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  • BAT to Sell Stake in ITC Hotels to Reduce Debt

    BAT to Sell Stake in ITC Hotels to Reduce Debt

    British American Tobacco announced that its subsidiaries plan to sell between 7% and 15.3% of their shares in ITC Hotels through an accelerated bookbuild. The exact number of shares will be set to optimize pricing. Established in 1975, the business of ITC Hotels has grown to encompass over 140 hotels across more than 90 destinations in the Indian subcontinent.

    Proceeds from the sale will help BAT move toward its “target 2–2.5x net debt/EBITDA leverage” by the end of 2026. BAT’s stake in ITC Hotels arose from a recent demerger and is not considered a strategic holding, CEO Tadeu Marroco said. Final sale details will be disclosed after the transaction closes.

  • VELO, McLaren Unveil Fan-Created Livery for Abu Dhabi GP

    VELO, McLaren Unveil Fan-Created Livery for Abu Dhabi GP

    VELO and the McLaren Formula 1 Team have unveiled a special, fan-created livery for the 2025 Abu Dhabi Grand Prix. Designed by nine McLaren superfans from around the world, the livery features bespoke icons inspired by personal memories, team milestones, and McLaren’s broader community spirit.

    VELO, McLaren Unveil Fan-Created Livery for Abu Dhabi GP

    VELO and the McLaren Formula 1 Team have unveiled a special, fan-created livery for the 2025 Abu Dhabi Grand Prix. Designed by nine McLaren superfans from around the world, the livery features bespoke icons inspired by personal memories, team milestones, and McLaren’s broader community spirit.

    The project is part of the “Live Your Fandom” campaign, which has delivered unique fan experiences throughout the season. In August, the selected superfans visited the McLaren Technology Centre for a behind-the-scenes tour, a design workshop, and sessions with McLaren Racing CEO Zak Brown and driver Lando Norris—where they unknowingly helped shape the final livery.

    “VELO is proud to celebrate these experiences that allow fans to embrace their own unique fandom as part of a community,” said Luca Angiolillo, Global Head of Partnerships at BAT, “and we can’t wait to see this special fan-driven takeover take center stage at the season finale.” In August, the selected superfans visited the McLaren Technology Centre for a behind-the-scenes tour, a design workshop, and sessions with McLaren Racing CEO Zak Brown and driver Lando Norris—where they unknowingly helped shape the final livery.

    “VELO is proud to celebrate these experiences that allow fans to embrace their own unique fandom as part of a community,” said Luca Angiolillo, Global Head of Partnerships at BAT, “and we can’t wait to see this special fan-driven takeover take center stage at the season finale.”

  • Kenya Stays Defamation Case Based on ‘Tobacco Bribes’

    Kenya Stays Defamation Case Based on ‘Tobacco Bribes’

    Kenya’s Court of Appeal temporarily halted the defamation case filed by National Assembly Speaker Moses Wetang’ula against the BBC, which he accused of defaming him in the 2015 documentary Panorama: The Secret Bribes of Big Tobacco. Wetang’ula seeks damages and costs over allegations that British American Tobacco bribed him while he served as Bungoma Senator.

    The BBC argued that continuing the High Court case would undermine its appeal and block access to crucial evidence from UK courts. Wetang’ula opposed the request, calling it procedurally flawed and delayed.

    The appellate court agreed the BBC raised an arguable point, noting the delay was not excessive and emphasizing the constitutional right to a fair trial. It granted the stay, pausing the High Court proceedings until the appeal is resolved, with costs to follow the outcome.

  • BAT Malaysia Adjusts Prices, Eyes Market Stability

    BAT Malaysia Adjusts Prices, Eyes Market Stability

    British American Tobacco (Malaysia) Bhd announced new cigarette prices ranging from RM12.40 to RM18.40 per pack, effective November 21, following the government’s Budget 2026 excise duty increase. The move, approved by the Ministry of Health, marks the first excise adjustment in a decade and comes at a critical time for the company’s market positioning.

    BAT Malaysia managing director Nedal Salem said the moderate increase was a “step in the right direction” given Malaysia’s economic environment, but warned that steep hikes in the past have fueled the tobacco black market, which now accounts for 54% of total cigarette consumption. With illicit trade eroding legitimate sales, BAT Malaysia’s ability to maintain market share hinges on balancing affordability with regulatory compliance.

    Industry analysts note that while higher prices could pressure consumer demand, BAT Malaysia stands to benefit from stronger enforcement against contraband. Government crackdowns saved RM15.5 billion ($3.7 billion) in lost revenue over the past two years, and a new RM700 million ($168 million) allocation for enforcement in 2026 is expected to further curb illegal trade. Salem emphasized that BAT Malaysia fully supports these initiatives, positioning the company to protect its sales base and stabilize market share despite the excise-driven price adjustment.

