We are committed to building A Better Tomorrow™ for all our stakeholders
Our Chief Executive Jack Bowles set out an inspiring purpose for our business when he unveiled our Group’s evolved strategy in March 2020.
Our heritage – and the foundation of our success – is in cigarettes. However, we recognise the world is changing.
We have a clear purpose to build A Better Tomorrow™ by reducing the health impact of our business.
Our ambition remains to have 50 million consumers of our non-combustible products by 2030 and to accelerate the growth of our New Category revenues at a faster rate than our total revenue, reaching £5billion in 2025. We have already made good progress towards these targets: we increased consumers of non-combustible brands by 3 million, reaching 13.5 million by the end of 2020, with New Categories revenue growing by 15% in the same period.
We are accelerating our transformation journey to create A Better Tomorrow™ for all our stakeholders, building a long-term sustainable business in the process.
Our animation below explains more about our commitment to building A Better Tomorrow™:
As a leading multinational business, we understand our global impact, the importance of high standards of integrity and our evolving societal responsibilities. As a result, we are moving from a business where sustainability has always been important, to one where it is front and centre in all that we do.
Our business is on a transformation journey. Today, we see new opportunities to capture consumer moments which have, over time, become limited by societal and regulatory shifts, and to satisfy evolving consumer preferences.
We have evolved our strategy to put a sharper focus on our New Category products, fuelled by investment from the continued delivery of our traditional tobacco business.
Our strategy is about anticipating and aiming to satisfy the ever-evolving consumer: providing pleasure, reducing risk, offering an increasing choice and stimulating the senses of adult consumers worldwide.
As such, alongside our traditional cigarette products, our broad portfolio of non-combustible products includes reduced-risk*† alternatives such as vapour products, tobacco heating products and modern oral nicotine pouches, as well as traditional oral products such as snus and moist snuff.
Our ambition is to continue expanding our portfolio with a wider range of enjoyable and less risky products that allow us to capture the consumer moments previously associated with tobacco use, reduce harm and satisfy evolving consumer desires.
Our approach will deliver A Better Tomorrow™ for our consumers who will have a range of enjoyable and less risky*† choices for every mood and moment; for society through reducing the overall health and environmental impacts of our business; for our employees by creating a dynamic and purposeful place to work; and for our shareholders by delivering sustainable superior returns.
We are encouraged by and proud of the progress we are making. And we are excited about what the future has in store as we continue to accelerate the transformation of our business.
Find out more about our purpose and strategy below:
Today, we see opportunities to capture consumer moments which have, over time, become limited by societal and regulatory shifts, and to satisfy evolving consumer needs and preferences.
Our mission is to anticipate and satisfy this ever-evolving consumer: provide pleasure, reduce risk, increase choice and stimulate the senses of adult consumers worldwide.
Driven by our unique and data-driven consumer insight platform (PRISM), we will focus on product categories and consumer segments across our global business that have the best potential for long-term sustainable growth.
By relying on a rigorous market prioritisation system (MAPS), we will focus the strengths of our unparalleled retail and marketing reach, as well as our regulatory and scientific expertise, on those markets and marketplaces with the greatest opportunities for growth.
As one of the most long-standing and established consumer goods businesses in the world, we have a unique view of the consumer across all of our product categories, which is increasingly driven by powerful data and analytics.
These insights ensure that the development and responsible marketing of our products is fit to satisfy consumer needs.
As consumer preferences and technology evolve rapidly, we rely on our growing global network of digital hubs, innovation super centres, world-class R&D laboratories, external partnerships and our corporate venturing initiative to stay ahead of the curve.
For over a century, we have built trusted and powerful brands that satisfy our consumers and serve as a promise for quality and enjoyment. We will build the brands of the future by focusing on fewer, stronger and global brands across all our product categories, delivered through our deep understanding and segmenting of our consumers.
Few companies can claim over 150 million daily consumer interactions, over 11 million retail points of sale and a global network of expert employees around the world. Cultivating an ecosystem that directly connects us with consumers and stakeholders, especially through the power of digital technology, ensures we can build the brands of the future, deliver access to markets and
foster innovations that offer sensorial enjoyment and satisfy consumer needs.
Our highly-motivated people are being empowered through a new ethos that is responsive to constant change, embodies a learning culture and is dedicated to continuous improvement. But we cannot succeed on our own, and our partnerships with farmers, suppliers and customers are also key for ensuring sustainable future growth.
The United States comprises nearly half of our global business. It is also the single largest economy in the world, the largest single centre for technology and the key driver of global consumer trends, and is where we have the deep consumer understanding and financial strength to support the delivery of our mission to stimulate consumer senses around the rest of the world.
By stimulating the senses of new adult generations, our purpose is to create A Better Tomorrow™ for all our stakeholders.
We will create A Better Tomorrow™ for Consumers, Society, Employees and Shareholders.
By responsibly offering enjoyable and stimulating choices for every mood and every moment, today and tomorrow;
By reducing the health impact of our business by offering a range of alternative products, as well as by reducing our environmental and social impacts;
By creating a dynamic, inspiring and purposeful place to work; and
By delivering sustainable and superior returns.
A key driver to deliver this will be our Ethos – an evolution of our Guiding Principles – which guides behaviours across the entire Group.
With our unique cross-category consumer understanding we are clear there is a huge opportunity for our New Categories.
Our ambition is to drive value from combustibles to fuel our investment in, and transition revenue to, New Categories.
Our ongoing simplification programme, Project Quantum, will realise £1 billion of annualised savings through simplification and efficiencies by the end of 2022.
Our wide range of capabilities makes us exceptionally well placed for future growth. Few consumer goods companies can claim over 150 million consumer interactions every day; distribution in 11 million points of sale across more than 180 markets; and approaching more than 13.5 consumers of non-combustible tobacco and nicotine products.
We have unique global marketing and distribution reach, a track record of R&D strength and innovation, as well as decades worth of consumer insights and brand building expertise. And in just a few years we have built a New Categories business worth £1.44 billion, providing a vital platform for the future.
* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
† Our products as sold in the US, 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.