Tag: British American Tobacco

  • BAT on Track To Deliver Fiscal Year Guidance

    BAT on Track To Deliver Fiscal Year Guidance

    Image: BAT

    British American Tobacco said it is on track to deliver its fiscal year guidance, with 2024 investment driving positive momentum toward long-term sustainable growth

    “Our second-half performance acceleration is driven by the phasing of new categories innovation, the benefits of investment in U.S. commercial actions and the unwind of wholesaler inventory movements,” said BAT CEO Tadeu Marroco in a statement.

    “In October, I was delighted to host our capital markets day together with our management team in our Innovation Centre in Southampton. This event demonstrated how BAT’s science, innovation, breadth of capabilities and people can combine to achieve a smokeless world and deliver long-term sustainable value for all our stakeholders. We continue to make progress towards our ambition of becoming a predominantly smokeless business by 2035.

    “Our ‘quality growth’ imperative is delivering higher returns on more targeted investments across all three new categories, and that prioritization and focus is already transforming our business in Europe. We are making further progress increasing profitability across new categories, and I am particularly pleased with the improvements in heated products and modern oral.

    “In the U.S., I am encouraged that our investment approach, taken over the last 18 months to strengthen our business, is working, despite a challenging macro-economic backdrop. Through our commercial actions, we have invested in our portfolio and improved our executional capabilities. With these previously announced plans now completed, we can prioritize driving sharper execution and opening incremental white space, related to modern oral.

    “We continue to prioritize shaping a sustainable future and call for more appropriate regulation and enforcement of new categories, including vapor in the U.S. and Canada.

    “We are making good progress and while there is still more to do, I believe that the choices we have made and the actions we are taking through this investment year are the right way forward for BAT.”

  • Chandrasiri Joins Ceylon Tobacco Board

    Chandrasiri Joins Ceylon Tobacco Board

    Image: Ink Drop

    BAT subsidiary Ceylon Tobacco Co. has appointed Samanmalee Chandrasiri as a non-executive director to its board, reports EconomyNext.

    A globally experienced professional with nearly two decades of expertise in human resources, Chandrasiri started her career in 2006 with HR business partnering roles at BAT Sri Lanka.

    As BAT South Asia area head of talent, she managed talent strategies across Pakistan, Bangladesh, and Sri Lanka. This led to her position as organization effectiveness advisor in BAT Indonesia.

    She served as HR director for BAT Sri Lanka and for Malaysia and Singapore.

    She assumed duties as group head of organization effectiveness and talent management in July 2019, operating from London.

    Chandrasiri served as group head of HR for global marketing, scientific research and development before taking the role of group head of talent, organization effectiveness and inclusion (London), where she led the global center of expertise on talent, organization effectiveness, diversity and inclusion

    In October 2024, she stepped into her current role as group head of HR and inclusion—global operations and R&D.

     

  • Spread the Word

    Spread the Word

    BAT’s Danielle Tower shares her views on the tremendous opportunity presented by tobacco harm reduction.

    By George Gay

    Ahead of the 2024 CORESTA Congress that was held in Scotland Oct.13-17 under the theme “Advancing Tobacco Harm Reduction through Scientific Collaboration,” Tobacco Reporter took the opportunity to interview Danielle Tower, group head of scientific and regulatory affairs at BAT, the host of the Congress.

    Tobacco Reporter: In March, BAT went public with the opening of its new U.K. Innovation Centre in Southampton, U.K. (see “Driving Transformation,” Tobacco Reporter, May 2024). More recently, with your Omni initiative, you have presented a summary of BAT’s progress toward making “A Better Tomorrow by Building a Smokeless World.” And last month, you hosted the CORESTA conference under the banner “Advancing Tobacco Harm Reduction Through Scientific Collaboration.” This is all very praiseworthy, but do you have evidence that your tobacco harm reduction (THR) messages are getting through to those people making regulatory decisions about tobacco and nicotine?

    Tower: Governments, the public health community as well as manufacturers like BAT and their business partners have a key role to play in maximizing the potential of smokeless products to contribute to tobacco harm reduction.

    In July 2023, the FDA [U.S. Food and Drug Administration] has authorized the marketing and sale of our vapor product Vuse Alto with Golden Tobacco and Rich Tobacco flavors in the United States. This is good news for adult smokers, who would otherwise continue to smoke, and for public health.

