A decade of portfolio transformation at BAT

new categories innovation
30 October 2023

NEWS AND STORIES

A decade of portfolio transformation at BAT

30 OCTOBER 2023

As we continue to build A Better Tomorrow™, this month we celebrated a decade of transformation across our New Categories portfolio. Having launched our first Vapour device in 2013, our product range has since evolved to better meet the preferences of adult consumers around the world.


Over the last decade, we’ve expanded and innovated our portfolio to provide a wide range of non-combustible products for adult consumers. We have three primary product categories, all designed to help adult smokers switch from cigarettes to reduced-risk alternatives*†. These New Categories of products include: Vapour products, under the brand Vuse; Tobacco Heating Products, under the brand glo; and Modern Oral products, under the brand Velo.

 

Agility and speed of innovation has been vital to our transformation, with investment of over £300 million annually in research and development key to delivering this in the past two years. An interactive timeline below showcases the innovation and progress we’ve made in the last decade, along with some key milestones for these New Category products.


As a business, we remain committed to creating reduced-risk alternatives*† for adult smokers and our goal is to achieve £5 billion in revenue from New Categories by 2025 and to have 50 million consumers of our non-combustible products by 2030. We’re well on track to achieve these. As of 30 June 2023, more than £1.6 billion in revenue is now coming from New Categories and we have 24 million consumers of our New Category products worldwide.

* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

 

† Our Vapour product Vuse (including Alto, Solo, Ciro and Vibe), and certain products, including Velo, Grizzly, Kodiak, and Camel Snus, which are sold in the U.S., are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.