  • BAT Zambia Defends ‘Utter Hypocrisy’ Criticism

    BAT Zambia Defends ‘Utter Hypocrisy’ Criticism

    British American Tobacco (BAT) was criticized for lobbying against elements of Zambia’s proposed Tobacco Control Bill, which includes restrictions similar to those already in place in the UK, home to BAT’s global headquarters. According to The Guardian, a letter from BAT Zambia to government ministers requested delays or amendments to proposed bans on advertising and sponsorship, reductions in the size of graphic health warnings, and the removal of restrictions on flavored tobacco products. The company also suggested lighter penalties for industry violations.

    Health advocates, including campaigner Master Chimbala, called the company’s stance “utter hypocrisy,” noting that similar measures have long been enforced in the UK. The draft bill would expand Zambia’s regulations to include e-cigarettes and require graphic warnings covering 75% of packaging.

    In response, BAT Zambia said it supports “progressive regulation” and participates in the legislative process in line with local law, emphasizing the need to balance public health goals with concerns about illicit trade and market realities.

    “The company participates in the country’s legislative process in line with the relevant frameworks which provide for stakeholder participation in policymaking,” a BAT Zambia spokesperson said. “We advocate for progressive regulation to achieve intended public health goals, while acknowledging the spectrum of rights and obligations on industry, consumers, and related stakeholders.”

  • BAT Launches Year-End Vape Promotion in Korea

    BAT Launches Year-End Vape Promotion in Korea

    Today (November 12), BAT Rothmans announced a promotion for its Glo Hyper series in South Korea, running both online and in-store through the end of the year. First-time buyers can purchase devices from the Glo Hyper Series, including the flagship Glo Hyper Pro, at special discounted prices. “The Hyper Pro features an EasyView screen and TasteSelect Dial for personalized heating control, while all neo sticks use StickSeal technology to prevent tobacco leaf residue.”

    A BAT Rothmans spokesperson said the year-end promotion aims to let more consumers experience the brand’s “innovative technology and differentiated experience at a reasonable price,” at the time of the year when colder weather drives people indoors. The company said surveys show odor reduction is a leading reason for smokers switching to vapes.  

    Government data shows e-cigarette sales in South Korea rose 8.3% year-on-year, capturing 18.4% of the total tobacco market in 2024—up from just 2.2% in 2017.

  • European Patent Office Sides with Nicoventures on Vape Dispute

    European Patent Office Sides with Nicoventures on Vape Dispute

    The European Patent Office’s Board of Appeal upheld British American Tobacco subsidiary Nicoventures Trading Ltd.’s vape patent EP3354144, rejecting a challenge by Philip Morris Products S.A., according to Law360. The board found that the patent’s method—activating a heater based on predetermined parameters independent of puff counts—was “inventive.” It also ruled that the patent’s description of vaporization without combustion and general thermal insulation was sufficiently supported by the original filing.

    Additionally, the board clarified that the term “predetermined period of use” referred to a fixed timeframe, not puff duration, distinguishing it from prior patents. All of Philip Morris’s objections were dismissed.

  • BAT Pauses Vuse One Vape Launch Amid FDA Scrutiny

    BAT Pauses Vuse One Vape Launch Amid FDA Scrutiny

    Yesterday (October 28), Reuters reported that BAT paused its pilot launch of the Vuse One disposable vape in the U.S., highlighting the regulatory hurdles in the rapidly growing nicotine products market, news that was confirmed by a spokesperson for Reynolds American, BAT’s U.S. subsidiary. The pilot will be postponed while the company focuses on its existing portfolio, including a nicotine pouch currently under PMTA review that FDA has promised to fast-track.

    “We will bring Vuse One to market at the appropriate time,” the spokesperson said. “Vuse One is one of the few disposable vapor products that meet the in-market and PMTA-deadline requirements that Congress established in 2022. We have communicated with our customers to ensure that they are fully informed about our decision.”

    The move follows increased U.S. Food and Drug Administration (FDA) enforcement against unapproved vapes, many imported from China, which have eroded profits in the $22 billion U.S. smoking alternatives sector. Earlier this year, it was reported that several manufacturers, frustrated by the lack of progress within the FDA, were considering launching products prior to official approval, similar to those already available on the market.

    The pause underscores the industry’s broader push for reforms to streamline FDA approvals, which often take years. Philip Morris International and Altria are also navigating similar challenges, balancing regulatory compliance with the competitive pressure from unlicensed products. The FDA has signaled intentions to accelerate applications, though public health groups warn that any loosening of review standards could undermine safety and oversight.

    The FDA recently sent a letter to “remind” manufacturers that selling new nicotine products without authorization is unlawful.

  • 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.