Tag: British American Tobacco

BAT Performing Despite Uncertain Environment

Photo: Gabriel Stabinger | BAT
Maintaining its 2020 guidance, British American Tobacco said it expects constant currency adjusted revenue growth to be at the high end of the 1-3 percent range this year.
Jack Bowles
“We are growing our ‘new category’ business as fast as possible and we are proud to now have around 13 million non-combustible product consumers,” said BAT CEO Jack Bowles in a trading update. “We are continuing to increase investment in our three new categories of potentially reduced risk cigarette alternatives, capitalizing on our momentum, while continuing to deliver on our financial commitments.”
Bowles said BAT remains committed to it 2025 new category revenue ambition of £5 billion ($6.73 billion). “While the environment remains uncertain, due to the continuing challenges of Covid-19, the business is performing strongly,” he said.
According to BAT, Vuse is now the fastest growing international vapor brand, growing at 7 percentage points versus fiscal year 2019 to a 26 percent value share in the year to September in the world’s top-5 vapor markets.
BAT’s Glo tobacco heating device has reached a 5.9 percent volume share of total nicotine in Japan.
Meanwhile, the Velo and Lyft modern oral brands have consolidated their leadership in many international markets. In the U.S., BAT boosted its modern oral portfolio with the acquisition of Dryft, expanding the product range from four stock-keeping units to 28, with representation in the above 6mg segment and additional flavors.
“Reducing the health impact of our business through providing a range of enjoyable and less risky products is the greatest contribution we can make to society,” said Bowles. “We continue to be clear that combustible cigarettes pose serious health risks, and the only way to avoid these risks is not to start or to quit. BAT encourages those who would otherwise continue to smoke to switch completely to scientifically substantiated reduced risk alternatives.”
December 9, 2020
Darrell Thomas Joins BAT Board

Darrell Thomas (Photo: BAT)
Darrell Thomas will join the board of British American Tobacco (BAT) as an independent nonexecutive director and member of the Audit and Nominations Committees, effective Dec. 7, 2020, the company announced in a statement.
Thomas brings financial, regulatory and U.S. experience to the BAT board gained during his extensive career. Thomas is currently vice president and treasurer for Harley-Davidson., having previously held several senior finance positions including interim chief financial officer for Harley-Davidson., vice president and chief financial officer for Harley-Davidson Financial Services., and vice president and assistant treasurer for PepsiCo.
Prior to joining PepsiCo, Thomas had a 19-year career in banking with Commerzbank Securities, Swiss Re New Markets, ABN Amro Bank and Citicorp/Citibank where he held various capital markets and corporate finance roles.

December 7, 2020
BAT Launches Vapor Information Hub

Photo: BAT
The BAT Group (BAT) has launched VapeExplained.com, a digital information hub providing adult smokers and vapers with factual answers to the questions most commonly searched for online.
Based on search engine analytics regarding vaping queries, VapeExplained.com helps adult smokers and vapers make informed decisions about vaping. The site also provides important information on the role these products can play as a potentially reduced-risk alternative to smoking.
To find answers about vaping, smokers and vapers are increasingly turning to the internet. In 2020, there were more than 700,000 monthly internet searches for questions about vaping in the U.S. and U.K. Of these, approximately 70,000 searches specifically ask about the dangers of vaping.
Kingsley Wheaton
According to BAT, VapeExplained.com is built on the company’s vast technical expertise of over 1,500 scientists and engineers and the experiences of offering vapor products in over 26 countries around the world.
“VapeExplained.com is where smokers and vapers can find clear, simple, fact-based information from a well-known source,” said Kingsley Wheaton, BAT’s chief marketing officer, in a statement. “I hope this helps them to make more informed decisions about vaping.”
The site will be available in the U.K. and the U.S. and will expand into other countries in 2021.
December 3, 2020
Vype Has Cigarette Levels of Nicotine

Photo: BAT
Vype ePen 3, British American Tobacco’s (BAT) flagship vapor product, can provide smokers with similar levels of nicotine as standard cigarettes, according to new research. If used exclusively, ePen3 could help smokers avoid many of the risks associated with smoking, BAT said in a statement.
The Scientific Reports study compared both Vype ePen 3 and Vype ePen 2 to combustible cigarettes. It assessed a variety of e-liquids and nicotine strengths for each product and how nicotine concentration and delivery device combined to affect user preference.
Results from the study show that Vype ePen 3 was superior to Vype ePen 2 for nicotine delivery and ranked significantly higher for user satisfaction, with the newer device scoring nearly double for likability compared to its predecessor.
The study showed that the maximum concentration of nicotine in the blood after using the Vype ePen 3 (18 mg/mL protonated nicotine) was on average twice that achieved using Vype ePen 2 (18 mg/mL unprotonated nicotine).
David O’Reilly
“We know that for many smokers, nicotine levels are an important factor in choosing a vaping product, particularly when initially switching,” said David O’Reilly, BAT’s director of scientific research.
“They want it to work for them, delivering the nicotine they want in a device they like. We think we have achieved this with Vype ePen 3 and hope that through continued product innovation we can encourage and enable those who would otherwise continue to smoke to switch to a reduced-risk alternative which has been scientifically substantiated.”
This study is a part of a comprehensive program of scientific research designed to assess and substantiate the reduced-risk potential of noncombustible products.
December 1, 2020
BAT Recognized as Diversity Leader
Photo: truthseeker08 from Pixabay
The BAT Group (BAT) has been named as a diversity leader by the Financial Times for a second consecutive year.

