British American Tobacco (BAT) Australia said on Thursday it was launching a budget cigarette brand, which prompted the government to accuse the company of targeting teenagers.

According to a story by AFP, BAT Australia has released a brand called Just Smokes, which retails for AUD 11.50 (EUR 8.85) for a pack of 25, much lower than the average price of AUD 16.
BAT, which is spearheading a legal challenge to Australia's plan to introduce mandatory plain packaging for cigarettes, said it was forced into the move to win back market share from illegal tobacco products. It said that since the government hiked tobacco taxes by 25 per cent in 2010, the market had seen massive growth in cheap cigarettes and contraband. Illegal packs are sold for AUD 8-10.
"It's a simple issue of supply and demand. Our customers have been down-trading to cheaper products or to illegal cigarettes, so we've been forced to compete," said BAT spokesman Scott McIntyre.
Health Minister Tanya Plibersek said she was not buying the argument."By dropping their prices British American Tobacco appears to be directly targeting vulnerable teenagers," she said in a statement.
The government and big tobacco companies have been embroiled in a long-running row over new legislation that will see all cigarettes sold in plain packaging with graphic health warnings from 1 December.
Four companies, led by BAT, are contesting the law in the High Court, claiming it infringes their intellectual property rights by banning brands and trademarks. (pi)