Building A Better Tomorrow™
Our transformation journey
We have a clear purpose to build A Better Tomorrow™ by reducing the health impact of our business.
Meeting consumer needs
Our business is on a transformation journey. Today, we see new opportunities to capture consumer moments , and to satisfy changing 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 needs of the consumer: providing pleasure, reducing risk, offering an increasing choice and stimulating the senses of adult consumers worldwide.
As such, alongside our traditional combustible tobacco products, which have, over time, become limited by societal and regulatory shifts, we have a broad portfolio of non-combustible products. This includes reduced-risk*† alternatives such as vapour products, tobacco heating products and modern oral nicotine pouches.
Our ambition is to continue expanding our portfolio with a wider range of enjoyable and less risky*† products that allow us to capture consumer moments previously associated with tobacco use, while reducing harm and satisfying 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:
Stimulating the senses of new adult generations
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.
How we win
Must wins - Where
High Growth Segments
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.
How we win
Built on our successful history, 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 are 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 the global reach that we have. 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.
People and partnerships
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.
Key stakeholder outcomes
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
Shareholders & investors
By delivering sustainable and superior returns.
Our purpose is to build a better tomorrow by reducing the health impact of our business through offering a greater choice of enjoyable and less-risky products for our consumers.
A key driver to deliver this will be our Ethos – an evolution of our Guiding Principles – which guides behaviours across the entire Group.
Short-Term Deliverables to Fuel A Better Tomorrow™
Simplify the Business
Our ongoing simplification programme, Project Quantum, which had realised £1.9 billion of annualised savings through simplification and efficiencies by the end of 2022.
Ensure a Step Change in New Categories Performance
With our unique cross-category consumer understanding we are clear there is a huge opportunity for our New Categories.
Drive Value From Combustibles
We drive value from combustibles to fuel our investment in, and transition revenue to, New Categories.
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.
- For our consumers, we want to offer a range of enjoyable and responsibly marketed products in tobacco, nicotine and beyond.
- For society, we aim to reduce the health and environmental impacts of our business.
- For our suppliers and customers, we want to raise standards for everyone across our value chain.
- For our employees, we want to create a dynamic, inspiring and purposeful place for them to work.
- And for our shareholders, we want to deliver superior and sustainable returns.
Strong foundations for our evolved strategy
We made great progress on our strategic targets in 2022.
As part of our growth strategy, New Category revenue grew 41% and we now have a total of 22.5 million consumers of our Non-Combustible products (up 4.2 million).
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.
† 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.