Tag: British American Tobacco

BAT: Sales of Noncombustible Products Accelerating

Photo: BAT
BAT added more than 1.4 million noncombustible product consumers in the first quarter of 2021, to reach a total of 14.9 million, CEO Jack Bowles announced in a trading update.
“We are investing and building strong, fast growing international brands in each segment, rapidly accelerating our reach and consumer acquisition, thanks to our digitalization and our multi-category consumer-centric approach, supported by the right resources and products, and our agile organization,” said Bowles.
“Our portfolio of noncombustible products is tailored to meet the needs of adult consumers. We are growing New Categories at pace, encouraging more smokers to switch to scientifically substantiated reduced risk alternatives.”
The company’s New Category products are now sold in 74 markets across 53 countries. Its Vuse/Vype vapor devices have been gaining value share in all Top 5 markets. Vuse is even approaching global leadership in vapor, reaching 31.4 percent category value share in the Top 5 vapor markets year-to-date in April, according to Bowles.

We are growing New Categories at pace, encouraging more smokers to switch to scientifically substantiated reduced risk alternatives.
Jack Bowles, CEO, BAT
BAT’s Glo tobacco-heating product (THP) recorded positive volume share momentum in many markets, including Japan. The device achieved 16.2 percent category volume share in the Top 9 THP markets year-to-date in April.
According to Bowles, BAT has also been consolidating its international volume share leadership in Modern Oral, with strong Velo volume share growth in the U.S. The company’s category share of Modern Oral in the Top 5 markets reached 40.2 percent year to date in April
BAT’s combustibles segment was characterized by strong pricing and robust volume, the company said. Group value and volume share were both up 10 base points year to date, with full year industry volume expected to be down about 3 percent.
For 2021, BAT now anticipates constant currency revenue growth of above 5 percent, ahead of its 3-5 percent guidance.
June 8, 2021
Review of 10 Years of Vaping Science Published by BAT
A comprehensive review of the scientific evidence for vaping products, their potential health effects and their role in tobacco harm reduction by BAT as World Vape Day sets to be celebrated on May 30.
Credit: Coloures Pic
This review shows that, over the past decade, the number of people who incorrectly believe vaping is as harmful or more harmful than smoking conventional cigarettes has risen in the UK, Europe, and the U.S., according to a press note. This is despite several scientific reviews published in the same period showing that vaping products manufactured in accordance with quality standards present less risk to health than combustible cigarettes.
According to population modelling studies cited in the review, a significant reduction in premature deaths could be achieved if current smokers switched exclusively to vaping rather than continuing to smoke. These modelling studies use population data and simulations to project the health-related outcomes associated with the long-term risks of smoking versus vapour use over time.
David O’Reilly, Director of Scientific Research at BAT, said the paper is a comprehensive summary of more than 300 peer-reviewed scientific papers and other evidence published by an estimated 50 institutions over the past decade.
“The scientific evidence is clear – but consumer misperceptions remain. In England and the United States, only one in three adults is aware that there is scientific evidence available, including from leading public health authorities, that supports the conclusion that vaping is less harmful than smoking,” O’Reilly said. “The reality is that many leading public health authorities have reported that vaping is less harmful than smoking, and that this harm reduction potential can be maximized if those smokers who would otherwise continue to smoke switch exclusively to using vapor products.”
The review highlights that vaping products can effectively compete with combustible cigarettes by providing nicotine and the sensorial enjoyment sought by smokers, according to the press note.
May 28, 2021
BAT: Vuse First Global Carbon Neutral Vape Brand
Photo: BAT
Vuse has become the first global carbon neutral vape brand, according to BAT.
Vuse’s carbon neutrality has been delivered through carbon offset through reforestation projects. This includes a project in Uruguay to plant trees across 21,298 ha, where intensive cattle grazing has eroded soil and degraded land. As well as removing carbon dioxide and delivering better soil quality and biodiversity, the project will also result in increased availability and quality of employment opportunities, BAT noted.
The carbon neutrality of Vuse has been independently validated by Vertis based on product life cycle assessment data provided by an independent third party.
“Vuse becoming the first global carbon neutral vaping brand is a significant milestone,” said Kingsley Wheaton, chief marketing officer at BAT, in a statement. “It is testimony to BAT’s deep and longstanding commitment to being a responsible business and reducing our impact on the environment.”

