Our business model

We rely on world-class science to substantiate the product quality and reduced-risk^*† potential of our Smokeless products. It is crucial for building trust with consumers and regulators, and encouraging adult smokers - who would otherwise continue to smoke - to completely switch to less risky alternatives^*†.

Chemistry, molecular biology, and toxicology are just some of the fields that our extensive scientific research programme covers. We are transparent about our science and have published a compendium of information in the Omni^TM, which explores over a decade's worth of Tobacco Harm Reduction evidence, alongside science and research.

As consumer preferences and technology rapidly evolve, our international network of digital hubs, innovations hubs, world-class research and development (R&D) laboratories and external partnerships help us to stay at the forefront of innovation with our products, alongside our corporate venturing initiative, Btomorrow Ventures.

Innovation is core to us driving sustainable growth, and we invest significantly in R&D to create great products that satisfy changing consumer preferences. Led by data and consumer insights, each innovation takes us a step further towards building A Better Tomorrow™ by reducing the health impact of our business.

The majority of our tobacco is sourced by our Group-owned vertically integrated Leaf Operations through direct contracts with c.91,000 farmers. The remaining tobacco is sourced from third-party suppliers that, in turn, contract with an estimated 134,000 farmers. The vast majority of tobacco farms in our supply chain are smallholder family farms.

Beyond tobacco, we source product materials like paper and filters for cigarettes and, for our New Category products, we have a growing supply chain in consumer electronics and e-liquids. We also have a vast network of suppliers of indirect goods and services that support our business beyond our products, such as for IT services and facilities management.

Technologies including AI and machine learning help us to get our products to the right place at the right time.

Our products are sold across the world and distributed efficiently using distribution models tailored to suit local circumstances and conditions. These include retailers, supplied through our direct distribution capability or exclusive distributors, and our Direct‑to‑Consumer business – which has been accelerated through the deployment of owned e‑commerce sites.

Our powerful portfolio of brands is something we’re proud of – including our combustibles portfolio and our Smokeless product brands, which we believe will drive us towards our strategic aim. Our strong product pipeline is supported by our quality insights, science and innovation, and international positioning. We offer adult consumers all over the world a range of high‑quality products – from value‑for‑money to premium, including combustible products, Vapour, Modern Oral, Traditional Oral and Heated Products.