British American Tobacco is facing a London High Court lawsuit from over 100 current and former shareholders who allege the company failed to properly disclose to markets its breaches of U.S. sanctions related to business in North Korea, Reuters is reporting. The claims follow BAT’s 2023 settlement with U.S. authorities, in which a subsidiary admitted to conspiring to violate sanctions and commit bank fraud by selling tobacco products to North Korea between 2007 and 2017, resulting in a $635 million payment. The lawsuit, filed on February 27, accuses BAT of withholding information about its North Korea operations for over a decade, though the value of the claim and further details have not been disclosed.
Category: Business & Finance
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Scandinavian Reports Financials, Proposes Dividend
Scandinavian Tobacco Group reported a 1.8% decline in full-year 2025 net sales to DKK 9.0 billion ($1.4 billion), with organic growth down 3.1%, or -1.8% excluding discontinued third-party nicotine pouch distribution in its online business. EBITDA margin before special items was 19.8%, in line with guidance, while free cash flow before acquisitions fell to DKK 595 million ($95.2 million) due to delayed receivables linked to a new ERP rollout in Europe. Adjusted EPS declined to DKK 10.8 from DKK 13.7 ($1.73 from $2.19) a year earlier. The board will propose an ordinary dividend of DKK 4.50 ($0.72) per share, representing a 42% payout ratio. In the fourth quarter, net sales fell 4.6% to DKK 2.3 billion ($368 million), with margin pressure driven by product mix shifts toward nicotine pouches and increased promotional spending in North America.
For 2026, the group expects reported net sales growth at constant exchange rates of between -2% and 2%, EBIT margin before special items of 13.0%–14.5%, free cash flow before acquisitions of DKK 950 million to DKK 1.2 billion ($152 million to $192 million), and adjusted EPS of DKK 9–11. Management said 2026 will focus on earnings stabilization under its Focus2030 strategy, with continued investment in handmade cigars and nicotine pouches, while working capital is expected to normalize in the first half following the ERP-related delays.
See the reports:
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Black Buffalo Recognizes Retailers as Sales Grow
Black Buffalo says it continues to expand its footprint nationwide as demand grows for modern smokeless alternatives, with the brand highlighting strong retail performance across the U.S. With its annual Herd Preferred Awards, the company reported that its top-performing partners — including Sheetz, Wawa, Pilot Company, and Love’s Travel Stops —are driving increased can volume and higher cans per week (CPW), reflecting sustained momentum at the backbar. According to Black Buffalo, its adult consumer base, dubbed “The Herd,” is highly engaged, with shoppers traveling an average of nearly 13 miles to purchase the product, underscoring brand loyalty and pull-through at retail. The company said it remains focused on responsible growth and increasing retail accessibility as it scales distribution across key markets.
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BAT Uganda Points to Illicits for 18% Revenue Drop
British American Tobacco Uganda Ltd. reported an 18% drop in gross revenue to Shs 67 billion ($18.1 million) for fiscal 2025, citing a surge in illicit cigarette sales, according to audited results. Net revenue fell 21% to Shs 36.3 billion ($9.8 million), while total comprehensive income declined 19% to Shs 9.8 billion ($2.6 million). The company attributed the decline to rising tax-evaded cigarette consumption, which research shows reached 45% of the market by December 2025, up from 34% the previous year — equivalent to an estimated Shs 53 billion ($14.3 million) loss in government revenue. Operating costs fell 21% to Shs 24 billion ($6.5 million), but net asset value dropped sharply to Shs 32.5 billion ($8.8 million) from Shs 49.3 billion ($13.3 million) in 2024.
Despite the downturn, BAT Uganda’s tax contributions rose 4% to Shs 46.4 billion ($12.5 million), aided by capital gains from the sale of a non-strategic asset. The board proposed a final dividend of Shs 199 ($0.054) per share, down 5% from 2024, payable July 31 to shareholders on record as of July 24. Company secretary Paul Mbuga emphasized the need for a multi-agency government response, particularly at the South Sudan border, to combat illicit imports, noting that contraband cigarettes often bypass digital tax stamps and health warnings, undercutting prices and presenting public health risks.
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Geek Bar Returning to Europe
Geek Bar announced it is officially returning to the European market, launching its Geek Bar Spark across “select countries” this month, with “additional markets and flavor options to follow.” The new-generation, reusable system includes a fast-charging battery, supports up to 1,000 puffs per prefilled pod, and offers new “Europe-specific flavors,” including Moonshine Cherries, Tropical Punch, Pineapple Lemon Fizzy, and Apple Cider.
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Herzog Talks Industry Shifts, Expects Market to Hit $67B by 2035
Goldman Sachs Managing Director Bonnie Herzog described the U.S. nicotine market as “attractive and growing,” projecting total revenues to reach about $67 billion by 2035 as the profit pool shifts decisively toward smoke-free products. Speaking last week at CSP’s Convenience Retailing University, she said cigarettes, which currently generate about 70% of industry operating profit, are expected to fall to roughly 50% by 2035, with smoke-free categories becoming the primary engine of profit growth due to stronger unit economics. Smoke-free products already account for about 48% of U.S. nicotine volumes, a figure she expects to rise to around 75% over the next decade, driven by downtrading and cross-category movement.
