Tag: British American Tobacco

Firms Scale Back in Russia and Ukraine

Photo: BAT
The leading tobacco companies are adjusting their strategies in Russia and Ukraine following the war between those countries.
Philip Morris International announced the suspension of its planned investments in the Russian Federation, including all new product launches and commercial, innovation and manufacturing investment. PMI has also activated plans to scale down its manufacturing operations amid ongoing supply chain disruptions and the evolving regulatory environment.
“We have watched with shock the war in Ukraine and condemn the violence in the strongest possible terms. We stand in solidarity with the innocent men, women and children who are suffering,” said PMI CEO Jacek Olczak in a statement. “We join the many voices calling for an immediate end to the war and the restoration of peace.”
Olczak said PMI had helped evacuate more than 800 people from the most impacted areas; provided critical aid to employees who remain in Ukraine; and provided those who have left the country with logistical, medical, financial and other practical support in neighboring countries. PMI is continuing to pay salaries to all its Ukrainian employees during this period, the company said.
Ukraine accounted for around 2 percent of PMI’s total cigarette and heated-tobacco unit shipment volume and under 2 percent of PMI’s total net revenues in 2021. The company has one factory and approximately 1,300 employees in the country.
In 2021, Russia accounted for almost 10 percent of PMI’s total cigarette and heated-tobacco unit shipment volume and around 6 percent of PMI’s total net revenues. The company employs more than 3,200 people in the country.
BAT, which employs more than 1,000 people in Ukraine and around 2,500 people in Russia, said it had suspended all business and manufacturing operations in Ukraine and suspended all planned capital investment into Russia.
“In Ukraine, we have suspended all business and manufacturing operations and are providing all the support and assistance we can to our colleagues, including relocation and temporary accommodation. Our businesses bordering Ukraine are providing assistance to the humanitarian relief effort,” the company wrote on its website.
“In Russia, we have a full establishment of our people right across the country, including substantial local manufacturing. Our business in Russia continues to operate. As a key principle, we have a duty of care to all our employees at this extremely complicated and uncertain time for them and their families.”
Japan Tobacco International, which has four factories and nearly 4,000 employees in Russia, announced the suspension of all new investments and marketing activities as well as the planned launch of its Ploom X heated-tobacco product in Russia, citing the unprecedented challenges of operating in Russia at this time. “Unless the operating environment and geopolitical situation improve significantly, JTI cannot exclude the possibility of a suspension of its manufacturing operations in the country,” the company wrote in a press statement.
Imperial Brands also suspended all operations in Russia, halting production at its factory in Volgograd and ceasing all sales and marketing activity.
“We have already suspended our operations in Ukraine in order to prioritize the safety and well-being of our 600 employees in that country,” the company wrote in a statement.
Russia and Ukraine are relatively small markets for Imperial Brands, representing around 2 percent of net revenues and 0.5 percent of adjusted operating profit in 2021.
March 10, 2022
BAT Prevails in Tanzania Distributor Dispute

