Introduction

The report examines how tobacco companies use retail environments to maintain product visibility despite tobacco control measures. It argues that investments in retailer incentives, in-store advertising, and display arrangements continue to normalise tobacco products and often fall outside existing marketing restrictions.

Retailer incentive schemes

The report states that only a limited number of countries prohibit tobacco retailer incentive programmes despite WHO Framework Convention on Tobacco Control (WHO FCTC) obligations. Agreements between tobacco companies and retailers are commonly privately negotiated and may give companies control over product placement and visibility.

Retail incentives include direct payments, discounted stock, reward programmes, sponsored events, luxury travel, and exclusive rewards. In countries with display bans, retailers may be encouraged to verbally promote products in exchange for bonuses or cash payments. Evidence from Australia and other countries indicates tobacco companies allocate significant budgets to maintain product visibility and exploit regulatory loopholes.

The paper notes that retailers may face implicit pressure to meet company expectations once enrolled in these programmes, undermining the intent of comprehensive marketing bans.

Commentary

Targeted marketing to specific demographics

The report highlights that tobacco companies target consumers based on ethnicity, gender, age, and socioeconomic status. Tobacco retailers are concentrated in disadvantaged and ethnically diverse areas, where products are often sold at lower prices to increase sales.

In the United States, menthol cigarette advertising is more prevalent in neighbourhoods with higher proportions of Black and Hispanic residents and near schools. Tobacco retail marketing has also expanded in low- and middle-income countries due to weaker regulatory enforcement and younger populations.

The report identifies strategies aimed at children and young people, including placing tobacco products and advertising at children’s eye level. Indigenous populations in Australia, New Zealand, Canada, and the United States have also been targeted through giveaways, coupons, and discounted bulk purchases.

Gender-specific marketing is also discussed. Tobacco companies have used discounts and coupons to target low-income African American women, while men have been targeted through multi-pack promotions and price-reduction offers.

Retailer mobilisation against regulations

The report explains that transnational tobacco companies frequently work with retailers and retail associations to oppose or delay tobacco control measures. Common claims include increased compliance costs, reduced retailer revenue, and higher illicit tobacco trade.

Examples include British American Tobacco’s claims that licensing requirements in Kenya would harm small businesses. In the United Kingdom, retailer associations linked to tobacco industry support argued display bans would cost up to £10000 per shop, while government estimates placed one-off costs between £450 and £850.

The report also highlights retailer transition support measures. In San Francisco, incentives helped retailers shift from tobacco sales towards fresh fruit and vegetable sales, contributing to policy agreement between retailers and authorities.

WHO FCTC and beyond-policy pathways for retail regulation

The paper outlines WHO FCTC measures including retailer licensing, restrictions on sales to minors, vending machine bans, and advertising restrictions.

Additional measures discussed include limiting retailer density, restricting sales near sensitive locations, banning supermarket tobacco sales, limiting operating hours, restricting home delivery, capping purchase quantities, and reducing in-store visibility.

Simulations cited in the report suggest retail regulation measures could reduce youth tobacco availability by between 4% and 100%, depending on the intervention.

Conclusion

The report concludes that stronger retail regulation could reduce tobacco visibility and accessibility, particularly for young people. It recommends combining WHO FCTC measures with broader retail-focused policies and conducting further research into how these interventions can be adapted across different countries and regulatory settings.