Research

Bangladesh tobacco industry tactics for novel product expansion (1)

Part-1

Executive Summary

The young population in Bangladesh has reached a remarkable level. The 15-29 age youth population is currently 27.82% of the total Bangladeshi population as well as 45.9 million (1) . The tobacco industry has long targeted young people through cigarette marketing to replace consumers who quit or die from tobacco use.

Recently, the tobacco industry has targeted Bangladesh as a market for newer nicotine products like electronic cigarettes (e-cigarettes), with a particular focus on making these products attractive to young consumers.

The tobacco industry has targeted Bangladesh as a market for e-cigarettes with a particular focus on young consumers as the young population in the country has reached a remarkable level.

The industry introduced e-cigarettes in Bangladesh just years after they were introduced in the global markets in 2006 (2). There is anecdotal evidence that e-cigarette use among youth is increasing in part due to various promotional tactics used by the tobacco industry. However, the government and concerned authorities do not have updated data about e-cigarettes, including little information about what products are on the market, their import, and the tactics of the industry to introduce these products in Bangladesh.

Against this backdrop, the study was carried out to reveal various unknown information about the presence of e-cigarettes in Bangladesh that will help the government and others in the decision-making process. However, the main focus is to find out the tactics, strategies, plans and activities of leading tobacco companies like British American Tobacco (BAT) and Japan Tobacco International (JTI) about expansion of the e-cigarette market in Bangladesh. The problem regarding e-cigarettes can be solved through taking appropriate initiatives based on complete information about these products, including importation, brands, tobacco companies’ advertising and their attempts to influence policies and laws. The study was also carried out to make informed recommendations in favour of stopping e-cigarette use in Bangladesh.

The Prime Minister committed to make Bangladesh tobacco-free by 2040. So, the tobacco industry applies various tactics to establish the e-cigarette as an alternative product. BAT plays a vital role in this regard.

The Prime Minister committed to make Bangladesh a tobacco-free country by 2040 in order to achieve the Sustainable Development Goals and build a healthy nation (3).

Against this backdrop, the tobacco industry (TI) has applied various tactics to establish the novel tobacco product as an alternative to conventional cigarettes and other tobacco products, applying their narrative: ‘Vaping could help achieve Bangladesh’s aim of being tobacco-free by 2040’ (4). With this so-called ‘logic’, the giant tobacco companies, particularly BAT and JTI, are playing a vital role in promoting, importing and marketing the e-cigarette.

During this investigation, a list of those companies that imported e-cigarettes in the last couple of years was collected. The study found that BAT is selling e-cigarettes through third parties without giving money receipts and potentially dodging tax obligations.

BAT sells e-cigarette through third parties without providing money receipts and potentially dodging tax obligations.  

Visits were paid to BAT-run outlets to investigate the matter. During the visit, we bought a product of BAT’s e-cigarette brand ‘VUSE’ from one of the outlets. They did not give us a money receipt. When asked, employees of the outlet and also consumers said that it is a BAT-run outlet and they were instructed by BAT authorities not to give money receipts for e-cigarette products. BAT is likely depriving the government of tax and VAT due to non-payment of money receipts. We have the record as well as evidence of secret investigation (5).

This study also found that BAT is running its e-cigarette business by registering its customers’ details. Those who buy a VUSE branded product for the first time give their names, addresses, e-mail addresses and phone numbers and they are added to a BAT customers’ list in a bid to maintain regular contact. BAT then contacts them with various offers and discounts for first-time users.

The tobacco industry wants to expand the e-cigarette market by normalizing this product. No existing law addresses the e-cigarette issue. This paves the way for the tobacco industry to obtain legitimacy of e-cigarette business through applying various tactics. An example is that the cigarette companies’ global brands are imported legally. Trademark registration is another tactic for legalization. The Ministry of Health and Family Welfare wants to ban e-cigarette in Bangladesh (6). However, e-cigarette traders are working to thwart the move.

