by nearly two thirds of the respondents to a public consultation and over 40% of other EU Member States have raised concerns over the plain packaging proposals.

“JTI and others have repeatedly said that plain packaging would infringe EU requirements on the free movement of goods, violate property and other fundamental rights – including trademark rights – and go against obligations under EU and WTO rules.”

Melvin Ruigrok, general manager of Imperial Tobacco UK, commented: “The Government should evaluate the effectiveness of current tobacco control measures before proceeding with standardised packaging; where no credible evidence has been forthcoming that it will contribute to improving public health.”

If the legislation is passed, cigarettes and hand-rolling tobacco would have to be sold in standardised packs from May 2016.

THIRD-QUARTER RISE FOR BOOKER

Booker Group sales, including Makro, in the third quarter to 2 January rose by 1.4% compared with the previous corresponding period. Of this, non-tobacco income went up by 1% and tobacco business by 2.2%.

Booker alone like-for-like sales increased by 2.5%, with non-tobacco ahead by 2.6% and tobacco by 2.4%.

Chief executive Charles Wilson (pictured) reported that the cash & carry division enjoyed a good quarter, with customer numbers up and sales on track. Booker Direct, Chef Direct and Ritter all “performed in line with expectations”.

Nine outlets have so far been converted to the new integrated format.

Tel: Booker Group (01933) 371000

BIDVEST 3663 LOBBIES FOR 5% VAT

Bidvest 3663 has become the first major foodservice distributor to join the VAT Club Jacques Borel, the aim of which is to reduce the level of VAT in the hospitality sector from 20% to 5%.

The delivered wholesaler’s chief executive Andrew Selley said: “A number of our customers are members of the VAT Club. As a large supplier operating within the sector, we want to do what we can to help.

“The reduction in VAT would enable the hospitality sector to compete better with food retail, where the rate on the majority of food products is zero.

“Reduced rates would allow our customers to charge lower prices, thereby getting more customers in through the door, which would promote growth within the sector.”

Selley added that lower terms would help create more jobs and enable further investment to be channelled into wages and training.

The VAT Club Jacques Borel was formed five years ago and currently has nearly 60 members covering the club, restaurant, hotel and foodservice channels. It has offices in both London and Paris.

Tel: Bidvest 3663 (0370) 3663 000
Tel: VAT Club Jacques Borell 020-7872 5535 

RECORD DECEMBER FOR DRINKS WHOLESALER

Drinks wholesaler Matthew Clark enjoyed a record December, with sales exceeding £100 million. Wine business across the board rose by 3%.

There were several positive factors: premium varieties sold well, online ordering rose by 45%, and the number of customers using this method was up by 68%.

Commercial director Ian Smith also reported that business with boutique hotels grew by 24% and that champagne sales to the ‘quality local’ sector were up by 38%. Sparkling wines saw 20% volume growth.

In terms of country of origin, English increased by 58% and Argentine by 18%.

Smith added: “We are delighted with the results, which reflect our ongoing commitment to supporting the on-trade and delivering quality and exceptional service.”

Tel: Matthew Clark (0844) 822 3910