    Evidence-based regulation requires a comprehensive scientific assessment, from data that assesses the health impact of new products, to the impact on the population, including users of new products and nonusers of nicotine products.

    At BAT, we are focused on driving awareness and understanding of our science across multiple scientific and other nonconsumer audiences. We believe that by being open and transparent with our data, we can meaningfully contribute to the discussion on tobacco harm reduction.

    Even in the U.K., where regulations have tended toward the pro-THR, the signs are that things are going to get more difficult for those offering smokeless alternatives to combustible tobacco products. How can you navigate this potentially more hostile regulatory landscape in such a way as to take THR forward?

    We believe that tobacco harm reduction—the switching of smokers, who would otherwise continue to smoke, to alternatives with a reduced-risk profile—is the best way to reduce the harm associated with smoking cigarettes.

    We have a vast body of scientific evidence to substantiate the reduced-risk profile of our smokeless products. And, when required, we conduct new science to support our regulatory submissions.

    BAT is in favor of progressive regulation—based on the best available scientific evidence—allowing adult smokers to have access to smokeless alternative products while providing consumers with high product standards and preventing underage access. 

    The U.K. is a tobacco harm reduction success story. The number of smokers is at an all-time low—6 million—and nearly 3 million people have switched to vaping in the last five years. We are calling for smart regulation that allows smokers to have access to smokeless alternatives while providing consumers with high product standards and guarding against underage access. One of our proposals is a retail licensing system—similar to alcohol. Most importantly, good regulation must be accompanied by robust enforcement—otherwise, it is unlikely to be effective.

    And how do you navigate your way in jurisdictions where regulations are not as supportive of THR as they have been to date in the U.K.?

    Harm reduction approaches have produced diverse opinions from numerous stakeholders. We encourage anyone interested in learning more about tobacco harm reduction to read more and consider the broadest range of available viewpoints.

    Regulation should be based on the best available scientific evidence. And lessons can be learned from countries like Sweden, the U.K., New Zealand and Canada that have embraced tobacco harm reduction and have experienced an associated acceleration in the decline of smoking rates.

    One of the problems with nicotine product regulations seems to be that they are not always fully enforced, something that can unfairly put legitimate companies in a bad light in the general media. Again in the U.K., rogue manufacturers seem able to market noncompliant products because imports, compliance and retail sales, including to those underage, are not properly policed. Is there anything that you can do to turn this around?

    Yes, I think there are three main challenges: Firstly, the lack of awareness or acceptance of tobacco harm reduction. Many prestigious public health organizations are in favor of THR as the way to reduce the harm associated with smoking cigarettes for those consumers who would otherwise continue to smoke.

    Secondly, the lack of enforcement. Regulation must be well enforced with strong sanctions for those who don’t comply. Otherwise, situations as seen in the United States arise where the majority of the vapor market consists of illegal, illicit disposable vapes.

    And thirdly, the lack of flexibility to keep pace with innovation. Regulatory frameworks often struggle to keep pace with a fast-evolving, consumer-led market. It’s important to cater for innovation so that adult smokers have access to the best available smokeless alternatives, which has the potential to accelerate tobacco harm reduction.

    Your new Innovation Centre involved a considerable investment, but, in fact, it is only a part of the total investment needed to bring forward efficacious alternative smokeless products. How do you ensure that these investments are used to the best advantage in producing good products while keeping investors happy? Do you mainly seek to improve the categories of alternative smokeless products already established, or are you involved in blue-sky projects that might come up with revolutionary products?

    Consumer choice is driving the transformation of the tobacco industry. Adult smokers are more likely to switch to a product that delivers comparable satisfaction. That is why we are obsessed with innovation and invest £300 million [$392.27 million] a year in the development of our smokeless products. The Innovation Centre in Southampton will collaborate with BAT’s Innovation Centres in Shenzhen and Trieste [see “Shaping Tomorrow,” Tobacco Reporter, April 2023] to anticipate and meet the needs of consumers through science, technology and innovation.

    I can’t disclose our innovation pipeline, but we are constantly innovating and utilizing new technology to improve our portfolio of smokeless products.

