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Tag: British American Tobacco

  • BAT Kenya Study Finds $78M in Tax Losses from Illicits

    BAT Kenya Study Finds $78M in Tax Losses from Illicits

    Kenya loses an estimated Sh10.2 billion ($78.5 million) annually in excise duty and value-added tax revenue to illicit cigarette sales, which accounted for 45% of the market in 2025, according to a study commissioned by British American Tobacco (BAT) Kenya and conducted by research firm Kantar. Legally taxed cigarettes held a 55% market share, down from 66% in 2021. The study estimates cumulative tax losses of Sh37 billion ($284.9 million) over five years.

    Uganda was identified as the leading source of illicit cigarettes entering Kenya, followed by Tanzania and South Sudan. The study attributed cross-border smuggling in part to differences in excise duty rates, with Kenya charging Sh4,100 ($31.57) per 1,000 cigarettes, compared with Sh1,974 ($15.20) in Uganda, Sh1,874 ($14.43) in Tanzania, and Sh1,200 ($9.24) in South Sudan. BAT Kenya Managing Director Sidney Wafula called for more predictable excise tax policies, stronger border controls, and measures to prevent the diversion of transit shipments. Employment across the formal tobacco value chain declined from approximately 80,000 people in 2022 to 75,000 in 2025.

  • Organigram to Acquire Aurora Cannabis with BAT Support

    Organigram to Acquire Aurora Cannabis with BAT Support

    Organigram Global agreed to acquire Aurora Cannabis for C$7.80 per share ($5.54), valuing Aurora at approximately C$561 million ($398.3 million) on a fully diluted equity basis. The offer represents a 93% premium to Aurora’s Aug. 10, unaffected share price and a 21% premium to Curaleaf’s unsolicited hostile takeover bid, which Aurora’s board unanimously rejected. Aurora shareholders can elect to receive cash, Organigram shares, or a combination of both, subject to proration. The transaction is expected to close in January 2027, pending shareholder, regulatory, and court approvals.

    British American Tobacco, through its wholly owned indirect subsidiary BT DE Investments Inc., is Organigram’s strategic shareholder and holds 30% of its voting rights. BAT has agreed to invest C$187.5 million ($133.1 million) in Organigram through a concurrent private placement of 141 million shares at C$1.33 each ($0.94), with proceeds helping finance the cash portion of the acquisition. BAT has also entered into an irrevocable voting agreement supporting the transaction. The combined company will operate five EU-GMP-certified production and distribution facilities and expects to generate more than C$50 million ($35.5 million) in synergies. Aurora shareholders are expected to hold approximately 35% of the combined company’s economic ownership and 42% of its voting rights.

  • BAT Launches Dual-Flavor VELO Pouches in Sweden

    BAT Launches Dual-Flavor VELO Pouches in Sweden

    British American Tobacco launched VELO WRKS in Sweden, a new nicotine pouch line featuring cans divided into two compartments, each containing a different flavor, on Nov. 2. The first release, called Drop 1, includes three combinations: Raspberry Lime/Strawberry Basil; Tropical Orange/Lemongrass Ginger; and Cardamom Bread/Red Miso. Each can contains 20 tobacco-free pouches, with 10 in each compartment, and delivers 8 milligrams of nicotine per pouch.

    The products are priced at SEK 52.99 ($5.10) per can, with discounts for multipack purchases. BAT describes WRKS as a platform for new product ideas and flavor combinations.

  • BAT Malaysia Says Illicits Account for 56% of Market

    BAT Malaysia Says Illicits Account for 56% of Market

    British American Tobacco (Malaysia) Bhd. said illicit cigarettes accounted for 56% of Malaysia’s total cigarette market volume as of July, down slightly from 56.2% in May but up from 54% at the end of 2025. The company welcomed the government’s enforcement funding under Budget 2027.

    BAT Malaysia reported third-quarter net profit of RM2.3 million on revenue of RM302 million, compared with revenue of RM300.8 million a year earlier. For the first nine months of 2026, revenue fell to RM977.6 million from RM1.2 billion, while the company reported a net loss of RM22.2 million, compared with RM24.5 million in the first half. The legal cigarette market contracted 3.9%, while BAT Malaysia’s sales volume fell 21.1%, reducing its market share by 1.9 percentage points. The company declared an interim dividend of two sen per share, totaling RM5.7 million, payable on Dec. 28.

  • BAT Appoints Former Apple General Counsel to Board

    BAT Appoints Former Apple General Counsel to Board

    British American Tobacco will appoint Bruce Sewell, former senior vice president, general counsel, and secretary of Apple Inc., as an independent non-executive director effective Jan. 1, 2027. Sewell, who held the Apple roles from 2009 to 2018, previously spent 14 years at Intel Corp., where he also served as senior vice president and general counsel. He currently serves as lead independent director of Vail Resorts and as a director of C3.ai. At BAT, he will join the Audit and Nominations committees.

    BAT also announced changes to its Audit and Remuneration committees effective Nov. 30. Non-executive director Véronique Laury will leave the Audit Committee and join the Remuneration Committee, while Serpil Timuray will move from the Remuneration Committee to the Audit Committee. Sewell will join the Audit Committee on Jan. 1, 2027.

