Canadian Convenience Stores Association Youth Contraband Tobacco Study, 2008 September 14, 2008 Canadian Convenience Stores Association 466 Speers Road, Suite 217 Oakville ON Canada L6K 3W9 Phone - (905) 845-9152 Fax - (905) 849-9947 Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. Objectives Methodology Data Analysis Sample Size and Tolerances Conclusions Context for the Study Cigarette Butt Study - Key Findings Share of Illegal Tobacco Products by Province Share of Illegal Tobacco Products by Municipality/City/Area (Ontario) 2 1. Objectives To understand whether the youth segment is smoking un-taxed cigarettes and to what extent. • Analyze prevalence of contraband tobacco products at 75 high schools in Quebec and 80 high schools in Ontario. • Definition of “illegal” (in terms of the baseline study) – Duty Not Paid – Appropriate government taxes and duty not paid. – Counterfeit and suspected international brands were classified under “illegal” tobacco products. – “Illegal” butts are those without branding, foreign or untaxed (native) brands. 3 2. Methodology Anonymous collection of cigarette butts • Anonymously collect cigarette butts at previously identified (observed) smoking locations on public lands around high schools. • The targets in this study were 75 high schools in Quebec and 80 high schools in Ontario. • The selection of sites was based on geographic location and sociodemographic profiles of communities. • The data gathering phase was implemented between April 16th and June 5th, 2008. • The results are based on a count of legal, illegal and unknown butts. 4 3. Data analysis Cigarette butts were sorted into “legal”, “Illegal” and “Unknown” clusters. Definitions: Legal: Cigarette butts with identifiable brand names of tax paid cigarette brands Illegal: Cigarette butts without branding, foreign or untaxed (native) brands. Unknown: Cigarette butts without identifiable markings to be classified as “Legal” or “Illegal”. 5 4a. Confidence level and margin or error The data has been tested for significance at the 95% confidence level with a 0.8% margin of error for the broad sample base. • As margins of error for various sub-samples will vary based on sample size and proportion of the obtained result, a selection of sampling tolerances is presented in the following table. • The data is based on Marketing Research and Intelligence Association (MRIA) Standards. sample size (N) margin of error (fraction) margin of error (percentage) 100 0.100 10.0 200 0.071 7.1 500 0.045 4.5 1000 0.032 3.2 2000 0.022 2.2 5000 0.014 1.4 10000 0.012 1.2 15000 0.011 1.1 20000 0.008 0.8 6 4b. Sample Size and Tolerances The margin of error calculation is based on the population of the age group 15-19 years in Ontario and Quebec. As per Statistics Canada data*, the population of the age group 15-19 in Ontario and Quebec is as follows: Ontario: 833,115 Quebec: 475,005 Count of cigarette butts Total Legal Illegal Unknown Total (Legal/Illegal) Ontario 11,489 7614 2713 1,162 10,327 Quebec 14,721 7790 4381 2,550 12,171 Total 26,210 15404 7094 3,712 22,498 Results based on Ontario and Quebec Sample (n= 22,498) Results based on Ontario Sample (n= 10,327) Results based on Quebec Sample (n= 12,171) * Statistics Canada- 2006 Community Profiles +/+/+/- 0.85% 1.27% 1.14% 7 4c. Sample Size in Ontario Results based on Ontario Sample (n= 10,327) Municipality/Area Regional Municipality of Durham Oshawa Pickering Whitby Ajax Regional Municipality of Halton Burlington Oakville Milton Regional Municipality of Peel Brampton Mississauga Regional Municipality of York Aurora Markham Newmarket Richmond Hill Vaughan Regional Municipality of Toronto Toronto York North York East York Etobicoke Scarborough Other areas Hamilton Windsor Brantford Cornwall Ottawa TOTAL ONTARIO Sites 2007 Sites 2008 Samples 2008 