Smoking Trends and the Pandemic

In 2000, a packet of Fortuna, one of the most popular brands of cigarettes, cost 1 euro 85 céntimos, but the current price is 4 euros 60 céntimos. Total sales are much less, and there are a number of reasons including the complete ban on tobacco advertising that came in in 2005. Before this, well-known figures from various walks of life promoted smoking on TV, print media and posters, and the formula one cars all had tobacco s p o n s o r s a s d i d o t h e r p o p u l a r s p o r t s . Legislation that banned smoking in closed spaces in bars and restaurants, work places and public transport has resulted in a large drop in sales which was the whole aim of the legislation. Antismoking publicity and the increasing pressure from health practitioners that smoking is very bad has also reduced sales, and packets of cigarettes now have to display anti-smoking publicity with strong messages on 65% of the front area of the packet. From 2014, the ‘estancos’, the official outlets for tobacco products, licenced by the Spanish state, were prohibited from selling tobacco to children under the age of 14, and vending machines had to have an electronic lock that had to be activated for sales to adults. In Almería province there are 220 estancos, and in 2019 they sold 39.3 million packets of cigarettes and collected in 180 million euros. This is almost 50% less than sales in 2007 before the financial crisis when there were 75 million packets sold. Vending machines accounted for 97 million packets, but this has now gone down to about 60% of all sales. In 2012 the estancos sold 44.4 million packets of cigarettes which is 5 million more than 2019 but the worst year was 2017 when they only sold 38.3 million packets. The slightly increased sales at present are put down to young people smoking more than then. This year, with the effect of the pandemic, sales are already much reduced, and in August the drop was 16.35% in volume with a 16.65% decrease in income. This is almost certainly because of the large reduction in tourists as well as leisure activity being curtailed, particularly in night clubs and latenight bars. There are very high taxes on cigarettes and they provide the fifth largest income for the Spanish state which has amounted to about 9 billion euros every year. The profit margin for the estancos is only 8.5% for cigarettes and 9% for cigars but this is of course reduced by the normal

business expenses for staff and overheads.

Prior to 2014, estancos only sold tobacco products, stamps, official state paperwork such as income tax and IVA (VAT) returns for businesses, and newspapers. In 2014, faced with the drop in sales from tobacco products, the estancos were licenced to sell other products. These include office materials, soft drinks, spirits, snacks, jewellery, sun glasses, items for the beach in coastal areas, and the largest ones can now send money via Western Union and receive parcels. The majority of estancos are also licenced to sell lottery tickets. The range of magazines that they sell is now very extensive along with books, and this also helps with income. They now sell electronic cigarettes and liquids along with anti-smoking products as they realise that this is an emerging market. If they can get these non-smokers through their doors, sales of other items increase. A spokesperson from the association of estancos in Almería province states that they have had to adapt to modern times, particularly during the p a n d e m i c , oth e r w i s e th ey wo u l d g o b u s t .