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  • BAT Repositions Vuse Alto on U.S. Price Tier

    BAT Repositions Vuse Alto on U.S. Price Tier

    British American Tobacco is repositioning its Vuse Alto vaping brand deeper into the U.S. mass market through lower retail pricing and promotional offers, according to industry channel checks cited by Ad Hoc News. Starter kits have been promoted for under $10 at some convenience chains, alongside discounted multi-pack pod offers aimed at adult smokers switching from cigarettes.

    The strategy, according to the report, strengthens Alto’s role as BAT’s core mid-priced closed-system vape product and supports the company’s broader effort to grow revenue from reduced-risk products. Vuse remains a key contributor to BAT’s New Categories business, with the company relying on pricing, retail distribution and repeat pod sales to drive volume growth in the highly regulated U.S. vapor market.

  • Kenyan Tobacco Farmers Protest Harsh Working Conditions

    Kenyan Tobacco Farmers Protest Harsh Working Conditions

    Tobacco farmers in Migori County, Kenya, are calling on the government to require leaf-buying companies to provide protective equipment, citing health risks linked to tobacco cultivation. Growers from Kuria, Suna West, and Uriri regions say more than 20,000 farmers could benefit from access to basic gear such as gloves, aprons, and masks, which they argue are necessary to reduce exposure to skin and respiratory illnesses associated with handling tobacco.

    Some farmers say they are currently bearing medical costs linked to tobacco-related ailments and accuse companies of not prioritizing worker safety, while also urging stricter enforcement of safety requirements in the sector. Tobacco firms operating in the region, including British American Tobacco and other leaf companies, have said protective gear is provided under existing arrangements or offered on credit, though they acknowledge cost and compliance challenges. The dispute comes alongside broader environmental concerns raised by officials, who warn that tobacco curing practices relying on wood fuel are contributing to deforestation and environmental degradation in parts of the region.

  • BAT Encouraging Participation in EU’s Call for Evidence

    BAT Encouraging Participation in EU’s Call for Evidence

    British American Tobacco launched an initiative aimed at encouraging adult consumers and retail partners to participate in the European Commission’s Call for Evidence on future EU tobacco and nicotine legislation. The campaign, titled “Share Your Voice,” is designed to drive engagement with the EU’s ongoing review of its Tobacco Products Directive and direct stakeholders to the Commission’s “Have Your Say” consultation platform during the current feedback period.

    The company said the initiative is intended to provide practical insight into how proposed regulatory changes could affect real-world product use and retail operations, arguing that better-informed policymaking requires input from consumers who have switched to smokeless alternatives. BAT estimates that more than 30 million adults in Europe now use smokeless nicotine products and warns that parts of the Commission’s policy direction could restrict or ban categories of reduced-risk products.

    The European Commission has indicated in its April 2026 evaluation report that it is considering tighter restrictions on tobacco and nicotine products as part of an updated regulatory framework. The consultation process remains open to stakeholders as part of the legislative review process.

  • BAT Malaysia Reports First-Ever Loss

    BAT Malaysia Reports First-Ever Loss

    British American Tobacco Malaysia reported its first quarterly loss since the company’s formation through the 1999 merger of Rothmans of Pall Mall (Malaysia) and Malaysian Tobacco Company, citing rising regulatory costs and worsening illicit cigarette trade in Malaysia. The company posted a net loss of RM35.2 million ($8.8 million) for the first quarter ended March 31, compared with a net profit of RM23.3 million ($5.8 million) a year earlier, while revenue declined to RM160.3 million ($40 million) from RM322 million ($80.5 million).

    Operating expenses increased 74.7% year-over-year to RM64.68 million (16.2 million), driven largely by one-off costs tied to the implementation of Malaysia’s retail tobacco display ban and restructuring linked to a new route-to-market strategy. BAT Malaysia said legal combustible cigarette volumes fell 4.5% during the quarter, while illicit cigarette incidence rose to 56.7% of total industry volume from 54.4% in the prior quarter, marking the first increase since 2021.

    The company declared a first interim dividend of five sen ($0.0125) per share, down from 7.5 sen ($0.0188) a year earlier. Management said the first quarter represented a transition period as the company implemented operational changes intended to improve long-term competitiveness and efficiency.

  • BAT Kenya Says Proposed Laws Threaten 100K Jobs

    BAT Kenya Says Proposed Laws Threaten 100K Jobs

    British American Tobacco Kenya warned that proposed amendments to Kenya’s tobacco control laws could cost the government an estimated Sh12 billion ($92 million) in annual revenue and threaten more than 100,000 jobs across the tobacco supply chain. In a memorandum submitted to Kenya’s National Assembly, BAT Kenya said provisions in the Tobacco Control (Amendment) Bill, 2024, could worsen the illicit cigarette trade, which the company estimates already accounts for about 45% of the country’s cigarette market.

    The proposed legislation includes bans on flavors in tobacco and nicotine products, tighter regulation of e-cigarettes and nicotine pouches, expanded graphic warning requirements, potential plain packaging rules, additional licensing obligations for retailers, restrictions on single-use plastics, and a proposed 100-metre limit on tobacco sales locations. BAT Kenya also objected to plans to classify electronic cigarettes and oral nicotine pouches as tobacco products, arguing the bill does not distinguish between combustible and non-combustible nicotine products.

