Study shows cigarette tax hikes can help boost bigger brands, hurt consumers

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For decades, governments and health authorities have tried to steer people away from “vice” products such as tobacco, soda and alcohol through counter-marketing measures—things like tax increases, usage restrictions and ad campaigns.

But which ones are the most effective? And what do they mean for big brands such as Marlboro, Coca-Cola, McDonald’s and Budweiser?

According to a new study from the UBC Sauder School of Business, they can all help people quit—but how much they help, and who pays the price, varies significantly.

The researchers also found that tax hikes can disproportionately favour bigger brands, while tightened restrictions can hurt them.

For the study, titled Investigating the Effects of Excise Taxes, Public Usage Restrictions, and Antismoking Ads Across Cigarette Brands, researchers examined U.S. cigarette sales data from 2005 to 2010 and retail scanner data from 2006 to 2010. They also analyzed a comprehensive data set that comprised state-level cigarette taxes, state-level smoking restrictions and national anti-smoking advertising campaigns.

Read full article here.

University of British Columbia – 2021-06-22.

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