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 scientifically-substantiated, reduced-risk alternatives*†, is the greatest contribution we can make to society. This means growing our New Categories business as fast as possible and developing opportunities Beyond Nicotine to consolidate our position as a high growth, multi-category consumer products company.
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 established consumer-centric, multi-category strategy is activated on a global scale, leveraging our insights on consumer satisfaction, innovation needs and taste. We are building strong global brands, specifically positioned in each target consumer segment. In addition, we are taking a disciplined approach to our Beyond Nicotine strategy to further drive our transformation and long-term business sustainability.
We have set ourselves ambitious targets to reach 50 million consumers of our non-combustible products by 2030, with revenue reaching £5 billion (and profitability) from New Categories 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.
* 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 U.S., 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.
50mn Non-Combustible product consumers targeted by 2030
£5bn New Categories revenue targeted by 2025
1.1bn consumers in global combustibles market with potential to convert to reduced-risk products*†
12% Group revenue from Non-Combustibles