BIG INTERVIEW
PATRICK GANGULY
27 JUNE 2025 ASIAN TRADER 17
for example, that smoking incidence is
reducing, but nicotine consumption has
remained absolutely steady in Australia
over the last five to 10 years, because
people are moving to vapes and vaping.
And vaping, except for pharmacy, is
illegal.”
Ban smoking and people will begin to
vape; ban vaping and turn law-abiding
citizens into criminals.
“But that’s where the consumer
evolution is,” replies Patrick, “which
gives rise to this illicit market, and I see a
lot of that being played out in the UK. And
it’s a bit like a movie. Once there is a plot
that comes into play, you have good actors
and bad actors; and there are good
retailers that are focusing on doing the
right thing, but we must understand that
the retailers are also trying to support
their livelihood, and if a retailer is in the
same area as a bad actor, then who’s
getting rewarded and who’s getting
punished?”
A thriving illicit market is an existential
mately means a different future. The big
question would be, how would you
actually implement it at store level?
“We must remember that this ‘Genera
tional Ban’ only applies to retail sales in UK
shops. It will not apply in the duty free
environment, it will not apply in other
countries where consumers may make
tobacco purchases and bring these
purchases back to the UK ... and, of course,
no rules apply to the black market where
illegal sellers will certainly not be seeking
age verification.
In other words, another great route for
illicit product and sales.
“And if we feed fuel into this fire, it will
continue to grow,” he adds. ““You have an
age limit of 21 in a number of European
countries. And let’s not forget, the first
country that planned a generational ban
did step back from it.”
So disposable
But before the generational ban, which is
in the Tobacco and Vapes Bill scheduled to
come into force on January 1, 2027, there is
the more immediate prospect of restric
tions on vapes, which took effect this
month, and which might well give the
country foresight of the social and legal
consequences lurking in the later legisla
tion.
I ask Patrick what he thinks about the
disposables ban, but also whether the new
laws are well thought through, and can be
upheld by the authorities with the
resources currently allocated to enforce
ment agencies – and of course what the
implications are for the burgeoning illicit
trade.
“Well, the Government has
put forward legislation that
bans disposable vapes and
has given a fair amount of
time for that to come into
play. From our point of
view, we have been
working with retailers to
educate them on what
that
actually means on the ground,” he says.
“What does that transition look like?
How much stock do you have of disposable
vapes? How to transition into the new
vapes and continue to educate and service
the consumer? One of the big feedbacks
that we get from the retail community is
that’s all good,” says Patrick, although I can
feel a “but” coming.
He continues: “There are certain
components in proposed regulation that
we support, for example retailer licensing,
which is quite important. We support
restricting flavours to proper adult
flavours, rather than names such as candy
floss and gummy bears, because we make
our products for adult consumers. But back
to your point, responsible regulations
must be backed with solid enforcement.
Because ultimately, if we don’t save our
stores, who will?
“And that’s where I see a failed strategy:
regulation is only as strong as its enforce
ment,” says Patrick. “Good regulations
need to have strong enforcement to back
them up, which protects the retailers,
rewards them for doing the right things.
And punishes people that are not doing
those things.”
He has put his finger on the problem
without needing (as I usually do) to bang
the table. It’s a question of enforce
ment, and also one of compliance on
the part of consumers. I ask Patrick
how it was in Australia, which early
on saw some of the severest, even
punitive, anti-tobacco legislation
in the world (leave the bar to
smoke, but you may not take your
drink with you; no smoking on the
beach, or pretty much anywhere,
outside as well as inside).
What has all that draconian
legislation done for
compliance with the law?
“I come from Australia,”
he stresses. “If you see the
sit
uation there,
you will see
that it’s out
of control.
The Govern
ment claims,
threat to many convenience retailers, who
rely on nicotine products not just for a big
proportion of their revenue, but also to
drive footfall for other categories in-store.
But it is not just retailers who lose out to
the black market.
“Ultimately, who’s suffering?” Patrick
asks. “The Government is [also] suffering
because we have proven, in many ways,
shapes and forms, that the Government is
not making the necessary revenues that it
once used to, from tobacco. I strongly feel
that the Government needs to enforce
these regulations so that we don’t lose
control.”
If it sells, tax it
If you pass a law you have a responsibility
to uphold it, or only “bad actors” will
benefit. I mention incentives, which
seem to lie at the root of almost all
human behaviour. Presently, punish
ments for illicit vapes and tobacco are
very lenient and the enforcement is very
sparse, such that the risk bears no
relation to the reward illicit activity
brings. With something like one Trading
Standards officer per 100,000 of the
population, it’s not even close, with
illicit and forged vapes and cigs being
sold out the back of every different kind
of shop and vehicle.
Regulations must be backed with
solid enforcement. Because
ultimately, if we don’t save our
stores, who will?