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  • 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.

  • BAT to Raise Prices of Heated Tobacco Sticks in Japan

    BAT to Raise Prices of Heated Tobacco Sticks in Japan

    BAT announced that it will increase the retail selling prices (RSPs) of its Lucky Strike and Kent heated tobacco sticks in Japan by ¥20 ($0.13) beginning January 1, citing higher manufacturing costs rather than tax-related reasons. Designed exclusively for use with the glo Hyper series, the adjustments will apply to 11 Lucky Strike and five Kent variants, setting new prices at ¥450 and ¥500 ($2.97 and $3.30), respectively.

    Prices for BAT’s other heated tobacco lines — Neo and Virto, for exclusive use with the glo Hilo series — will remain unchanged at ¥500 and ¥580 ($3.83). The company says that even after the increase, Lucky Strike will continue to be the lowest-priced tobacco stick among the three major heated tobacco platforms in Japan: IQOS, glo, and Ploom.

    The upcoming change follows a series of price revisions in recent years. Lucky Strike, originally launched at ¥450, was reduced to ¥400 ($2.64) in October 2023 and restored to ¥450 in April 2024. Kent, initially ¥500, dropped to ¥450 in August 2023 before rising to ¥480 ($3.17) in October 2024. Analysts suggest that the latest increase reflects BAT’s renewed confidence in its market position, emphasizing product innovation and the success of the glo Hilo series and Virto sticks, rather than relying on price competition.

  • BAT Launches Tender Offer for €1 Billion Hybrid Securities

    BAT Launches Tender Offer for €1 Billion Hybrid Securities

    BAT announced a cash tender offer for its €1 billion Perpetual Subordinated Fixed-to-Reset Rate Non-Call 5.25 Year Securities, carrying a 3% coupon and a first optional redemption date in late 2026. The company is offering to purchase all of the securities at 100.375% of face value, plus accrued interest. The move is part of BAT’s plan to proactively manage its hybrid capital portfolio, alongside the planned issuance of new euro-denominated hybrid capital securities. The tender offer runs until October 28 at 4 p.m. BST, with settlement expected on October 31.

    If BAT purchases 75% or more of the outstanding securities, it may exercise its option to redeem the remaining notes at par. Securities acquired in the offer will be cancelled. The transaction is not open to U.S. investors and remains subject to a New Financing Condition linked to the success of the new bond issuance.

  • Spring Mountain Investments Divests Another 1.15% of BAT Shares

    Spring Mountain Investments Divests Another 1.15% of BAT Shares

    On October 16, BAT announced that Spring Mountain Investments Ltd.’s holding of voting rights attached to shares in the company fell below a notifiable threshold on October 14. The new total position of voting rights attached to shares is 2.808906%, representing 61,410,486 voting rights. This is a decrease from the previous notification of 3.950733%. The chain of controlled undertakings through which the voting rights are held includes Kenneth Bryan Dart, Portfolio Services Ltd, and Spring Mountain Investments.

    Spring Mountain Investments sold 115.2 million shares of BAT earlier this year, reducing its shares in the company by 53% since April.

  • BAT Launches Yoti Age Estimation System in Channel Islands

    BAT Launches Yoti Age Estimation System in Channel Islands

    BAT partnered with the Channel Islands Co-operative Society (Coop) and digital identity company Yoti to roll out facial age estimation technology across 10 Coop stores in Jersey, aiming to prevent underage access to tobacco and nicotine products.

    The initiative is part of BAT’s wider European deployment of Yoti technology, now active in over 600 stores and expected to reach 1,000 by year-end. Early trials have shown a 99% accuracy rate, with 99.3% of 13–17-year-olds correctly identified as underage. The system estimates a shopper’s age using a quick photo scan and deletes the image immediately after verification.

    BAT said the project underscores its global commitment to responsible retailing and youth access prevention. “Globally, technology is at the forefront of BAT’s transformation and plays a crucial role in combating underage access,” said Susanna De Iesu, Commercial Director, BAT UK&I. “Our partnership with Yoti demonstrates our advancement in technological innovation and provides an extra level of protection to ensure our products are sold solely to adult nicotine consumers.”

  • BAT Acquires Full Ownership of UzBAT for $22M

    BAT Acquires Full Ownership of UzBAT for $22M

    BAT Group completed its deal with Uzbekistan’s State Assets Management Agency to buy the state-owned stake in the UzBAT joint venture for $22.3 million, finalizing it on October 6. BAT acquired 641,661 shares (2.6%) as part of its continued commitment to the country’s economic and social development.

    Operating in Uzbekistan since 1994, BAT has invested over $500 million in the local market over the past 30 years. UzBAT, the country’s leading tobacco manufacturer, produces traditional cigarettes and, since 2023, heated tobacco sticks at the Samarkand Multi-Category Factory as part of BAT’s global “A Better Tomorrow” strategy to expand smoke-free products and reduce harm.

    The joint venture not only serves domestic demand but also exports products to Kazakhstan, Georgia, Azerbaijan, Iraq, and South Korea. UzBAT is a major employer with over 800 staff and a top private taxpayer. For seven consecutive years, it has been recognized as a Top Employer by the international Top Employers Institute.