Quality Growth
Delivering Quality Growth emphasises the transition to a more balanced focus on top-line and bottom-line delivery, centred around our brands and innovation, and continuing to seek long-term opportunities Beyond Nicotine.
Inspiring New Category Innovations and Brands
Since the launch of our first vapour product in 2013, we have been on a transformation journey to become a truly multi-category consumer products business. We are creating new Smokeless products that encourage adult smokers, who would otherwise continue to smoke, to switch to scientifically-substantiated, reduced-risk*鈥� alternatives.
Managed Combustibles Transition
We are committed to becoming a predominantly smokeless business, with an ambition to reach 50% of our revenue from Smokeless products by 2035.
Beyond Nicotine Foundations
Consumers are increasingly seeking healthier lifestyles and 鈥榖etter-for-you鈥� products that help them manage their daily wellbeing. We call this category Wellbeing and Stimulation (W&S) and expect the category to grow to 拢495 billion by 2030, from around 拢296 billion, according to most recent estimates.1
Notes:
1. IRI/Circana Consulting
* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
鈥� 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.
An overview of our Products
Our Vapour Products
Vapour products*鈥� are battery-powered devices that heat e-liquids to produce an inhalable aerosol (vapour).
Our leading, global Vapour brand, Vuse, plays a 聽major role in providing smokers with a reduced-risk*鈥� alternative to cigarettes.
Vapour Top markets***
the U.S., Canada, France, the UK, Spain, Poland and Germany.
Our Heated Products
Heated Products* (HPs) use heat to generate a nicotine-containing aerosol, which the user inhales.
This category includes Tobacco Heated Products (THP) and Herbal Products for Heating (HPH).
Within HPs, because the tobacco or herbal substrate is heated instead of burned, the resulting aerosol comprises mainly water, glycerol, nicotine and flavours 鈥� different to cigarette smoke.
HP Top markets**
Japan, South Korea, Italy, Germany, Greece, Hungary, Poland, Romania and the Czech Republic.
Our Modern Oral Products
In recent years, a new category of Modern 鈥∣ral Products*鈥� has emerged.
These come in the form of tobacco-free nicotine pouches that are placed under the lip so that nicotine can be effectively absorbed.
Modern Oral Top markets**
the U.S., Sweden, Norway, Denmark, Switzerland, Poland and the UK
Our Traditional Oral Products
The most common products in Traditional Oral are largely moist oral tobacco popular in the U.S., with the main brands being Grizzly and Kodiak.
These products are less finely ground than another Traditional Oral product referred to as Swedish-style snus. Both of these Traditional Oral products are available in loose form, as well as in pre-packed pouches.
Our Combustible Products
We are focused on driving value from our strategic brands of Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Newport (U.S.), Natural American Spirit (U.S.) and Camel (U.S.), which now account for 67% of our combustible volume.
Our combustibles business is founded on understanding and meeting the preferences of adult smokers in all parts of the world.
Beyond Nicotine
As well as offering less risky*鈥� nicotine-based alternatives, we see a new range of non-nicotine-based products forming an expanding part of our portfolio.
Notes:
* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
鈥� 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.
** Top Oral and Modern Oral markets are defined as the Top markets by industry revenue, being the U.S., Sweden, Norway, Denmark, Switzerland, Poland and the UK and accounting for c. 90% of global industry Modern Oral revenue in 2023. The Top markets were updated in 2024, with a revision in 2023 volume share to 27.1% (Group) and 64.7% (AME). Also in 2024, the Group changed from Marlin to Retail Scan Data for the U.S. Modern Oral market, with the Group's Modern Oral volume share in 2023 rebased to 4.5%.
*** Source: based on NielsenIQ volume share of Total Oral.