TobaccoReporter logo

Tag: bat

  • BAT Malaysia Adjusts Prices, Eyes Market Stability

    BAT Malaysia Adjusts Prices, Eyes Market Stability

    British American Tobacco (Malaysia) Bhd announced new cigarette prices ranging from RM12.40 to RM18.40 per pack, effective November 21, following the government’s Budget 2026 excise duty increase. The move, approved by the Ministry of Health, marks the first excise adjustment in a decade and comes at a critical time for the company’s market positioning.

    BAT Malaysia managing director Nedal Salem said the moderate increase was a “step in the right direction” given Malaysia’s economic environment, but warned that steep hikes in the past have fueled the tobacco black market, which now accounts for 54% of total cigarette consumption. With illicit trade eroding legitimate sales, BAT Malaysia’s ability to maintain market share hinges on balancing affordability with regulatory compliance.

    Industry analysts note that while higher prices could pressure consumer demand, BAT Malaysia stands to benefit from stronger enforcement against contraband. Government crackdowns saved RM15.5 billion ($3.7 billion) in lost revenue over the past two years, and a new RM700 million ($168 million) allocation for enforcement in 2026 is expected to further curb illegal trade. Salem emphasized that BAT Malaysia fully supports these initiatives, positioning the company to protect its sales base and stabilize market share despite the excise-driven price adjustment.

  • BAT Zambia Defends ‘Utter Hypocrisy’ Criticism

    BAT Zambia Defends ‘Utter Hypocrisy’ Criticism

    British American Tobacco (BAT) was criticized for lobbying against elements of Zambia’s proposed Tobacco Control Bill, which includes restrictions similar to those already in place in the UK, home to BAT’s global headquarters. According to The Guardian, a letter from BAT Zambia to government ministers requested delays or amendments to proposed bans on advertising and sponsorship, reductions in the size of graphic health warnings, and the removal of restrictions on flavored tobacco products. The company also suggested lighter penalties for industry violations.

    Health advocates, including campaigner Master Chimbala, called the company’s stance “utter hypocrisy,” noting that similar measures have long been enforced in the UK. The draft bill would expand Zambia’s regulations to include e-cigarettes and require graphic warnings covering 75% of packaging.

    In response, BAT Zambia said it supports “progressive regulation” and participates in the legislative process in line with local law, emphasizing the need to balance public health goals with concerns about illicit trade and market realities.

    “The company participates in the country’s legislative process in line with the relevant frameworks which provide for stakeholder participation in policymaking,” a BAT Zambia spokesperson said. “We advocate for progressive regulation to achieve intended public health goals, while acknowledging the spectrum of rights and obligations on industry, consumers, and related stakeholders.”

  • BAT Launches Year-End Vape Promotion in Korea

    BAT Launches Year-End Vape Promotion in Korea

    Today (November 12), BAT Rothmans announced a promotion for its Glo Hyper series in South Korea, running both online and in-store through the end of the year. First-time buyers can purchase devices from the Glo Hyper Series, including the flagship Glo Hyper Pro, at special discounted prices. “The Hyper Pro features an EasyView screen and TasteSelect Dial for personalized heating control, while all neo sticks use StickSeal technology to prevent tobacco leaf residue.”

    A BAT Rothmans spokesperson said the year-end promotion aims to let more consumers experience the brand’s “innovative technology and differentiated experience at a reasonable price,” at the time of the year when colder weather drives people indoors. The company said surveys show odor reduction is a leading reason for smokers switching to vapes.  

    Government data shows e-cigarette sales in South Korea rose 8.3% year-on-year, capturing 18.4% of the total tobacco market in 2024—up from just 2.2% in 2017.

  • European Patent Office Sides with Nicoventures on Vape Dispute

    European Patent Office Sides with Nicoventures on Vape Dispute

    The European Patent Office’s Board of Appeal upheld British American Tobacco subsidiary Nicoventures Trading Ltd.’s vape patent EP3354144, rejecting a challenge by Philip Morris Products S.A., according to Law360. The board found that the patent’s method—activating a heater based on predetermined parameters independent of puff counts—was “inventive.” It also ruled that the patent’s description of vaporization without combustion and general thermal insulation was sufficiently supported by the original filing.

