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  • BAT Kenya Says Illicit Cigarettes Costing $92M in Lost Taxes

    BAT Kenya Says Illicit Cigarettes Costing $92M in Lost Taxes

    BAT Kenya warned that illicit cigarettes now account for about 45% of Kenya’s cigarette market, costing the government an estimated Sh12 billion ($92.4 million) annually in lost tax revenue. The company said the illegal trade is undermining legitimate manufacturers and threatening an industry that supports about 80,000 livelihoods across farming, manufacturing, distribution, and retail.

    BAT Kenya Managing Director Sidney Wafula said illicit cigarettes, particularly those entering through porous borders including Uganda, are the company’s biggest challenge. “The continued rise in illicit cigarette trade remains the most significant threat to the sustainability of the legitimate industry and its value chains,” Wafula said, calling for sustained enforcement and stronger border controls.

    The warning came as BAT Kenya reported half-year revenue growth of 5% to Sh12.3 billion ($94.7 million), supported by export recovery and growth in nicotine pouches. The company said it expects continued growth in modern oral nicotine products while urging predictable tax policies and stronger action against illicit tobacco trade.

  • Annual Tobacco Trade Golf Day Set for Sept. 10

    Annual Tobacco Trade Golf Day Set for Sept. 10

    JTI and British American Tobacco will co-host the 2026 Tobacco Trade Golf Association (TTGA) Golf Day on Sept. 10 at The Berkshire Golf Club in Ascot, England, to raise funds for GroceryAid, the charity supporting workers across the UK grocery industry. Following a sold-out event in 2025, organizers are encouraging early registration for this year’s 18-hole tournament, which will include a charity raffle and sponsorship opportunities to maximize fundraising for GroceryAid’s emotional, practical and financial support services.

  • Velo and McLaren Offer F1 Dream Competition for Fans

    Velo and McLaren Offer F1 Dream Competition for Fans

    British American Tobacco’s Velo nicotine pouch brand and the McLaren Mastercard Formula 1 Team launched a global “Live Your Fandom” competition for the second half of the 2026 Formula 1 season, inviting adult fans to submit creative ideas for exclusive McLaren-themed experiences. The campaign, which builds on last year’s partnership, will reward selected entrants with fan-inspired experiences ranging from behind-the-scenes access to custom merchandise and meetings with McLaren executives.

    BAT said the promotion is designed to strengthen engagement with adult nicotine consumers while reinforcing Velo’s branding through its ongoing Formula 1 sponsorship with McLaren.

  • WSJ Optimistic with Tobacco Stocks

    WSJ Optimistic with Tobacco Stocks

    Reporting for The Wall Street Journal’s business section, Carol Ryan wrote that tobacco companies with growing smoke-free product portfolios are increasingly attracting investors, helping to narrow the stigma traditionally associated with cigarette stocks.

    “The taboo against owning cigarette stocks hasn’t gone away, but new gray areas are emerging,” she wrote. “Companies that make a big share of their sales from smoke-free products like vapes appear to be rejoining polite society, and are getting a boost to their stock-market valuations as a result.”

    Ryan said shares of British American Tobacco have roughly doubled over the past two years, outperforming many major technology stocks, as investors respond to a more favorable U.S. regulatory environment under the Trump administration and recent FDA guidance allowing new vapes and nicotine pouches to remain on the market while their premarket applications are under review. She said the policy could help legal manufacturers compete more effectively against the illicit vape market, which Jefferies Financial Group estimates accounts for more than two-thirds of U.S. vape sales.

    Ryan said the shift toward smoke-free products is also improving tobacco companies’ market valuations. Philip Morris International, which generated 41% of 2025 sales from non-combustible products, trades at a significant valuation premium to peers, while BAT —whose smoke-free portfolio represented nearly 20% of revenue last year — is targeting 50% by 2035. She said BAT has gained U.S. market share with its Velo Plus nicotine pouches and could benefit from the FDA’s new approach as it launches updated Vuse products. Ryan concluded that, as traditional cigarette volumes continue to decline and other consumer staples sectors struggle with weak growth, a broader group of investors is beginning to reconsider tobacco stocks, particularly companies demonstrating growth in reduced-risk nicotine products.

  • Vuse Unveils Collaboration at Berlin Fashion Week

    Vuse Unveils Collaboration at Berlin Fashion Week

    BAT Germany’s Vuse announced the expansion of its partnership with designer Marina Hoermanseder, unveiling a custom case for the Vuse Ultra device and Ultra Smart Pods during Berlin Fashion Week as part of the designer’s Spring/Summer 2027 show. Inspired by Vuse flavors, the accessory will be offered in three color variants — True Blueberry, Strawberry Fuchsia, and Elegant Tobacco — and will go on sale in October for €29 through Vuse’s website, selected retail locations, and the Vuse Loyalty Club. Following a successful collaboration with the designer last year, the new collection is part of Vuse’s “Follow your vibe” campaign, which emphasizes design, flavor, and personal expression.

  • BAT’s Fit2Win Program Cutting Expenses, Jobs

    BAT’s Fit2Win Program Cutting Expenses, Jobs

    British American Tobacco said its Fit2Win transformation program remains on track to deliver approximately £600 million in annual cost savings by the end of 2028 as it simplifies operations, expands technology partnerships, and streamlines its global manufacturing footprint. Launched in 2025, BAT has already transitioned selected roles to partners, including Accenture, Systems Limited, and ITC Infotech, while launching a new Future Capabilities Centre in India and continuing to optimize its manufacturing network, including the previously announced closure of its Heidelberg factory in South Africa.

    Reuters reports that as part of the initiative, BAT plans to eliminate about 5,500 roles and transfer approximately 3,500 positions to strategic partners, affecting around 9,000 employees globally, excluding the United States. The company said the changes are intended to create a more agile, technology-enabled organization capable of responding more quickly to changing market conditions and accelerating its transition toward reduced-risk products.

    CEO Tadeu Marroco said Fit2Win is creating a “simpler, faster BAT,” adding that the company is supporting affected employees throughout the transition. The restructuring comes as BAT continues to adapt to declining cigarette volumes and invest in next-generation products such as Vuse e-cigarettes and Velo nicotine pouches.

  • 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.