Streaming issues? Report here
CapeTalk logo 2017 1500 x 1500 CapeTalk logo 2017 1500 x 1500
Best of CapeTalk
22:00 - 00:00
volume_up
volume_mute

Up Next: Early Breakfast with Africa Melane
See full line-up
Best of CapeTalk
22:00 - 00:00

'Traditional cigarette brands drop from 75% share to under 20% during lockdown'

10 August 2020 9:10 AM

Local brands have increased not only market share, but also the unit costs, by way more than the average 250%, says Reep survey.

The sale of cigarettes was banned in South Africa under lockdown regulations under the Disaster Management Act to help mitigate the impact of the Covid-19 pandemic, according to government.

UCT’s Research Unit on the Economics of Excisable Products (Reep) is conducting a third survey among smokers in lockdown.

Reep conducted its first survey at the beginning of April and the second one in the first weeks of June.

Reep's second survey indicated the cigarette ban had not had the desired impact on behaviour that the policy set out to achieve - and people continued to smoke.

RELATED: New Reep study shows purpose of tobacco ban is being defeated - Yusuf Abramjee

This new survey focuses on what brands people are smoking in South Africa since the ban on cigarettes since the end of March.

Refilwe Moloto talks to Reep's Professor Corné van Walbeek about the survey findings.

We have asked people what brands they are smoking. We have a suspicion they are typically non-traditional brands.

Professor Corné van Walbeek, Director - Reep

Traditional brands are those produced by British American Tabacco (BAT), Japan Tabacco and Phillip Morris, he explains.

The non-traditional brands are the local brands that are being produced by local producers within South Africa.

Professor Corné van Walbeek, Director - Reep

He says the second survey Reep conducted indicated a significant shift in the market share of the two different groups of companies.

Before lockdown, the multinationals, the traditional brands had more than 75% market share of our survey respondents, and during lockdown particularly by June, their market share had decreased to less than 20% - which means some other brands have taken up the slack.

Professor Corné van Walbeek, Director - Reep

Even before lockdown, there was a price differential between the multinational brands and local ones with the latter being cheaper.

Prices during lockdown have skyrocketed by on average, 250%, he adds.

The price increases of the local brands have been significantly higher than 250% because the base was low...so the local companies seem to be making a killing during the lockdown period.

Professor Corné van Walbeek, Director - Reep

Local brands have increased not only market share, but also the unit costs.

Listen to the interview below:


10 August 2020 9:10 AM

More from Covid-19 coronavirus explained

Coronavirus Covid-19 South African flag 123rf

SA drops to 10th place as Covid-19 infections surge in Spain and Argentina

25 September 2020 12:10 PM

At its peak, South Africa ranked 5th in the world. The country ranks 13th by the total number of deaths.

Share this:
Read More arrow_forward

Woman saving money piggy bank mask 123rf 123rfbusiness 123rflifestyle

Money lessons Covid-19 taught – heed them for a brighter, wealthier future

25 September 2020 10:44 AM

Your financial future – even if you have to start over – could be brighter than it would’ve been without the pandemic.

Share this:
Read More arrow_forward

consumer-goods-groceries-shopping-slip-receipt-price-food-inflation-123rf

'Wholesale food prices are coming down. Retailers still charge lockdown prices'

23 September 2020 3:29 PM

"Retailers were quick to hike prices but slow to lower them,” says the Competition Commission. "There’s a history of this."

Share this:
Read More arrow_forward

rands

Covid-19 resurgence in Europe smashes South African rand off its pedestal

21 September 2020 6:50 PM

The rand was just recently trading at a six-month high. Arabile Gumede interviews Bianca Botes (Peregrine Treasury Solutions).

Share this:
Read More arrow_forward

Syringe vaccine needle

'A few rich countries have hogged most supplies of future Covid-19 vaccines'

17 September 2020 3:27 PM

Wealthy nations representing 13% of the world’s population already bought 2.7 billion yet-to-be-made vaccines, says Oxfam.

Share this:
Read More arrow_forward

Cape Town CBD city centre downtown 123rf 123rfbusiness 123rflifestyle

Cape Town CBD skyscrapers: 'We’ll see more of them converted into flats'

15 September 2020 3:13 PM

Cape Town's swanky city centre may soon have far more people living in it, says David Seinker, CEO at The Business Exchange.

Share this:
Read More arrow_forward

200717-facemasks-usjpg

'We're not out of the woods yet' says expert, as Level 1 looks likely for SA

15 September 2020 12:33 PM

Dr Jody Boffa says while the decline in Covid-19 cases is positive, it's important to remember that the rules still apply.

Share this:
Read More arrow_forward

Cape Town International Airport-flight-passengers-travel-airline-tourism-123fjpg

Open South Africa’s borders, please! - once-prospering tourism industry

14 September 2020 7:00 PM

Bruce Whitfield interviews tourism consultant Gillian Saunders, a previous advisor to former Tourism Minister Derek Hanekom.

Share this:
Read More arrow_forward

covid-19 coronavirus economy 123rfbusiness 123rflifestyle 123rf recession

Does Govt have a plan to fix our lockdown-smashed, drowning-in-debt country?

14 September 2020 6:25 PM

The Money Show’s Bruce Whitfield interviews Duma Gqubule, founder at the Centre for Economic Development and Transformation.

Share this:
Read More arrow_forward

Restaurant reopen reopening 123rf 123rfbusiness 123rflifestyle

First Thursdays: 'It's back! Come to town - the weather is clearing'

3 September 2020 3:24 PM

"People are tired of staying at home! They want to come out and have fun," says the clearly excited Tasso Evangelinos (CCID).

Share this:
Read More arrow_forward