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  • Former Tory Contender to Work for BAT

    Former Tory Contender to Work for BAT

    The Guardian reported today (April 10) that Penny Mordaunt, the former U.K. Conservative leadership contender who served in cabinet roles from defense secretary to leader of the House of Commons, has taken a job advising British American Tobacco’s (BAT) “transformation advisory group” on harm-reduction.

    Mordaunt’s new job was revealed by the Advisory Committee on Business Appointments, which said she should not lobby the government for two years after leaving office or advise on any public contracts.

    In its analysis, the committee said, “British American Tobacco has a significant interest in government policy and regulation and has resources focused on influencing government decisions – for example lobbying for a reduction in taxes for cigarettes, legislation on vaping and the prevention of counterfeit goods.”

    The committee said there were only limited risks associated with Mordaunt’s access to information that could help BAT given the change of government and the amount of time that had passed.

    However, it added: “Whilst you said you will not lobby, there is a risk your former role as a cabinet minister will be seen to offer British American Tobacco unfair access to and influence within government. Therefore, the committee’s advice is that you should have no direct engagement with government on behalf of the company, as to do so would raise significant risks under the government’s rules.”

    When asked about Mordaunt’s role, BAT chief corporate officer Kingsley Wheaton said, “BAT has launched a manifesto for change … it is founded on the very best tobacco harm reduction [THR] thinking and science. To accelerate that ambition, we understand alternative viewpoints that challenge our thinking will maximize success. This THR advisory board is designed to do just that.”

  • Report Outlines the Mozambique Tobacco Industry

    Report Outlines the Mozambique Tobacco Industry

    ResearchAndMarkets.com has released a report on the tobacco industry in Mozambique, including information on production, manufacture and retail, key trends and issues, notable players, trade, and regulations. “Tobacco Industry in Mozambique” also provides information on major influencing factors such as the security situation, economic environment health, environmental issues, and illegal trading. The report includes company profiles of three players including British American Tobacco, Mozambique Leaf Tobacco, and Afro Tobacco Company.

    For marketing trends, it reports on:

    • An increase in tobacco sales revenues
    • Growth in tobacco exports
    • The concession system provides smallholder farmers with a market to sell their tobacco
    • The introduction of seal stamps on tobacco products, to reduce illicit cigarettes
    • The potential for increased tobacco production
  • BAT Gives Notice of Annual Meeting 

    BAT Gives Notice of Annual Meeting 

    BAT announced that it has published its Notice of Annual General Meeting 2025 on its website ahead of the meeting on April 16. The following documents are being mailed and made available to its shareholders today (March 13):

    1)    Annual Report and Form 20-F 2024 (including the Strategic Report 2024) www.bat.com/annualreport

    2)    Combined Performance and Sustainability Summary 2024 www.bat.com/annualreport

    3)    AGM Notice 2025 www.bat.com/AGM

    4)    Proxy Form 

    5)    Proxy Form – South Africa 

    6)    Voting Instruction Form – South Africa

    Click here for details on document submissions and local compliance.

  • BAT Announces Pricing of $2.5B Notes Offerings

    BAT Announces Pricing of $2.5B Notes Offerings

    British American Tobacco today (March 12) announced that B.A.T Capital Corporation, a wholly owned subsidiary of BAT, has priced an offering of $2.5 billion aggregate principal amount of guaranteed debt securities consisting of (1) $1 billion 5.350% notes due in 2032, (2) $1 billion 5.625% notes due in 2035, and (3) $500 million 6.250% notes due in 2055.

    The notes will be fully and unconditionally guaranteed on a senior and unsecured and joint and several basis by BAT, B.A.T. International Finance p.l.c., B.A.T. Netherlands Finance B.V. and, unless its guarantee is released in accordance with the relevant indenture, Reynolds American Inc.

    The issuance of the notes is expected to close March 13, subject to customary closing conditions.

    BAT intends to use the net proceeds of the offering of the notes for general corporate purposes, including the potential repayment of existing indebtedness.

    The preliminary prospectus supplement is available at: 424B2 (sec.gov)

    The shelf registration statement is also available at: F-3ASR (sec.gov)

  • Canadian Tobacco Settlement a Step Closer to Complete

    Canadian Tobacco Settlement a Step Closer to Complete

    After years of mediation to resolve long-pending tobacco product-related litigation in Canada, the court-appointed Mediator’s and Monitor’s Plan of Compromise and Arrangement was today (March 7) sanctioned by the Ontario Superior Court of Justice in the ongoing proceedings under the Companies’ Creditors Arrangement Act (CCAA). The sanctioning was a significant step in finalizing the $22.7 billion settlement agreement with Imperial Tobacco Canada (a BAT subsidiary), JTI-Macdonald Corp., and Rothmans, Benson & Hedges (a PMI subsidiary). The settlement has been in negotiations since March 2019.

    Following a judicial hearing on the proposed plan, the three companies reached a consensual resolution of all outstanding objections to it. The plan will resolve all Canadian tobacco litigation and provide a full and comprehensive release to the companies.

    “We are pleased that the Court has sanctioned the Mediator’s and Monitor’s Plan of Compromise and Arrangement, a critical milestone in the CCAA process, Imperial Tobacco Canada wrote in a statement. “We look forward to the successful implementation of this plan, which maximizes value for claimants, resolves outstanding tobacco litigation, and allows us to emerge from CCAA protection. While there are still some steps that must be taken to implement the settlement, Imperial Tobacco Canada is committed to continue working with the relevant parties to complete this process as quickly as possible for the benefit of all stakeholders.”