Photo: somemeans
British American Tobacco Kenya has prevailed in an eight-year legal battle against a distributor in Tanzania, sparing it from paying a TZS3.2 billion ($1.4 million) court award, reports The East African.
The Tanzania Court of Appeal annulled a 2016 decision by a lower court awarding the money to Mohans Oysterbay Drinks as damages after it sued BAT Kenya over the termination of a cigarette supply contract.
Mohans claimed it had the exclusive rights to sell BAT products in Tanzania, which the cigarette maker disputed.
“In our view, there was no evidence to prove the existence of a distributorship agreement between the parties nor its breach,” said the appellant court.
Mohans started importing and supplying BAT cigarettes in Tanzania in 2000. However, in 2014, BAT awarded an exclusive distribution contract to another firm after a review of the cigarette maker’s business model.
Mohans challenged the decision in Tanzania’s high court, saying that BAT had unlawfully terminated a contract. BAT said there was no such contract.
In September 2016, the high court held that an implied contract between the parties existed in their 14 years of engagement and awarded Mohans damages for loss of goodwill and money invested in the business.
In overturning that ruling, the Court of Appeal ruled that the parties’ business relationship was “neither express nor implied agreement.”
Further, the judges said the high court had erred in its decision given that Mohans had rebuffed an attempt by BAT to formalize the distributorship agreement.
February 25, 2022
BAT Appoints Chief Medical Officer
Senthil Vel
BAT has appointed Senthil Vel as its new chief medical officer.
Vel will play a central role in the research and development programs that support the company’s commitment to reducing the health impact of its business by offering consumers a range of alternative reduced risk tobacco and nicotine products.
Based at the BAT’s research & development hub in Southampton, Vel will be responsible for overall medical governance, ensuring robust medical processes and best practice are applied to all aspects of BAT’s work. He will help deliver robust evidence-generation programs designed to provide further scientific evidence that supports BAT’s new categories products.
“Sen is a highly experienced, much admired physician, with a proven track record of positively impacting national and global health policy, making him a natural addition to our leadership team,” said David O’Reilly, director, scientific research at BAT, in a statement.
Vel has more than two decades of international medical, pharmaceutical and device experience. Most recently, he served as chief medical officer of Bio Products Laboratory. He has led large medical teams across EMEA, APAC, and the US, working for large and mid-sized pharmaceutical and medical device companies, including Boston Scientific and Novo Nordisk, in clinical research, regulatory, safety, and medical affairs.
His experience includes designing non-clinical and clinical strategies to meet the regulatory requirements of the U.S. Food and Drug Administration, the European Medicines Agency, the U.K. Medical and Healthcare Products Regulatory Agency, and other major agencies worldwide. He has extensive experience in non-clinical and Phase I to Phase IV clinical studies including health outcomes programs for pharmaceuticals and devices. He is a Fellow of the Faculty of Pharmaceutical Physicians, the medical body for advancing the science and practice of pharmaceutical medicine for the benefit of the public.
Vel qualified in medicine and trained in surgery under the Royal College of Surgeons of England and holds specialist registration in pharmaceutical medicine. He holds an MBA from Cranfield School of Management.
February 17, 2022
BAT Announces Preliminary Results

Photo: BAT
British American Tobacco reported revenue of £25.68 billion ($34.87 billion) in 2021, down 0.4 percent from 2020. Revenue from “New Categories” jumped 42.4 percent to £2.05 billion. On an adjusted basis, revenues increased 6.9 percent while revenues from new categories were up by 50.9 percent. Profit from operations was up 2.7 percent to £10.23 billion or £11.15 billion (up 5.2 percent) on an adjusted basis.
BAT CEO Jack Bowles described 2021 as a “pivotal year.” “We accelerated New Category revenue, with growth of over 50 percent and reached a total of 18.3 million consumers–up 4.8 million—of our non-combustible products,” he said in a statement.
“Putting ESG at the heart of our strategy and corporate purpose is delivering sustainable growth, encouraging more consumers to transition to reduced risk products and reducing the health impact of our business. We are also on track to achieve our other ESG targets, including carbon neutrality from our operations by 2030.”
The company is on track to deliver £5 billion of revenue from New Categories by 2025, said Bowles, adding that BAT is also developing opportunities beyond nicotine.
Alongside its 2021 preliminary results, BAT also announced a program to buy back up to £2 billion of ordinary shares. The company said it may purchase up to 229,400,000 shares between Feb. 14 and Dec. 21, 2022.
February 11, 2022
Btomorrow Ventures Invests in Philter Labs

