Tag: British American Tobacco

BAT Resumes Tobacco Sales in South Africa

Photo: Taco Tuinstra
British American Tobacco has resumed cigarette sales in South Africa after the government lifted its near five-month ban on the sale of tobacco products. The decision was announced by the South African president on Saturday as part of the government’s decision to move from lockdown level 3 to level 2.
“We are pleased with the South African government’s decision to move from lockdown level 3 to level 2 and thereby end the ban on tobacco sales,” said Luciano Comin, British American Tobacco’s (BAT) regional director of the Americas and Sub-Saharan Africa in a statement. “We have resumed out business in South Africa while continuing to await the outcome of our recent legal case.”
BAT’s South African subsidiary, the largest tobacco manufacturer in South Africa, started shipping tobacco products to trade partners on Monday, Aug. 17 with products becoming available for smokers to buy in store from Tuesday, Aug. 18.
August 19, 2020
BAT Recognized for ‘Women in Science’
British American Tobacco (BAT) has won a platinum award for its Women in Science campaign.

In February, BAT marked International Day of Women and Girls in Science by celebrating the achievements of its female scientists and shining a spotlight on their research.

The accompanying video has now been recognized by the Association of Marketing and Communication Professionals in the dotCOMM Awards, an international online competition honoring excellence in web creativity and digital communication.

Sarah Cooney
“We are delighted to have won a dotCOMM award for our Women in Science campaign,” said Sarah Cooney, a senior manager in BAT’s Science Comms team. “We know BAT has always championed women’s careers, and this award is testament to the fantastic work being carried out by our scientists here in R&D.

“They discussed their professional journeys and shared what motivated them in their careers, and I hope they have inspired others to seek an exciting career in science.

“The video was incredibly well received on social media, and initiatives like this help us to give people a better understanding of our industry, serving as tools for engagement and recruitment,” Cooney said.
August 12, 2020
Meldrum to Succeed Oberlander at RAI

Guy Meldrum (Photo: BAT)
Ricardo Oberlander
Ricardo Oberlander will step down as president of Reynolds American Inc. (RAI) and from the management board on Aug. 31, 2020. He will leave the BAT group at the end of the year. Oberlander has been with the group for almost three decades, over seven years of which as a member of the management board, firstly as regional director of the Americas and then latterly leading Reynolds American. Oberlander steps down to pursue other opportunities.
Guy Meldrum, currently regional director of Asia-Pacific and Middle East, will succeed Oberlander as president of Reynolds American effective Sept. 1, 2020.
Michael (Mihovil) Dijanosic, currently area director of Asia-Pacific, will be appointed regional director of Asia-Pacific and Middle East, replacing Meldrum.
“I am grateful for the drive and leadership that Ricardo has brought to the group throughout his career and for leaving the Reynolds American business in such robust shape,” said BAT Chief Executive Jack Bowles. “I would like to thank Ricardo for his significant contribution over the last three decades, including over seven years as a member of the management board. We all wish him the very best for the future.
“Guy’s extensive experience with BAT over the last 26 years, including a number of senior roles in Australasia, the North Asia Area, Russia and his recent experience in leading the Asia-Pacific and Middle East Region, will serve him well to further drive the transformation of Reynolds American.
“I am delighted to welcome Michael, who has over two decades of experience with the group, to the management board. He has held a number of senior leadership roles in Asia-Pacific across different markets and has been a member of the regional leadership team since 2012. This in-depth knowledge of the region positions him extremely well to succeed Guy.”
August 5, 2020
Malaysians Want Action on Black Market

Photo: Alex Gresbek from Pixabay
Ninety-seven percent of Malaysians would want the government to take immediate action against illicit tobacco sales, reports The New Straits Times, citing a nationwide survey conducted by British American Tobacco (BAT).
The black market for tobacco products causes the government to miss out on more than MYR5 billion ($1.178 billion) in tax collections, according to BAT.
The survey noted that an overwhelming majority (88 percent) of Malaysians believe the tobacco black market was impeding the nation’s Covid-19 economic recovery.
Participants in the survey said the top three factors sustaining the illegal tobacco sales are corruption (38 percent), high excise duties (27 percent) and insufficient resources for enforcement agencies to tackle the issue (19 percent).
BAT Malaysia Managing Director Jonathan Reed said the company welcomed the enthusiastic response to its Stop the Black Market campaign.
Since going live on July 6, 2020, the campaign’s website has had more than 30,000 unique visits.
Tobacco Reporter covered Malaysia’s struggle with illicit trade in its February issue.
August 4, 2020
BAT Vaccine May Start Clinical Trials Soon

