BAT cuts revenue target for alternative products as demand evaporates
The industry volume is expected to be down about 3.5 percent for the full year
British American Tobacco (BAT) has cut its revenue target for its cigarette alternative business, which the world’s second-largest tobacco company had touted as its key growth area. With a market value of R1.5-trillion, BAT is the second-most valuable company on the JSE. It also accounts for the biggest share of JSE-listed Reinet’s net asset value, an investment vehicle controlled by the well-known Rupert family. Releasing an operational update on Tuesday, BAT said revenue from tobacco heating products and vapour was expected to be £900m in the year to end-December, down from an earlier forecast of £1bn. The reduction in the revenue forecast for the so-called next-generation products, which are seen as less harmful than traditional tobacco products, was driven by a flat market in Japan for tobacco heating products and the effect of a product recall in the US. BAT has said smokeless products, which include glo, offer choices to consumers searching for alternatives to traditional ciga...