NEWS
VAPE SALES BOOST BAT PROFITS
Vaping products expected to contribute to BAT ’ s profits for the first time this year , with the tobacco giant turning its focus to harm reduction .
Words : Jordan Millar
British American Tobacco ( BAT ) is expecting to see vaping products contribute to profits for the first time this year , following an uptake in users switching to e-cigarettes .
The company has been increasingly focused on its “ new categories ” products , investing in its flagship Vype and Vuse brands to cater to the growing demand for safer alternatives .
Sales from new categories products rose by 15 percent in 2020 placing their annual value at £ 1.4 billion . BAT now has 13.5 million consumers of its non-combustible products , an increase of three million in a year .
Chief executive Jack Bowles said : “ We have a clear purpose to reduce the harm footprint of our business and we are uniquely positioned to encourage the switch to reduced risk products .”
The company aims to see revenue from “ new categories ” products steadily rise to £ 5 billion by 2025 .
Although only a small share of the tobacco giant ’ s overall revenue – which exceeded £ 25 billion last year – the company has highlighted the accelerating growth as a signifier
We have a clear purpose to reduce the harm footprint of our business and we are uniquely positioned to encourage the switch to reduced risk products .
for its continued focus on harm reduction .
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Chief marketing officer Kingsley
Wheaton said : “ We ’ re very excited about the future of BAT and have set out a purpose-driven strategy to deliver a better tomorrow . “ We had a great performance to that regard in 2020 , seeing genuine and real momentum in consumer adoption of our new categories products .”
He added : “ For me , this is a story of moving from tobacco to technology and transforming the business .”
BAT has also outlined ambitious plans to boost the number of people using its non-combustible products , with hopes to reach 50 million consumers by 2030 .
“ Our purpose is to encourage consumers to move from the combustible products , which cause the harm , to tobacco and nicotine alternatives ,” said Wheaton . “ That ’ s at the heart of our better tomorrow and transformation story .”
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