Industry Analysis & Industry Trends
The Tobacco Product Wholesaling industry is in decline due to falling consumption, increasing regulation, declining enterprise and establishment numbers, and a persistent decline in industry revenue. Smoking rates are falling in Australia due to rising public concern about the health risks of smoking, rising prices and anti-smoking campaigns designed to reduce the appeal of tobacco products. Increasing legislation prohibiting the consumption of tobacco products in public places, retail display bans, the introduction of plain packaging and rising excise taxes are factors plaguing the entire tobacco industry including wholesalers. It is expected that these factors combined will cause a 4.0%... purchase to read more
Industry Report - Industry Investment Chapter
IBISWorld estimates that the capital intensity of the Australian Tobacco Product Wholesaling industry is medium, with a capital to labour ratio of 1:3.66. This means that for every dollar invested in equipment and warehousing approximately $3.66 is spent on labour. Depreciation has been used as a proxy for capital. With computerisation and larger operations, it is estimated that capital costs have increased. An example of this is the introduction by Imperial Tobacco Australia of its Imperial Saleslink system. This system advises retailers when to commence ordering brands and which brands have been divested from Rothmans. There is a relatively high need for other equipment such as forklifts and delivery vehicles, as well as warehousing... purchase to read more