The FT Diversity Leaders report recognizes the top 850 companies across 16 European countries that have achieved a diverse and inclusive workplace. It assesses key areas including gender balance, sexual orientation and a workforce comprising an ethnic and social mix that reflects wider society.

BAT says diversity and inclusion have been a key part of its heritage, which goes back 120 years. The company employs 141 nationalities in management positions across 189 countries and 87 nationalities in its London head office alone.

This year, BAT set itself new diversity and inclusion ambitions to achieve by 2025, including:
Increasing the number of women in senior leadership teams to 40 percent
Increasing the number of women in management roles to 45 percent
Achieving a 50 percent spread of nationalities within key leadership teams to better mirror BAT’s consumer base.
“We are delighted to be named as a diversity leader by the Financial Times for the second year running,” said Hae In Kim, director of talent, culture and inclusion, in a statement. “This recognition acknowledges our ongoing commitment to fostering a diverse and inclusive culture at BAT underpinned by our ethos, which encourages our employees to be bold, fast, empowered, responsible and diverse. We are proud of what we have achieved so far and recognize, like many other businesses, we can and must still do more.”
November 19, 2020
Tobacco Companies Included in Sustainability Indices

Photo: Gerd Altmann from Pixabay
British American Tobacco (BAT) and Japan Tobacco (JT) have been recognized for their sustainability efforts.
BAT has been named in the Dow Jones Sustainability Indices (DJSI) for the 19th consecutive year. It is the only tobacco company to be included in the prestigious DJSI World Index.
In a statement, BAT said it is the highest scoring tobacco company in 2020, with industry leading scores in 13 of the 23 categories assessed, while achieving a top score of 100 percent in seven categories.
“At BAT, sustainability is at the heart of our transformation, and we are proud to have been included in the DJSI for a 19th consecutive year, said Kingsley Wheaton, chief marketing officer at BAT, in a statement.
“We believe our inclusion in the DJSI World Index, combined with the recognition we have received from other respected ESG ratings agencies including MSCI and Sustainalytics, is testament to our commitment to accelerate the transformation of our company.”
“We congratulate BAT plc for being included in the DJSI World and Europe,” said Manjit Jus, global head of ESG research and data, S&P Global.
“A DJSI distinction is a reflection of being a sustainability leader in your industry. With a record number of companies participating in the 2020 Corporate Sustainability Assessment and more stringent rules for inclusion this year, this sets your company apart and rewards your continued commitment to people and planet.”
JT has been selected as a member of the Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific) for the seventh consecutive year.
From among approximately 600 major companies in the Asia-Pacific region, 158 companies (including 82 Japanese companies) are included in the DJSI Asia Pacific this year.
The JT Group’s sustainability strategy is formulated based on the company’s “4S” model, its management principles, and encompasses its materiality analyses. The foundations of JT’s sustainability strategy, are our respect for human rights, improved social and environmental impact and good governance and business standards.
“We are delighted to remain as a member of DJSI Asia Pacific for the seventh consecutive year,” said Kazuhito Yamashita, member of the board and senior vice president, chief sustainability officer, compliance and general affairs at JT, in a statement. “This clearly reflects our continued holistic approach to address social and environmental issues, particularly the development of sustainable growth of societies and climate change which both have a major impact on society and our business.”
Created by S&P Dow Jones Indices, the DJSI represents the gold standard for tracking corporate sustainability. In 2020, around 3,500 companies had their sustainability practices assessed against ESG (environmental, social, governance) criteria. Only the top 10 percent are recognized as leaders in corporate sustainability and achieve DJSI World Index inclusion.
November 16, 2020
BAT: Glo Reduces Exposure
Smokers who switched completely from smoking cigarettes to using British American Tobacco’s (BAT) Glo tobacco-heating product (THP) substantially reduced their exposure to certain cigarette smoke toxicants over three months, according to a company study published in Nicotine and Tobacco Research.

For many of the toxicants measured, the levels found in participants were similar to those in people who stopped using tobacco completely.

