Quality Growth
Delivering Quality Growth emphasises the transition to a more balanced focus on top-line and bottom-line delivery, centred around our brands and innovation, and continuing to seek long-term opportunities Beyond Nicotine.
- Inspiring New Category Innovations & Brands
- Managed Combustibles Transition
- Beyond Nicotine Foundations
- Progressing toward quality, margin-accretive growth in Smokeless
- FMC volume decline but expecting continued value delivery
- Sensibly investing for the future Beyond Nicotine
Inspiring New Category Innovations and Brands
Our portfolio of New Category products form the foundation of our transformation and commitment to Building a Smokeless World. Our innovative range of products is designed to encourage adult smokers, who would otherwise continue to smoke, to switch to scientifically-substantiated, reduced-risk*† alternatives.
Managed Combustibles Transition
We are committed to becoming a predominantly smokeless business, with an ambition to reach 50% of our revenue from Smokeless products by 2035.
Beyond Nicotine Foundations
Consumers are increasingly seeking healthier lifestyles and ‘better-for-you’ products that help them manage their daily wellbeing. We call this category Wellbeing and Stimulation (W&S) and expect the category to grow to £460 billion by 2030, from around £300 billion in 2024, according to most recent estimates2,3.
Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.
IRI/Circana Consulting.
Euromonitor 2024 Market Sizing Data | Global.
An Overview of Our Products
Our Vapour Products
Vapour products are battery-powered devices that heat e-liquids to produce an inhalable aerosol (vapour).
Our leading, global Vapour brand, Vuse, plays a major role in providing smokers with a reduced-risk^† alternative to cigarettes.
Vapour Top markets**
U.S., Canada, the UK, France, Germany, Poland and Spain
Top Vapour markets are defined as the Top markets by industry revenue, being the U.S., Canada, the UK, France, Germany, Poland and Spain. These Top markets account for c.80% of total industry vapour revenue (rechargeable closed systems consumables and disposables in tracked channels) in 2024.
are sold
Our Heated Products (HPs)
Heated Products (HPs) use heat to generate a nicotine-containing aerosol, which the user inhales.
Within HPs, because the tobacco or herbal substrate is heated instead of burned, the resulting aerosol comprises mainly water, glycerol, nicotine and flavourings – different to cigarette smoke.
This category includes Tobacco Heated Products (THP) and Herbal Products for Heating (HPH).
HP Top markets**
Japan, South Korea, Italy, Germany, Greece, Poland, Romania, the Czech Republic, Spain and Portugal
Top HP markets are defined as the Top markets by industry revenue. Top markets are Japan, South Korea, Italy, Germany, Greece, Poland, Romania, the Czech Republic, Spain and Portugal. These Top markets account for c.80% of total industry HP revenue in 2024.
Our Modern Oral Products
In recent years, a new category of Modern Oral products has emerged.
These come in the form of pouches that are placed in the mouth, between the lip and gum, where nicotine and flavours are released and then absorbed. They are typically manufactured to be tobacco-leaf free.
Modern Oral Top markets**
U.S., Sweden, Denmark, Norway, Switzerland, the UK and Poland
Top Modern Oral markets are defined as the Top markets by industry revenue, being U.S., Sweden, Denmark, Norway, Switzerland, the UK and Poland, accounting for c.90% of total industry Modern Oral revenue in 2024.
Our Traditional Oral Products
The most common products in Traditional Oral are largely moist oral tobacco popular in the U.S., with our main brands being Grizzly and Kodiak.
These products are less finely ground than another Traditional Oral product referred to as Swedish-style snus. Both of these Traditional Oral products are available in loose form, as well as in pre-packed pouches.
Our Combustible Products
We are focused on driving value from our strategic brands of Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport (U.S.), Natural American Spirit (U.S.) and Camel (U.S.), which now account for 35% of our combustibles volume.
Our combustibles business is founded on understanding and meeting the preferences of adult smokers in all parts of the world.
Combustibles Top markets*
U.S., Japan, Brazil, Germany, Pakistan, Mexico and Romania
Volume and value share are based upon the Top cigarette markets which are defined as the Top markets by industry revenue, being the U.S., Japan, Brazil, Germany, Pakistan, Mexico and Romania, accounting for c.60% of total industry cigarettes revenue in 2024.
Beyond Nicotine
As well as offering less risky*† nicotine-based alternatives, we see a new range of non-nicotine-based products forming an expanding part of our portfolio.
Based upon the weight of evidence and assuming a complete switch from cigarettes smoking. These products are not risk free and are addictive.
Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.