No existing law addresses the e-cigarette issue. This paves the way for the tobacco industry to obtain legitimacy of e-cigarette business through applying various tactics. Now various global brands are imported in Bangladesh. BAT, JTI and some other companies have registered trademarks for e-cigarettes.

As a result of the tobacco industry’s tactics to expand e-cigarettes, a number of global brands of vaping product are now available in the Bangladesh market. The tobacco industry uses computer and mobile accessory shops because the vaping product is sold as an electronic device which looks like such products. To expand the product rapidly, BAT and other giant tobacco companies are using smoking zones of various restaurants where youths visit. The study found a number of such restaurants and shops. BAT also developed a number of lounges in many places in Dhaka city.

BAT and other giant tobacco companies use smoking zones in restaurants to attract youths to use e-cigarettes as youths usually visit these places.

BAT, JTI and some other giant tobacco companies have registered the trademark of e-cigarettes to legitimize the product. They are using various tactics to get youth addicted, and they are influencing policymakers to expand the market and prevent a ban on e-cigarettes. They also try to convince policymakers through building public opinion in various ways. For example, this study found a platform backed by e-cigarette traders and importers hosting a ‘Sign the Petition’ campaign demanding e-cigarettes to be allowed in Bangladesh (7) .

If the activities of BAT,  JTI and other giant tobacco companies continue, the goal of making Bangladesh tobacco-free by 2040 won’t be achieved, while the country will potentially face health and economic losses amid a huge increase of vapers. So, e-cigarettes must be stopped immediately.

Based on the findings presented in this report, we recommend that e-cigarettes be banned through an amendment to the tobacco control law. In addition, the authorities concerned should not allow the import of e-cigarettes, and action should be taken against the e-cigarette business of BAT and other companies.

Background

While the e-cigarette is banned in neighboring India and many other countries, its use in Bangladesh increased in the last couple of years. It is becoming popular among the youth (8) due to various tactics and promotional activities of multinational tobacco companies, including BAT and JTI. Many tobacco companies and e-commerce sites (9) are selling various kinds of e-cigarette products across the country, highlighting the so-called ‘positive sides’ of e-cigarette use.

Anti-tobacco activists and experts on public health and tobacco control are concerned about the drastic rise of the novel tobacco product in Bangladesh (10). They are worried about the health risk to the young generation. However, no effective steps have yet been taken to stop its sale, purchase and import. And no step has yet been taken to stop the tactics, influence and promotional activities of the tobacco industry. There is no role for government or non-government organizations in quality control or monitoring the sale and purchase of e-cigarettes, which are not prohibited in Bangladesh. In absence of law and proper monitoring, the tobacco industry has been continuing various tactics to expand the e-cigarette market and increase the number of vapers, and have been able to attract many youths to electronic products.

In the absence of law and proper monitoring, the tobacco industry continues to use various tactics to expand the e-cigarette market in Bangladesh.

In such a situation, it was necessary to carry out an in-depth investigation in order to expose the tactics behind the expansion of the e-cigarette market and to unmask the various tactics by tobacco companies to introduce their e-cigarette products, including the registration of products that are not yet on the market.

The aim of this report is to help stakeholders as well as the authorities concerned to provide a clear idea of the proliferation of e-cigarettes in Bangladesh.

This report is financially supported by the International Union Against Tuberculosis and Lung Disease (The Union) on behalf of STOP, a global tobacco industry watchdog.

Research Methodology

The six-month study was carried out in Dhaka using different methods of investigation, including survey methods, identifying and classifying, descriptive and analytical, as outlined below.

