Unfair Competition: French Tobacco Merchants vs. PMI Company

Industry Insight by 2FIRSTS.ai
Aug.06.2024
Unfair Competition: French Tobacco Merchants vs. PMI Company
French tobacco merchants in Saint-Pierre Square express dissatisfaction with PMI's e-cigarette promotion, citing unfair competition in public spaces.

According to the French media LADÉPÊCHE, on August 6th, a tobacco merchant at Saint-Pierre Square in France expressed dissatisfaction with Philip Morris International (referred to as "PMI company" hereafter) for promoting and selling e-cigarettes in public places. He believes this situation creates unfair competition for his industry.

 

Didier is a tobacco merchant located on the corner of Pagaminie Street and Saint Pierre Square, and he is very angry. As the only tobacco shop in the area, he has had to deal with promotional activities from PMI company for the past few weeks on e-cigarettes that can be recharged and disposed of: "They have four promoters stationed here and they have started promoting and even selling their e-cigarettes."

 

It should be noted that in France, tobacco retailers are prohibited from advertising tobacco products.

 

You can understand my anger. This situation is particularly unfair, especially when we know the difficulties tobacco merchants face in order to ensure their turnover. Personally, in June, I lost 20% of my turnover on traditional cigarettes, and I lost 1000 euros per month on e-cigarettes.

 

Since January of last year, the increase in tobacco prices has not improved the tobacco business. In June, tobacco sales in the Longd area dropped by 15%.

 

We have received a letter from PMI company sent to various bars in Toulouse to raise awareness of their business activity: "Our initiative is primarily aimed at inspiring consumers by offering smokers a chance to taste a well-known and high-quality brand of product for free. At the end of the tasting, we also provide a service to purchase tobacco products, avoiding the need for your customers to visit a tobacco store. Purchase two e-cigarettes for 8 euros, or a rechargeable e-cigarette with four flavors for 16 euros.

 

With such promotion, this tobacco merchant was particularly affected." Frederick Pele, chairman of the 31 Tobacco Merchant Union, believes that young customers passing through Saint-Pierre Square have no potential loyalty." He thinks there may be administrative procedures against PMI company in the future.

 

But I am worried that this will end up like the 2016 FloraJet incident, where a tobacco company was fined 750,000 euros for obstructing the distribution network of French games in FloraJet flower shops by distributing scratch cards." Frederick Pelé concluded, "In this tobacco incident, the National Federation must intervene.

 

The PMI Group has not yet responded to this.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Malaysia's Perlis Customs seized more than 510,000 smuggled e-cigarettes, involving more than US$2.85 million
Malaysia's Perlis Customs seized more than 510,000 smuggled e-cigarettes, involving more than US$2.85 million
In August, Malaysia's Perlis Customs raided Kampung Kawlan, seizing 517,394 e-cig devices/accessories in a Padang Besar warehouse. Haul: over RM12m (≈US2.85m),unpaidtaxesRM2.6m(≈US620k); 19yo guard arrested. Probes: e-cigs for Thailand, arrived via KLIA, to cross border illegally (pickup/container truck or Kelantan if blocked). Case under 1967 Customs Act §133(1)(f): max RM500k (≈US$120k) fine/7yrs jail, or both.
Sep.22 by 2FIRSTS.ai
JUUL Plans to Launch New E-cigarette Juul2 in the U.S., Featuring App-Based Identity Verification and Awaiting Regulatory Approval
JUUL Plans to Launch New E-cigarette Juul2 in the U.S., Featuring App-Based Identity Verification and Awaiting Regulatory Approval
JUUL plans to launch Juul2 with biometric protection system in the US, targeting adult smokers while preventing underage use.
Oct.24 by 2FIRSTS.ai
Texas e-cigarette shop owner arrested for allegedly hiding an unfinished tunnel inside his shop, possibly linked to international smuggling
Texas e-cigarette shop owner arrested for allegedly hiding an unfinished tunnel inside his shop, possibly linked to international smuggling
During a raid by federal and local law enforcement officers at an e-cigarette shop in Laredo, Texas, a 25-foot-deep tunnel, possibly linked to a transnational criminal organization, was discovered. The shop's owner, Gilberto Pena, was arrested for possession of controlled substances. Cocaine and marijuana were also seized during the raid. A total of 22 e-cigarette shops were inspected in Laredo, resulting in one arrest. The shop in question remains open, but the tunnel will be removed.
Sep.24 by 2FIRSTS.ai
Australia's tobacco tax revenue has halved in five years, with the illegal cigarette market exceeding $4 billion
Australia's tobacco tax revenue has halved in five years, with the illegal cigarette market exceeding $4 billion
Australia's tobacco tax revenue is falling to its lowest point in a decade, projected to be just $4.9 billion in the 2025-26 fiscal year, nearly half the amount collected in 2019-20. This decline is primarily due to the prevalence of illicit cigarettes, which exceeded $4 billion in the black market in 2022-23 and generated an estimated $6.6 billion in revenue for criminal organizations. Medical professionals warn that cheap, contraband cigarettes on the streets are driving a resurgence in smokin
Sep.24 by 2FIRSTS.ai
Belarus Increases e-cigarette tax by 20% and Reinstates Tax on heated tobacco
Belarus Increases e-cigarette tax by 20% and Reinstates Tax on heated tobacco
Belarus government plans to raise tobacco tax by 12% and e-cigarette tax by 20%, aiming to regulate all smoking devices.
Oct.21 by 2FIRSTS.ai
Kenyan Bar Owners and Retailers Petition Senate to Halt Debate on Tobacco Control (Amendment) Bill 2024, Citing Lack of Public Consultation and Potential Job Losses
Kenyan Bar Owners and Retailers Petition Senate to Halt Debate on Tobacco Control (Amendment) Bill 2024, Citing Lack of Public Consultation and Potential Job Losses
Kenyan bar and retail owners petition Senate to halt debate on Tobacco Control (Amendment) Bill 2024 due to concerns.
Sep.26 by 2FIRSTS.ai