    You compete in most if not all the smokeless product categories and, at the opening of your new Innovation Centre, presentations were given concerning the seemingly impressive levels by which the health risks associated with the consumption of these products is potentially lower than that of smoking combustible cigarettes. But this sort of information does not seem to see the light of day too often. Can this situation be turned around?

    Already today, several public health organizations and regulators are supporting the use of smokeless products. However, to ensure that the full potential of the tobacco harm reduction opportunity is realized, much more focus is required by regulators to ensure that adult smokers in all markets across the world have access to smokeless products and accurate information about their relative risk—so they can make informed decisions about switching.

    We publish the findings of science in peer-reviewed publications and present the results at conferences. This helps to informs other scientists working in the field and those undertaking evidence reviews.

    Governments have an important role to play as a trusted source of information. The U.K. is a good example. The government has undertaken reviews of the scientific evidence on vaping—publishing its key findings (OHID evidence review). And the National Health Service has a page dedicated to vaping as a means of promoting THR—covering the myths and facts (Vaping myths and the facts—Better Health—NHS [www.nhs.uk]).

    Questions have been asked in the recent and not-so-recent past about the relevance of CORESTA in the current tobacco/nicotine environment. Do I take it that, in hosting this year’s congress, you are giving a stamp of approval to this organization and the idea of scientific co-operation even within a highly competitive industry?

    It is a great honor for BAT to host the 2024 CORESTA Congress concentrating on the theme of “Advancing Tobacco Harm Reduction Through Scientific Collaboration.” We are proud to welcome around 500 attendees to the congress, bringing together member and nonmember organizations from over 30 countries, including companies, research institutes, laboratories, associations and regulatory bodies. Our focus is to promote discussion and the sharing of knowledge and understanding in the science related to tobacco harm reduction across a variety of disciplines, from agricultural raw material production to product characterization, nonclinical and clinical assessment and product use behavior. With increasing regulatory requirements, the scientific work and outputs of CORESTA have become a worldwide reference point for tobacco policymaking and support the development of testing standards—such as ISO standards.

    How do you see the future for THR?

    We have an opportunity to usher in a new smokeless world, grounded in scientific research and a firm commitment to public health. The solutions are available today. All that is required is for the relevant stakeholders to actively work together to prioritize tobacco harm reduction and the well-being of millions of people worldwide.

    Countries that have recognized the opportunity tobacco harm reduction presents, and which have adopted supportive policies, have seen striking success in reducing their smoking rates. The U.S., U.K. and Japan are all currently witnessing their lowest smoking rates on record while Sweden is on track to declare itself smoke-free this year—defined as having [less] than 5 percent of daily smokers in the population—16 years ahead of the 2040 EU target.

    Sweden’s experience with snus is a useful case study for tobacco harm reduction. Snus is a traditional smokeless tobacco product that is placed between the lip and gums and held in the mouth for around 30 minutes, during which time it slowly releases nicotine without inhalation. It has been available in Sweden for 200 years, and, while the composition has changed, manufacturing methods have improved dramatically over that time.

    Although Sweden has the highest consumption of smokeless tobacco per capita in the world, Swedish men have the lowest death rate attributable to tobacco and the lowest incidence of lung cancer and other tobacco-related diseases of nearly every country in the world.

    More recently, other smokeless products—vapor, heated products and tobacco-free oral nicotine pouches—have been introduced in Sweden, helping to further reduce the prevalence of smoking.

    This remarkable transformation in Sweden, and other countries, has been driven by acceptance of tobacco harm reduction from policymakers, regulators and health officials in these markets, encouraging smokers, who would otherwise continue to smoke, to migrate to smokeless alternatives.

    And the $60,000 question: Is it, or will it ever be, acceptable for nonsmokers to take to using smokeless nicotine products?

    We market our smokeless products to existing adult tobacco and nicotine consumers. For those who don’t smoke, my message is simple: Don’t start. For those who do smoke, my recommendation is to quit entirely. However, if they will not quit, then I encourage them to completely switch to smokeless nicotine products backed by scientific evidence that shows their reduced-risk potential compared to smoking cigarettes.

    Is there anything you would like to add?

