Delivering growth by reducing harm and expanding our portfolio
Our corporate purpose is to build A Better Tomorrow™. Reducing the health impact of our business, by encouraging those smokers who would otherwise continue to smoke to switch completely to less risky alternative products, is the greatest contribution we can make to society. This means growing our New Category business and increasing the proportion of our revenue coming from New Category products as fast as possible.
Revenue growth in the global nicotine industry is accelerating through the development of New Categories, which offer reduced- risk alternatives to combustible products. To capitalise on this growth, our well-embedded consumer-centric, multi-category strategy is activated on a global scale, leveraging our insights on consumer satisfaction, innovation needs and taste. We are building the brands of the future – strong, global brands, specifically positioned in each target consumer segment.
We have set ourselves ambitious targets to reach 50 million consumers of our non-combustible products by 2030, and more than triple our revenue from New Categories from £1.3 billion in 2019 to £5 billion by 2025. These ambitions will be met through the delivery of our three clear strategic priorities:
- To drive a step change in New Categories, to accelerate growth supported by increased investment;
- To generate value through Combustibles, to provide the capabilities and funding; and
- To simplify the Group, to create a stronger, faster, more agile organisation.
50m non-combustible product consumers targeted by 2030
£5bn New Categories revenue targeted by 2025
1.1bn consumers in global combustibles market to convert to potentially lower risk products
10% Group revenue from Non-Combustibles