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  • 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.

  • Altria Outperforms Peers as Cigarette Declines Moderate: Motley Fool

    Altria Outperforms Peers as Cigarette Declines Moderate: Motley Fool

    A recent Motley Fool analysis highlights continued declines in U.S. cigarette volumes, though at a slower pace than expected, with industry data showing a 4.3% to 5.5% year-over-year drop and a 5.1% decline so far in 2026. The figures came in better than earlier projections, suggesting the rate of contraction in the traditional cigarette market may be stabilizing somewhat, even as long-term declines persist.

    The report notes that Altria is outperforming key competitors in this environment, with its cigarette volumes down 4.7% compared to sharper declines of 9.3% for British American Tobacco and 9% for Imperial Brands. At the same time, Motley Fool said next-generation products show mixed performance, with nicotine pouches growing 22% while e-cigarette volumes fell 17%, underscoring uneven momentum across reduced-risk categories as companies continue to navigate the transition away from combustible products.

  • BAT NZ Revenue Down 29% Amid Rising Illicit Trade

    BAT NZ Revenue Down 29% Amid Rising Illicit Trade

    British American Tobacco New Zealand reported a sharp decline in financial performance in 2025, with revenue falling nearly 29% year over year to NZ$180.7 million ($106.6 million), which the company attributed in part to the growth of the illicit tobacco market. According to The Post, industry estimates suggest illicit products accounted for 27.2% of consumption in 2024, equating to roughly NZ$600 million ($354 million) in lost excise revenue, as high cigarette taxes continue to push consumers toward the black market.

    The downturn was reflected across key business indicators, including a significant drop in inventory levels and reduced tax payments, while dividend payouts to the parent company remained stable. BAT has called for stronger enforcement measures, including tougher penalties and retailer licensing, as illicit trade expands alongside broader market shifts such as declining smoking rates and rising vape use.

  • BAT Calls Pakistan Largest Illicit Cigarette Market

    BAT Calls Pakistan Largest Illicit Cigarette Market

    British American Tobacco (BAT) says Pakistan has become the world’s largest illicit cigarette market, with illegal products accounting for roughly 55–58% of consumption. Simon Trussler, BAT’s Group Head of International Trade and Fiscal Affairs, said steep tax increases in recent years have widened the price gap between legal and illicit cigarettes—now around half the price—driving consumers toward untaxed products while overall consumption remains broadly unchanged at about 80 billion sticks annually.

    BAT said higher taxes have failed to deliver expected revenue gains and instead have fueled domestic illicit production, which accounts for the majority of illegal supply. The company called for a more stable excise policy alongside sustained enforcement across the supply chain, noting recent seizures and factory closures as signs of increased government action.

  • Organigram Completes Sanity Acquisition with BAT Backing

    Organigram Completes Sanity Acquisition with BAT Backing

    Organigram Global and Sanity Group jointly announced the official closing of Organigram’s acquisition of the Germany-based cannabis company that was originally announced in February. Combining cash and shares as part of its international expansion strategy, the deal is valued at €107.3 million. The transaction was supported by €40.3 million in new financing from British American Tobacco and additional credit facilities, highlighting BAT’s continued backing of Organigram’s growth initiatives. The deal marks the final deployment of funds from the Jupiter strategic investment pool and strengthens Organigram’s position in the European cannabis market.

  • Altria Raises Cigarette Prices Across Most Brands

    Altria Raises Cigarette Prices Across Most Brands

    Altria increased prices across its portfolio earlier this week, including a roughly 20- to 25-cent per pack hike on Marlboro, 25 cents on Benson & Hedges, Merit, Parliament, and Virginia Slims, and a 20-cent increase on L&M cigarettes, according to a notice from Goldman Sachs. The company held pricing flat on its value-focused Basic brand. The price changes were the second increase this year, according to CSP.

    Goldman Sachs Managing Director Bonnie Herzog said the increases were unsurprising and followed Altria’s “typical quarterly cadence,” but that the increases were sharper than predicted. “We believe Altria’s sophisticated and targeted pricing strategies, as well as promotional spending, should help to offset the frequency of list price increases, especially for price-sensitive consumers,” Herzog said.

    Herzog also said she expected British American Tobacco to follow soon with a similar price increase on cigarettes, and that she would be watching to see whether deep-discount cigarette manufacturers also move on price. “If they don’t, the relative price gap could widen further,” Herzog was quoted by CSP, increasing the risk of downtrading, but Herzog said brands like Marlboro, with a loyal customer base, would likely be able to keep consumers within the franchise.

  • BAT Chair Reaffirms Growth Targets at AGM

    BAT Chair Reaffirms Growth Targets at AGM

    British American Tobacco Chair Luc Jobin told shareholders at the company’s 2026 annual meeting that the group is making strong progress in its transformation toward a smokeless future, driven by growth in reduced-risk products and continued investment in innovation, science, and digital capabilities. He highlighted a more than 15% increase in smokeless product users in 2025 and reaffirmed confidence in BAT’s medium-term targets, including 3–5% revenue growth and 4–6% operating profit growth, despite regulatory challenges and market volatility.

    “We enter 2026 with accelerating momentum, powered by a strengthened innovation pipeline, deep strategic partnerships, and growing confidence in our future-fit capabilities,” Jobin said. “This progress underpins our confidence in sustainably delivering our mid-term algorithm of [growth].”

    Emphasizing harm reduction, Jobin called for evidence-based regulation to support alternatives to cigarettes and said the company remains well-positioned to deliver long-term value as it advances its strategy, despite a complex and volatile market.

    “We have activated comprehensive Business Continuity Plans to mitigate potential disruption, and we are closely monitoring the situation in the Middle East as it evolves,” he said. “As of today, the conflict is not currently having a significant impact on the Group’s business.”

    Read Jobin’s full comments here.

  • BAT Names Constantinescu as CFO

    BAT Names Constantinescu as CFO

    British American Tobacco announced the appointment of Dragos Constantinescu as Chief Financial Officer and Executive Director, effective 1 September 2026. Constantinescu, currently CEO of Asahi Europe & International, previously spent 16 years at BAT in senior finance and management roles across Europe. He succeeds Javed Iqbal, who will remain as Director of Digital & Information after serving as Interim CFO.

    BAT Chair Luc Jobin highlighted Constantinescu’s financial expertise and international leadership experience, while CEO Tadeu Marroco noted his knowledge of BAT will support the company’s ongoing transformation and growth strategy.

  • Mozambique Tobacco Exports Rise 16% in 2025 Despite Output Drop

    Mozambique Tobacco Exports Rise 16% in 2025 Despite Output Drop

    Tobacco export revenues from Mozambique climbed 16% year over year to €224.5 million in 2025, according to data from the Bank of Mozambique, even as national production fell. Output was 72,380 tons, down from 92,343 tons in 2024, while the sector’s production value slipped 4.1% to 7,255 million meticais, reflecting pressure on the country’s key cash crop.

    Government reporting attributes part of the strain to the exit of British American Tobacco operations to South Africa, affecting tax revenues. The industry is now concentrated in two firms — Mozambique Leaf Tobacco and Sociedade Agrícola de Tabaco — as Mozambique remains among the world’s largest tobacco cultivation areas, ranking eighth globally according to a World Health Organization report with 91,469 hectares.