TRUE OR FALSE. Tobacco: income tripled, public aid… are tobacconists really benefiting from the increase in prices?

Despite the rise in tobacco prices, are tobacconists still having happy days? This is what a report from the Alliance Against Tobacco (ACT) states, relayed by France Inter on Thursday September 3. In 2023, according to the document, the sale of cigarettes and rolling tobacco brought in 2 billion euros for tobacconists, or nearly 90,000 euros per point of sale.

Earnings multiplied by 3 in 16 years

While prices have continued to increase in recent years, in accordance with government policy to combat smoking, tobacco sellers regularly express “their anger” and their distress. Faced with a growing number of smokers who prefer to obtain their supplies in border countries where prices are more attractive, they speak of an activity threatened by cross-border purchases and the black market.

However, according to the ACT, profits from sales of tobacco products have tripled in 16 years, going from 30,000 euros per tobacconist in 2007 to 90,000 euros in 2023. Profits largely due, according to the association, the increase in tobacco taxes: with each increase in prices, the percentage received by tobacconists from each package also increases.

Generous public aid

The ACT also points to the public aid provided by the State to, in theory, compensate for the drop in sales due to rising prices: it amounts to more than 4 billion euros in 20 years. Boosts already deemed “excessive”, “poorly targeted” and “insufficiently controlled” in several reports from the Court of Auditors.

A weak shift towards the cross-border market

According to a note from the French Observatory on Drugs and Addictive Tendencies (OFDT) in May, there has been no phenomenon of smokers fleeing in recent years: 4 out of 5 buyers still get their supplies from an office tobacco. No massive transfer to the black market, therefore, nor to points of sale in neighboring countries, despite successive price increases. However, there are geographical disparities, with border departments being more affected.

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Income supported by other activities

The report nevertheless highlights that the sale of tobacco products only represents 45% of tobacconists’ turnover. The latter have actually had to diversify their activities in recent years in response to the decline in sales: gambling, snacking, press, telephony, banking services, administrative procedures, etc.

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An “amalgam” for tobacconists

For his part, the president of the Confederation of tobacconists denounces an incriminating report warning against an “amalgamation”. “I believe it is dangerous to conflate money, revenue, public aid and prevention,” deplores Philippe Coy to France Inter, however not denying the ACT figures. “The subject that must bring us together and make us work together is prevention,” he concludes.