Tag: British American Tobacco

Organigram Holdings Searching for Next CFO

Credit: Tasha Tuvango
Derrick West will transition away from his role as chief financial officer at Organigram Holdings to focus on recovery following surgery later this month.
Paolo De Luca, current chief strategy officer, has been appointed interim CFO while the company completes a search for a new permanent CFO. De Luca previously served as the company’s CFO between 2017 and 2020.
“Derrick has left a legacy of stabilizing our financial processes along with the implementation of our ERP and has supported the company through a period of high growth including the acquisitions of our Winnipeg and Lac-Supérieur facilities,” said Organigram CEO Beena Goldenberg in a statement. “We are grateful for his contributions during his time on the board beginning in 2017 and since becoming CFO in 2020 and we wish him well.”
Organigram Holdings is the parent company of Organigram, a licensed producer of cannabis, cannabis-derived products and cannabis infused edibles in Canada.
Recently British American Tobacco increased its equity position in Organigram from 19 percent to 45 percent.
November 13, 2023
BAT Designer Urges Responsible NGP Creations

Photo: KFF
Product designs should not center only on providing attractive appearance but also encompass meaning, value and responsibility, according to Ken Kim, head of design at the BAT Group.
“The role of designers is changing, from simply designing products to assuming social and environmental responsibilities,” Kim said at the Design Korea conference, which took place Nov. 1-5, 2023, in Seoul. “This [new role] is not a choice for individual designers to make, but a common goal the industry and society must undertake together in order to move forward.”
Kim is the first Korean to head BAT’s product design division. His portfolio includes tobacco heating products such as Vuse Epod 2, Glo Pro Slim and Glo Hyper X2.
During the conference, which was reported in The Korea Herald, Kim reviewed measures on how designs could address social issues such as carbon neutrality amid heightened regulations, emphasizing that designs could function as an important key to the tobacco industry’s sustainable future.
He stressed the importance of designing products in ways that do not appeal to underage consumers. “We need a balanced design strategy that does not stimulate the curiosity of minors, through conducting analysis of design preferences by age groups,” he was quoted as saying.
November 6, 2023
New Categories Boost BAT Half-Year Revenues

Photo: BAT
British American Tobacco reported revenue of £13.44 billion ($17.35 billion) in the first six months of 2023, up 4.4 percent over the figure recorded in the comparable 2022 period. Growth was driven by the company’s “New Categories” segment. Revenue from noncombustible products now accounts for 16.6 percent of group revenue, up 180 base points (bps) versus fiscal year 2022.
BAT’s Vuse and Velo brands enjoyed strong revenue growth, and New Categories’ financial delivery significantly improved, contributing a £201 million increase to group profit as losses reduced.
Reported profit from operations was up 61.4 percent (with reported operating margin up 1,560 bps to 44.2 percent). Adjusted profit was up 3.6 percent at constant exchange rates. Adjusted operating margin was up 40 bps to 44.3 percent.
“Having been in my new role for 10 weeks, I’m pleased with the resilient performance of BAT in the first half of 2023 and the renewed sense of energy across the organization,” said BAT Tadeu Marroco, who assumed the top job in May. “It is a challenging external environment. High inflation and slower global growth are impacting consumers and business. Yet our revenue, profit from operations and earnings are all up.
“We are making great progress in New Categories. Revenues are up by 29 percent, and we are now close to break[ing] even, with consumers of noncombustible products up by 1.5 million versus FY 2022. While it’s encouraging to see continued good performance in vapor and modern oral, we recognize more work is required in heated tobacco.
“I remain confident that New Categories will deliver a positive contribution in 2024. However, we do not expect contribution growth to be linear, as levels of investment will align with the phasing of our big innovation platforms.
“While more focus is required in the U.S., our sequential performance improvement in the critical premium U.S. combustibles business since January 2023 is encouraging.
July 26, 2023
High Court Rejects Challenge to PMI Heating Patents

