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Our Next Generation Products business

We have the commitment, ambition and capabilities to lead

Traditional tobacco has been the mainstay of our business for more than 100 years - and will continue to be so for a long time to come. However, we also see huge potential in Next Generation Products, which include Vapour Products like e-cigarettes.

Our aim is to offer our consumers – adult smokers – a choice of a range of different products, from traditional cigarettes through to less risky alternatives. These new products offer us another opportunity to further grow our business, while also having the potential to reduce smoking-related disease because they are considered to be less risky than normal cigarettes.

Kingsley Wheaton
 
Working to make available less risky alternatives to cigarettes has clear benefits for society, alongside a compelling business case for delivering sustainable commercial growth."
Kingsley Wheaton, Managing Director of Next Generation Products at BAT
 

Our ambition is to lead the Next Generation Products category. We are in this for the long haul and very excited about the future. The strength of our commitment can be demonstrated through the actions and progress we are making.

We have invested more than US$1 billion in building a whole new area of the business focused exclusively on Next Generation Products. Within this division, we have specialist business units with experts focused on developing and delivering quality new products, including Vapour Products (e-cigarettes) and Tobacco Heating Products.

Next Generation Product LogosFrom the launch of Vype, our first Vapour Product, in the UK in 2013, we now have a range of products available to consumers across a number of international markets. In December 2016 we opened our first Vype-branded store – in Milan, Italy – at the same time as launching a new type of Vapour Product, Vype Pebble. Our Tobacco Heating Product range includes glo iFuse – launched in Romania in 2015 – and glo, which we launched in Japan in November 2016.

Our winning formula

We believe we are best placed to lead in Next Generation Products. We understand the needs of adult smokers and have the know-how, capability and experience to develop and deliver a pipeline of high-quality products. We also have world-class R&D capabilities, robust product safety standards, responsible marketing practices and global reach.

Our approach to leading in Next Generation Products is based on:

  • Investing in a sustainable pipeline of high-quality products to give consumers a choice of less risky alternatives to smoking.
  • Setting the bar on standards for product safety and quality, based on robust science, and implementing globally responsible marketing practices.
  • Supporting the development of regulation suitable for Next Generation Products, by sharing our own research and approach, and collaborating with regulators and standards authorities.

Our focus

Given the potential of Next Generation Products, we would like to see growth and innovation encouraged, while ensuring this happens responsibly by putting consumer safety and product quality first. We believe this can be achieved by focusing on five key areas:

Product standards

High product standards based on robust science are needed to ensure consumer safety and confidence.

Responsible marketing

The growth of new products should be supported by controlled marketing and advertising rules aimed at adult consumers only.

Collaboration

The public and private sectors need to work together to clearly communicate the benefits of lower risk products so consumers can make informed decisions.

Innovation

The freedom to innovate should be cultivated to enable the development of a compelling range of products for adult consumers.

Appropriate taxes

Excise and taxes should be set appropriately to enable the affordability of new products to encourage wide take-up.

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