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Highlights
- UK companies are facing backlash for using social media influencers to promote nicotine products.
- Health and anti-smoking groups worldwide are raising their voice against the promotion of Velo on social media by BAT.
Nicotine products, which are highly dangerous and addictive, are being promoted by social media influencers across the UK. Many companies have been accused of enticing young people to try out these harmful products.
DJs, fashion models, and socialites are receiving backlash for promoting Velo, which is a brand of flavoured nicotine pouches manufactured by the UK-based cigarette manufacturing company British American Tobacco (BAT). In the marketing war of BAT being waged on foreign soil, these influencers, or “nicotinfluencers”, are acting as soldiers at the UK front.
According to the Bureau of Investigative Journalism, an amount of approximately £1 billion had been bet by BAT earlier this year on utilising the popularity of social media influencers on TikTok, Instagram and Facebook to maximise its reach among young people across countries like Pakistan, Sweden, and Spain. BAT is now utilising the same method to capture the attention of British consumers. It is promoting Velo as an alternative to cigarettes, but none of the influencers promoting the product are talking about quitting. Health and anti-smoking groups worldwide are calling for bringing the promotion of this nicotine product over social media to a standstill.
RELATED READ: Phillip Morris’s boss vows for cigarettes free world in 10 years: Needle on 2 FTSE tobacco stocks
Let’s take a look at two FTSE tobacco stocks that you can still invest in.
British American Tobacco PLC (LON:BATS)
British American Tobacco PLC is the largest tobacco company across the globe taking net sales into account. Apart from being listen on the London Stock Exchange, the company has a secondary listing on the Johannesburg Stock Exchange and is also has a listing on the New York Stock Exchange with its ordinary shares being traded in the form of American Depositary Shares.
Its current market cap stands at £58,089.22 million and it has given a return of 2.36% in 1 year. Its 5-year average dividend yield is 5.7%. The shares of British American Tobacco PLC were trading at GBX 2,545.50, up by 0.55%, at 10:54 AM on 9 November 2021 (GMT).
RELATED READ: BATS & Imperial Brands (IMB): 2 cigarette stocks to buy now
Imperial Brands PLC (LON:IMB)
Bristol-headquartered Imperial Brands PLC is among the largest tobacco companies across the globe. Previously known as Imperial Tobacco Group plc, it focuses on creating next generation products to mitigate the harmful impact of combustible tobacco products. The companies functioning under Imperial Brands are Imperial Tobacco, ITG Brands, Fontem Ventures, and Fotista.
Its current market cap stands at £14,702.45 million and it has given a return of 26.58% in 1 year. Its 5-year average dividend yield is 8.4%. The shares of Imperial Brands PLC were trading at GBX 1,544.50, down by 0.58%, at 10:56 AM on 9 November 2021 (GMT).
