Our purpose and strategy
We are committed to building A Better Tomorrow™ for all our stakeholders
Our purpose is clear: to build A Better Tomorrow™. We will do this by reducing the health impact of our business.
By working together to achieve this purpose, we will deliver sustainable value for all our stakeholders.
Our video below explains more about our A Better Tomorrow™ transformation.
Our journey so far
BAT was founded in 1902 and was first listed on the London Stock Exchange in 1912. A constituent of the FTSE 100 since its creation in 1984, we have evolved, becoming the only truly global company in our sector.
Today, that evolution continues. We know combustible products pose serious health risks. The only way to avoid those risks is to not start – or to quit – smoking. That’s why we are changing: creating new products, backed by science, that provide adult smokers with less risky alternatives*†.
Portfolio transformation
We will build A Better Tomorrow™ through a multi-category portfolio of non-combustible products, tailored to meet the preferences of adult consumers.
We are moving our revenue streams – becoming a business that defines itself, not by the product it sells, but by the consumer needs that it meets. We are creating the brands of the future – brands with purpose.
Our focus on scientifically-substantiated, reduced-risk*† tobacco and nicotine products continues – and we will not stop there.
We are expanding our portfolio ‘beyond nicotine’. That means delivering products that stimulate the senses of adult consumers, while enhancing satisfaction, enjoyment and wellbeing.
By driving value from our combustibles business - and simplifying our organisation – we will accelerate this ambitious transformation.
We’re making progress
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 £5 billion in 2025. We have already made good progress towards these targets: we increased consumers of non-combustible brands by 4.2 million in 2022, reaching 22.5 million. Revenue from these products accounts for 14.8% of Group revenue, as at 31 December 2022.
In September 2021, we further demonstrated our progress as Vuse became the number one global vaping brand.***
Enterprise of the future
The BAT of tomorrow will be a high-growth, consumer goods company: global, consumer-centric, multi-category, with sustainability at our core. We are no longer just a tobacco company. By combining existing and new capabilities, we are radically redefining our organisation. Digital transformation, technology, and innovation will drive that transition. And it will be actioned by our people, through our culture and ethos. Bold, fast, empowered, responsible and diverse.
Together, we will build A Better Tomorrow™.
* 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.
**At constant rates of exchange
*** Based on Vype/Vuse estimated value share from RRP in measured retail for vapour (i.e. total vapour category value in retail sales) in the USA, Canada, France, UK, Germany. These five markets cover an estimated 77% of global vapour closed system NTO, calculated in June – July 2021.