DP has pointed out to me that British American Tobacco have launched a discounted brand “Just Smokes” just before the plain packaging legislation comes into operation. The brand name has a generic sound to it consistent with the future market environment. It might be expected that the other 3 large cigarette manufacturers in Australia will follow suit. The discounting is substantial – about 30% – with BAT claiming that it is to offset the surge in illegal sales identified in the factoid -rich report of Deloittes. More plausibly it represents an understanding that smokes in Australia will become a commodity with the new legislation – of course a 30% cut in prices should be matched by a 30% increase in the cigarette excise. The legal carcinogen suppliers must understand that the policy objective is to cut smoking and that attempts to thwart this by discounting will be strenuously resisted.