Image: nimalGraphic
The High Court of Justice in London ruled April 17 that Philip Morris Products’ (PMP) patents protecting a tobacco-heating technology are valid, reports Law360. The ruling represents a defeat for BAT and its Nicoventures subsidiary, which had sought to revoke PMP’s patents.
While considering the patent valid, the court also said that BAT’s Glo heated-tobacco products did not infringe the patents, heading off an infringement counterclaim filed by PMP.
The April 17 ruling is the latest chapter in an ongoing intellectual property dispute between the tobacco giants.
PMP initially sued BAT and Nicoventures, claiming they infringed several of its tobacco-heating technology patents. This prompted BAT and Nicoventures to file counterclaims seeking to invalidate the patents.
The proceedings have now branched off into several different actions before the High Court.
In the current case, Nicoventures argued, among other things, that the PMP technology was obvious in light of a 1998 patent application referred to as “Pienemann,” which covers a “system for providing an inhalable aerosol.”
While Pienemann, like PMP’s technology, has multiple heating elements, Judge Michael Tappin said that a skilled team would consider the multiple heaters to “mimic” one heater. Pienemann also did not specify the inclusion of a thin-film heater as seen in the PMP patent, instead describing a “graphite loaded sheath,” according to the judgment.
Regarding the infringement claim, Tappin said that BAT’s Glo products did not infringe the patents because they did not include a method of allowing different parts of the heating system to be heated at different times.
April 19, 2023
BAT Invests Nearly £50 Million in Charlotte’s Web

Photo: bukhta79
BAT is investing £48.2 million ($57.4 million) in Charlotte’s Web Holdings. Based in Colorado, USA, and listed on the Toronto Stock Exchange, Charlotte’s Web offers cannabinoid extract wellness products.
“The appeal of Charlotte’s Web is clear to us: a wide portfolio of high-quality products, strong brand equity, an extensive retail presence and robust B2C e-commerce platform serving a loyal U.S. consumer base, and a track record of in-depth scientific research,” said BAT Chief Growth Officer Kingsley Wheaton in a statement. “Our investment in Charlotte’s Web represents another step for BAT in our exploration beyond tobacco and nicotine,” Wheaton said.
Last month, Charlotte’s Web became the first CBD company allowed to use the moniker “Official CBD of MLB.” Major League Baseball (MLB) said in June that it would allow teams to enter sponsorships with CBD marketers.
Describing its relationship with MLB as a “multiyear, strategic partnership,” Charlotte’s Web issued 6,119,121 shares of its common stock to the sports organization—worth an estimated $4.4 million at the time.
“This investment will provide Charlotte’s Web with funding that we anticipate will help unlock deeper and broader research and development that is key to our continued innovation, global footprint and the advancement of our intellectual property portfolio,” said Jacques Tortoroli, CEO of Charlotte’s Web.
November 15, 2022
BAT Conducts New Study of its Velo Oral Nicotine

Photo: BAT
BAT has conducted a cross-sectional clinical study of Velo, which is designed to provide new insights into the real-world health impact of its modern oral nicotine pouch product compared to smoking. Protocol details explaining the design have been published in the journal JMIR Research Protocols.
The study evaluates exposure to certain toxicants and early indicators associated with smoking-related disease in people who have been exclusively using Velo for over six months and compares them with groups of smokers, former smokers and never-smokers.
The results are currently being analyzed and will be published by the end of the year.
“Modern oral nicotine pouches are an exciting product category, which build upon the extensive scientific evidence available for snus but are designed to offer adult consumers an improved tobacco-free, reduced-risk alternative,” said Sharon Goodall, BAT’s group head of regulatory sciences, in a statement.
“We have already generated data that shows Velo has a toxicant profile better than snus and is comparable to nicotine-replacement therapy. However, we wanted to generate further evidence to demonstrate the important contribution it can make to tobacco harm reduction. I believe the results of this study will provide important new information, and we look forward to sharing them once available.”
October 17, 2022
BAT Joins Snoop Dogg in Cannabis Firm Investment

Credit: Greenserenityca
BAT, via one of its wholly owned group companies, has acquired a noncontrolling minority stake in Sanity Group, one of Germany’s leading cannabis companies.
This investment is complementary to other recent investments made by BAT companies, most notably the strategic R&D collaboration established with Canada’s Organigram Holdings announced in March last year.
Sanity Group, which is based in Berlin, produces CBD consumer brands and medical cannabis brands. It also has a proven track record in the research, development and marketing of cannabis products.
“Investing in Sanity Group is another example of BAT’s ongoing work to explore numerous areas beyond nicotine, positioning BAT for future portfolio growth across a range of categories and geographies,” said Kingsley Wheaton, chief growth officer at BAT, in a statement.
“We continue to transform our business through better understanding of our current and future consumers as part of our ‘A Better Tomorrow’ purpose.”
Sanity secured $37.6 million in the BAT-led Series B funding round, according to Sanity founder and CEO Finn Age Hansel. About half of the funding will go toward strengthening Sanity’s medical business. The rest of the funding will go toward preparing for the possible legalization of recreational marijuana in Germany.
Germany has not legalized recreational cannabis yet, but action is expected sooner rather than later. Germany’s coalition government is “working actively on it and really want[s] to come to a good draft of the law by the end of this year,” Hansel said. “This is really a priority topic for the government.”
“This funding is an important milestone for us and a strong signal toward the future of cannabis in Germany and Europe,” said Max Narr, chief investment officer at Sanity Group. “Against the backdrop of a challenging global economy, we are proud to have achieved a funding round of this magnitude.”
September 26, 2022
Btomorrow Invests in Kanvas’ Vaporizer Technology