Data were collected in various ways. Various publications and documents collected from government offices and non-government offices, including Dhaka Ahsania Mission (DAM) (11), were reviewed for the purpose of the research, while various data were collected from the field directly. All the issues of ‘THE TRADE MARKS JOURNAL’, published by the Department of Patents, Designs and Trade Marks under the Ministry of Industries, from January 2000 to December 2021 were collected and reviewed in order to get detailed information about trademark registration, marketing and import of e-cigarette. A visit was paid to Chattogram, the port city of Bangladesh, to find out information regarding e-cigarette importation. Visits were also paid to various vaping shops to find out the involvement of leading tobacco companies, including BAT, in expanding the e-cigarette market and to get a general picture of e-cigarette sale in Bangladesh. Visits were paid to different restaurants, coffee shops and specific lounges for e-cigarette users developed by tobacco companies. A survey was conducted on 50 vaping shops of retailers in Dhaka city, various online sites of e-cigarette sales were reviewed, and tobacco related laws and regulations were analyzed.

Strategy 1:
The survey method was used to gather data on the following issues: the e-cigarette brands which are legally imported, the brands that are available in the market, the giant tobacco companies which have registration for importing e-cigarettes and the companies who are involved in the e-cigarette import through using various tactics.

Strategy 2:
Markets in Dhaka city were selected for data collection and survey and visits were paid in different parts of the capital city of Bangladesh. The e-cigarette brands being sold were collected from these markets. 50 shops in Dhaka city were selected to carry out the survey.

Strategy 3:
The identifying and classifying method was applied to identify the tobacco companies promoting e-cigarettes using the media and other ways, including events organized by tobacco companies or by other platforms in collaboration with giant tobacco companies.

Strategy 4:
The descriptive and analytical methods were used to describe and analyze issues including tactics adopted by companies for promotion of e-cigarettes and their legality. Media reports as well as other evidence of promotional activities published in the media were collected, and investigative journalism techniques were applied.

Current Situation

According to an estimate in 2016, the number of e-cigarette users in Bangladesh was about two lakh (12). Officials of the National Tobacco Control Cell (NTCC) estimate that the number has already crossed over hundreds of thousands, a large part of which is underage youth (13). A survey was carried out on 50 shops. Of these, more than 40 started selling e-cigarettes in less than five years or after 2016. Since most e-cigarette shops have opened after 2016, it could be deduced that the number of e-cigarette users in the country has also increase since 2016.

Most e-cigarette shops in Dhaka opened after 2016. So, the number of e-cigarette users in Bangladesh has increased significantly in the last five to six years.

The use of e-cigarettes among the youth is increasing rapidly (14) due to tactics and continuous efforts of BAT and other giant tobacco companies (15). Many non-smokers are also turning to e-cigarettes as a result of the tobacco industry’s misleading tactics and false propaganda. A media report says that many youths in Bangladesh who have never picked up a cigarette are now taking up vaping in record numbers across the country (16). BAT and other giant tobacco companies have many online sites to amplify misleading information. For example, BAT Bangladesh campaigns from its site about ‘harm reduction’ of e-cigarettes (17).

Many non-smokers are turning to e-cigarettes because of the tobacco industry’s misleading tactics and propaganda. Tobacco companies have many online platforms to amplify misleading information.

However, there has not been much research into this as e-cigarette availability is quite new in Bangladesh. The GATS 2017 report discusses e-cigarette use among adults (18). DAM in 2021 carried out a study on e-cigarette use among university students in Dhaka (19). A research article on e-cigarette use prepared by some young researchers was published in the International Journal for Research in Applied Science & Engineering Technology (IJRASET) in 2020 (20). Tobacco Control and Research Cell (TCRC) (21) in 2019 conducted its study on e- cigarettes’ marketing, distribution and availability.

However, there is no specific and complete study on tactics of tobacco industry over e-cigarette expansion. This study aims to provide some of this missing information.

Reference

1. According to the latest census report published by the Bangladesh Bureau of Statistics (BBS) in 2022 (2022 Census: Bangladesh, a country of over 45 million youths, Daily Prothom Alo, 29 July 2022, Link: https://en.prothomalo.com/bangladesh/o9i009reql)

2. Why banning the Sale of E-cigarettes and HTPs in Bangladesh (A publication jointly developed by Bangladesh Anti-Tobacco Alliance (BATA) and Tobacco Control and Research Cell (TCRC) of Dhaka International University following a series of workshops and research studies), p.6

3. https://bdnews24.com/bangladesh/pm-hasina-hopes-to-make-bangladesh-tobacco-free-within-2040

4. Dhaka Tribune, 29 May 2021 (https://archive.dhakatribune.com/feature/2021/05/29/vaping-can-save-millions-of-lives-speakers-say-on-the-occasion-of-world-vape-day)

5. We are 100% sure about the quit big claim. We have the evidence to back this up. We have the voice recording in this regard.