Vuse becoming the first global carbon neutral vaping brand is testimony to BAT’s deep and longstanding commitment to being a responsible business and reducing our impact on the environment.”
Kingsley Wheaton, chief marketing officer, BAT
According to BAT, Vuse’s carbon neutrality status is part of a bigger ambition to become an environmentally sustainable vape brand with initiatives including:
A global device and pod collection scheme, with approximately 200,000 pods collected since the start of the pilot in 2020
Cutting single use plastics from packaging, which has saved 100 tons of plastic or the equivalent of four million plastic bottles in 2020
Transitioning from air to sea freight through changes to the distribution chain. Vuse aims to have 80 percent of international shipments transported by sea by the end of 2022
BAT says it is also reducing its carbon footprint by improving the energy efficiency of factories by upgrading to more efficient and lower-impact equipment, and by increasing the use of renewable energy through renewable energy purchases and on-site energy generation.
Today’s announcement by BAT coincides with the opening of the 100th Vuse Inspiration Store. Vuse Inspiration Stores are now operating in the U.K., Canada, Poland, Germany, South Africa and the U.S
May 28, 2021
BAT Intends to Produce HNB Products in Croatia

Photo: burnel11
British American Tobacco (BAT) will invest HRK200 million ($32.07 million) to produce heated-tobacco products (HTPs) at its factory in Kanfanar, Croatia, reports Total Croatia News.
The multinational revealed its plans during a May 12 visit to its facility by Prime Minister Andrej Plenkovic.
“By expanding production in Kanfanar and opening a hub in Rijeka, we are continuing with BAT’s significant investments in Croatia,” said BAT Adria director Zvonko Kolobara.
“With the introduction of production lines for new product categories, Croatia is additionally strengthening its position on the global map of production sites in the tobacco industry. We are continuing to expand our selection for consumers in Croatia.”
The increased capacity in Kanfanar will help BAT meet growing demand for HTPs in Europe and northern Africa.
Plenkovic expressed satisfaction at BAT’s continued investments in Kanfanar.
“The new HRK200 million investment in new products means a new impetus, enthusiasm and a new generator of business and with that, a contribution to Croatia’s economy,” he said.
“The company employs 1,600 people, and another 800 cooperate closely with BAT and make a living that way. The investment plans have been coordinated with their headquarters in London, and all the employees at the factory will be satisfied while the entire economy of Istria County will benefit from BAT’s operations.”
The new HRK200 million investment in new products means a new impetus, enthusiasm and a new generator of business and with that, a contribution to Croatia’s economy.
Andrej Plenkovic, prime minister, Croatia
In June 2020, BAT suggested it might relocate its Kanfanar factory to another country due to unfavorable business conditions. The government then embarked on a campaign to keep the multinational in Croatia.
Plenkovic stressed that the new investment reflected Croatia’s good business climate, not government pressure.
May 13, 2021
Organigram buys The Edibles & Infusions Corp.

Photo: Erin Stone from Pixabay
Organigram Holdings has acquired The Edibles & Infusions Corp. (EIC) in a CAD35 million ($27.88 million) stock deal, reports Reuters.
EIC specializes in pot edibles, like gummy bears, brownies and drinks, and have been the biggest beneficiaries of increased demand for cannabis products during coronavirus lockdowns.

