The Smoker’s Burden

Hawke's Bay Tribune, Volume XII, Issue 85, 20 March 1922, Page 3

The Smoker’s Burden

WILL PRICES FALL “NEW ZEALAND’S CONSERVATIVE TOBACCO TASTE.” THE GOVERNMENT’S SHARE. . “The Government takes* 3d the merchant and the retailer together take 2id, and the manufacturer takes 3RI, which covers the cost of Jhe leaf.” said the general manager of a prominent firm of suppliers to the '-.rade of tobacco and cigarettes yesterady to a representative of the •‘Times.” in answer to a question, as to how the 9d the critizen paid for his packet of cigarettes came to be allocated. LIMITS OF SUPPLY. The question was prompted by a rumour that had gained only slight currency, that a fall in the price of tobacco and cigarettes was contemplated. The suppliers’ manager did not encourage belief in the rumour. ‘‘Manufacturing costs and the price of tobacco leaf ate still as high ns ever. The world’s consumption is going up every year ,but the area that will mow tobacco is the same as it was half a century ago. It is practically confined to the States of Carolina and Virginia. No country can compete with them: it is simply a matter of supply and demand. ‘‘New Zealanders insist on smoking tobacco and cigarettes of a high grade. They are even different to Australia in this. Y T ou have only to compare the quality and the price of the cigarettes. fur instance ,that are most in vogue in the two countries. You can’t get the tobacco they want, except nt a very high price. You can get cheap grades, at a low price, but they will not become popular. The recent duty on tobacco is a big feature in the price nowadays. CONSUMPTION NOT FALLING. ‘‘There is as yet no indication that the consumption of tobacco and cigarettes has fallen ,as a result of the duty, but smokers are changing their habits. For instance, the man who nia.de up his own cigarettes was the hardest hit by the tariff. The duty on his ‘‘shag” is now no less than 10s. If it was intended to get revenue from this increase, the anticipations of the framers g 7 the tariff will not be realised, because that man is dropping out. He is takipg to the made-up cigarettes, or to the pipe, rather than pay an exorbitant price. Retailers are also very shy of this line. Many of them are still in possession of old stocks, and they arc not inclined 4o risk loss by purchasing at the now prices created by the tariff. The public are getting the benefit, to an extent, until these stocks disappear.” SOMETHING FOR SIXPENCE. A somewhat different point of view was expressed by a prominent tobacconist. ‘‘Smokers are now going in for cheaper grades of tobaccon and cigarettes,” he said. “They are parting with their reputation of being conservative and discriminating. Now they want something that they can smoke for (id, as against the 9d they have to pay for their cigarettes since the tariff came in. Tt is only fair to us that the public should know they are benefiting to some extent still, in the matter of prices.” He mentioned one brand, that all the “houses” had big stocks of; they were still being sold at Bd, although the schedule retail price was 9d. COMPETITION AND THE TARIFF. “As scon as the suppliers feel the pinch from competitive lines, I am satisfied that they will immediately fall into link, and reduce their prices,” said this retailer. “Tobacco seems pretty firm in price. .The duty is 4s 8d per pound for plug, 4s lOd for cut, and 10s for cigarette tobacco. Some of the tobacconists have replaced their cigarette tobacco, but they realise that if they stock up with it, they may he ‘left.,’’ and suffer heavy loss. There are quite a number of brands that we arc still selling under schedule prices. Here is an example:—There is a brand of cigarettes that has a big sale in New Zealand, and we are selling at 2s and 2s 3d, as against the schedule price of 2s Sd. The smaller lots of this brand are being sold at •Is, as against Is 4d.” NOTICE OF REDUCED PRICES. The tobacconist summed up his views thus:—“Y r ou cannot reasonably expect any reduction in tobaccon until the duty does down. What’’reductions are going on now are the outcome of individual retailers, that are ‘ jobbing’ stocks in which they were overloaded. It is true, however, that the /merchants have intimated that they will give a month’s notice that prices will come down.”