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“We have to suspend contracts with retailers” – New regulations to be launched from January 1

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Natia Taktakishvili
17.11.20 13:30
633
In order to prevent tobacco consumption, another regulation will come into force in the country on January 1, 2021. Namely, according to the amendments to the Law on Tobacco Control, tobacco products and accessories will no longer be sold clearly visible inside the store or shop window.

The tobacco industry says the changes will hit hard the retail sector, as the industry pays contractors a certain amount of money to put their product in a prominent place.

JTI corporate director Iva Khasia explains that once the regulation goes into effect, companies will have to reconsider their contracts with stores, which means that the stores will lose the amount that the tobacco companies pay them.
Both the tobacco industry and the retail sector are urging the government to postpone regulation amid pandemic.

"Our recommendation would be to postpone this regulatory norm due to the difficult economic condition. If it is not postponed, unfortunately, we will have to review contracts, cancel contracts and withdraw additional funds directly from the economy. As the legislation comes into force, these shelves will be closed and consequently, the interest to pay for the product to be placed in a good place will automatically disappear," Iva Khasia said.