Edible products remain an important product category to Organigram, and EIC represents an ideal partner with which to expand our market presence in this category as well as other derivative cannabis categories.
Greg Engel, CEO, Organigram
“Edible products remain an important product category to Organigram, and EIC represents an ideal partner with which to expand our market presence in this category as well as other derivative cannabis categories,” Organigram Chief Executive Greg Engel said.
In March, British American Tobacco announced it would buy a nearly 20 percent stake in Organigram for about £126 million ($174.30 million) as it looks to diversify beyond its main tobacco business.
Organigram said it currently expects first sales of EIC-manufactured soft chews in the fourth quarter of fiscal 2021.
The Toronto Stock Exchange has approved the EIC deal, according to Organigram.
April 7, 2021
BAT, Organigram Team up on Next-Gen Cannabis Products

Photo: Tobacco Reporter archive
The BAT Group (BAT) has signed a strategic collaboration agreement with Organigram, a wholly owned subsidiary of publicly traded Organigram Holdings, focused on research and product development activities of next-generation adult cannabis products with an initial focus on cannabidiol (CBD).
This agreement augments ongoing BAT activities to expand its portfolio “beyond nicotine” and follows the pilot launch of Vuse CBD Zone in Manchester, U.K., earlier this year.
Through the collaboration, BAT will gain access to cutting-edge R&D technologies, product innovation and cannabis expertise, complementing BAT’s extensive plant-based expertise and development capabilities.
Organigram has a proven track record of consumer-led innovation and developing high quality adult-use recreational and medical cannabis products, which are legally available in Canada.

We believe this collaboration has significant potential to enhance our activities.

David O’Reilly, director of scientific research, BAT
“Today’s announcement underscores our commitment to accelerating our transformation and building ‘A Better Tomorrow,’” said David O’Reilly, director of scientific research at BAT, in a statement. “Our multi-category, consumer-centric approach, which is key to our transformation, aims to provide choice and meet the evolving needs of adult consumers. This choice provides reduced risk alternatives to combustible cigarettes as well as going beyond tobacco and nicotine into new and exciting areas of product innovation.
“We believe this collaboration has significant potential to enhance our activities, allowing us to combine our world-class expertise while enabling scientists from both BAT and Organigram to work closely together and share information real-time. We know that in R&D, this is how you make real breakthroughs and accelerate progress.
“We have been impressed by the strong management team and culture at Organigram. This collaboration aligns with our long-term strategy and will enable us to work with Organigram at an R&D level as well as contributing to their wider operations.”

We have been extremely selective about aligning with a strategic partner.

Greg Engel, CEO, Organigram
“This is a tremendous milestone in the evolution of Organigram,” said Greg Engel, CEO of Organigram, in a statement. “It is instrumental in advancing our commitment to offering consumers innovative cannabis products and to furthering our long-term international strategy. We have been extremely selective about aligning with a strategic partner and in BAT, we’ve found a leading consumer goods business with innovative product platforms, an impressive dedication to research and development, deep consumer insights, regulatory expertise and a commitment to responsible stewardship and consumer safety.”
March 11, 2021
BAT Launches CBD Vapor Product in U.K. Test Market
British American Tobacco (BAT) has pilot-launched its first CBD vaping product, Vuse CBD Zone.
This new range is available in three e-liquid flavors—mint, mango, and berry—and two strengths—50 mg and 100 mg. Vuse CBD Zone is initially being launched Manchester, U.K., in convenience stores and online (online purchase is geofenced for Manchester residents). Further rollout plans are anticipated for later in the year.
“With the rollout of Vuse CBD Zone in Manchester, our unique multicategory portfolio now, for the first time, offers products that go beyond nicotine,” said Fredrik Svensson, general manager at BAT U.K. and Ireland, in a statement. “CBD vaping is a new category for us, and we will be using this pilot launch to gain key learnings about consumer and retailer experiences, combined with our extensive expertise and knowledge of vaping, to help inform plans for a potential nationwide roll-out of Vuse CBD Zone later in the year.”
January 12, 2021
BAT Launches Fact-Based Vapor Information Hub