    Tobacco harm reduction represents a significant public health opportunity that cannot be ignored. It is my hope that the Omni will spur dialogue with stakeholders—scientists, public health authorities, policymakers, and investors—and across the wider scientific and regulatory ecosystem related to tobacco and nicotine products. I appreciate that some people will be skeptical of our motivations and actions. The Omni is not intended to be a panacea. It is, however, designed to underscore our commitment to science and facilitate an important conversation about tobacco harm reduction. Omni can be accessed at www.asmokelessworld.com.

    George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.
  • BAT to Launch Synthetic Nicotine Pouch in the U.S.

    BAT to Launch Synthetic Nicotine Pouch in the U.S.

    Photo: Andrii

    BAT will launch a new version of its Velo pouches using synthetic nicotine in the United States next year, reports Reuters.

    Made in a laboratory rather than derived from tobacco leaves, synthetic nicotine has gained popularity among manufacturers recently as a means to avoid the Food and Drug Administration’s lengthy and cumbersome tobacco product authorization process.

    While the FDA initially had authority only over naturally occurring nicotine, President Joe Biden in March 2022 signed into law a bill that extended the agency remit to synthetic nicotine. BAT’s launch would mark the first time a major tobacco company introduces a synthetic nicotine product in the U.S., according to Reuters. To date, synthetic nicotine has been used primarily by smaller manufacturers of vapes or pouches.

    David Waterfield, president of BAT’s Reynolds American subsidiary, said that the product’s previous owner submitted a premarket tobacco product application before the May 2022 deadline, meaning it can stay on the market while its application is pending, Waterfield said.

    The FDA, however, told Reuters that a pending application is insufficient for a synthetic nicotine product to be sold in the U.S. Products on the market without FDA authorization, the agency added, may be subject to enforcement.

    BAT expects U.S. nicotine pouch industry revenues to grow from £1.7 billion ($2.21 billion) today to up to £7 billion by 2030.

  • CORESTA Concludes

    CORESTA Concludes

    Photos: BAT

    The Cooperation Centre for Scientific Research Relative to Tobacco (CORESTA) concluded its 2024 congress today.

    Hosted by BAT at the Edinburgh International Convention Centre, the congress opened Oct. 13 with 500 delegates, world-leading experts from member and nonmember organizations from more than 30 countries, attending. The theme was “Advancing Tobacco Harm Reduction Through Scientific Collaboration.”

    According to BAT, the event facilitated international dialogue on best practices in scientific research related to tobacco and nicotine alongside highlighting research findings and outcomes from CORESTA members.

    Danni Tower, group head of science and regulatory affairs at BAT, delivered the opening keynote speech, outlining the progress BAT has made in driving forward the tobacco harm reduction agenda. Tower called for more effective scientific collaboration in critical areas.

    All public health agencies, including WHO, should engage with CORESTA scientists to accelerate change.

    Derek Yach

    “The CORESTA Congress demonstrates the importance of collaboration amongst the entire scientific community to fully realize the public health opportunity of tobacco harm reduction,” said Tower in a statement. “We are proud to have hosted such an important event and strongly believe that positive global change is possible if all stakeholders recognize the potential of THR.

    “To achieve this, more open conversations like those we have had this week are needed across the scientific and regulatory landscape, which is why we have recently launched Omni—Forward Thinking for a Smokeless World—an open, evidence-based platform built on leading scientific research.”

    “Presentations at CORESTA demonstrated scientific advances underway in using new approaches to accelerate tobacco harm reduction,” said keynote speaker Derek Yach. “These extend from the use of genomics in agricultural sciences to the development of biomarkers in actual use studies and the application of AI tools to advance our knowledge of causes and effectiveness of interventions. All public health agencies, including WHO, should engage with CORESTA scientists to accelerate change.”

  • BAT Hosts Capital Markets Day

    BAT Hosts Capital Markets Day

    Photo: BAT

    BAT hosted a capital markets day for institutional investors and analysts at its Innovation Centre in Southampton, U.K., Oct. 16.

    During the event, CEO Tadeu Marroco and Chief Financial Officer Soraya Benchikh provided further details on the company’s transformation journey. BAT aims to become a predominantly smokeless business by 2035 by providing smokers with access to a wide range of smokeless products.