8 2 2 2 2 6 2 2 2 6 3 3 10 2 2 2 2 2 20 8 2 2 2 2 6 2 2 2 6 3 3 10 2 2 2 2 2 20 5 3 3 3 3 3 5 3 3 3 3 3 5 5 30 5 5 5 5 10 1138 284 268 286 304 856 312 252 292 906 513 393 1244 228 274 254 238 250 2658 630 441 423 348 393 423 3521 735 450 427 480 1429 55 80 10,327 8 4d. Sample Size in Quebec Results based on Quebec sample (n= 12,171) Municipality/Area Greater Montreal Area Anjou Greenfield Park Longueuil Montreal Rosemont Côte-Des-Neiges Duvernay Laval-Des-Rapides Sainte-Rose Pierrefonds St-Michel Jean-Talon Verdun Westmount Dorval Lachine Notre-Dame-De-Grâce Pointe-Claire Snowdon Sites (2007) 35 1 2 1 5 1 1 1 1 1 2 1 1 2 2 2 1 4 4 2 Sites (2008) 35 1 2 1 5 1 1 1 1 1 2 1 1 2 2 2 1 4 4 2 Sample size (2008) 6506 234 362 196 698 312 186 122 312 192 398 219 313 310 417 341 218 624 585 467 Municipality/Area Other areas Quebec city and areas Shannon Trois-Rivières Hull Chateauguay Sherbrooke Chicoutimi Jonquière Alma TOTAL Sites (2007) 15 15 1 50 Sites (2008) 40 15 1 5 5 4 5 2 2 1 75 Sample size (2008) 5665 1834 149 716 726 511 686 586 281 176 12,171 Note: Montreal data available September 23; Other regional Quebec data to be released September 24-30 9 5. Conclusions • Significant presence of “illegal” tobacco in Quebec and Ontario: Use of untaxed (“illegal”) tobacco products continues to be significant among youth segments in Ontario and Quebec. 31% of the 22,498 cigarette butts collected from 155 sites in Quebec and Ontario were found to be “illegal”, an increase of 1% since 2007. • Higher incidence of “illegal” tobacco in Quebec: In Quebec, an estimated 36% of the cigarette butts from 75 sites were found to be “illegal, an increase of 1% since 2007. In Ontario, an estimated 26% of the cigarette butts collected from 80 sites were “illegal”, an increase of 2% since 2007. • Widespread prevalence of contraband across geographic areas Use of untaxed (“illegal”) tobacco products in the youth population is widespread. The survey of 49 new sites in 2008 (in addition to 105 sites from the 2007 sample) confirms that the prevalence of illegal tobacco products is not restricted to larger urban areas. • Unchanged incidence of “illegal” tobacco in areas surveyed in 2007 The incidence of “illegal” butts was unchanged at 30% in total for Ontario and Quebec when comparing 105 sites surveyed in 2007 and 2008. However, incidence of “illegal” butts increased by 2% in Ontario and declined by 1% in Quebec. 10 6. Context for this study Incidence of smoking in the population aged 15-19 years in Ontario and Quebec Information source: Statistics Canada 11 6a. Incidence of under-age smoking in Ontario and Quebec According to a Statistics Canada study (“Smokers, by province and territory , 2005”), 10.3% of individuals in the age group 15-19 years are smokers. The incidence of underage smokers is above the national level in Quebec (12.8%) and below the national level in Ontario (9.0%). All age groups 12 to 14 15 to 19 20 to 34 35 to 44 45 to 64 65 and older % of population aged 12 and older Canada 16.5 1.1 10.3 19.9 21.0 18.7 8.8 Males 18.2 0.5E 10.5 22.7 23.3 19.8 9.7 Females 14.9 1.7E 10.0 17.2 18.6 17.6 8.1 Que. 18.7 2.8E 12.8 21.3 22.8 21.7 10.5 Males 19.8 F 14.5 21.7 24.9 22.5 12.5 Females 17.6 5.1E 11.2 20.9 20.6 20.9 9.1 Ont. 15.7 0.3E 9.0 19.4 20.1 17.8 7.6 Males 17.8 F 8.9 24.1 22.2 19.4 8.2 Females 13.6 0.6E 9.1 14.9 17.8 16.2 7.2 Source: Statistics Canada; Smokers, by province and territory , 2005 12 7. Cigarette Butt Study Key Findings 13 7a. Cigarette Butt classification The share of cigarette butts classified as “legal”, “Illegal” and “Unknown” are listed below. 