Photo: BAT
The BAT Group (BAT) has launched VapeExplained.com, a digital information hub providing adult smokers and vapers with factual answers to the questions most commonly searched for online.
Based on search engine analytics regarding vaping queries, VapeExplained.com helps adult smokers and vapers make informed decisions about vaping. The site also provides important information on the role these products can play as a potentially reduced-risk alternative to smoking.
To find answers about vaping, smokers and vapers are increasingly turning to the internet. In 2020, there were more than 700,000 monthly internet searches for questions about vaping in the U.S. and U.K. Of these, approximately 70,000 searches specifically ask about the dangers of vaping.
Kingsley Wheaton
According to BAT, VapeExplained.com is built on the company’s vast technical expertise of over 1,500 scientists and engineers and the experiences of offering vapor products in over 26 countries around the world.
“VapeExplained.com is where smokers and vapers can find clear, simple, fact-based information from a well-known source,” said Kingsley Wheaton, BAT’s chief marketing officer, in a statement. “I hope this helps them to make more informed decisions about vaping.”
The site will be available in the U.K. and the U.S. and will expand into other countries in 2021.
December 3, 2020
Vype Nicotine Levels Comparable to Combustibles

Photo: BAT
Vype ePen 3, British American Tobacco’s (BAT) flagship vapor product, can provide smokers with similar levels of nicotine as standard cigarettes, according to new research. If used exclusively, ePen3 could help smokers avoid many of the risks associated with smoking, BAT said in a statement.
The Scientific Reports study compared both Vype ePen 3 and Vype ePen 2 to combustible cigarettes. It assessed a variety of e-liquids and nicotine strengths for each product and how nicotine concentration and delivery device combined to affect user preference.
Results from the study show that Vype ePen 3 was superior to Vype ePen 2 for nicotine delivery and ranked significantly higher for user satisfaction, with the newer device scoring nearly double for likability compared to its predecessor.
The study showed that the maximum concentration of nicotine in the blood after using the Vype ePen 3 (18 mg/mL protonated nicotine) was on average twice that achieved using Vype ePen 2 (18 mg/mL unprotonated nicotine).
David O’Reilly
“We know that for many smokers, nicotine levels are an important factor in choosing a vaping product, particularly when initially switching,” said David O’Reilly, BAT’s director of scientific research.
“They want it to work for them, delivering the nicotine they want in a device they like. We think we have achieved this with Vype ePen 3 and hope that through continued product innovation we can encourage and enable those who would otherwise continue to smoke to switch to a reduced-risk alternative which has been scientifically substantiated.”
This study is a part of a comprehensive program of scientific research designed to assess and substantiate the reduced-risk potential of noncombustible products.
December 1, 2020
BAT: Switching to Glo Reduces Exposure
Smokers who switched completely from smoking cigarettes to using British American Tobacco’s (BAT) Glo tobacco-heating product (THP) substantially reduced their exposure to certain cigarette smoke toxicants over three months, according to a company study published in Nicotine and Tobacco Research.

For many of the toxicants measured, the levels found in participants were similar to those in people who stopped using tobacco completely.

BAT scientists are conducting a year-long controlled study to see what impact switching from cigarettes to Glo will have on general health as well as smoke-toxicant exposure.

According to BAT, the study’s results find that smokers who switch from cigarettes to Glo exclusively significantly reduce the levels of harmful toxicants they are exposed to, potentially reducing their risk of developing smoking-related diseases.

“These initial results regarding Glo are extremely encouraging,” James Murphy, group head of potentially reduced-risk product science at BAT, said in a statement. “Glo provides smokers who wish to continue using tobacco and nicotine products with a potentially reduced-risk alternative to cigarettes. The results are another positive step for BAT as we continue our journey to reduce the health impact of our business by offering consumers a range of enjoyable and potentially reduced-risk products.”

November 5, 2020