Photos: Philter Labs
Btomorrow Ventures (BTV) will make a follow-on investment into Philter Labs, after leading the round for the Preferred Series A.
Philter Labs supplies micro-filtration systems for the cannabis and nicotine markets with its patented Particulate Capture Technologies (PCT) for standalone handheld filters and next-generation vaping devices that removes particulates, airborne contaminants and odor from secondhand smoke and exhalant.
“We are delighted to have Btomorrow Ventures continued confidence and financial support,” said Christos Nicolaidis, CEO of Philter Labs, in a statement. “We will use the funds to support new product launches in the first quarter of 2022 along with furthering our development of exciting new products that incorporate our patented filtration technology to be launched later this year.”
Philter Labs says it has a robust new product pipeline, with several products planned to launch this year and next. All of these products are designed for ease of consumer use in eliminating secondhand smoke, with a focus on collective social responsibility for more conscious consumption.
BTV is the corporate ventures unit of BAT. Established early in 2020, BTV invests in high growth businesses, from seed funding to those looking for further, series B investment.
Tobacco Reporter profiled Philter Labs in its September 2020 issue.
February 8, 2022
Tobacco Firms Recognized as Top Employers
BAT, Japan Tobacco International and Imperial Brands have been named as top employers by the Top Employers Institute.
“Being named as a Global Top Employer for the fifth year in a row is a recognition of BAT’s inclusive, engaging culture and innovative working environment,” said Hae In Kim, director of talent, culture and inclusion at BAT, in a statement. “We are continually striving to maintain a workplace where employees feel empowered and well supported, and we are delighted this has been recognized.
“It is an honor to once again be certified by Top Employers Institute,” said Howard Parks, JTI’s senior vice president of people and culture, in a press note. “Our people are at the heart of everything we do, which is why we aim to offer them the best possible working environment. Giving our over 40,000 colleagues the opportunity to grow and providing them with the optimal conditions and support to fulfil their potential is of paramount importance to us.”
“I am delighted that Imperial has been recognized as a Top Employer for another year,” said Alison Clarke, Imperial’s chief people and culture officer, in a statement. “Imperial Brands is a great place to work, grow and develop, and it’s particularly pleasing that—in these challenging times when we can’t always congregate in the way we would like—our people have shown real resilience and embraced new ways of engaging to create an even better place to work.”
The Top Employer certification process is conducted annually by the Top Employers Institute, an independent organization that studies the employee offerings of major employers around the world. Certification recognizes employers that provide best-in-class employment practices, allowing employees to develop themselves personally and professionally while driving business results. Participating companies undergo a rigorous assessment process, which includes an extensive review of employer practices. Several validation sessions are held where evidence of these practices is provided, and an independent audit of the findings is also carried out.
January 20, 2022
BAT Launches Virtual R&D Visitor Experience

Image: BAT
BAT has created a virtual R&D visitor experience, an online tour of its global research and development hub in Southampton, U.K., that allows people to explore its cutting-edge science and innovation.
BAT says the experience builds on the company’s open and transparent approach to the science underpinning its reduced-risk product portfolio and beyond nicotine activities. The company regularly welcomes visitors in person to its global R&D hub, with more than 3,500 people viewing the facilities firsthand since 2011. However, with travel significantly reduced, the virtual experience allows people from across the globe to access and understand BAT’s scientific research and tobacco harm reduction activities and gain perspectives and insights from experts.
“At BAT, R&D is fundamental to what we do,” said David O’Reilly, director of scientific research at BAT, in a statement. “Our focus on science and research has enabled us to make significant progress in developing and evolving our New Category products, which are rigorously tested and scientifically substantiated as reduced-risk alternatives to cigarettes. Our R&D is based around consumer preferences as well as applying evolving science and innovation to our products. This allows us to offer a range of enjoyable reduced-risk alternatives to cigarettes while ensuring we maintain very high safety and quality standards.
“Our new R&D virtual visitor experience demonstrates the breadth of science we are undertaking and the robust scientific framework we use to evaluate and support the role our products play in delivering tobacco harm reduction.”
With 360-degree lab tours, animations, videos, scientist profiles, podcasts and more, the R&D virtual visitor experience is the one-stop hub for those looking to find out about BAT’s science. The tour illuminates BAT’s purpose to build “A Better Tomorrow” and mission to reduce the health impact of its business. BAT invests almost £350 million [$477.18 million] a year to find innovative ways to reduce its effects on public health and aims to have 50 million consumers of its noncombustible products by 2030.
January 19, 2022
Daily Beast: BAT Backing Vape Group