  • PMI Retains European Vape Patent

    PMI Retains European Vape Patent

    European patent officials tossed a challenge from a British American Tobacco subsidiary allowing Philip Morris to retain its patent for a type of power supply for electronic vapes.

    The patent from PMI primarily describes a power supply system for an e-vaping device, including a sensor and a sensor holder designed to regulate airflow and house a power source. Nicoventures claimed the patent was not new because it used similar features in three older patents for its “Vuse Solo.” The BAT side argued that there were several features in the older patents that effectively served as sensor holders similar to the PMI design.

    In a Feb. 20 decision that was published yesterday (March 5), the appellate board at the European Patent Office upheld an earlier decision dismissing Nicoventures’ opposition because Philip Morris’ power supply design contains a unique structure.

    “The board concurs with the respondent’s arguments [that] the structure of the e-vaping device in [the older inventions] and the patent are not identical,” the Technical Board of Appeal said.

    PMI further argued that Nicoventures failed to prove that Vuse Solo “was available to the public before it filed its own patent application, therefore Nicoventures cannot argue that its design is not new,” Law360 wrote.

  • BAT’s Block Listing Application and Cancellation

    BAT’s Block Listing Application and Cancellation

    Today (Feb. 27), British American Tobacco announced it made an application to the Financial Conduct Authority and the London Stock Exchange for a block listing totaling 1.5 million ordinary shares of 25p each to be admitted to the equity shares category of the Official List and to trade on the main market of the London Stock Exchange.

    The shares will be issued pursuant to the BAT Sharesave Scheme. Upon issuance, the shares shall rank equally with the existing issued shares of the company. The admission of the shares is expected on March 3, 2025.

    BAT further announced that it currently has 31,189 ordinary shares of 25p each block listed under the British American Tobacco Executive Share Option Scheme. No allotments have been made under the Scheme since the last block listing return was released Jan. 1, 2025. All outstanding options under the Scheme have now been exercised and the Scheme has closed. As a result, the block listing associated with the Scheme has been cancelled.

  • Potential Compensation Boon for BAT CEO

    Potential Compensation Boon for BAT CEO

    A newly proposed incentive scheme by British American Tobacco could make its chief executive, Tadeu Marroco, one of the highest-paid executives in the world. According to the Financial Times, “The chief executive of British American Tobacco could receive up to £18.2mn in a new three-year pay deal, making him one of the highest earning FTSE bosses as big UK companies move to narrow the pay gap with US rivals.” The compensation package would be based on BAT hitting certain targets — such as increasing the profitability of cigarette alternatives — and if its share price rose 50% over that time span.

    Marroco, who has been chief executive since May 2023, will be guaranteed a minimum of £1.8 million in salary, pension, and benefits annually the company said. He received £6 million in total last year.

    “The increasingly competitive global market for senior talent has resulted in upward pressure on pay . . . With many US-based candidates, we observe that pay disparities are particularly evident with incentive opportunities, which tend to be far above typical UK levels,” BAT said in its annual report.

    It added that one-third of its senior hires over the past three years had been from the U.S. and that it had “an elevated vacancy rate across senior management levels, with lengthening times to hire”.

    Shareholders will vote on the new pay deal, which was first reported in The Sunday Times, at the company’s annual general meeting in April.

  • BAT Shares Tumble 9%

    BAT Shares Tumble 9%

    Today, British American Tobacco shares dropped 9% in London on news it would take a $7.74 billion hit from a Canadian lawsuit as well as fears that changes in Bangladesh and Australia would hurt its performance in 2025. The $6 billion loss off its market capitalization was the company’s worst day on the market since 2020. BAT’s stock remains up 7% since the start of the year.

    Under the proposed Canadian settlement, an upfront payment will be followed by annual payments, initially worth 85% of net income after taxes, excluding income related to alternative products like vapes, and reducing over time. BAT and other tobacco companies were set to pay $22.8 billion to settle a long-running case in Canada, but some parties, including Philip Morris International’s Canadian affiliate, have since objected to the proposal.

    Meanwhile, BAT said new tobacco regulations in Australia and increased excise and VAT in Bangladesh would hurt its tobacco business.

    Chief Executive Officer Tadeu Marroco said these represented “significant regulatory and fiscal headwinds” that would dent its performance this year, but their impact would recede into 2026 when BAT’s investments would also pay off to spur growth. For 2025, the company expects just 1% revenue growth.

    Marroco also said he was hopeful U.S. President Donald Trump’s new administration could tackle sales of illegal disposable vapes, which have impacted its cigarette and vape sales in the country. “We remain committed to returning to our mid-term guidance of 3% to 5% revenue and 4% to 6% adjusted profit from operations growth on a constant currency in 2026,” he said.

  • BAT: Illicit Vapes Making Market “Unsustainable”

    BAT: Illicit Vapes Making Market “Unsustainable”

    British American Tobacco’s growth in smoke-free products was deemed to be dragged down by the prevalence of illicit vapes in the US market, making for disappointing numbers in 2025. The company reported that vape sales in the US fell 0.8% last year, with price increases failing to make up for a slump in volumes, a sign that competition from unauthorized manufacturers is eroding its market share.

    Cigarette volumes in the US plunged 10.1%, BAT said, blaming a downturn in consumer spending and an increase in the discount category, where the company does not operate. The company is forecasting growth in adjusted operating profit of 1.5% to 2.5% for 2025.

    “We all understand the situation is unsustainable in the US on the vapor side,” said Chief Executive Officer Tadeu Marroco on a call with reporters, adding that the illicit vapes mean that users have no control over the specifics of what they are consuming. “Hopefully the new administration will bring a new way to think about enforcement.”