Russia Increases Legal Tobacco Sales Outlets by 5%
On April 25th, Ekaterina Priezzheva, Deputy Minister of Industry and Trade for the Russian Federation, announced at the international industrial exhibition, "Innoprom. Central Asia," that legal tobacco sales outlets in Russia increased by 5%, reaching a total of 246,000.
According to Ekaterina Priezzheva, "the market share of illegally circulated product categories included in the 'honest label' is decreasing annually, and we are also seeing significant financial impact. For example, compared to the first quarter of 2022, the number of legal retail shops for tobacco products increased by 5% to 246,000 in the first quarter of 2023. By the first quarter of 2023, the number of legal tobacco manufacturers increased by 16% compared to the same period in 2022.
Ekaterina Priezzheva stated that the "honest label" is currently an effective tool to combat illegal trafficking.
Regarding "Honest Labels
Russia introduced the "Honest Label" national digital tagging system in 2019 to combat the illegal circulation of goods. One of the first product groups to be included in this system was tobacco. By 2023, the share of illegal trafficking had decreased from 15.6% in 2019 to 12.2% in the fourth quarter of 2022.
The labeling system is not only applicable to tobacco products, but also to dairy products, mineral water and drinking water, beer and low-alcohol beverages, medications, shoes, light industrial products, leather jackets, perfumes, tires, and cameras.
Further reading:
【1】Market research by 2FIRSTS: White channels only, forced transformation - what has happened to the electronic cigarette market in Russia under strict regulation signals?【2】Exclusive interview with a Russian nicotine manufacturer: Compliance regulation trends are irreversible and a complete ban on electronic cigarettes is impossible.
Expert analysis of Russia's tobacco industry "mandatory license" with relevant legal text attached.
Russian "Honest Label" operating company responds to proposal to ban additives: e-cigarettes still subject to mandatory labeling restrictions.
Deadline for "Honest Labeling" Approaches, Russian Disposable E-Cigarette Market Busy Clearing Inventory.
Reference:
The number of legal tobacco retail points in Russia has increased by 5% over the past year.
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