BRITISH AMERICAN TOBACCO

Overview

British American Tobacco p.l.c. is a consumer-focused tobacco and nicotine company with an international, multi-category portfolio for adult consumers. Its business is defined by combustibles and a growing smokeless offering, including vapour products, heated products and modern oral nicotine products, alongside traditional oral tobacco. BAT states that its purpose is to create “A Better Tomorrow™,” which it describes as “Building a Smokeless World.” [1]+3

The group organizes its operations across three regions: the U.S., Americas and Europe, and Asia-Pacific, the Middle East and Africa, giving it a broad geographic footprint across developed and emerging markets. BAT highlights major markets including the U.S., Brazil, Germany, Mexico, Romania, Bangladesh, Japan and Pakistan, and it also has exposure to India through associates and joint ventures. In 2024, BAT reported revenue of £25,867 million and more than 48,000 employees, with 140 employee nationalities, indicating substantial global scale.[5]+7 [1]+11

Products & services

British American Tobacco’s product portfolio is split between combustibles and “smokeless” products. Its smokeless range comprises New Categories—Vapour, Heated Products and Modern Oral—plus strategic Traditional Oral brands. In 2024, BAT reported revenue of £1,721 million from vapour, £921 million from heated products, £790 million from modern oral, £1,092 million from traditional oral and £20,685 million from combustibles, against total group revenue of £25,867 million.[13]+6

In vapour, BAT’s main brand is Vuse, with products described as battery-powered devices that heat e-liquids to produce an inhalable aerosol; Vuse Go is its single-use vapour offer.[20]+2 In heated products, BAT markets glo and related devices including Hyper Pro, Hyper and Hilo, as well as veo consumables. The category is based on heating nicotine-containing material rather than burning it, and BAT says Hyper Pro and Hyper use induction heating to externally heat tobacco and non-tobacco consumables to a specific temperature range; veo is described as its first non-tobacco consumables range.[23]+2

BAT’s oral nicotine products are led by VELO, a tobacco-free nicotine pouch range placed under the lip for nicotine absorption and sold in tobacco, mint and fruit flavours with various nicotine strengths.[26][27] Its Traditional Oral portfolio includes snus and snuff, with brands such as Grizzly, Kodiak, Camel Snus, Granit and Mocca.[28][29] The combustible portfolio is centered on cigarette brands including Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport, Natural American Spirit and Camel.[30] [13]+17

Geographic presence

British American Tobacco reports three operating regions: the U.S.; Americas and Europe (AME), which covers Europe, Latin America and Canada; and Asia-Pacific, Middle East and Africa (APMEA), which covers Asia-Pacific, the Middle East, Central Asia, the Caucasus, Africa and Mongolia [31]+3. In 2024, the U.S. was the largest revenue geography at £11,278 million, or 43.6% of group revenue, followed by AME at £9,241 million, or 35.7%, and APMEA at £5,348 million, or 20.7% [32][33].

The company states that its products are sold around the world and that it manufactured cigarettes in 37 factories across 35 countries in 2024 [34][35]. As of 31 December 2024, it employed 48,989 people worldwide, with 31,347 in AME (64.0% of headcount), 13,450 in APMEA (27.5%), and 4,192 in the U.S. (8.6%); BAT notes that some employees counted in AME support central functions in other locations [36]+2. Its registered office is in London, and the annual report also lists a representative office in Cape Town, South Africa [39][40]. [31]+12

Business segments

British American Tobacco’s official reportable operating segments are geographic rather than product-line based: U.S.; Americas and Europe (AME), which covers Europe, Latin America and Canada; and Asia-Pacific, Middle East and Africa (APMEA), which covers Asia-Pacific, the Middle East, Central Asia, the Caucasus, Africa and Mongolia. These three regions are the basis for internal reporting, performance assessment and resource allocation.[5]+4 In 2024, the U.S. contributed about 43.6% of group revenue, AME about 35.7%, and APMEA about 20.7%; on adjusted segment result, the mix was about 53.7% U.S., 27.9% AME, and 18.4% APMEA.[43][44]

BAT also discloses a product/category view of revenue, although these are not its formal reportable operating segments. In 2024, Combustibles accounted for about 80.0% of revenue, New Categories 13.3%, Traditional Oral 4.2%, and Other 2.5%.[10] Within New Categories, Vapour represented about 6.7% of total revenue, Heated Products about 3.6%, and Modern Oral about 3.1%; BAT identifies vapour, heated products and modern oral as its three significant global smokeless tobacco and nicotine product categories.[10][2] On a broader basis, smokeless revenue, which includes New Categories plus Traditional Oral, represented 17.5% of total revenue in 2024.[45][10] [5]+9

Company history

British American Tobacco traces its origins to 1902, when BAT Ltd. was incorporated as a joint venture between the UK’s Imperial Tobacco Company and the American Tobacco Company; James “Buck” Duke served as its first chairman. In its early years, the company expanded rapidly overseas, entering markets across Asia, Africa, Europe and the Middle East between 1904 and 1911, and in 1927 it moved into the United States through the acquisition of Brown & Williamson.[46]

During the 1960s through the 1980s, the group diversified under B.A.T Industries into businesses such as paper, cosmetics, retail and financial services, before later refocusing on tobacco; BAT then became a separately listed company on the London Stock Exchange in 1998. Its modern history was shaped by large transactions, notably the 1999 merger with Rothmans International, the 2004 combination of Brown & Williamson with RJR Tobacco to form Reynolds American, and the 2017 acquisition of the remaining 57.8% of Reynolds American that BAT did not already own. BAT also acquired the shares it did not already own in Brazil’s Souza Cruz in 2015.[47]+4 [46]+5

Sources

• BRITISH AMERICAN TOBACCO — Full financial report (2024 Y)
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• BRITISH AMERICAN TOBACCO — Full financial report (2023 Y)[22]