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  • U.S. Vape Block on Imports Could Cut Illicits by a Third: BAT

    U.S. Vape Block on Imports Could Cut Illicits by a Third: BAT

    A potential U.S. ban on imports of certain disposable e-cigarettes could reduce illegal vape sales by as much as one-third, according to British American Tobacco CEO Tadeu Marroco. BAT estimates unauthorized products, largely manufactured in China, account for roughly 70% of U.S. e-cigarette sales, undermining both regulated vape brands and traditional cigarette businesses. The company is pursuing two cases before the U.S. International Trade Commission (ITC) seeking to block imports of products that infringe its patents. An ITC judge previously recommended an exclusion order, with a final decision expected in March, followed by a 60-day presidential review.

    “What we want to see in the US is a level playing field because in a level playing field, we know that we can win,” Marroco said.

    Marroco cautioned that any market impact would likely be delayed due to existing supply chains and inventory levels, suggesting significant effects may not occur until 2027. He also indicated that the U.S. Food and Drug Administration could consider alternative regulatory approaches for e-cigarettes, potentially including flavored products, as the agency evaluates ways to streamline product authorization processes.

  • BAT Signals Possible Job Cuts from AI Plan

    BAT Signals Possible Job Cuts from AI Plan

    British American Tobacco signaled potential job cuts as part of a new artificial intelligence-driven productivity initiative, while reporting higher annual profits fueled by strong performance from its Velo nicotine pouch. Interim finance chief Javed Iqbal said the program will focus on automation, data analytics, and operational simplification, though the extent of workforce reductions remains unclear. BAT reported adjusted earnings per share growth of 3.4%, with newer product revenue rising 7% for the year and reaching 18.2% of total sales. Velo has gained traction in the United States, becoming the second-largest nicotine pouch brand by market share behind Philip Morris International’s Zyn, supported by competitive pricing and higher nicotine strength offerings.

    Despite momentum in smoke-free products, BAT continues to face regulatory and market headwinds, according to Reuters. The company said illicit vape products are weighing on Vuse performance, with U.S. vape sales expected to remain flat in 2026. Additionally, higher tobacco duties and expanding illicit trade in Australia, along with tax and pricing regulations in Bangladesh, contributed to a more than 7% decline in revenue across BAT’s Asia-Pacific, Middle East, and Africa region, limiting overall group revenue growth to 2.1% in 2025.

  • Momentum Driving BAT Confidence in 2026 Delivery

    Momentum Driving BAT Confidence in 2026 Delivery

    British American Tobacco reported “accelerating momentum” in 2025, driven by strong U.S. combustible sales and rapid growth of its Velo nicotine pouch brand, while total smokeless consumers rose to 34.1 million. The company said new category revenue returned to double-digit growth in the second half of the year and now accounts for 18.2% of total revenue, as BAT continues investing in products such as Vuse, glo and Velo to support long-term transformation.

    BAT expects 2026 performance to fall at the lower end of its mid-term growth targets, projecting 3–5% revenue growth and 5–8% adjusted EPS growth amid continued investment and foreign exchange headwinds, while maintaining dividend increases and launching a £1.3 billion share buyback.

    “Our U.S. business has delivered strong growth, mainly driven by sustained momentum in combustibles, resulting from our commercial actions and enhanced execution,” company CEO Tadeu Marroco said. “Our New Categories revenue is accelerating, returning to double-digit growth in H2, driven by strong Velo growth in all regions. We continue to prioritize accelerating growth in category contribution through investment in our most profitable markets.”

  • BAT Extends Chair, Updates Board Movement

    BAT Extends Chair, Updates Board Movement

    British American Tobacco will extend Chair Luc Jobin’s tenure by up to two years, allowing him to remain in the role until the company’s April 2028 annual general meeting (AGM) while the board continues its search for a successor. Jobin, who joined the board in 2017 and became chair in 2021, will continue to stand for annual re-election despite the extension exceeding the UK Corporate Governance Code’s nine-year tenure guideline. The company said the move ensures leadership continuity during its ongoing transformation, following a succession review led by senior independent director Holly Keller Koeppel and the nominations committee. Koeppel will step down after the 2026 AGM, with Karen Guerra set to assume the senior independent director role and oversee the ongoing chair succession process.

  • Anti-Tobacco Group Alarmed that PMI, BAT Spending $40M on F1 Sponsorships

    Anti-Tobacco Group Alarmed that PMI, BAT Spending $40M on F1 Sponsorships

    Anti-tobacco advocacy group STOP (Stopping Tobacco Organizations and Products) is increasing scrutiny of nicotine brand marketing in Formula 1, arguing that partnerships between teams and companies linked to tobacco firms risk exposing younger audiences to nicotine products. The watchdog group claims the growing presence of products such as nicotine pouches and other smoke-free alternatives in motorsport sponsorship represents a regulatory gap that allows continued brand visibility despite historic restrictions on tobacco advertising.

    STOP highlighted recent sponsorship activity believed to be a combined $40 million by Philip Morris’ Zyn nicotine pouch products on Ferrari race teams and BAT’s Velo brand appearing in F1 team partnerships. Jorge Alday, director of STOP at Vital Strategies, said the organization is concerned given Formula 1’s expanding and increasingly youthful global fanbase. The group is urging regulators and sports governing bodies to consider tighter oversight of nicotine product marketing in international sporting events, while industry stakeholders maintain that such products fall within existing legal frameworks governing reduced-risk or non-combustible nicotine alternatives.