14% of the cigarette butt samples reviewed were found to be of “unknown” origin. The analysis in this report includes only “legal” and “illegal” cigarette butts to ensure data integrity. n= 26,210 Share Total (n) Total % Legal % Illegal % Unknown % Ontario 11,489 100 66 24 10 Quebec 14,721 100 53 30 17 Total 26,210 100 59 27 14 14 7a. Cigarette Butt classification (continued) • The cigarette butts classified as “unknown” were not included in the analysis. The total count of “legal” and “illegal” cigarette butts, excluding “unknown” butts, is 22,498. • Incidence of illegal tobacco increased by 2% in Quebec and Ontario with an increase of incidence in Quebec (+1%) and increase in Ontario (+2%) when the 49 new sites surveyed in 2008 are included in the total sites surveyed in 2008. n= 22,498 Total (n) Total % Legal % Illegal % Change vs. 2007 (%) Ontario 10,327 100 74 26 +2 Quebec 12,171 100 64 36 +1 Total 22,498 100 69 32 +2 Margin of error calculation Results based on Ontario and Quebec Sample (n= 22,498) Results based on Ontario Sample (n= 10,327) Results based on Quebec Sample (n= 12,171) +/+/+/- 0.85% 1.27% 1.14% 15 7a. Cigarette Butt classification (continued) Including 49 new Sites (2008 vs. 2007) Legal Count of butts (2008) Illegal Total +2% 7614 2713 10327 36% +1% 7790 4381 12171 32% +2% 15404 7094 22498 Count of butts (2008) Illegal 1838 Total 7541 2007 2008 Change % Ontario 24% 26% Quebec 35% Total 30% Excluding 49 new sites (2008 vs. 2007) 2007 2008 Change % Ontario 24% 24% 0% Legal 5703 Quebec 35% 34% -1% 6071 3134 9205 Total 30% 30% 0% 11774 4972 16746 Margin of error calculation Results based on Ontario and Quebec Sample (n= 22,498) Results based on Ontario Sample (n= 10,327) Results based on Quebec Sample (n= 12,171) +/+/+/- 0.85% 1.27% 1.14% 16 7b. Incidence of illegal cigarette butts in Ontario and Quebec (including new areas1) • 32% of the cigarette butts collected were found to be “illegal”, an increase of 2%. The analysis is based on a count of illegal cigarette butts collected in the surveyed municipalities/areas. • These butts did not meet the criteria to be classified as “legal” as per guidelines provided by CCSA – Presence of tax paid brand identification on the cigarette butt – Lower Ignition Propensity (LIP) test n= 10,253 (2007) n= 22,498 (2008) +1 +2 +2 Incidence of illegal cigarette butts, including new areas1 (%) 1.New areas surveyed in 2008 • Ontario: Windsor, Brantford, Ottawa and Cornwall • Quebec: Hull, Chateauguay, Sherbrooke , Chicoutimi, Jonquière and Alma 17 7c. Incidence of illegal cigarette butts in Ontario and Quebec (excluding new areas1) In areas surveyed in 2007, the combined incidence of “illegal” butts in Ontario and Quebec remained unchanged at 30%. However, the incidence declined (-1%) in Quebec and remained unchanged in Ontario. The analysis is based on the incidence of illegal cigarette butts in the municipalities/areas surveyed in 2007 and 2008, excluding new areas1. -1 0 n= 10,253 (2007) n= 16,746 (2008) 0 Incidence of illegal cigarette butts (%) 1. New areas surveyed in 2008 • Ontario: Windsor, Brantford, Ottawa and Cornwall • Quebec: Hull, Chateauguay, Sherbrooke , Chicoutimi, Jonquière and Alma 18 7d. Share of illegal cigarettes by municipalities/areas in Quebec and Ontario (count) • In 2008, 48 percent of the sites surveyed had over 30% share of “illegal” cigarette butts. • In 2007 survey , 50 percent of the sites surveyed had over 30 % share of “illegal” cigarette butts. • In 2008, 56% percent of the municipalities/areas surveyed had over 30% share of “illegal” cigarette butts. Municipalities/ Areas surveyed n= 22,498 Incidence (count and percentage) of “illegal” cigarette butts in surveyed municipalities/areas in Quebec and Ontario 19 7e. Share of illegal cigarettes by municipalities/areas in Quebec and Ontario (count) In Ontario, 9 of the 25 municipalities/areas surveyed had over 30 percent share of “illegal” cigarette butts. In Quebec, 22 of the 30 municipalities/areas surveyed had over 30 percent share of “illegal” cigarette butts. Municipalities/ Areas surveyed n= 22,498 Incidence (number) of municipalities/areas with over 30 percent share of “illegal” cigarette butts in each province. 