Tag: British American Tobacco

  • BAT Hosts Capital Markets Day

    BAT Hosts Capital Markets Day

    Photo: BAT

    BAT hosted a capital markets day for institutional investors and analysts at its Innovation Centre in Southampton, U.K., Oct. 16.

    During the event, CEO Tadeu Marroco and Chief Financial Officer Soraya Benchikh provided further details on the company’s transformation journey. BAT aims to become a predominantly smokeless business by 2035 by providing smokers with access to a wide range of smokeless products.

    According to BAT, the goal of the capital markets day was to demonstrate how the company’s science, innovation, breadth of capabilities and people can combine to achieve a smokeless world and deliver long-term sustainable value for all its stakeholders.

    In an announcement, the company said it remains on track to deliver low-single-digit organic revenue and adjusted profit from operations growth in 2024. It plans to progressively improve its delivery to 3 percent to 5 percent organic revenue growth and mid-single-figure adjusted profit from operations growth on an organic, constant currency basis by 2026.

  • Encouraging Engagement

    Encouraging Engagement

    Image: SolaruS

    Open dialogue is key to fully realizing the beneficial public health impact of tobacco harm reduction.

    By Danni Tower

    Tobacco harm reduction (THR) is one of the greatest public health opportunities available today. By fully embracing this concept, we can significantly reduce the more than 8 million deaths attributed to smoking cigarettes each year. To do this, we need open discussion of and collaboration on evidence-based science, which underpins the development of reduced-risk tobacco and nicotine products and inspires confidence in THR.

    The biannual Cooperation Centre for Scientific Research Relative to Tobacco (CORESTA) Congress plays a major role in progressing the THR agenda globally and enabling change. This October, over 165 member organizations—including companies, research institutes, laboratories, associations and regulatory bodies from around the world—will come together for five days in Edinburgh to showcase and discuss the latest research and findings on this topic, under the theme of “Advancing Tobacco Harm Reduction Through Scientific Collaboration.” By facilitating international dialogue on best practices in scientific research related to tobacco and profiling the research contributions from CORESTA members, we hope to further encourage the transition from combustible tobacco to smoke-free alternatives.

    At BAT, we are proud to be hosting the 2024 event, building on our commitment to building a smokeless world—creating a pathway for hundreds of millions of smokers who would not otherwise quit to transition from combustible tobacco products to smokeless alternatives. As an organization, we have long been dedicated to sharing and debating robust, world-class science exploring the concept of THR. Our extensive research on the topic can be found in our most recent publication, the Omni, a summary of the global THR evidence base created over the past decade and insights into what successful harm reduction policies look like, intended for scientists, public health authorities, regulators, policymakers and investors.

    Nonetheless, while progress is being made in these circles of interested parties, we must widen the net to ensure more governments and regulators increasingly recognize the public health potential of THR. All too often, the industry is excluded from the relevant conferences and conversations around the globe, and our science is dismissed out of hand. To make the THR agenda a meaningful success and save lives, an ongoing inclusive and open dialogue with all stakeholders is required. That includes policymakers, regulators and the healthcare and medical communities—particularly those who are currently misinformed or skeptical about the opportunities presented by smokeless alternatives.

    There are numerous examples of where THR is making a significant difference. Countries with supportive THR policies, such as the U.S., the U.K. and Japan, are currently witnessing their lowest smoking rates on record while Sweden is on track to declare itself smoke-free this year—defined as having less than 5 percent of daily smokers in the population—16 years ahead of the 2040 EU target. These remarkable transformations have been driven by widespread THR acceptance from policymakers, regulators and health officials in these markets, enabling and encouraging smokers to switch to smokeless alternatives such as vapor, oral nicotine pouches, snus and heated-tobacco or herbal products. 

    We will, therefore, continue to advocate for open and inclusive conversations essential to build a smokeless world. Playing our part in progressing awareness and understanding of the science behind THR. Events like CORESTA Congress are an important forum to review and discuss the latest science with specialists in the field.

    Alongside investing in the development of new, innovative lower-risk profile smokeless products, backed by world-class science and high product standards, we are focused on creating the environment to deliver public health benefits of THR across the globe. We look forward to bringing as many people as possible with us on this journey.

  • UK Urged to Tackle Illegal Vapes

    UK Urged to Tackle Illegal Vapes

    Photo: BAT

    The U.K. government should be cracking down on illegal vapes rather than introducing redundant policies on cigarettes, according to BAT Chief Corporate Officer Kingsley Wheaton.

    Wheaton made his comments in the context of the British government’s “generational tobacco ban.” The U.K.’s previous Conservative administration announced plans to create a smoke-free generation by banning the sales of cigarettes in the future to anyone who is currently aged 14 or under. The new Labour government is continuing with the policy and is also concerned about the prevalence of disposable vapes.

    Wheaton cited a BAT analysis showing that by the time the generational ban takes force, smoking rates will have already fallen below 5 percent in that age category.

    BAT is instead pushing for licensing for retailers selling vapes. With proper enforcement, licensing will help reduce the number of underage children getting their hands on e-cigarettes and level the playing field for all companies operating in the industry, according to the multinationals.