    Additionally, the board clarified that the term “predetermined period of use” referred to a fixed timeframe, not puff duration, distinguishing it from prior patents. All of Philip Morris’s objections were dismissed.

  • BAT Pauses Vuse One Vape Launch Amid FDA Scrutiny

    BAT Pauses Vuse One Vape Launch Amid FDA Scrutiny

    Yesterday (October 28), Reuters reported that BAT paused its pilot launch of the Vuse One disposable vape in the U.S., highlighting the regulatory hurdles in the rapidly growing nicotine products market, news that was confirmed by a spokesperson for Reynolds American, BAT’s U.S. subsidiary. The pilot will be postponed while the company focuses on its existing portfolio, including a nicotine pouch currently under PMTA review that FDA has promised to fast-track.

    “We will bring Vuse One to market at the appropriate time,” the spokesperson said. “Vuse One is one of the few disposable vapor products that meet the in-market and PMTA-deadline requirements that Congress established in 2022. We have communicated with our customers to ensure that they are fully informed about our decision.”

    The move follows increased U.S. Food and Drug Administration (FDA) enforcement against unapproved vapes, many imported from China, which have eroded profits in the $22 billion U.S. smoking alternatives sector. Earlier this year, it was reported that several manufacturers, frustrated by the lack of progress within the FDA, were considering launching products prior to official approval, similar to those already available on the market.

    The pause underscores the industry’s broader push for reforms to streamline FDA approvals, which often take years. Philip Morris International and Altria are also navigating similar challenges, balancing regulatory compliance with the competitive pressure from unlicensed products. The FDA has signaled intentions to accelerate applications, though public health groups warn that any loosening of review standards could undermine safety and oversight.

    The FDA recently sent a letter to “remind” manufacturers that selling new nicotine products without authorization is unlawful.

  • NZ Faces Rising Illicit Tobacco Trade

    NZ Faces Rising Illicit Tobacco Trade

    More than one in four cigarettes consumed in New Zealand came from the illicit market last year, according to a new independent report commissioned by Imperial Brands and BAT New Zealand. The study found that 27% of total tobacco consumption was illegal, up from 23.6% the previous year, resulting in lost excise revenue estimated at over NZ$600 million ($348 million). The rise is largely driven by a 41.9% increase in smuggled, contraband cigarettes.

    Industry representatives warned that without decisive intervention, New Zealand risks facing the same challenges seen in Australia, where delayed responses allowed illicit trade to flourish post-COVID. “The report shows New Zealand’s illicit tobacco trade continues to escalate,” said an Imperial Brands spokesperson. “It would be a mistake to assume the violence and criminal networks associated with an uncontrolled illicit market couldn’t happen here.”

    BAT New Zealand echoed the call for immediate action, highlighting the importance of proactive measures. “Australia presents a cautionary tale of how quickly illicit tobacco can take hold,” a BATNZ spokesperson said. “New Zealand has the opportunity to act now to prevent the exponential growth of illegal tobacco and protect both public health and government revenue.”

    Read the full report here.

  • BAT Launches €1.2 Billion Hybrid Capital Securities Issue

    BAT Launches €1.2 Billion Hybrid Capital Securities Issue

    Today (October 28), BAT announced the publication of a prospectus for a €1.2 billion dual-tranche hybrid capital securities offering. The issue comprises a €600 million perpetual non-call 5.25-year security (NC5.25) with a 4.20% initial coupon, and a €600 million perpetual non-call 8-year security (NC8) with a 4.75% initial coupon. The securities are subordinate to all senior creditors and will be accounted as equity under IFRS standards, receiving 50% equity credit from Moody’s, S&P, and Fitch.

    Proceeds from the issuance will be used for general corporate purposes, including the repurchase of the company’s outstanding Perpetual Subordinated NC 2026 Securities, which began with a tender offer on October 21, and the repayment of existing debt. The first call dates for the securities are October 20, 2030 to January 30, 2031, for the NC5.25 tranche and July 30, 2033 to October 30, 2033, for the NC8 tranche.

