Imperial Tobacco The Imperialist 3 | Seite 6

#NGP NGP – THE FUTURE OF THE CONSUMER GOODS MARKET Modern societies are swiftly progressing towards longer and healthier lives by rejecting harmful substances and replacing them with alternatives. W e are living in the age of an extensive transformation of FMCG industries. Common products are disappearing from the markets while shopping preferences are evolving, and health concerns are becoming a key shopping driver. In April 2018, the UK government introduced excise tax on sugar. Similar taxes are proposed for salt, soda water and fats. All these products, as well as traditional cigarettes, contribute to development of cardiovascular disease, #1 cause of death globally. Major manufacturers have accepted the new rules of the game and have implemented new business strategies based on manufacturing healthier products: Nestle (Kit Kat, Maggi, etc.) is going to reduce sugar content by 5 % and salt – by 10 %; Coca-Сola is shifting towards mineral water production. Before long, we will be drinking alcosynth, a synthetic alcohol that will get us tipsy without intoxication and hangover. France is planning to ban the sale of cars with internal combustion engine by 2040. The revolutionary movement in the tobacco industry dates back to earlier time. In addition to more familiar replacements of traditional smoking, such as non- smoking tobacco products (chewing tobacco, snuff) and medical products used in nicotine-replacement therapy (plasters, sprays, tablets, chewing gums, etc.), we now have a large universe of modern devices designed to provide a less hazardous source of satisfaction for smokers. One category of such new generation devices, electronic vapour products, have been recognized by the UK Health Department and other national government bodies to be 95 % less harmful as compared to tradit