    According to BAT, the goal of the capital markets day was to demonstrate how the company’s science, innovation, breadth of capabilities and people can combine to achieve a smokeless world and deliver long-term sustainable value for all its stakeholders.

    In an announcement, the company said it remains on track to deliver low-single-digit organic revenue and adjusted profit from operations growth in 2024. It plans to progressively improve its delivery to 3 percent to 5 percent organic revenue growth and mid-single-figure adjusted profit from operations growth on an organic, constant currency basis by 2026.

  • Encouraging Engagement

    Encouraging Engagement

    Image: SolaruS

    Open dialogue is key to fully realizing the beneficial public health impact of tobacco harm reduction.

    By Danni Tower

    Tobacco harm reduction (THR) is one of the greatest public health opportunities available today. By fully embracing this concept, we can significantly reduce the more than 8 million deaths attributed to smoking cigarettes each year. To do this, we need open discussion of and collaboration on evidence-based science, which underpins the development of reduced-risk tobacco and nicotine products and inspires confidence in THR.

    The biannual Cooperation Centre for Scientific Research Relative to Tobacco (CORESTA) Congress plays a major role in progressing the THR agenda globally and enabling change. This October, over 165 member organizations—including companies, research institutes, laboratories, associations and regulatory bodies from around the world—will come together for five days in Edinburgh to showcase and discuss the latest research and findings on this topic, under the theme of “Advancing Tobacco Harm Reduction Through Scientific Collaboration.” By facilitating international dialogue on best practices in scientific research related to tobacco and profiling the research contributions from CORESTA members, we hope to further encourage the transition from combustible tobacco to smoke-free alternatives.

    At BAT, we are proud to be hosting the 2024 event, building on our commitment to building a smokeless world—creating a pathway for hundreds of millions of smokers who would not otherwise quit to transition from combustible tobacco products to smokeless alternatives. As an organization, we have long been dedicated to sharing and debating robust, world-class science exploring the concept of THR. Our extensive research on the topic can be found in our most recent publication, the Omni, a summary of the global THR evidence base created over the past decade and insights into what successful harm reduction policies look like, intended for scientists, public health authorities, regulators, policymakers and investors.

    Nonetheless, while progress is being made in these circles of interested parties, we must widen the net to ensure more governments and regulators increasingly recognize the public health potential of THR. All too often, the industry is excluded from the relevant conferences and conversations around the globe, and our science is dismissed out of hand. To make the THR agenda a meaningful success and save lives, an ongoing inclusive and open dialogue with all stakeholders is required. That includes policymakers, regulators and the healthcare and medical communities—particularly those who are currently misinformed or skeptical about the opportunities presented by smokeless alternatives.

    There are numerous examples of where THR is making a significant difference. Countries with supportive THR policies, such as the U.S., the U.K. and Japan, are currently witnessing their lowest smoking rates on record while Sweden is on track to declare itself smoke-free this year—defined as having less than 5 percent of daily smokers in the population—16 years ahead of the 2040 EU target. These remarkable transformations have been driven by widespread THR acceptance from policymakers, regulators and health officials in these markets, enabling and encouraging smokers to switch to smokeless alternatives such as vapor, oral nicotine pouches, snus and heated-tobacco or herbal products. 

    We will, therefore, continue to advocate for open and inclusive conversations essential to build a smokeless world. Playing our part in progressing awareness and understanding of the science behind THR. Events like CORESTA Congress are an important forum to review and discuss the latest science with specialists in the field.

    Alongside investing in the development of new, innovative lower-risk profile smokeless products, backed by world-class science and high product standards, we are focused on creating the environment to deliver public health benefits of THR across the globe. We look forward to bringing as many people as possible with us on this journey.

    Danni Tower is group head of scientific and regulatory affairs at BAT.
  • UK Urged to Tackle Illegal Vapes

    UK Urged to Tackle Illegal Vapes

    Photo: BAT

    The U.K. government should be cracking down on illegal vapes rather than introducing redundant policies on cigarettes, according to BAT Chief Corporate Officer Kingsley Wheaton.