Photo: freshidea
British American Tobacco is the driving force behind the World Vapers Alliance (WVA), a pro-vaping group presenting itself as a grassroots initiative of anti-smoking initiatives, according to the Daily Beast.
According to the investigation, BAT sought to use the WVA to organize individuals to pressure government officials, including members of the European parliament, to roll back regulations on tobacco products such as bans on flavored products, health warnings and increased taxes.
BAT went to great lengths to conceal its involvement with the World Vapers’ Alliance, according to the investigation. Yet, sources and internal documents reviewed as part of the investigation revealed that BAT “has played a central and hands-on role in orchestrating, directing and funding the World Vapers’ Alliance.”
Anti-smoking groups were aghast. “Tobacco companies like British American Tobacco claim that they are changed, responsible companies working to reduce the enormous harm caused by their products. But their actions tell a different story and show that they continue to use the same deceptive tactics they have always used, including front groups, to fight public health policies and protect their sales and profits,” said Matthew L. Myers, president of the Campaign for Tobacco-Free Kids, in a statement.
Writing for Vaping360, Jim McDonald said BAT’s involvement with WVA was no secret among vaping advocates, “which is probably a major reason why the organization only has 20,000 individual members, despite extensive social media efforts,” he wrote.
According to McDonald, many vapers tend to mistrust and resent involvement in vaping issues by the tobacco industry, partly because companies like BAT subsidiary Reynolds American Inc. have gone out of their way to eliminate the competition posed by independent vaping businesses.
McDonald cites a 2014 RAI comment to the FDA, “essentially offering the agency a blue-print for destroying the open-system vaping industry.”
January 12, 2022
BAT Creates Plant-Based Technology Firm

Photo: BAT
BAT today announced the launch of KBio Holdings to accelerate the research, development and production of novel treatments. KBio will leverage the plant-based technology capabilities of BAT and Kentucky BioProcessing, BAT’s U.S. plant biologics organization.
KBio will explore new opportunities to develop its plant-based production system, which has the potential to offer greater speed, scale-up opportunity and thermostability. The new company will focus on delivering treatments for rare and infectious diseases by realizing and expanding the potential of both the plant-based technology platform as well as its existing clinical and preclinical vaccines and antibody pipeline.
KBio will look to form innovative R&D collaborations and financing aimed at expanding its pipeline and future portfolio, with an ambition of financial self-sufficiency.
Supporting the company’s future plans, a standalone operational structure for KBio is being established. This includes building a new executive leadership team led by Patrick Doyle as the CEO of KBio. Doyle brings more than 20 years of experience leading innovative biotech companies.
“I am excited by the opportunity to build on the significant accomplishments made by BAT and KBP,” said Doyle in a statement. “I am confident in the potential of KBio’s powerful plant-based platform, capabilities and emerging early-stage pipeline. To date, the technology has demonstrated its ability to produce novel antibody and vaccine candidates with high purity at a fraction of the time and cost of current technologies. The speed and efficiency demonstrated by the KBio platform has significant potential. This could enable us to progress to clinical studies faster than industry norms in the hope of delivering treatment solutions more quickly.”
“Science and innovation are fundamental to BAT and delivering on our purpose of building ‘A Better Tomorrow,’” said David O’Reilly, BAT’s director of scientific research. “We recognize the potential of our innovative plant-based technology and have established KBio to maximize that potential. We are excited to see what the future holds.”
January 7, 2022
Vuse Wins Sustainable Product Award

Photo: BAT
The Vuse e-cigarette brand has won the Sustainable Product Award in the 2021 SEAL (Sustainability, Environmental Achievement and Leadership) Business Sustainability Awards. The award recognizes innovative and impactful products that are “purpose-built for a sustainable future.”

The SEAL Awards celebrate leadership through business sustainability and environmental journalism awards.

“We are honored to receive this SEAL Sustainable Product Award for our Vuse vapor brand,” said Kingsley Wheaton, BAT’s chief marketing officer, in statement.
“At BAT, we are creating the brands of the future with sustainability at their core. In 2021, Vuse was certified as the first global carbon neutral vape brand. This is part of Vuse’s broader sustainability program, which aims to eliminate single-use plastics and have all packaging recyclable by 2025.

“We are proud that Vuse has set the sustainability standard within the vaping category.”
December 21, 2021