Image: Gerd Altmann from Pixabay
British American Tobacco’s (BAT) experimental Covid-19 vaccine may start clinical trials within weeks, reports Bloomberg, citing BAT Chief Marketing Officer Kingsley Wheaton.
The maker of Lucky Strike cigarettes said it expects a response from U.S. Food and Drug Administration (FDA) any day now.
Kingsley Wheaton
“We’re optimistic,” Wheaton said. “It’s an important part of our strategy to try and build a better tomorrow.”
In April BAT announced it was developing a Covid-19 vaccine from tobacco leaves and could produce 1 million to 3 million doses per week if it got the support of government agencies and the right manufacturers.
Earlier this year, BAT submitted a pre-investigative new drug application to the FDA. It is also talking with other government agencies about the vaccine.
Multiple companies from a variety of sectors have been racing to develop a vaccine for Covid-19, with some of the vaccines already in human trials. Experts have suggested that a Covid-19 vaccine could take 12-18 months to develop.
BAT said it has committed funds to conduct clinical trials. The company has reportedly also invested in additional equipment to boost capacity. The company’s investment in a Covid-19 vaccine were covered in-depth in Tobacco Reporter’s June issue.
Medicago, a biotechnology company partly owned by Philip Morris International, is also developing a plant-based vaccine that could be available in the first half of 2021.
There are 24 vaccine candidates in clinical trials, though nine out of 10 such programs typically fail during trials, according to the World Health Organization.
August 4, 2020
BAT Uganda ‘Resilient’ in Difficult Environment

Photo: Taco Tuinstra
British American Tobacco Uganda (BATU) reported first-half 2020 results with gross revenue down by 12 percent to UGX76 billion ($20.6 million) and pre-tax profits at UGX9.9 billion.
“I am pleased to report that BAT Uganda’s business continues to show resilience despite the difficult operating environment in the country,” said BATU Managing Director Mathu Kiunjuri.
“With rising unemployment and a significant increase in the cost of various basic consumer goods, the [Covid-19] pandemic has left many consumers more cash stretched than ever. Additionally, the closure of retail outlets led to constrained consumer access to our products. Despite these challenges, our business continues to be resilient due to prudent cost management measures undertaken to mitigate the decline in revenue.”
July 31, 2020
BAT: Higher Profits on Lower Volumes

Photo: BAT
British American Tobacco (BAT) reported its 2020 second-quarter results on July 31, with profits up 3.3 percent to £5.37 billion ($6.92 billion) and revenues up 1.1 percent to £12.27 billion.
BAT reported cigarette volume down 6.3 percent for the quarter, which it attributed to international travel restrictions, although a greater proportion of higher priced cigarette sales contributed to the higher revenue figure.
BAT highlighted its “new categories” revenue growth of 14.7 percent, which includes 9.1 percent growth for heat-not-burn tobacco products, 41 percent growth in vapor products and 67 percent growth in “modern oral” products.
BAT’s Kentucky BioProcessing division continues to work on a Covid-19 vaccine with its clinical trial awaiting approval from the U.S. Food and Drug Administration
July 31, 2020
BAT: Illicit Traders Have Taken Over South Africa

Photo: BAT
British American Tobacco South Africa (BATSA) declared today that the entire domestic cigarette market is now controlled by illicit suppliers. BATSA added that the nation’s lockdown of legal cigarette sales during the Covid-19 pandemic has cost the country ZAR4 billion ($241.7 million) in lost excise tax revenues and 30,000 industry jobs lost.
“With an already overstretched consumer, further increasing the cost of tobacco products will simply mean they default to the illicit market, which is now significantly cash-flush and can now afford to significantly reduce their prices,” said BATSA spokesperson Johnny Moloto.
“This means that tax-compliant manufacturers like ourselves continue to be at a disadvantage while the state is losing around ZAR35 million [$2.1 million] every single day in excise taxes.”
Moloto added, “These illicit supply chains will be so entrenched that it will be difficult for SARS (South African Revenue Service] to be able to reverse this or deal with this within a short period of time.”
July 27, 2020
BAT Asks Malaysians to Tackle Black Market

Photo: BAT
British American Tobacco (BAT) has launched a campaign to draw attention to the problem of illicit cigarette sales in Malaysia, reports The New Straits Times.
The company is inviting Malaysians to participate in a survey and to share their views on a dedicated Facebook page.
Worldwide, Malaysia is now the country most affected by illegal cigarettes, according to Oxford Economics. Nielsen figures suggest that black market accounted for 62 percent of all domestic tobacco sales in 2019.
Illicit cigarette sales cause the government to miss out on an estimated MYR5.3 billion ($1.24 billion) in excise tax revenues each year.
Many Malaysians also believe that youth smoking is linked to cheap illegal cigarettes.
BAT Malaysia managing director Jonathan Reed said the tobacco black market negatively impacts legal businesses and the lives of all Malaysians.
“We applaud the hard work done by law enforcement agencies recently and we hope that these efforts continue to pressure the syndicates operating in this black market,” he said in a statement on July 6.
“However, enforcement alone is not enough to address this issue.”
BAT hopes the surveys will spark a national discussion on how illicit cigarette sales can be stopped.
July 7, 2020
BAT May Move Rovinj Factory Out of Croatia

Photo: TDR
British American Tobacco (BAT) might relocate its Kanfanar tobacco factory in Croatia to another country, Croatian media reported.
A move could cause 500 employees to lose their jobs and would leave the Istrian peninsula without one of its industrial symbols.
The Kanfanar factory produces some 12 billion cigarettes per year. Its annual production capacity is 20 billion units.
BAT acquired the cigarette factory in 2015 when it took over local tobacco producer Tvornica Duhana Rovinj.
June 18, 2020