National Round-Up: Tobacco giant hopes to smoke competition in price war

Cigarettes and alcohol in the spotlight whilst Danes simultaneously turn to nature

Heavy-handed tactics risk provoking stronger political response (photo: pikist.com)
September 7th, 2020 12:43 pm| by Luke Roberts
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Despite the tax increase in April this year, cigarettes are cheaper than ever thanks to Phillip Morris International cutting the price of a packet of Marlboro to 41 kroner a packet.

As part of its efforts to undercut the competition, the tobacco giant has decided to begin selling some of its products at a loss.

The prices will match what they were before the tax increase, meaning that the tobacco giant will pay the increased tax itself.

Best-laid plans
Looking at the new developments, the Danish Cancer Society and a number of politicians have expressed concerns.

In the name of competition, the tobacco company is flooding the market with more cheap cigarettes – the opposite of what the new tax was intended to do.

Per Larsen, the health spokesperson for Konservative, suggests a minimum price system would prevent such contraventions of the system.


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