We’re evolving our portfolio with a wider choice of products
Our growing range of reduced-risk*† alternatives to smoking includes Vapour, Heated Tobacco and Modern Oral products.
It is widely acknowledged that most of the harm associated with conventional cigarettes is caused by the toxicants in the smoke produced by the burning of tobacco.
That is why we are dedicated to the development and commercialisation of alternative tobacco and nicotine products that don’t burn tobacco to deliver nicotine to the user and offer smokers an enjoyable, reduced risk alternative.
Our portfolio of non-combustible, reduced-risk products (RRPs) is primarily comprised of three New Categories of products*†:
- Vapour products
- Tobacco Heating Products (THP)
Modern Oral products, including tobacco-free nicotine pouches.
It also includes traditional oral products, including moist snuff and snus.
We’re setting ourselves ambitious targets: we aim to grow our annual revenue from new categories to £5 billion by 2025 and to have 50 million consumers using our non-combustible products by 2030.
Vapour products are battery-powered devices that heat liquid formulations – e-liquids – to create a vapour which is inhaled. Most e-liquids contain water, propylene glycol and glycerol, flavourings and nicotine, although some e-liquids don’t contain any nicotine. The products contain no tobacco and no combustion takes place.
Under our flagship global Vuse brand, our vapour products play a major role in providing smokers with a reduced risk*† alternative to cigarettes. We will continue to invest and innovate to deliver even greater choice and satisfaction for our consumers.
- In 2022, vapour revenue was up 55% (from 2021), with Vuse, extending its global value share leadership position. Meanwhile, Vuse Go has achieved No.2 value share in the modern disposables segment in the UK and France and is now available in 24 markets
Find out more about Vapour products.
Tobacco Heating Products
Tobacco Heating Products (THPs) are devices that heat tobacco to generate an aerosol. Our flagship THP brand, glo, comprises an electronic handheld device that contains a lithium-ion battery which powers a heating chamber. A specially designed rod containing homogenised tobacco, called a Neostik, is then inserted into the device.
- In 2022, glo, continued to make category volume share gains while also increasing revenue (up 24%). There were also encouraging early results from our Hyper X2 launch in Japan, following the national rollout in October 2022. Hyper X2 is now available in 21 markets around the world.
Find out more about Tobacco heating products.
Modern Oral products
Under our Velo brand, our modern oral pouches contain high purity nicotine, water and other high-quality ingredients. Modern oral products represent an exciting opportunity to offer a device-free alternative to adult smokers.
In 2022, Velo continued its strong volume share leadership in Europe (now 69%), largely driven by innovations including Velo Mini pouches and Velo Max ranges. Revenue in the Modern Oral category, predominantly through Velo, was up 45%.
Find out more about Modern oral products.
We’re making good progress, but this is just the beginning. Our research and development, led by many hundreds of scientists across the world, is creating an exciting pipeline of reduced-risk products.
* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
† Our Vapour product Vuse (including Alto, Solo, Ciro and Vibe), and certain products, including Velo, Grizzly, Kodiak, and Camel Snus, which are sold in the U.S., are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.