    “We need to move on to a more mature dialog with real solutions for the problems that are out there,” Wheaton was quoted as saying by Bloomberg.

  • British American Tobacco Launches ‘Omni’

    British American Tobacco Launches ‘Omni’

    Photo: BAT

    BAT unveiled Omni during the company’s first-ever Transformation Forum in London.

    According to BAT, Omni is an evidence-based, accessible and dynamic resource that shows how science and innovation can combine to achieve a smokeless world.

    “Tobacco harm reduction—encouraging smokers who would otherwise continue to smoke to switch completely to less risky alternatives—is the fastest route to achieving a smokeless world,” said Kingsley Wheaton, BAT’s chief corporate officer, in a statement. “And we’re committed to working with others to make this a reality.

    “While we have history of humans smoking tobacco for more than 8,000 years, innovation has now delivered smokeless products with reduced risks compared to cigarettes. We stand on the threshold of a breakthrough science-backed change.”

    Omni brings together hundreds of independent scientific studies, BAT’s own research into its innovations and examples of tobacco harm reduction in action, such as Sweden, which according to BAT stands on the cusp of becoming the first country to go smokeless as defined by the World Health Organization.

    Omni also looks to answer some of the most challenging questions facing the industry and society, including: What is the risk of using smokeless products compared to smoking?; Are smokeless products a gateway to cigarette smoking?; What is the role of flavors in smokeless products and tobacco harm reduction?; What is nicotine?; and What is BAT doing to address underage access to tobacco and nicotine products?

    “With Omni, BAT is showcasing its world-class research,” said James Murphy, BAT’s director of research and science. “Omni means all, and we are committed to opening it up to all stakeholders in the THR policy discussion so that we can seize this exciting opportunity to build a smokeless world.

  • BAT Announces Management Board Changes

    BAT Announces Management Board Changes

    Photo: adragan

    BAT has announced management board changes. Kingsley Wheaton will be appointed as chief corporate officer, a newly created role. Wheaton’s current role of chief strategy and growth officer will cease to exist.

    As chief corporate officer, Wheaton will have overall responsibility for the strategy and execution of the group’s sustainable future pillar, including:

    • Establishing broad acceptance of BAT’s tobacco harm reduction (THR) agenda, working with BAT’s director of research and science, James Murphy, to ensure the scientific basis for harm reduction and encouraging a fact-based discussion on nicotine among key stakeholders;
    • Shaping the landscape through responsible and transparent dialogue with regulators, policymakers and other relevant stakeholders; and
    • Enhancing BAT’s leadership in sustainability and integrity.

    Paul McCrory, director of corporate and regulatory affairs, will continue to report to Wheaton in this role. Donato Del Vecchio, chief sustainability officer, will also continue to report to Wheaton.

    Luciano Comin, marketing director for combustibles and new categories, will be appointed chief marketing officer, reporting directly to Tadeu Marroco, CEO.

    James Barrett, director of business development, will report to Soraya Benchikh, chief financial officer.

    All changes are effective immediately.

    “We will be taking an important step later today in our journey to encourage THR acceptance with the launch of a compelling science and evidential case for THR in the form of ‘The Omni: Forward Thinking for a Smokeless World,’” said Marroco.

    “I would like to thank Kingsley for all that he has done as chief strategy and growth officer. He has stepped into the role at a critical time for BAT and has helped shape the strategy and establish new functional capabilities. In all of these areas, BAT is now stronger and more robust.”

    “I feel honored to take up this new challenge,” said Wheaton. “As BAT moves forward toward ‘A Better Tomorrow,’ the focus on this area of the strategy will be all-important. I am looking forward to bringing my experience and understanding of both BAT and the external environment and making a real difference.”

  • Organigram Closes Second BAT Tranche

    Organigram Closes Second BAT Tranche

    Photo: krishnadasekm

    Organigram Holdings closed the second of three tranches of a CAD124.56 million ($92.2 million) equity investment by British American Tobacco’s BT DE Investments subsidiary.

    Pursuant to the second tranche closing, the investor acquired 4,429,740 common shares and 8,463,435 Class A preferred shares at a price of CAD3.22 per share for gross proceeds of $30.82 million. The remaining 12,893,175 shares subscribed for are due to be issued at the per share price in the final tranche on or around Feb. 28, 2025.

    “With two tranches of the Jupiter pool now funded, combined with our strong balance sheet and targeted investment strategy, Organigram is well on its way to executing on its ambitious growth plan focusing on international, technological and product expansion,” said Organigram CEP Paolo De Luca in a statement.

    “Our inaugural Jupiter investment in Open Book Extracts marked our second investment in the U.S. market, and our first international investment in Sanity Group represents a significant first step in our ambitions to grow our footprint in the fast-growing German market,” he added.

  • BAT Kenya Sells Pouch Equipment

    BAT Kenya Sells Pouch Equipment

    Photo: BAT

    BAT Kenya is selling the equipment at its oral nicotine pouch factory in Nairobi, reports Business Daily.

