For the first time, the British American Tobacco company has over 20 million vaping customers. This is a new milestone in the FTSE 100 Company’s history. Since the first e-cigarette was created over a decade ago many tobacco companies have been looking for ways to reach a smoke-free future.
BAT reported that 2.1 million more customers are now using its “non-combustible” products. These include electronic cigarettes, snuffs, and vapes. This made the total number of customers from around the world who had opted for tobacco heating products cross the 20 million mark for the first time. Now a total of 20.4 million customers use these products.
The world has been working to reach a smoke-free future as soon as possible. Today many people use vapes as a means to quit smoking. In the UK vapes have for a long term been cited under the NHS stop-smoking program. This is a result of the effects these products have had on helping addicted smokers give up the habit.
However, vapes and other tobacco heating products have had a lot of controversies in the recent past. Due to their attractive packages, the many flavors, and the fact that they do not produce any smoke these products have easily found their way into the hands of teenagers and children. Many governments across the world have been forced to pass new laws raising the legal age for purchasing and using these products to 21 years after they become more appealing to teenagers.
Despite this vaping proves to be a game changer for BAT’s tobacco heating products. Its flagship vape product, Vuse’s revenue grew by 48% to reach £590 million. The total sale of tobacco heating products grew by 6% to reach £13 billion.
However, this does not mean that BAT has become a vaping company. A bulk of its revenue still comes from traditional cigarette products such as Dunhill and Lucky Strike brands. The CEO of the Company Jack Bowles believes that the company needs to remain innovative as it’s not immune “to the increasing macro-economic pressures, exacerbated by the conflict in Ukraine.” When the rising cost of living lowers the customer’s buying power the company has to offer products customers can still afford. This is why the company is planning to offer a disposable version of Vuse.
Bowles assures both customers and investors that the company is “well positioned to navigate the current turbulent environment due to our powerful brands, operational agility, and continued strong cash generation.”