BAT scientists are conducting a year-long controlled study to see what impact switching from cigarettes to Glo will have on general health as well as smoke-toxicant exposure.

According to BAT, the study’s results find that smokers who switch from cigarettes to Glo exclusively significantly reduce the levels of harmful toxicants they are exposed to, potentially reducing their risk of developing smoking-related diseases.

“These initial results regarding Glo are extremely encouraging,” James Murphy, group head of potentially reduced-risk product science at BAT, said in a statement. “Glo provides smokers who wish to continue using tobacco and nicotine products with a potentially reduced-risk alternative to cigarettes. The results are another positive step for BAT as we continue our journey to reduce the health impact of our business by offering consumers a range of enjoyable and potentially reduced-risk products.”

November 5, 2020
BAT Buys Dryft Pouch Business

Photo: Dryft Sciences
British American Tobacco (BAT) has bought the nicotine pouch product assets of Dryft Sciences, a U.S.-based modern oral nicotine product company.
The acquisition expands BAT’s modern oral portfolio in the U.S. from four to 28 product variants. It follows the acceptance of Dryft’s recent pre-market tobacco product application submission for filing by the U.S. Food and Drug Administration. The enhanced portfolio will include a wider range of nicotine strengths and flavors.
BAT will rebrand Dryft’s U.S. portfolio under its global modern oral brand, Velo, and expects to accelerate growth through superior distribution, marketing and channel capabilities.
“Today’s announcement underscores our societal commitment to accelerate our transformation and build ‘a better tomorrow’,” said BAT CEO Jack Bowles in a statement. “Our multi-category strategy is key to our transformation. The addition of Dryft to our U.S. Velo brand is a major step forward, further enhancing our successful vaping and oral portfolio.”
“We’re proud of the tremendous momentum we’ve built with Dryft and thrilled that our strong product portfolio will now serve to enhance the Velo brand,” said Jason Carignan, president of Dryft Sciences. “We remain confident that modern oral innovations like Dryft and Velo will continue to find an adult consumer base seeking alternatives to traditional products.”
According to BAT, the acquisition fits into its mission to reduce the health impact of its business. The company aims to accelerate the growth of its new category revenues at a faster rate than its total revenue, reaching £5 billion ($6.5 billion) in 2025. BAT wants to have 50 million consumers of non-combustibles worldwide by 2030.
November 3, 2020
BAT Appoints New Chairman

Photo: BAT
Luc Jobin will succeed Richard Burrows as chairman of British American Tobacco (BAT). This will take effect from the conclusion of the company’s annual general meeting (AGM) on April 28, 2021. In order to ensure an effective transition of the leadership of the board, Jobin will be appointed chairman designate of BAT effective March 1, 2021.
Jobin is currently an independent director on the boards of Gildan Activewear and Hydro-Quebec. He joined the BAT board in 2017 as an independent nonexecutive director. During his executive career, he was president and CEO of Canadian National Railway Co., prior to which he was executive vice president and chief financial officer. Previously, Jobin was executive vice president of Power Corp. of Canada and held the roles of chief financial officer and, between 2003 and 2005, CEO of Imperial Tobacco Canada.
Richard Burrows
Burrows will step down as chairman and retire from the board at the end of the company’s 2021 AGM.
“I am delighted that the board has appointed Luc as the incoming chairman for BAT,” said Burrows in a statement. “Luc brings with him significant financial, regulatory and M&A experience. He has been an outstanding nonexecutive director over the last three years, providing consistent support, insight and constructive challenge through the development of strategy. I am sure that BAT will go from strength to strength with Luc as chairman and Jack Bowles as chief executive officer.”
October 15, 2020
BAT May Step Up Pouch Production in Hungary

Photo: János Bencs from Pixabay
British American Tobacco may expand production of nicotine pouches at its factory in Pecs, Hungary, reports the Budapest Business Journal, citing the state news wire MTI. The move would make the Pecs tobacco factory the biggest producer of pouches in the BAT group.
Under the plan, Pecs’ cigarette manufacturing operations would be moved to other factories within the group.
Part of a proposed restructuring of production in Pecs, the measure is expected to impact headcount, but details are still being negotiated with the Workersʼ Council and the union.
Increasing production of nicotine pouches, which contain no tobacco, fits well with BATʼs strategy to offer consumers a broader selection of potentially less harmful products.
BAT completed a HUF7.5 billion ($24.61 million) nicotine pouch plant at Pecs a year ago, raising headcount at the site by 100. Next year, production volume at the plant is expected to increase by a factor of 3.5.
In 2019, BAT’s Pecs factory reported net revenue of HUF151.2 billion. The company employs more than 900 people in Hungary.
October 13, 2020