Tag: British American Tobacco

Scientists Conclude Productive CORESTA

Photos: BAT
The Cooperation Centre for Scientific Research Relative to Tobacco (CORESTA) concluded its 2024 congress today.
Hosted by BAT at the Edinburgh International Convention Centre, the congress opened Oct. 13 with 500 delegates, world-leading experts from member and nonmember organizations from more than 30 countries, attending. The theme was “Advancing Tobacco Harm Reduction Through Scientific Collaboration.”
According to BAT, the event facilitated international dialogue on best practices in scientific research related to tobacco and nicotine alongside highlighting research findings and outcomes from CORESTA members.
Danni Tower, group head of science and regulatory affairs at BAT, delivered the opening keynote speech, outlining the progress BAT has made in driving forward the tobacco harm reduction agenda. Tower called for more effective scientific collaboration in critical areas.
All public health agencies, including WHO, should engage with CORESTA scientists to accelerate change.
Derek Yach

“The CORESTA Congress demonstrates the importance of collaboration amongst the entire scientific community to fully realize the public health opportunity of tobacco harm reduction,” said Tower in a statement. “We are proud to have hosted such an important event and strongly believe that positive global change is possible if all stakeholders recognize the potential of THR.
“To achieve this, more open conversations like those we have had this week are needed across the scientific and regulatory landscape, which is why we have recently launched Omni—Forward Thinking for a Smokeless World—an open, evidence-based platform built on leading scientific research.”
“Presentations at CORESTA demonstrated scientific advances underway in using new approaches to accelerate tobacco harm reduction,” said keynote speaker Derek Yach. “These extend from the use of genomics in agricultural sciences to the development of biomarkers in actual use studies and the application of AI tools to advance our knowledge of causes and effectiveness of interventions. All public health agencies, including WHO, should engage with CORESTA scientists to accelerate change.”
October 17, 2024
UK Urged to Tackle ‘Illegal’ Disposable 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.
September 19, 2024
BAT Announces Major Management Board Changes
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.”
September 17, 2024
Organigram Closes 2nd Tranche of BAT Investment

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.
September 5, 2024
BAT Chief Says US Needs Crackdown on Illegal Vapes

Credit: Iama Sing
A surge of illegal vaping products originating from China is negatively impacting the sales of legal alternatives to cigarettes in the U.S., according to the CEO of British American Tobacco.
Tadeu Marroco advocated for stricter penalties for individuals importing unauthorized vapes into the U.S. “What we are seeing with the lack of enforcement is a reduction of the legal market of vapor,” the CEO said.
BAT is one of the tobacco producers waiting for the U.S. Food and Drug Administration’s long-delayed completion of its review of marketing applications for vaping products. BAT is a major player in the vaping industry worldwide and in the U.S. with its Vuse brand.
The delay is leading manufacturers of illicit products to take advantage of the uncertainty by continuing to sell them, Marroco said. The FDA needs to “decide publicly what are the products that are allowed to stay in the market and the products that need to be taken out of the market,” he added, according to Bloomberg.
The FDA and the U.S. Department of Justice have formed a federal task force spanning multiple agencies to stop the distribution of illegal e-cigarettes. As of early June, the FDA had issued 1,100 warning letters to makers, importers and distributors of unauthorized new tobacco products, including e-cigarettes, and fined more than 55 manufacturers and 140 retailers.
BAT has launched two claims with the International Trade Commission, one related to patent infringement and another about the importation and marketing practices of illegal vapes.
The company reported first-half results earlier Thursday, in which it said it’s unlikely to hit a £5 billion ($6.4 billion) revenue target in 2025 for vapes, heated tobacco and nicotine pouches, blaming the lack of a U.S. clampdown on illicit products.
July 25, 2024
BAT Reports First-Half Results, Revenues Down

Photo: BAT
British American Tobacco 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.”
July 25, 2024
BAT Asks Investors to Expect Lower First-Half Profit