    Settlement is expected on October 30, 2025, with both tranches to be listed on the main market of the London Stock Exchange. The prospectus has been approved by the UK Financial Conduct Authority and is available online via the London Stock Exchange here and the National Storage Mechanism here.

  • Tobacco Stocks Stumble as ‘PMI Results Weigh on Sector’

    Tobacco Stocks Stumble as ‘PMI Results Weigh on Sector’

    Tobacco and nicotine stocks slipped yesterday (October 24) as shares of Philip Morris International fell following the company’s third-quarter results. While the company reported stronger-than-expected earnings and revenue, investors reacted negatively to a modest increase in full-year profit guidance and concerns over slowing growth in its smoke-free division. PMI shares dipped around 3–4% after the announcement, according to MSN’s Seeking Alpha.

    The sentiment rippled across the sector, pulling down other major players, according to Seeking Alpha. British American Tobacco traded about 2% lower, Turning Point Brands dropped nearly 4%, and Greenlane Holdings fell more than 5%. Altria Group also edged down around 1.5% ahead of its own quarterly earnings report, expected next week.

    Analysts at Morgan Stanley and BofA Securities maintained their “buy” ratings on Philip Morris, emphasizing its strong growth potential in reduced-risk products such as Zyn nicotine pouches. However, market watchers noted that investor expectations remain high even as the industry faces regulatory scrutiny and shifting consumer trends. The broader tobacco sector continues to balance solid cash flow and dividend stability against slower growth and rising public health pressures.

  • BAT Italia Unveils glo Hilo, a ‘New Era in Heated Tobacco’

    BAT Italia Unveils glo Hilo, a ‘New Era in Heated Tobacco’

    BAT Italia introduced glo Hilo, its latest tobacco heating device, “marking a technological leap in the heated tobacco sector.” Italy is among the first countries globally to roll out this new ecosystem, featuring sticks entirely made in Italy.

    Speaking at the event, Fabio de Petris, CEO of BAT Italia, highlighted the company’s growth and investment plans in Italy. He said that Italy represents a key market for new product categories, with one in three consumers using next-generation tobacco products, and outlined BAT’s €500 million five-year investment plan in its Trieste production hub. The facility, which now serves 14 countries, has expanded with 16 additional production lines for heated tobacco, driving new hires and reinforcing Italy’s strategic role in BAT’s global innovation strategy.

  • RJR Seeks Dismissal of ‘Carbon Neutral’ Vape Lawsuit

    RJR Seeks Dismissal of ‘Carbon Neutral’ Vape Lawsuit

    R.J. Reynolds Vapor Co. has asked a California federal judge to dismiss a proposed class-action lawsuit accusing the company of misleading consumers by advertising its Vuse e-cigarettes as “the world’s first carbon neutral vape brand.” In its filing with the U.S. District Court for the Northern District of California, the company said its statements were backed by independent third-party certifications from Verra and Vertis Environmental Finance Ltd., insisting that its carbon-neutral claims were accurate, verified, and aligned with recognized environmental standards. R.J. Reynolds argued that it did not exaggerate its emissions data and said plaintiffs failed to prove any economic loss tied to the marketing claim.

    According to ClassAction.org, the lawsuit, filed on May 28, 2025, seeks $5 million in damages and alleges that British American Tobacco (BAT) and its subsidiary R.J. Reynolds misled consumers with a deceptive sustainability campaign. Plaintiffs argue that the “carbon neutral” label relied on flawed carbon offset projects, including Uruguay’s Guanaré Forest Plantations Project, which an independent review found had no measurable climate benefit. The complaint claims the company continued to use the “carbon neutral” slogan even after learning of issues with the offset program, calling the campaign a marketing strategy aimed at enhancing brand loyalty rather than environmental responsibility.

    A BAT spokesperson previously said that Vuse’s carbon-neutral status was independently verified in 2021 and that related marketing materials were discontinued by the end of 2023, according to Law360.