    The facility has been idle for nearly five years due to the government’s failure to issue a license for commercialization of the new product.

    The cigarette maker announced the decision on July 25, in a commentary accompanying its financial results for the six months ended June 2024, in which net profit dropped by 24.3 percent to KES2.14 billion ($16.4 million) on lower sales and higher finance costs.

  • BAT Reports Results

    BAT Reports Results

    BAT reported revenue of £12.34 billion ($15.88 billion) for the first half of 2024, down 8.2 percent from the comparable 2023 period. The decline was driven by unfavorable currency exchange rates and the sale of BAT’s businesses in Russia and Belarus following Russia’s invasion of Ukraine.

    Reported revenue from new-category products, which include vapes, heated tobacco and nicotine pouches, declined 0.4 percent to £1.65 billion. Smokeless brands now account for 17.9 percent of BAT’s group revenue, up 1.4. percentage points from fiscal year 2023.

    Profit from operations was £4.26 billion on a reported basis, down 28.3 percent from the first half of 2023. BAT attributed the decline to its December 2023 decision to write down the value of some of its traditional cigarette brands in the United States to reflect the diminishing outlook for combustible tobacco products, along with its exit from Russia and Belarus.

    The company said it’s unlikely to hit its £5 billion revenue target in 2025 for new-category products, blaming fierce competition from illicit vapes in the United States. The U.S. accounted for more than 40 percent of BAT’s revenues in 2023, primarily from traditional tobacco products, according to Reuters.

    Tadeu Marroco

    In a statement, BAT CEO Tadeu Marroco welcomed the U.S. Food and Drug Administration’s recent marketing authorization of its Vuse Alto device and tobacco flavor consumables but expressed concern about the continued lack of enforcement against unauthorized single-use vapes, which makes it difficult for authorized brands to compete in that market.

    Nonetheless, Marroco said BAT is on track to deliver its full-year guidance. “Focusing on ‘quality growth’ is delivering better returns on more targeted investments across all three new categories,” he said. “In H1 2024, we increased organic new-category contribution by £165 million—at constant rates—and I am particularly pleased with the growth of modern oral. We expect to deliver further improvement in revenue and profitability across our new categories for the full year.”

    Photo: BAT
  • BAT Pays Fine in Nigeria

    BAT Pays Fine in Nigeria

    Photo: Confidence

    BAT and several of its affiliates have paid a $110 million fine for violating Nigerian competition laws, reports  Independent.

    Speaking during a media briefing, Adamu Abdullahi, acting executive vice chairman of the Federal Competition and Consumer Protection Commission (FCCPC), said the full $110 million had been paid at the official exchange rate at that time through the Central Bank of Nigeria.

    “The federal government received 40 percent of the amount while 60 percent went to the FCCPC,” Abdullahi was quoted as saying.

    He described the case as watertight, adding that the FCCPC conducted thorough investigations on the tobacco company.

    Abdullahi further revealed that the FCCPC is currently monitoring the activities of another major tobacco company for compliance with international conventions, the National Tobacco Control Act and other regulations, and to prevent potential anti-competitive practices.

    “The commission has launched a multifaceted campaign to combat underage tobacco use and protect vulnerable populations,” he said.

  • New South Africa Urged to Tackle Illicit Trade

    New South Africa Urged to Tackle Illicit Trade

    Photo: Tobacco Reporter archive

    BAT has called on South Africa to crack down on the country’s rampant illicit tobacco trade. The multinational estimates that the government loses an estimated ZAR24 billion ($1.32 billion) in excise tax revenue to the illegal cigarette business every year.

    In a recent Ipsos study cited by BAT, 59 percent of stores sampled sold illicit cigarettes for a little as ZAR5 per pack of 20.

    The study also revealed that new manufacturers have entered the business, fueling intense competition at the bottom end of the market.

    “The entrance of new players raises some serious concerns about government’s commitment to address illicit trade. Nothing justifies licensing new manufacturers in a sector already ravaged by high levels of noncompliance without conducting proper due diligence,” said Johnny Moloto, area head of corporate and regulatory affairs for BAT Sub-Saharan Africa, in a statement.

    The Ipsos study highlights the challenge facing the new government in getting to grips with illicit trade and cross-border illicit financial flows, which are wreaking havoc with our economy and tax revenues.

    “The Ipsos study highlights the challenge facing the new government in getting to grips with illicit trade and cross-border illicit financial flows, which are wreaking havoc with our economy and tax revenues. To right the ship, authorities urgently need to prioritize the fight against illicit tobacco and secure convictions against the ring leaders,” Moloto said.

    In the past few years, the availability of cigarette packs selling below the minimum collectable tax has fluctuated in retail outlets: from 44 percent in March 2021, it dropped to 27 percent in October 2022, before surging to 59 percent in 2024. The recent Ipsos research showed a high level of cigarette packs available below ZAR25.05 in the wholesale and informal trade, at 83 percent and 72 percent respectively.

    BAT urged the Ministry of Finance to introduce a minimum retail price, which would make it illegal to sell cigarettes for less than a stated amount.