    Wheaton made his comments in the context of the British government’s “generational tobacco ban.” The U.K.’s previous Conservative administration announced plans to create a smoke-free generation by banning the sales of cigarettes in the future to anyone who is currently aged 14 or under. The new Labour government is continuing with the policy and is also concerned about the prevalence of disposable vapes.

    Wheaton cited a BAT analysis showing that by the time the generational ban takes force, smoking rates will have already fallen below 5 percent in that age category.

    BAT is instead pushing for licensing for retailers selling vapes. With proper enforcement, licensing will help reduce the number of underage children getting their hands on e-cigarettes and level the playing field for all companies operating in the industry, according to the multinationals.

    “We need to move on to a more mature dialog with real solutions for the problems that are out there,” Wheaton was quoted as saying by Bloomberg.

  • British American Tobacco Launches ‘Omni’

    British American Tobacco Launches ‘Omni’

    Photo: BAT

    BAT unveiled Omni during the company’s first-ever Transformation Forum in London.

    According to BAT, Omni is an evidence-based, accessible and dynamic resource that shows how science and innovation can combine to achieve a smokeless world.

    “Tobacco harm reduction—encouraging smokers who would otherwise continue to smoke to switch completely to less risky alternatives—is the fastest route to achieving a smokeless world,” said Kingsley Wheaton, BAT’s chief corporate officer, in a statement. “And we’re committed to working with others to make this a reality.

    “While we have history of humans smoking tobacco for more than 8,000 years, innovation has now delivered smokeless products with reduced risks compared to cigarettes. We stand on the threshold of a breakthrough science-backed change.”

    Omni brings together hundreds of independent scientific studies, BAT’s own research into its innovations and examples of tobacco harm reduction in action, such as Sweden, which according to BAT stands on the cusp of becoming the first country to go smokeless as defined by the World Health Organization.

    Omni also looks to answer some of the most challenging questions facing the industry and society, including: What is the risk of using smokeless products compared to smoking?; Are smokeless products a gateway to cigarette smoking?; What is the role of flavors in smokeless products and tobacco harm reduction?; What is nicotine?; and What is BAT doing to address underage access to tobacco and nicotine products?

    “With Omni, BAT is showcasing its world-class research,” said James Murphy, BAT’s director of research and science. “Omni means all, and we are committed to opening it up to all stakeholders in the THR policy discussion so that we can seize this exciting opportunity to build a smokeless world.

  • BAT Announces Management Board Changes

    BAT Announces Management Board Changes

    Photo: adragan

    BAT has announced management board changes. Kingsley Wheaton will be appointed as chief corporate officer, a newly created role. Wheaton’s current role of chief strategy and growth officer will cease to exist.

    As chief corporate officer, Wheaton will have overall responsibility for the strategy and execution of the group’s sustainable future pillar, including:

    • Establishing broad acceptance of BAT’s tobacco harm reduction (THR) agenda, working with BAT’s director of research and science, James Murphy, to ensure the scientific basis for harm reduction and encouraging a fact-based discussion on nicotine among key stakeholders;
    • Shaping the landscape through responsible and transparent dialogue with regulators, policymakers and other relevant stakeholders; and
    • Enhancing BAT’s leadership in sustainability and integrity.

    Paul McCrory, director of corporate and regulatory affairs, will continue to report to Wheaton in this role. Donato Del Vecchio, chief sustainability officer, will also continue to report to Wheaton.

    Luciano Comin, marketing director for combustibles and new categories, will be appointed chief marketing officer, reporting directly to Tadeu Marroco, CEO.

    James Barrett, director of business development, will report to Soraya Benchikh, chief financial officer.

    All changes are effective immediately.

    “We will be taking an important step later today in our journey to encourage THR acceptance with the launch of a compelling science and evidential case for THR in the form of ‘The Omni: Forward Thinking for a Smokeless World,’” said Marroco.

    “I would like to thank Kingsley for all that he has done as chief strategy and growth officer. He has stepped into the role at a critical time for BAT and has helped shape the strategy and establish new functional capabilities. In all of these areas, BAT is now stronger and more robust.”

    “I feel honored to take up this new challenge,” said Wheaton. “As BAT moves forward toward ‘A Better Tomorrow,’ the focus on this area of the strategy will be all-important. I am looking forward to bringing my experience and understanding of both BAT and the external environment and making a real difference.”