• Latest
  • Trending
  • All
  • News
  • Lifestyle

Tobacco wars: Batsa’s market share drops from 48% to 8.7%

27th Aug 2020
What to look for when formulating dairy cow rations

What to look for when formulating dairy cow rations

1st Jul 2022
Leave your comfort zone and make money, says foodie

Leave your comfort zone and start hustling, says foodie

1st Jul 2022
Recipe: Make Makile’s crispy chicken wings

Recipe: Make Makile’s crispy chicken wings

1st Jul 2022
Experts have warned farmers to prepare for another steep fuel price increase this month. Photo: Supplied/Food For Mzansi

Caught in a price spiral: Farmers brace for major losses

1st Jul 2022
Parts of the Western Cape, such as the Central Karoo, are still experiencing drought. Photo: Supplied/Food For Mzansi

Drought-burdened farmers receive R48m. in fodder

1st Jul 2022
Through his company, Iboyana agri farming, Mhlengi Ngcobo is changing the lives of youth and women in his community. Photo:Supplied/Food For Mzansi

Self-taught farmer doing his bit for the greater good

30th Jun 2022
Research has revealed that less than three in 10 farmers in the upper parts of Africa use technology. Photo: Supplied/Food For Mzansi

Technology not a priority for Africa’s smallholder farmers

30th Jun 2022
The Mamahlola Communal Property Association was among the first to be established in 2000, but due to underinvestment, their land soon turned into a symbol of government’s land restoration failure. Photo: Supplied/Food For Mzansi

The poverty-fighting tool that’s not fighting poverty

30th Jun 2022
Langeberg & Ashton Foods provides employment for around 250 permanent and 4 300 seasonal staff. Photo: Supplied

ICYMI: Search for fruit factory buyer continues

30th Jun 2022
Michele Carelse, founder, and CEO of Feelgood Health, Aquaponics horticulturalist, PJ Phiri Gwengo, Dr Didi Claassen, Afrivets executive for technical and marketing support, and Sibusiso Xaba, co-founder and CEO of Africa Cannabis Advisory Group. Photo:Supplied/Food For Mzansi

Podcast: Learn the basics of growing microgreens

29th Jun 2022
John Deere Launches Africa’s Largest Capacity Combine. Photo:Supplied/Food For Mzansi

Get inside Africa’s largest combine harvester

30th Jun 2022
Food scraps and yard waste together currently make up more than 30% of what we throw away, and could be composted instead. Babalwa Mpayipheli uses the technique of bokashi composting. Photo: Supplird/Health For Mzansi

How to make compost with kitchen scraps

29th Jun 2022
  • Home
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
11 GLOBAL MEDIA AWARDS
Sat, Jul 2, 2022
Food For Mzansi
  • Home
  • News
  • Changemakers
    • All
    • AgriCareers
    • Entrepreneurs
    • Farmers
    • Groundbreakers
    • Innovators
    • Inspiration
    • It Takes a Village
    • Mentors
    • Movers and Shakers
    • Partnerships
    Through his company, Iboyana agri farming, Mhlengi Ngcobo is changing the lives of youth and women in his community. Photo:Supplied/Food For Mzansi

    Self-taught farmer doing his bit for the greater good

    Reggie Kambule from Villiers in the Free State runs a 185 hectare farm where he breeds livestock and cultivates maize. Photo:Supplied/Food For Mzansi

    Engineer-turned farmer takes pride in good results

    Agripreneur 101: Sweet success for jam producer

    Agripreneur 101: Sweet success for jam producer

    Real Housewife turns passion for wine into a business

    Real Housewife turns passion for wine into a business

    David Mthombeni is building an agriculture empire for his family.Photo: Supplied/Food For Mzansi

    Farmer gets his hands dirty while building family empire

    Gauteng farmers give youth a leg-up in agriculture

    Women in farming give youth a leg up in agriculture

    Watch out, these young farmers are on fire!

    Watch out, these young farmers are on fire!

    Unati Speirs has vast experience in agri-business strategy and business funding and was recently appointed as a new board director for Hortgro. Photos: Supplied/Food For Mzansi

    Youngest Hortgro hotshot takes transformation to heart

    Prof Kennedy Mnisi a dedicated young man who wants to help livestock farmers with animal health education to prevent diseases. Picture. Supplied/ Food For Mzansi.

