TobaccoReporter logo

Blog

  • U.S. Momentum Keeps BAT FY25 On Track

    U.S. Momentum Keeps BAT FY25 On Track

    BAT released its 2025 full-year pre-close trading update today (December 9), saying it expects around 2% revenue and adjusted operating profit growth in FY25, with New Category revenues accelerating to double-digit growth in H2 to deliver mid-single-digit growth for the full year. Performance is being led by the U.S., where stronger combustibles results and Velo Plus momentum are driving revenue and profit, with Velo Plus on track to be profitable for the full year. Early federal and state enforcement efforts against illicit vapor products are also supporting recent improvements in Vuse volumes and revenues.

    Growth in New Categories is being driven primarily by Velo, now the “fastest-growing Modern Oral brand globally,” with strong share gains across priority markets and accelerating U.S. performance. While glo revenue remains broadly flat due to competitive pressure and platform transitions, the company is launching glo Hilo in premium heated tobacco markets. Vuse is showing improving H2 trends, supported by enforcement against illicit products, and early traction for the premium Vuse Ultra platform in Canada, Germany, and France, despite ongoing headwinds in the U.S. and Canada.

    Looking ahead, the company remains confident in its mid-term growth targets from 2026, guiding for 3–5% revenue growth, 4–6% profit growth, and 5–8% EPS growth, with 2026 likely at the lower end of the range. Strong cash generation continues, with operating cash flow conversion expected to exceed 95% and leverage targeted to fall to 2.0–2.5x by end-2026. Capital returns remain a priority, with progressive dividends and an expanded £1.3bn share buyback program for FY26.

  • Zyn Launches 1.5 Mg Option in UK

    Zyn Launches 1.5 Mg Option in UK

    Zyn launched Zyn X-Low, its lowest-strength nicotine pouch at 1.5mg, positioning it as an entry-level option for adult users new to the category, according to Talking Retail. The product expands Zyn’s UK and Ireland portfolio and is available in spearmint, black cherry, and cool mint via grocery, convenience, and wholesale channels, including Philip Morris’ Open retailer platform.

    “Expanding the range in this way allows us to meet a broader spectrum of adult nicotine preferences, strengthen the role of modern oral products in the marketplace, and further our ambition of achieving a smoke-free future,” said Dor Matot, head of Zyn UK and Ireland.

    The launch is backed by a nationwide marketing campaign aimed at highlighting strength choice and attracting first-time pouch users.

  • Development Hopes to Keep Tobacco Money in Zimbabwe

    Development Hopes to Keep Tobacco Money in Zimbabwe

    Zimbabwe is accelerating plans to move up the tobacco value chain under its new National Development Strategy 2 (NDS2), aiming to lift value addition from about 2% to 30% and reduce reliance on raw leaf exports. While NDS1 missed its 300,000-ton production target due to drought, Zimbabwe produced a record 355 million kg of tobacco in 2025, valued at $1.2 billion, making it the world’s sixth-largest producer. According to the Tobacco Industry and Marketing Board, tobacco contributes more than 25% of national foreign-currency earnings, though 92% of export revenues still come from unprocessed leaf.

    NDS2 focuses on local processing through the Tobacco Special Economic Zone, including nicotine extraction plants and expanded cigarette and cut-rag manufacturing. A key milestone was the commissioning of a $102 million Cut Rag Processors facility capable of producing 3 million kg of cut rag per month and 60,000 cigarette master cases.

    Government officials say domestic value addition remains far below potential, with current earnings estimated at $1.5 billion versus a theoretical $60 billion if higher-value products were produced. The strategy prioritizes attracting investment, expanding local financing, and creating jobs through processing, packaging, and logistics as Zimbabwe shifts toward exporting finished tobacco products.

  • Russian Police Seize $1.6M in Illicit Vapes

    Russian Police Seize $1.6M in Illicit Vapes

    Russian police in the Tambov region seized more than 150,000 e-cigarettes, along with cartridges and liquids worth about 126.5 million rubles ($1.6 million). Authorities said the products were shipped from Moscow disguised as small household appliances and supported by fake documents. Testing found nicotine levels significantly higher than stated on the packaging. A man has been detained, and a criminal case has been opened for the storage and sale of unmarked e-cigarettes.

  • Korean Smoking Rate Drops 1 Percentage Point

    Korean Smoking Rate Drops 1 Percentage Point

    The Korea Centers for Disease Control and Prevention released the results from its 2025 Community Health Survey, and found the smoking rate dropped one percentage point from last year to 17.9%, while the use of e-cigarettes rose 0.6% to 9.3%. The overall use of tobacco products dropped 0.5% from last year to 22.1%.