  • Japan’s Heated Tobacco Market Reaches New Milestone

    Japan’s Heated Tobacco Market Reaches New Milestone

    Heated tobacco and other noncombustible products accounted for a larger share of Japan’s tobacco sales than cigarettes in 2025, marking a significant shift in the country’s market, according to Toyo Keizai. Philip Morris International’s IQOS leads the heated tobacco category with about 70% market share, followed by Japan Tobacco’s Ploom at 16.4% and British American Tobacco’s glo at 14.3%, based on Euromonitor data cited by the publication.

    According to the article, Japan’s Oct. 1 tax changes narrowed the price gap between cigarettes and heated tobacco, while potentially tighter regulation could create additional challenges. BAT and PMI have also entered Japan’s nicotine-pouch market, with JT following this year.

  • Kenya Approves Signature Leaf Acquisition of Mastermind Tobacco Assets

    Kenya Approves Signature Leaf Acquisition of Mastermind Tobacco Assets

    Kenya’s Competition Authority approved Signature Leaf Ltd.’s acquisition of certain assets belonging to Mastermind Tobacco (K) Ltd., which is under administration. The approval was published in the Kenya Gazette Oct. 2, under Gazette Notice No. 15916, following a decision dated Aug. 21 under Section 46(6)(a)(ii) of the Competition Act. The transaction could mark a new chapter for the Kenyan tobacco manufacturer, which stopped production in June 2023 and was placed under administration by I&M Bank in December 2023.

    According to The Kenya Times, Mastermind was founded in 1987 by the late Wilfred M’iti Murungi, a former British American Tobacco Kenya executive, and grew to become Kenya’s second-largest cigarette manufacturer after BAT. Its cigarette brands included Supermatch and Rocket. The company later faced financial difficulties, including a tax dispute with the Kenya Revenue Authority involving reported arrears of about KSh2.9 billion ($22.3 million), and subsequently dismissed about 1,000 employees as its financial position deteriorated.

  • BAT Survey Highlights Potential Impact of UK Vape Rules on Retailers

    BAT Survey Highlights Potential Impact of UK Vape Rules on Retailers

    A survey commissioned by British American Tobacco suggests proposed UK rules on the packaging and display of vapes and nicotine pouches could affect small retailers by limiting product choice and visibility. The Censuswide survey of 2,000 former smokers found that 31% buy nicotine products from corner shops or local newsagents, while 79% said flavor choice is important when selecting products and 31% said seeing multiple options on display influenced their purchase.

    BAT said restrictions on flavors, standardized packaging, and product displays could make it harder for retailers to manage stock and could contribute to missed sales. The government consultation on the proposed rules closes Oct. 2.

  • Oxford Economics Report Links High Cigarette Taxes to Illicit Growth

    Oxford Economics Report Links High Cigarette Taxes to Illicit Growth

    A new Oxford Economics report commissioned by British American Tobacco found an average correlation of 80% between real duty-paid cigarette prices and illicit cigarette market share across nine countries from 2015 to 2025. The study found that taxes accounted for an average of 77% of the retail price of duty-paid cigarettes in 2025, while illicit cigarettes were priced between 1.5 and 3.5 times lower than legal products. Across the countries studied, illicit market share increased by an average of 25 percentage points, from 18% in 2015 to 43% in 2025.

    Australia and Chile recorded some of the largest increases. Australia’s illicit cigarette market share rose from 13% in 2015 to at least 55% in 2025, with Oxford Economics estimating A$7.1 billion ($5 billion) in lost tobacco tax revenue. In Chile, illicit market share increased from 12% to 53% over the same period, with estimated tax losses of CLP 1.4 trillion ($1.4 billion). The report, which also examined Bangladesh, Brazil, France, Malaysia, the Netherlands, Pakistan, and Ukraine, said illicit trade is influenced by factors beyond price and called for strategies combining tax policy with enforcement measures. BAT said the findings highlight the need for policymakers to consider illicit-market risks when setting tobacco excise rates.

  • BAT Hosts Capital Markets Day

    BAT Hosts Capital Markets Day

    British American Tobacco hosted its Capital Markets Day for institutional investors and analysts today (Sept. 29) in Winston-Salem, North Carolina, outlining its Horizon 2030 strategy. Chief Executive Tadeu Marroco and members of BAT’s management team highlighted the company’s global multi-category nicotine portfolio and capabilities. BAT said it expects New Category revenue to grow at a mid-teens rate through 2030 and New Category contribution margin to reach at least 30% by 2030, driven by premiumization, improved product mix, increased scale, and more targeted resource allocation.

    BAT said it remains on track to deliver toward the lower end of its 3%-5% revenue growth and 4%-6% adjusted profit from operations growth targets for 2026, with adjusted diluted EPS growth toward the middle of its 5%-8% range, all at constant currency rates. The company also expects to reach its 2.0-2.5x target leverage range by year-end and said it expects a 2%-2.5% translational foreign-exchange headwind to 2026 adjusted diluted EPS growth based on current spot rates.