    Animal scientist works hard to earn top dog status

  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
Food For Mzansi

Tobacco wars: Batsa’s market share drops from 48% to 8.7%

by Noluthando Ngcakani
27th Aug 2020
in News
Reading Time: 3 mins read
A A

Radical changes are needed on the road towards recovery for Mzansi's tobacco industry. Photo: Unsplash

The road towards normalcy following the lift on the tobacco sales ban will be a long and gruelling process, warns British American Tobacco South Africa (Batsa). This as the industry juggernaut and SARS struggle to come to terms with a R4.8 billion loss in excise tax following a nearly five-month ban on cigarette sales.

Batsa has vowed to remain steadfast in their legal action against government despite the scaling down of alert levels under the national lockdown.

In March, pres. Cyril Ramaphosa first announced the sales ban. The industry did not take this decision lightly and it was met with continued opposition from both Batsa and the Fair-Trade Tobacco Association (Fita). A verdict is still anticipated following two days of heated court debate early this month.

ADVERTISEMENT
Batsa’s head of external affairs, Johnny Moloto. Photo: Batsa

“Legal clarity is needed. For the time being, we can resume our business in South Africa, supporting thousands of jobs in our value chain, whilst combatting the grip of illegal cigarettes in the marketplace,” said Batsa’s head of external affairs, Johnny Moloto.

Recovery at this point is volatile, Batsa added. The industry, like many others, was not immune to the effects of the global pandemic.

To cover the extent of losses incurred following a five-month hiatus, Batsa called on government to urgently ratify the World Health Organization illicit trade protocol to eradicate the rampant trade of illegal cigarettes.

Seven years ago, South Africa signed the comprehensive international rules but never ratified it. Batsa has called for the implementation of the WHO’s track and trace guideline to mitigate the losses experienced under higher alert levels.

Amid the ban a study conducted by the Research Unit on the Economics Excisable Products (REEP) showed that smokers had turned to the illicit market for a fix. Tracking consumer behaviour patterns under the helm of University of Cape Town professor Corné van Walbeek, the study showed that among losses incurred, Batsa’s market share dropped from 48% prior to the lockdown to 8.7% in June.

The Zimbabwean cigarette brand RG, from Gold Leaf Tobacco Corporation (GLTC), exploded in sales over the course of South Africa’s covid-19 lockdown. Photo: Supplied

Batsa, who once stood tall as the biggest distributer of tobacco in the country, also owned six of the top ten selling brands in South Africa, including Lucky Strike, but today it has none. The Zimbabwean brand RG, from Gold Leaf Tobacco Corporation (GLTC), exploded in sales over the course of the lockdown.

Moloto warned that an increase in excise on tobacco will only exacerbate the control illegal producers have over the market.  “The ban on legal sales has been the greatest gift ever given to tobacco smuggling criminals.  Increasing the rate of excise, that they don’t pay anyway, would be the cherry on top.”

“Tax is only paid by people and companies who obey the law. South Africa now has a tobacco market that is controlled by people who don’t obey the law,” he cautioned.

According to van Walbeek, Batsa had suffered the biggest knock as a result of the tobacco sales ban. The tobacco company has also confirmed independent research allegedly indicates that brands associated with Fita were at the for of the cigarette market amid the sales ban. Moloto said in contrast with Fita members Batsa had a reason to be unhappy about the sales ban.

ADVERTISEMENT

“Our company has not shipped a single cigarette to South African retail or wholesale customers since the ban came into effect in March.  This is why we, as the previously largest tobacco company in the country, are barely a footnote in the REEP reports now,” said Moloto.

Fita chairperson, Sinenhlanhla Mnguni. Photo: Supplied

He added that Batsa remains committed to cooperating with SARS to root out the rampancy of the illicit trade to ensure a speedy return to the legal and tax-compliant trade in tobacco. “We co-operate fully with SARS and have SARS officials in our facility in Heidelberg on a daily basis controlling and monitoring production and export shipments.”

Meanwhile Fita chair Sinenhlanhla Mnguni rubbished the presumption that its members have benefited in any way from the tobacco sales ban. “We are used to this, but it is nonsense. It is hot air really.”

Fita remains steadfast in their legal action against government and has lodged its application to appeal the decision by the Gauteng High Court in the Supreme Court of Appeal in Bloemfontein.

Tags: BatsaFitaGauteng High CourtJohnny MolotoSinenhlanhla MnguniSupreme Court of Appeal
Previous Post

AgriSETA Learner Connect: Meet an agricultural extension officer

Next Post

Three things happening in SA agriculture today, 25 August 2020

Noluthando Ngcakani

Noluthando Ngcakani

With roots in the Northern Cape, this Kimberley Diamond has had a passion for telling human interest stories since she could speak her first words. A foodie by heart, she began her journalistic career as an intern at the SABC where she discovered her love for telling agricultural, community and nature related stories. Not a stranger to a challenge Ngcakani will go above and beyond to tell your truth.