    In other health topics, overall drinking and high-risk drinking dropped 1.2% and 0.6% respectively, but the obesity rate went up 1% to 35.4%. Physical activity went down, while hypertension and diabetes increased.  

  • Youth-Focused Bans Hurt Older Vapers: Haypp Survey

    Youth-Focused Bans Hurt Older Vapers: Haypp Survey

    “Much of the debate on the Tobacco and Vapes Bill is focused on restricting youth access to vapes,” Haypp Group said in a press release announcing its latest survey. “While there are legitimate concerns around underage access to vapes, the introduction of broad product restrictions or bans may inadvertently exclude older segments of the population and impact the number of older smokers switching to vapes.” 

    In surveying 501 adult vape users in the UK, Haypp data found 87% of vapers aged 55 and over started vaping to quit smoking, compared with much lower rates in younger groups. The over-55 cohort was also the most positive about switching, with 92% saying they felt better after moving from cigarettes, and 55% citing health as the main benefit.

    The findings suggest older smokers—who face higher long-term health risks—could be disproportionately affected by product bans that limit access to regulated alternatives. Haypp said policymakers should consider more targeted youth protections while preserving access and accurate information for adult smokers seeking to switch.

  • Queensland Shuts 148 Stores, Seizes $10.4M in 10-Day Blitz

    Queensland Shuts 148 Stores, Seizes $10.4M in 10-Day Blitz

    Queensland authorities closed 148 stores and seized more than A$15.7 million ($10.4 million) worth of illegal smoking products in a 10-day enforcement operation that ended last week. Dubbed Operation Major, the blitz targeted illicit cigarettes, loose tobacco, vapes, vaping liquids, and nicotine pouches, resulting in the confiscation of 11.8 million cigarettes, 1.7 tons of loose tobacco, 87,000 vapes, 4.2 liters of vaping liquid, and 270,000 nicotine pouches.

    The closures were executed under new laws allowing Queensland Health to shut stores for 90 days without a court order. Health Minister Tim Nicholls said the operation demonstrates the state’s commitment to cracking down on illegal tobacco and vaping products, warning that black-market operators will be aggressively pursued.

    Theo Foukkare, CEO of the Australian Association of Convenience Stores, welcomed the move but noted that illicit traders are shifting online due to federal inaction on illegal tobacco. He emphasized the need for coordinated national measures to redirect consumers to the regulated market.

  • Drew Estate Tabs New Dutch Distributor

    Drew Estate Tabs New Dutch Distributor

    Drew Estate announced that it appointed Small Batch Traders B.V. as its new distributor in the Netherlands, effective January 1, 2026, as part of its overhaul of international operations. The move follows changes to its global distribution strategy.

     “Partnering with Small Batch Traders allows us to expand our presence with a distributor that truly understands the premium segment and shares our commitment to quality, innovation, and craftsmanship,” said David Cruz Tortora, Drew Estate’s GM of International Brand Development.

  • Health Groups Call for Tobacco Control in Bangladesh

    Health Groups Call for Tobacco Control in Bangladesh

    The National Heart Foundation of Bangladesh, Bangladesh Lung Foundation, and Bangladesh Cancer Society urged the government to strengthen the Tobacco Control Act to cut tobacco use and related deaths. In a joint statement, the three health groups said tobacco is the leading cause of preventable deaths in Bangladesh, killing more than 130,000 people each year. They noted that non-communicable diseases account for about 71% of all deaths nationally, with tobacco a major driver of heart disease, cancer, and chronic respiratory illnesses.

  • Hong Kong Considers Full Smoking Ban at Construction Sites

    Hong Kong Considers Full Smoking Ban at Construction Sites

    Authorities in Hong Kong are considering implementing a comprehensive smoking ban across all construction sites following last month’s tragic Tai Po fire, where at least 159 people were killed. While the official cause of the fire is still being investigated, reports say workers were seen smoking at the site of the apartment building’s renovation, near bamboo scaffolding, which authorities say fueled the rapid spread of the fire.

    The blaze has heightened scrutiny over workers’ smoking during renovation projects, with reports indicating repeated violations at Wang Fuk Court. Current measures include notices warning workers against bringing cigarettes onto sites, with penalties including fines of HK$5,000 ($642), immediate removal from the site, and potential permanent barring from construction employment. The Real Estate Developers Association is gathering member feedback to potentially issue industry-wide guidelines, emphasizing contractor responsibility for enforcement.

    Some developers, including CK Asset Holdings Ltd, already maintain strict no-smoking policies with designated smoking areas, intensified enforcement, and reporting to the Construction Industry Council. Under existing Hong Kong regulations, the commissioner may prohibit smoking at sites using flammable materials, providing a legal basis for broader restrictions if adopted.