    BAT Kenya Managing Director Crispin Achola said the company supports public health goals but called for a more balanced and evidence-based regulatory framework. The company urged lawmakers to conduct broader stakeholder consultations and pointed to countries including the United Kingdom, Sweden, and New Zealand as examples of markets using differentiated regulation for alternative nicotine products.

  • BATB Sales Choked by Taxes, Illicits

    BATB Sales Choked by Taxes, Illicits

    British American Tobacco Bangladesh reported a sharp downturn in first-quarter FY2025-26 performance as higher tobacco taxes, consumer downtrading, and rising competition from illicit cigarettes weighed heavily on sales. Domestic cigarette volumes fell 14% year-on-year, dragging gross revenue down 10.7% and net revenue down 21% as the effective tax burden climbed to 84.1%.

    Industry estimates suggest illicit cigarettes now capture up to 18% of the market, intensifying pressure on compliant manufacturers. While gross margin improved to 56% on lower cost of sales, operating expenses surged more than 40%, and operating cash outflow widened amid rising inventories and higher short-term borrowing. Non-core revenue streams offered little support, with cigarette exports remaining at zero for a third straight quarter and leaf export volumes falling sharply.

  • BAT Launching Digital and Technology Hub in India

    BAT Launching Digital and Technology Hub in India

    British American Tobacco announced plans to open a new information, digital, and technology (IDT) hub in Fraser Town, Bengaluru, India, as part of efforts to strengthen its global technology footprint and accelerate its transformation into a more agile, data-driven business. The hub will house BAT’s newly created Future Capabilities Centre (FCC), designed to consolidate key digital, data, cybersecurity, artificial intelligence, and platform capabilities in one location to drive innovation and operational efficiency across the group.

    The FCC will create a range of highly skilled roles and tap into Bengaluru’s technology ecosystem to support BAT’s global operations through advanced digital solutions and strategic partnerships. According to Javed Iqbal, BAT’s Interim Chief Financial Officer and Director for Digital and Information, the center will play a critical role in scaling innovation and embedding technology at the core of the company’s operations as it adapts to a rapidly evolving business environment.

  • Bosnia, Industry Cracking Down on €500M Tobacco Black Market

    Bosnia, Industry Cracking Down on €500M Tobacco Black Market

    Authorities and industry representatives in Bosnia and Herzegovina say the illegal tobacco trade is costing the country more than €500 million annually, as cigarettes without excise stamps and cross-border smuggling continue to undermine the legal market and public revenues. Officials from the Indirect Taxation Administration of Bosnia and Herzegovina and the Finance Ministry stressed that coordinated enforcement, stable excise policy, and cooperation with manufacturers such as British American Tobacco and Japan Tobacco International helped reverse a sharp market collapse seen around 2019–2020, when legal cigarette volumes fell from 12 billion to 3.5 billion sticks annually.

    Authorities say improved policy alignment and citizen reporting through the “Stop Smuggling” campaign have since supported revenue recovery, while warning that the shadow market still distorts competition, drains budgets that fund public services, and complicates efforts to align with European regulatory standards. 

  • BAT Stock Surges, Despite Legacy Combustibles Shrinking

    BAT Stock Surges, Despite Legacy Combustibles Shrinking

    Shares of British American Tobacco climbed 13.99% in London trading last week to £48.64 on May 15, as investors reacted to a mix of regulatory, legal, and capital signals. Market attention followed the U.S. Food and Drug Administration authorization of flavored Glas ENDS products, seen as a reference point for how flavored e-cigarettes may fare under the PMTA pathway, even though the decision did not involve BAT’s Vuse brand. Sentiment was further supported after a U.S. court dismissed a sanctions-related criminal case tied to BAT’s prior North Korea compliance matter, confirming the company had fulfilled its deferred prosecution agreement, alongside continued focus on BAT’s planned £1.3 billion 2026 share buyback and growth prospects for its newer nicotine portfolio, including VELO.

    In contrast, BAT Bangladesh reported a 14% year-on-year drop in cigarette volumes and a 34% decline in profit for Q1 2026 amid higher taxes, inflationary pressure, and weaker consumer purchasing power, underscoring the diverging performance between BAT’s legacy combustible markets and investor expectations tied to reduced-risk product expansion.

  • BAT’s Case for Violating North Korean Sanctions Dropped

    BAT’s Case for Violating North Korean Sanctions Dropped

    A U.S. federal judge dismissed the government’s criminal case against British American Tobacco after the company fulfilled the terms of a three-year deferred prosecution agreement related to sanctions violations involving North Korea. The U.S. Department of Justice said BAT complied fully with the 2023 agreement, including strengthening compliance systems and paying approximately $630 million in penalties, one of the largest sanctions-related fines tied to North Korea.

    The case stemmed from allegations that BAT continued supplying tobacco products to North Korea between 2007 and 2017 through a third-party entity after publicly exiting the market. With the dismissal granted by the court, the matter concludes following the company’s settlement and compliance measures.