British American Tobacco is the second largest tobacco producer worldwide (just behind Philip Morris). It has announced on August 31st a large reorganisation of its organization to encourage a faster development of electronic cigarettes sales. BAT is already the leader in around 50 countries. And it intends to take advantage of this organization change to become one of the largest producers of electronic cigarettes. And therefore hopes to catch up with its rival, Philip Morris International which is ahead in the race.
British American Tobacco owns several large tobacco brands such as Lucky Strike, Kent or Dunhill. It has expanded its product line to electronic cigarettes since 2015. This development follows the popularity increase of the e-cigarette around the world. But it also goes hand in hand with a global decrease in tobacco products sales over the same period.
The reorganization that is currently implemented is linked to the acquisition of its American competitor Reynolds which took place last July, for around 50 billion dollars.
This purchase has enabled BAT to acquire the cigarette brand Camel and the Vuse e-cigarettes. Vuse products join BAT’s existing e-cigarette product line made of Vype
BAT’s goal: become a vaping leader
BAT strongly wishes to become the “first international vaping company” and is looking to reach out to the public with their e-cigarettes which are increasingly presented as an alternative to tobacco products. E-cigs belong to these “next-generation products” the company wishes to place at the heart of its strategy. Indeed, governments and the FDA in the US show a growing hostility towards tobacco. With Philip Morris, BAT is one of the first tobacco companies tht entered the emerging e-cigarette market.