British American Tobacco Looks to Increase Vaping Business Twofold

The tobacco firm has plans to accelerate its vaping arm into a $1.3 billion business.

October 27, 2017

LONDON – British American Tobacco (BAT) has big plans for its vaping business, with an eye to doubling revenue within a year, CNN Money reports. The tobacco company has projected it will increase sales of “new generation products” to $1.3 billion next year. Revenue from those products, which includes heat-not-burn tobacco products as well as electronic cigarettes, is forecast to jump to $6.6 billion by 2022.

The ambitious plan comes as BAT acknowledges traditional cigarette sales have been falling as smoking has come under attack in many countries looking to improve the health of its citizens. The company also pointed to plain packaging laws in the United Kingdom, Australia and France, plus higher taxes in Brazil and Russia, as challenges it faces.

But e-cigs aren’t without their detractors. The U.K. parliament is looking into the health impact of vaping. “They are seen by some as valuable tools that will reduce the number of people smoking conventional cigarettes, and seen by others as ‘re-normalizing’ smoking for the younger generation,” said Norman Lamb, who chairs the parliamentary science committee.

More tobacco firms are turning to alternative forms of tobacco, such as heat-not-burn and vaping products. Earlier this week, the New York governor signed a law that prohibits vaping anywhere smoking is banned. That law will take effect in late November.

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