Menthol ban to affect 200 million PJ Carroll cigarettes
British American Tobacco subsidiary shifting focus towards Irish vaping market, writes Sean Pollock
PJ CARROLL, the Irish subsidiary of British American Tobacco, has said over 200 million cigarettes it sells a year will be affected by the upcoming ban on menthol cigarettes.
The menthol cigarette ban, which takes effect on May 20, covers cigarettes which use flavours to relax the airways and make smoking easier on a person’s throat. The change follows the completion of a four-year phasing-in period under a 2016 EU directive on tobacco products.
Simon Carroll, country manager of PJ Carroll, said his company has around 50pc of the menthol cigarette market, accounting for 200 million cigarettes. Brands it has control of in this area include Consulate, Vogue and Pall Mall.
“It’s going to have a big impact [on output],” he said. “We are just around half [of the menthol cigarette market].
“It is probably just over 200 million cigarettes of ours affected by this a year, so it’s a big number.
“It is going to impact us dramatically, but again it is hard to know what the monetary value will be until we see what plays out fully with what consumers choose to do. We can only give them real alternatives that they can choose to have. Hopefully, if they choose to go vaping, they choose ours, but if they choose combustible cigarettes, they choose our brands too. It’s a wait-and-see.”
Despite the potential impact on the business, Carroll is hopeful that the ban will present an opportunity to further the take-up of his company’s vaping devices.
According to Carroll, British American Tobacco has invested in the region of £3bn into its tobacco alternatives.
Brands sold by PJ Carroll in Ireland include Vype e-cigarette pens and Cirro vaping liquids. The company plans on launching around 17 new menthol-targeted vaping products to service those shifting away from menthol cigarettes.
Carroll is hopeful that the business will expand with these products. He said the vaping products under his control in Ireland account for around 16pc of the market, with the plan to hit 35pc over the next 12 months.
“A lot of our energies are heading toward the vaping side of things,” he said. “We are hopeful that the choices we are giving consumers are the best. Hopefully, if anything, our business will expand in due time.
“Menthol and tobacco are still a massive part of flavouring within the vape market,” he added. “Our target audience is the 800,000 smokers out there; that’s how we hope to double our share in the next 12 months, if we can.”