6. https://www.newagebd.net/article/175103/bendsta-calls-for-scrapping-vape-ban-from-draft-tobacco-control-bill

7. https://voiceofvapersbd.com/sign-the-petition/?fbclid=IwAR2BZK1bysolOyqOq0N7N5K2CwRDo5g4NgtFRF43jyzlyPZiXGPMhtzGyIQ

8. The Business Standard, 27 June 2022 (https://www.tbsnews.net/bangladesh/law-being-amended-ban-e-cigarettes-448170)

9. https://www.buyherenow.com.bd is an e-commerce site of e-cigarette, while https://vapestopglobal.com/bd/ and https://www.vapeshopbd.xyz/ are two other sites for sale of e-cigarette products. Many other such sites remain for e-cigarette business in Bangladesh.

10. E-cigar use reaches ‘alarming level’ in Bangladesh, Daily Bangladesh Post, 08 May 2022. (https://bangladeshpost.net/posts/e-cigar-use-reaches-alarming-level-in-bangladesh-85154)

11. Dhaka Ahsania Mission (DAM) is a Dhaka-based leading non-government organization (NGO) established in 1958. Along with some other sectors, DAM also runs activities on health and public health sector, including the tobacco control activities. It carries out several research work on tobacco control. Dhaka Ahsania Mission wins Tobacco Control Award-2018 in Bangladesh.

12. According to the Global Adult Tobacco Survey (GATS) Bangladesh 2017, the rate of smokers over the age of 15 was 35.3%, totaling 37.8 million. The same GATS report says that the e-cigarette users were 0.2%. If 378 lakh or 37.8 million smokers are 35.3%, then 0.2% e-cigarette users will be more than 0.2 million or over two lakh. (http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/57def76a_aa3c_46e3_9f80_53732eb94a83/Preliminary%20Report%20on%20GATS%20Bangladesh%202017.pdf)

13. Vaping rises as youths get addicted, Daily Independent, 28 December 2019,
(https://www.theindependentbd.com/post/229802)

14. Vaping rises as youths get addicted, Ibid

15. We found that BAT is expanding e-cigarette market by adopting various tactics as they are operating many outlets from behind the scene. We have got a list of the outlets. BAT and some other companies have developed lounges for e-cigarette users in various places and collaborated various restaurants for developing smoking zones.

16. Vaping rises as youths get addicted, Daily Independent, 28 December 2019,
(https://www.theindependentbd.com/post/229802)

17. This is the online site of BAT Bangladesh from where the giant tobacco company conducts publicity for e-cigarette- https://www.batbangladesh.com/group/sites/BAT_9T5FQ2.nsf/vwPagesWebLive/DO9T5KLN

18. Global Adult Tobacco Survey (GATS) Bangladesh 2017, Bangladesh Bureau of Statistics, Ministry of Planning, Bangladesh (http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/57def76a_aa3c_46e3_9f80_53732eb94a83/Preliminary%20Report%20on%20GATS%20Bangladesh%202017.pdf)

19. The Business Standard, 5 October 2021 (https://www.tbsnews.net/economy/corporates/ban-e-cigarette-current-tobacco-control-act-needs-be-amended-311638

20. International Journal for Research in Applied Science & Engineering Technology (IJRASET), Volume: 8, Issue: IX, September 2020 (https://www.ijraset.com/fileserve.php?FID=31357)

21. TCRC is an anti-tobacco research body of Dhaka International University (DIU), a leading private university in Bangladesh. The TCRC carries out research work on tobacco control. The TCRC is a Union grantee.

to be continued…

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