Photo: BAT
Declining sales of cigarettes and growing competition from illegal vapes in the U.S. will likely dent British American Tobacco’s 2024 earnings, the tobacco manufacturer said in a pre-close trading update on June 4.
Analysts estimate BAT will make £27.60 billion ($35.35 billion) in total organic revenue and adjusted operating profit of £12.48 billion for the year, according to The Wall Street Journal.
BAT noted that while the U.S. was showing some early signs of recovery, traditional cigarette volumes were down around 9 percent so far this year across the industry.
Chris Beckett, head of equity research at Quilter Cheviot, told Reuters BAT’s anticipated decline in first-half revenue and profit was “more pronounced” than expected.
The company expects half-year revenue and adjusted profit from operations to fall by low single digits, but says it is on track to deliver its guidance for the full year.
“We expect our performance to be second-half weighted, mainly driven by wholesaler inventory movements related to continued investment in our U.S. commercial actions, as well as the phasing of new launches,” said BAT CEO Tadeu Marroco.
“Our guidance also reflects ongoing macro-economic pressures, particularly in the U.S. market and continued lack of effective enforcement against the growing illicit vapor segment. As a result, we expect our H1 revenue and adjusted profit from operations to be down by low-single digits on an organic, constant currency basis.”
June 5, 2024
Italy Fines BAT for ‘Misleading’ Heated-Tobacco Ads

Photo: BAT
BAT’s Italian division has been fined €6 million ($6.4 million) for “misleading advertising of a heated-tobacco product,” according to Barron’s. Amazon was fined €1 million for the same reason.
According to the AGCM watchdog, BAT and Amazon advertised the Glo Hyper X2 and Glo Hyper Air devices without making “information about the tobacco/nicotine consumption connected to the use of these devices and the prohibition of their sale to minors” clear.
The products were marketed “as simple electronic devices and mere design objects,” the watchdog said.
“This is seriously misleading conduct, which induces the customer to buy a product that poses health risks and is banned for minors,” the authority said.
An investigation into the marketing of the heated-tobacco products began in April 2023.
BAT plans to appeal the fine, according to Bloomberg.
“We are clear that our products are for adults only, and we adhere to the highest standards of conduct to prevent underage use of any nicotine product,” a BAT Italia spokesperson said. “We cooperated with Italian authorities and implemented all suggested changes to our marketing immediately. While we acknowledge the decision, we plan to appeal.”
February 14, 2024
PMI and BAT Settle Patent Infringement Disputes

Photo: ASDF
Philip Morris International and British American Tobacco have settled their ongoing intellectual property disputes relating to heated tobacco and vapor products.
The cigarette makers had been fighting a multi-front patent battle. BAT, which makes Vuse vapes and Glo heated tobacco devices, was ordered to pay PMI millions of dollars after losing one case, while PMI has been blocked from importing its flagship heated tobacco device IQOS into the United States as part of another.
The settlement includes non-monetary provisions between PMI and BAT that resolve all ongoing global patent infringement litigation, encompassing all related injunctions and exclusion orders, and prevents future claims against current heated tobacco and vapor products. The settlement also allows each party to innovate and introduce product iterations.
“We are pleased that this matter has been resolved to the mutual satisfaction of both parties,” said PMI CEO Jacek Olczak in a statement. “There is a clear and growing global desire from adults who smoke to choose from a range of smoke-free products, and we believe continued reduced-risk category innovation can accelerate declines in the harms associated with smoking to the benefit of consumers and public health at large as we continue PMI’s journey to end the sale of cigarettes.”
“This agreement is an important step forward for BAT and all our stakeholders,” said BAT CEO Tadeu Marroco in a statement. “Having already built two £1 billion [$1.28 billion] brands in Vuse and Glo, the potential for their continued impact on tobacco harm reduction is clear. I am delighted that this settlement will allow BAT to focus on developing innovative solutions that provide adult consumers with a greater choice of reduced risk products in support of our ‘A Better Tomorrow’ purpose. By doing so, we will help build a smokeless world for the benefit of consumers, investors and society as a whole.”
February 2, 2024
BAT Launches Glo Hyper Pro Heated Tobacco Device

Image: BAT
BAT has launched a new version of its Glo heating device. Glo is an alternative to smoking that doesn’t involve burning, producing fewer and lower levels of toxicants than conventional cigarettes.
The Glo Hyper Pro device is lightweight, fits easily in consumers’ pockets and comes with improvements in performance, according to the company. With this new device, one charge takes approximately 90 minutes and lasts all day. Once charged, consumers can expect to use the device for 20 sessions in total.
“We’re proud that today, over 8.8 million adult consumers now use Glo,” said Kingsley Wheaton, chief strategy and growth officer at BAT, in a statement. “This latest version is our most advanced yet, with a much improved user experience. We continue to listen to consumers and enhance our products so that they find Glo a satisfying alternative to continuing to smoke. Ultimately, BAT aims to support smokers to switch to these reduced-risk products in order to deliver benefits for consumers, society and our stakeholders.”
The wider Glo range is sold in over 20 markets around the world. The Glo Hyper Pro device has been launched in Japan, Italy and Poland, with further global market rollouts planned during 2024.
January 10, 2024