Transforming tobacco now

The emphasis was on ‘transforming tobacco’ when British American Tobacco yesterday published its Annual Report and Sustainability Report.
Both of the reports are entitled ‘Transforming Tobacco’, reflecting ‘the company’s commitment to transform tobacco by offering an unrivalled suite of potentially reduced-risk products that address the varied preferences of today’s consumers’.
In a note posted on its website, BAT said the reports clearly set out its ambition to lead and shape the transformation of the industry by achieving a triple win: ‘for consumers – who will be offered a range of potentially safer choices; for society – who could benefit from real progress in tobacco harm reduction; and for shareholders – who will own an even more sustainable and profitable business’.
The note said that BAT’s existing combustible portfolio was now complemented by a wide range of potentially reduced-risk products, including next generation products (NGPs), comprising vapor and tobacco heating products (THPs), as well as oral tobacco and nicotine products, such as snus and moist snuff.
“We recognise that the tobacco and nicotine industry has entered a dynamic period of change and we are committed to leading this transformation,” chief executive, Nicandro Durante, was quoted as saying. “Increased public health awareness, new societal attitudes and rapid developments in new technologies have all combined to create a unique opportunity to accelerate the delivery of our long-held ambition to provide our consumers with less risky tobacco and nicotine choices.
“These two important reports out today, clearly outline our strategy to transform tobacco by building our business based on outstanding products, informed consumer choice and a potentially reduced-risk portfolio. Put simply: more choice, more innovation, less risk.”
BAT said its commitment to the important role these potentially reduced-risk products would play was reflected in its aims to generate more than £1 billion revenue from NGPs in 2018 and to increase this figure to £5 billion by 2022.
Since 2012, together with Reynolds American Inc., BAT had invested about US$2.5 billion in developing and commercialising its range of NGPs.
“Transforming tobacco isn’t just about harm reduction, though,” said Durante. “To respond to evolving challenges and opportunities, we need to continue to focus on the other key areas of our sustainability agenda, including sustainable agriculture and farmer livelihoods, and corporate behaviour. These are fundamental imperatives that set the foundations for our business for years to come.”