London-headquartered tobacco company aims for 50 million users of non-cigarette products by 2025
British American Tobacco recruited 1.4 million new users of vapes, heated tobacco and nicotine pouches in the first quarter, as it seeks to make cigarette alternatives profitable by 2025.
Shares in the London-headquartered tobacco company gained more than 2% in early stock market trading, after it reported a strong performance in both cigarettes and “non-combustible” products such as Vype, its flagship vapour brand.
BAT has set a target of 50 million users of non-cigarette products by 2025, as it aims to burnish its credentials as a modern tobacco company promoting so-called “reduced risk” choices for nicotine users.
The company said growth in cigarette alternatives had accelerated. But sales will have to continue picking up pace if BAT is to achieve its goal, after the 1.4 million increase took it to 14.9 million, less than a third of the target.
It also wants to achieve annual revenues of £5bn from three new products – Vuse vapes, Velo oral nicotine pouches and Glo heated tobacco – by the same date.
That will require significantly higher growth than it achieved last year, when it reported sales in that category of £1.4bn, up 15% year on year.
Rob Davies – The Guardian – 2021-06-08.