British American Tobacco PLC

Description

British American Tobacco Plc, a FTSE 100-listed company, is one of the largest tobacco and cigarette manufacturing companies in the world. Besides London, it has an additional listing on the Johannesburg Stock Exchange. Its ordinary shares are also listed on the NYSE as American Depositary Shares. Its production includes products like cigars, pipe tobacco, and others. It also sells low-risk products like tobacco heating products and vapour. The company is spread across six continents: Americas, Sub-Saharan Africa, Europe, North Africa, Asia-Pacific, and Middle East. It is one of the very few consumer goods companies in the world, which can claim over 150 million consumer interactions per day and distribution to more than 11 million points of sale to 180 markets across the world. The company owns a portfolio of popular brands, which are world famous, such as Dunhill, Kent, Pall Mall, and Rothmans.

The company’s main objective is to have 50 million consumers for its non-combustible products by 2030 and to increase the growth of the New Category revenues at a faster rate to reach the target of £5 billion by 2025. The company has already made considerably well in this regard as it has added 3 million more consumers for its non-combustible brands.

BATS was formed in the year 1902, when the Imperial Tobacco Company, based in the UK, merged with the American Tobacco Company and formed British-American Tobacco Company Ltd.

BAT Group has recently signed a joint agreement with Organigram Inc., which is a part of the Organigram Holdings Inc., to focus on R&D projects of next generation adult cannabis products with an initial focus on cannabidiol. The agreement will help BAT to take its operations beyond nicotine. The company launched Vuse CBD Zone in Manchester, earlier in 2021.  The collaboration will help the company to have wider-category approach for its consumers, which will lead to continued momentum and growth as BAT focuses building ‘A Better Tomorrow’. The company has bought a 20% stake in the Canada-based OrganiGram, which produces cannabis, for about £126 million as part of its expansion and diversification plans.