Marc Hasenfuss Editor-at-large

Cigarette giant British American Tobacco (BAT) believes revenue from its new-generation products (NGPs) will still top £1bn (R17.4bn) in revenue in the year to end-December despite a sales growth slowdown. While BAT continues to build its traditional or cigarettes business, which still accounts for 94% of sales, there has been an increasing emphasis on investing in NGP categories such as tobacco heated products (THP) and vapour (vapes). On Thursday BAT’s interim results commentary noted a slowdown in the THP category in certain segments including key markets in Japan and South Korea. But CEO Nicandro Durante was confident the 2018 revenue target for NGP would be exceeded with a range of new launches to re-energise growth in THP in the second half of the year. Clearance Durante said that in Japan the “glo” THP brand grew market share to 4.3% (from 3.3% at the end of 2017). Durante said BAT had clearance to launch THP brands in the US, and plans to test this market in the next 12 mont...

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