On e-vapor, Herzog said illicit products represent roughly 70% of the market today, a dynamic she said is suppressing growth in the formal channel and weighing on retailer sentiment amid limited enforcement. While she expects illicit penetration to decline over time, she cautioned that vapor will likely underperform other reduced-risk categories until enforcement improves, adding that British American Tobacco is positioned to remain the largest branded player.
In modern oral, Herzog forecast nicotine pouches to reach nearly $11 billion in revenue by 2035 and become the second-largest category by volume behind e-vapor. She highlighted continued momentum for Zyn from Philip Morris International, citing retailer survey data showing strong fourth-quarter gains supported by promotions, and described Velo Plus from Reynolds American Inc. as a “fierce” competitor in the expanding pouch segment.
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BAT’s Velo Pouches Back on Market in Kenya
BAT Kenya resumed sales of its Velo oral nicotine pouches following regulatory clarity, signaling a renewed push into non-combustible products amid declining cigarette consumption, according to Capital Business. Company officials said this “regulatory clarity” involved confirming that oral nicotine pouches can be marketed and retailed under current rules rather than being in a grey zone or treated the same as banned products. The move supports the company’s strategy to diversify revenue streams in a market challenged by rising illicit tobacco sales. BAT Kenya reported a 10% drop in turnover in 2025 to Sh23.2 billion ($176.6 million), with Velo contributing about Sh232 million ($1.8 million), or roughly 1% of total revenue, between July and December 2025.
Finance Director Philemon Kipkemoi said the return was enabled by a regulatory environment now accommodating oral nicotine products. With local manufacturing divested, Velo is currently imported from Pakistan, though local production may be reconsidered depending on performance. Globally, British American Tobacco has reached 34 million non-combustible product users, 68% of its 2030 target, and aims for 50% of revenue from such products by 2035. In Kenya, Velo could contribute 15–25% of total revenue within three to five years, forming a key part of BAT’s strategy to expand alternative nicotine products in line with evolving regulations and consumer trends.
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PMJ Launches First IQOS Capsule
Philip Morris Japan launched its first capsule-equipped cigarette stick, the “Sentia Purple Capsule,” for the IQOS ILUMA heated tobacco series on March 2. Initially available at IQOS stores nationwide, the rollout at convenience stores and other tobacco retailers begins April 6, with the Nagoya IQOS store relocating on March 7.
The capsule product features blueberry-flavored capsules with invigorating menthol, allowing users to release a burst of menthol and blueberry aroma by crushing the capsule. The product’s purple color reflects the blueberry inspiration. This addition brings the SENTIA lineup to 18 brands, including regular, menthol, flavored, and capsule variants.
The price is 530 yen ($3.34) per 20-stick pack, rising to 570 yen ($3.59) from April 1. Daniel Sevsick, Philip Morris Japan’s portfolio marketing director, highlighted that this is SENTIA’s first menthol capsule product.
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BAT and McLaren Collaborate on Limited Edition Glo
British American Tobacco Japan announced that it has teamed up with McLaren Racing to launch the “glo Hilo Plus McLaren Racing-inspired limited edition set,” available from March 3 at glo Store Ginza and glo’s online store.
This premium collection features a limited-edition glo Hilo Plus device with McLaren’s signature papaya colors inside the device and on the charging case slide, along with exclusive glo and McLaren logos. The charging case also offers a rubberized grip for stability and a brushed metal finish that reflects motorsports engineering aesthetics.
The set includes a special Alcantara sleeve, a limited-design charging dock, and a warranty card confirming its limited-edition status, all packaged in a dedicated box. It is priced at 30,000 yen ($189).
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JTI Refreshes Nordic Spirit Look
Today (March 3), JTI UK unveiled a refreshed brand identity for its Nordic Spirit nicotine pouches, introducing “striking new packaging” designed to enhance shelf visibility and provide clearer guidance for adult nicotine users. Inspired by the “North Star,” the updated packs — now live across JTI360 and rolling out in stores — feature Dry or Moist indicators for slower or faster nicotine release, alongside a six-dot strength system ranging from 6mg to 17mg. Each can contains 20 pouches and includes a compartment for used pouches, with recyclable polypropylene packaging.
The refresh follows the launch of Nordic Spirit Frosty Mint Max and comes as the UK nicotine pouch category grows to £15.9 million per month. Brand Lead Manager James Richards said the redesign aims to improve shelf standout and help retailers better guide customers, while maintaining the same product quality and flavor range. The brand’s Moist Range was also named Product of the Year 2026 in the Nicotine Pouch category, marking its third major award in five years and reinforcing its position in the expanding UK market.