Related Posts

HuntEx, the biggest hunting and firearm show on the continent, will go ahead as scheduled from 10 to 13 June 2021. Photo: Supplied/Food For Mzansi

HuntEx: Court gives green light for hunting, firearm expo

by Sinesipho Tom
26th May 2021
0

After considerable pushback from the police, Africa's biggest hunting and firearm show, HuntEx 2021, will go ahead as scheduled next...

Mzansi farmers Nomthunzi Boyce, Mandisi Nofumba and Zandile Mfingwana with the Eastern Cape Development Corporation head of trade, investment and innovation, Thabo Shenxane, and Ilyaas Ally, Al Mawashi’s commercial and operations director. Photo: Supplied/Food For Mzansi

These farmers won 6 export battles against the NSPCA

by Noluthando Ngcakani
23rd Mar 2021
0

The war in the abolition of live animal exports is far from over, says the executive director of the NSPCA,...

Batsa vs. Fita: Controversy over dirty cigarettes deepens

by Noluthando Ngcakani
12th Mar 2021
0

British American Tobacco South Africa has singled out cigarette brands represented by the Fair Trade Independent Tobacco Association and the...

Government's decision to ban the sale of tobacco products has come under renewed fire. Not only did the ban cost the country millions in excise taxes, it has allowed the illicit trade to run rampant, says British American Tobacco. Photo: Supplied/Food For Mzansi

BATSA accused of terrorist funding, ciggie smuggling

by Noluthando Ngcakani
2nd Mar 2021
0

The Fair Trade Independent Tobacco Association says it is "unsurprised" by BATSA’s deflection following its implication in an alleged organised...

Next Post
Pictured from left is Thoko Didiza, minister of agriculture, land reform and rural development, Nkosi Zwelivelile Mandela, chairperson of the portfolio committee on agriculture, land and rural development, (top right) Joyene Isaacs, chairperson of the Agricultural Research Council and (bottom right) Dr Boitshoko Ntshabele, new interim chairperson of Onderstepoort Biological Products. Photo: Supplied.

Three things happening in SA agriculture today, 25 August 2020

Experts have warned farmers to prepare for another steep fuel price increase this month. Photo: Supplied/Food For Mzansi
News

Caught in a price spiral: Farmers brace for major losses

by Tiisetso Manoko
1st Jul 2022
0

Farmers are bracing themselves for yet another steep fuel price increase in July, with data showing that consumers could face...

Read more
Parts of the Western Cape, such as the Central Karoo, are still experiencing drought. Photo: Supplied/Food For Mzansi

Drought-burdened farmers receive R48m. in fodder

1st Jul 2022
Through his company, Iboyana agri farming, Mhlengi Ngcobo is changing the lives of youth and women in his community. Photo:Supplied/Food For Mzansi

Self-taught farmer doing his bit for the greater good

30th Jun 2022
Research has revealed that less than three in 10 farmers in the upper parts of Africa use technology. Photo: Supplied/Food For Mzansi

Technology not a priority for Africa’s smallholder farmers

30th Jun 2022
The Mamahlola Communal Property Association was among the first to be established in 2000, but due to underinvestment, their land soon turned into a symbol of government’s land restoration failure. Photo: Supplied/Food For Mzansi

The poverty-fighting tool that’s not fighting poverty

30th Jun 2022

Drought-burdened farmers receive R48m. in fodder

How to make compost with kitchen scraps

Caught in a price spiral: Farmers brace for major losses

Tiny nanotech will have a huge impact on agriculture

The poverty-fighting tool that’s not fighting poverty

Fresh produce markets ‘at tipping point’

THE NEW FACE OF SOUTH AFRICAN AGRICULTURE

With 11 global awards in the first three years of its existence, Food For Mzansi is much more than an agriculture publication. It is a movement, unashamedly saluting the unsung heroes of South African agriculture. We believe in the power of agriculture to promote nation building and social cohesion by telling stories that are often overlooked by broader society.

What to look for when formulating dairy cow rations

Leave your comfort zone and start hustling, says foodie

Recipe: Make Makile’s crispy chicken wings

Caught in a price spiral: Farmers brace for major losses

Drought-burdened farmers receive R48m. in fodder

Self-taught farmer doing his bit for the greater good

  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Contact us
Office: +27 21 879 1824
WhatsApp line: +27 81 889 9032
Marketing: +27 71 147 0388
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

No Result
View All Result
  • Home
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought

Copyright © 2021 Food for Mzansi

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Go to mobile version