Dairies fear closures due to Smokefree plan

The retail sector is growing increasingly concerned about the impact of the proposed Smokefree 2025 action plan, which would ‘‘significantly’’ reduce the number of businesses selling cigarettes.

The action plan, which aims to get New Zealand’s population more than 95% smoke-free, was tabled two weeks ago and is due for its first reading in Parliament soon.

The cabinet paper states between 5000 and 8000 outlets across New Zealand currently sell tobacco products, and proposes a regulated market model where only a set number of retailers can sell such products.

The plan’s current modelling uses a reduction of 95% of retailers, leaving only a few outlets with exclusive rights to sell tobacco.

Gurdeep Basra, who runs a dairy in central Auckland, said most – if not all – dairies probably would not survive if they could not sell tobacco.

‘‘It depends on location, but I would feel for the smaller businesses that lost the right. It’s not just the revenue margins, it’s the foot traffic that cigarettes bring,’’ he said.

This includes the Onehunga Superette in south Auckland – its owner, Karmjit Singh, said the dairy would close its doors if it lost the right to sell cigarettes.

‘‘They make up 70% of my revenue, but they also draw customers in, where they’ll often buy a drink or something while they’re there,’’ said Singh. ‘‘I’m 100% sure I’d have to close if I lost the right to sell.’’

And with the country’s spate of ramraids, Basra is even concerned about outlets that would retain the rights to sell tobacco products.

Victims of recent ramraids and break-ins have typically seen their cigarette stocks targeted,

and Basra said the action plan would only intensify the vulnerability of the remaining outlets.

‘‘[Reducing the outlets] would escalate crime and create a strong black market. People would target the shops which still sell them due to availability.’’

Customs Minister Meka Whaitiri expressed in a Cabinet meeting last year her concern that the significant reduction did not consider the impact on black market trade.

Dairy and Business Owners group president Sunny Kaushal said the action plan’s proposals were ‘‘well-intentioned, but misguided’’.

‘‘It would put crime on the higher side – even during the transition [of reducing the outlets]. We’re getting seriously concerned about this.’’

But Kaushal said dairies could be part of the solution. Ministry of Health data shows a 94% compliance rate among the country’s dairies and convenience stores when it comes to selling tobacco.

Kaushal has called for these businesses to have the right to sell a wide range of vape products as an alternative.

The 2025 plan does not prevent retailers from selling vape supplies. However, current Smokefree legislation restricts dairies and convenience stores to selling only three flavours: tobacco, menthol, and mint. Selling more flavours would bring customers back to their local dairy and keep profit up, according to Kaushal.

‘‘We need a proper plan and time for a transitioning revenue model.’’

New Zealand dairies have gone tobacco free in recent years, with mixed results.

Christchurch dairy owner Tara Aitcheson made the decision not to sell tobacco when she took over in 2018 – instead turning her store into a pie shop.

A north Canterbury dairy owner said the decision to drop tobacco had ‘‘been a struggle financially’’, but she felt safer.