  • BAT Closure Leading S. Africa to ‘Warehouse Economy’

    BAT Closure Leading S. Africa to ‘Warehouse Economy’

    The South African Federation of Trade Unions (SAFTU) warned that South Africa is sliding toward a “warehouse economy” following British American Tobacco’s decision to shut its Heidelberg manufacturing plant and shift to imports. SAFTU General Secretary Zwelinzima Vavi said the closure would cost around 200 direct jobs and thousands more indirectly, arguing it reflects a broader pattern of deindustrialization as multinational companies scale back local production.

    SAFTU urged Parliament to halt the Tobacco Control Bill in its current form, warning it could further weaken legal tobacco manufacturers while strengthening illicit trade, which Vavi said already accounts for roughly 75% of cigarette sales. BAT cited rampant illegal cigarettes as a key factor behind the closure, noting that illicit trade has weighed on its South African operations and financial performance. SAFTU is calling for a full socioeconomic impact assessment of the bill, while BAT has pushed for stronger enforcement and a minimum retail price to curb illegal sales.

  • BAT CEO Talks Investment in Italy

    BAT CEO Talks Investment in Italy

    British American Tobacco CEO Tadeu Marroco was recently in Rome meeting with stakeholders, and spoke with Milano Finanza about how the company views Italy as a strategically important market, citing its stable regulatory and taxation framework, strong supplier base, and growing adoption of next-generation products, which now account for around 45% of BAT’s Italian revenue compared with 18% globally.

    “Italy represents one of the most strategic markets for BAT and [is] one of the countries in which the group can concretely realize its vision for the future,” he said. “From Italy, we continue to buy tobacco up to 15 thousand tons, which will be purchased in the three-year period 2026-2028, supporting over 400 small and medium-sized enterprises that employ 6,000 people.”

    Marroco said BAT is reinforcing its European innovation and production footprint through its Trieste Innovation Hub, where the company is investing €500 million through 2027 to expand non-combustible product manufacturing. The facility is expected to reach full capacity with 16 production lines and generate employment growth linked to BAT’s broader supply chain investments, including continued tobacco sourcing agreements supporting domestic agriculture and SMEs. The company maintains its target of deriving 50% of global revenue from smoke-free products by 2035, while also navigating regulatory complexity and illicit market growth in key regions, which BAT argues can hinder innovation and undermine public health and fiscal outcomes.

  • BAT Japan Launching Two New Velo Flavors

    BAT Japan Launching Two New Velo Flavors

    BAT Japan is set to expand its Velo nicotine pouch lineup with two new flavors: Velo Smooth Peppermint Medium and Velo Breezy Mango Intense. Smooth Peppermint Medium, aimed at beginners, offers a sweet peppermint aroma with a light cooling effect at 4 mg nicotine strength, while Breezy Mango Intense features tropical notes of mango, passion fruit, and orange at 6 mg strength for a stronger experience. Both products come in 15-pouch cans priced at 360 yen ($2.30) and will be available from February 2, through the official glo and Velo online store, glo Store Ginza, and nationwide tobacco retailers, with trial initiatives offered at select outlets and online.

  • BAT Named Global Top Employer for 9th Straight Year

    BAT Named Global Top Employer for 9th Straight Year

    BAT announced it has been named a Global Top Employer for the ninth consecutive year by the Top Employers Institute, also earning Top Employer certification across five regions and a record 44 countries worldwide. BAT says the recognition highlights its best-in-class employment practices, commitment to employee development, inclusion and wellbeing, and its ability to align people strategy globally while delivering locally relevant experiences. Chief People Officer Cora Koppe-Stahrenberg said the achievement reflects BAT’s continued investment in its people and culture as it transforms its business, while Top Employers Institute CEO Adrian Seligman praised BAT’s sustained excellence and global workforce resilience.

  • Tobacco Companies Funding €1.1M to Clean Portugal’s Litter

    Tobacco Companies Funding €1.1M to Clean Portugal’s Litter

    Portuguese municipalities will receive €1.1 million a year from the tobacco industry in 2026 and 2027 to help offset the cost of cleaning discarded cigarette butts from public spaces, under a new government decree. Lisbon will receive the largest allocation, €41,153, while the smallest payment of €325 will go to Alvito. The figures apply to mainland Portugal, with allocations for the autonomous regions still to be determined. According to Jornal de Negócios, the decree sets out for the first time mandatory financial contributions from tobacco producers, calculated according to four territorial categories: urban, semi-urban, rural, and beach areas.

    The payments are based on a proposal by Único – Associação de Gestão de Plásticos de Uso Único, a non-profit body licensed since late 2024 to operate Portugal’s first extended producer responsibility system for waste from filtered tobacco products. Único, whose members include BAT, Imperial Brands, JTI, Landewick, Tabaqueira, and Electrão, said the reform makes companies financially accountable for tobacco-related litter. Beyond funding, producers are also expected to support measures to reduce improper disposal, including public awareness campaigns. The decree further requires Único to submit a national study on urban cleaning waste in 2026, in line with EU guidelines, to help determine whether current cost estimates should be revised under existing European legislation that obliges tobacco producers to finance the clean-up and management of discarded filtered products.