Photo: By Olivier Le Moal
BAT’s corporate venturing unit, Btomorrow Ventures (BTV), has invested an undisclosed amount in the Kanvas Co., a developer of patented electronic vaporizer technology solutions.
The investment will fuel the research, development and growth necessary to commercialize Kanvas’ proprietary Vapetelligence technology platform and further enable scalability of its products, which are designed to promote device safety in electronic vaporizers and regulated marketplaces globally.
“Kanvas is excited to work with BTV as a strategic investor to advance the commercialization of our unique IP portfolio and technology platform, focusing on our patented and temperature-controlled dosing technology and hardware that provides a secure and controlled delivery system for brands,” said Andy Fathollahi, CEO of Kanvas, in a statement.
“Kanvas’ pioneering innovations will be a catalyst for brands to support better, safer consumer experiences through integrating higher quality software and smart-chip technology.”
“BTV is thrilled to support Kanvas. With its innovative product proposition, strong management team and now strategic partnership with BAT, we believe the company is poised for success, and we welcome it to BTV’s portfolio,” said Lukasz Garbowski, BTV investment director.
Kanvas has a diverse portfolio of patents in technology, software and hardware products to offer brands a comprehensive suite of premium solutions for electronic CBD, cannabis and nicotine-delivery systems.
September 7, 2022
BAT Study Confirms Positive Impact From Switching to Glo

Photo: BAT
The full results from a year-long study showed that smokers switching exclusively to Glo, BAT’s flagship tobacco-heating product (THP), achieved significant and sustained improvements in several indicators of potential harm associated with early disease development compared to smokers who continued to smoke. This included lung disease, cancer and cardiovascular disease.
Published in Internal and Emergency Medicine, the results build upon the favorable changes reported at three and six months. The improvements observed were sustained over the 12 months of the study, adding to the weight of evidence that supports Glo as a less risky alternative for adult smokers who would not otherwise quit, according to BAT.
“The results from this study are the most important data we have ever generated about Glo and for the THP category in general,” said David O’Reilly, director of scientific research at BAT, in a statement.
“This real-world study allows us to assess the changes that adult smokers switching exclusively to Glo experience by assessing early indicators of potential harm associated with disease development. It provides much needed new evidence about the size of the change and durability of the effect switching completely to Glo can have and reinforces Glo’s potential as a reduced-risk product.”
September 6, 2022
Study: Vaping Reduces Heart Risks Compared to Smoking

Photo: New Africa
A new study carried out by the Center of Excellence for the Acceleration of Harm Reduction in Sicily confirms that vaping presents a lower risk to heart health than does smoking.
The researchers replicated a 2017 BAT study, which demonstrated that the endothelial cell migration inhibition caused by cigarette smoke is not caused by e-cigarette aerosol exposure. (The endothelium is a membrane lining the heart and blood vessels).
Using the Vype ePen3 and the heated-tobacco products Glo Pro and IQOS 3 Duo, the Replica study corroborated the findings of the BAT study.
Riccardo Polosa
“The interesting fact is that switching to combustion-free products reduces vascular damages and prevents the possibility of the onset of smoking-related diseases, such as arteriosclerosis and hypertension,” said Massimo Caruso, an author of the study. “Once again, our research has challenged the notion that e-cigarettes or heated tobacco cause similar damage to that of combustible cigarettes.”
The study is part of the Replica Project, whose mission is to replicate studies conducted by tobacco companies—whose research is routinely dismissed as conflicted—in order to independently assess their scientific validity.
“By replicating the findings generated by tobacco industry studies on e-cigarettes and heated tobacco products, we are proving that these results are robust and trustworthy,” CoEHAR founder Riccardo Polosa told Filter.
August 18, 2022