20 7f. Share of illegal cigarettes by municipalities/areas in Quebec and Ontario (%) In Ontario, thirty six percent of the twenty five municipalities/areas surveyed had over 30% share of “illegal” cigarette butts. The share is significantly higher in Quebec (73%). Municipalities/ Areas surveyed Incidence (%) of municipalities/areas with over 30 percent share of “illegal” cigarette butts in each province. n= 22,498 21 8. Share of illegal tobacco products in Ontario Durham Halton Peel York Toronto Hamilton Windsor Brantford Cornwall Ottawa 22 8a. Incidence of illegal cigarette butts in the province of Ontario • Incidence of illegal cigarette butts (including new sites added in 2008) increased by 2% to 26%. The new municipalities/areas included in the 2008 study are Windsor, Brantford, Cornwall and Ottawa. The incidence of illegal cigarette butts is 4% higher in the new municipalities/areas surveyed. • Incidence of illegal cigarette butts, excluding the four new municipalities/areas, remained unchanged. +2 Change in incidence of illegal cigarette butts in Ontario, including Windsor, Brantford, Ottawa and Cornwall (%) n= 10,327 0 Change in incidence of illegal cigarette butts in Ontario, excluding Windsor, Brantford, Ottawa and Cornwall (%) n= 7,541 23 8b. Share of illegal tobacco products by municipalities/areas in Ontario Incidences of illegal Tobacco increased in Durham, Peel and Hamilton since Durham, Peel, York, Windsor, Brantford, Cornwall and Kingston have higher share of illegal tobacco vs. the provincial average in Ontario. n= 10,327 Average for province (26%) 24 8c. Share of illegal tobacco products by Municipalities/Areas in Ontario. Incidence of “illegal” tobacco increased in Durham, Peel, York, Etobicoke and Hamilton. The new municipalities/areas (Windsor, Brantford, Cornwall and Ottawa) surveyed have significant incidences of “illegal” tobacco. n= 10,327 Average for province (26%) 25 8d. Share of illegal tobacco products by Municipalities/Area in Ontario. municipalities/areas with lower income adequacy and younger populations tend to have higher share of illegal tobacco. In addition, Durham and areas of Peel lead in growth of contraband tobacco. n= 7,537 Average change for Ontario (+2%) 26 9. Legal vs. Illegal Analysis by Regional Municipalities/Areas in the province of Ontario 27 9a. Regional Municipality of Halton Higher income adequacy combined with relatively lower population of 15-19 year old group influences the lower share of illegal tobacco in Halton. n= 856 -1 0 -1 -1 28 9b. Regional Municipality of Peel Mississauga has the third highest share of “illegal” cigarette butts (43%) in Ontario. n= 906 -1 +2 +3 29 9c. Regional Municipality of Durham Durham ranks third in municipalities with high “illegal” cigarette butts in Ontario. Oshawa and Pickering have relatively high shares of “illegal” cigarette butts- 36% and 40% respectively. n= 1138 +1 +4 +3 +3 +6 30 9d. Regional Municipality of York Newmarket has the highest share of “illegal” cigarette butts among all municipalities/areas in Ontario, followed by Aurora. n= 1244 -3 -2 -1 -1 -2 -1 31 9e. Regional Municipality of Toronto Toronto seems to have a relatively low share of “illegal” cigarette butts. Moreover, the share of “illegal” cigarette butts is consistent across the city. This may be attributed to the prevalence of many mixed income communities in each zone. n= 2658 -2 -2 +2 -2 0 +3 -2 32 9f. Other municipalities/areas The areas surveyed outside the GTA includes Windsor, Brantford, Cornwall and Ottawa. These areas were not surveyed in 2007. The incidence of contraband tobacco increased by 3% in Hamilton vs. 2007. n= 3521 +3 33