A Better Tomorrowâ„¢
Our purpose is to create A Better Tomorrow™ with a vision to Build a Smokeless world – one where smokers have migrated from cigarettes to smokeless alternatives.
Our strategic aim is to actively migrate smokers from cigarettes to smokeless products and Build a Smokeless World. We are committed to delivering long-term multi-stakeholder value and aim to become a predominantly smokeless business by 2035.
The video below explains more about what A Better Tomorrowâ„¢ means for us.
Our journey so far
ÌÇÐÄ̽»¨was founded in 1902 and was first listed on the London Stock Exchange in 1912. A constituent of the FTSE 100 since its creation in 1984, we have evolved, becoming the only truly global company in our sector.
Today, that evolution continues. We know combustible products pose serious health risks. The only way to avoid those risks is to not start or to quit smoking. That’s why we are changing: creating new products, backed by science, that provide adult smokers with smokeless alternatives.
Our Strategy
To deliver on our vision of Building a Smokeless World, our aim is to become a predominantly smokeless business – with 50% of our revenue in Non-Combustible products by 2035. We will do so by actively encouraging adult smokers to switch to smokeless alternatives – in essence, to ‘Switch to Better.’
To enable this, our strategy is built around the three pillars of priorities:
- ÌýQuality Growth
- ÌýSustainable Future
- ÌýDynamic Business
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Our Strategic Navigator below outlines the nine priority building blocks that support the achievement of our ambition to Build a Smokeless World.
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.
The key building blocks of the Quality Growth pillar are:
- ÌýInspiring New Category Innovations & Brands
- ÌýManaged Combustibles Transition
- ÌýBeyond Nicotine Foundations
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Our commitments under Quality Growth:
- ÌýProgressing toward quality, margin-accretive growth in smokeless products
- ÌýFMC volume decline but expecting continuing value delivery
- ÌýSensibly investing for the future Beyond Nicotine
Building a Sustainable Future is about seeking to actively migrate consumers away from cigarettes and to smokeless alternatives sustainably, responsibly and with integrity.
Science will be a primary driver of our efforts, supported by more active externalÌýengagement with regulators and otherÌýkeyÌýstakeholders, while embeddingÌýsustainability across our organisation.
The key building blocks of the Sustainable Future pillar are:
- ÌýTobacco Harm Reduction Acceptance
- ÌýShaping the Landscape
- ÌýLeading in Sustainability and Integrity
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Our commitments under Sustainable Future:
- ÌýBuilding a Smokeless World
- ÌýInvesting in the products, science and engagement to make A Better Tomorrowâ„¢ a reality
- ÌýConducting our business sustainably and with integrity
The Dynamic Business pillar is about building a future-fit, data-driven organisation and ensuring we are efficient and effective in all of our operations.
We believe we can create the financial flexibility to invest in our people, our products and provide returns to our investors.
The key building blocks of the Dynamic Business pillar are:
- ÌýExciting, Winning Company
- ÌýOperational Excellence
- ÌýCapital Effectiveness
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Our commitments under Dynamic Business:
- ÌýCreating a diverse, inclusive and people-oriented place to work
- ÌýBeing data-driven and delivering operational excellence/cost management
- ÌýFocused on investors returns
We’re making progress
Our ambition is to have 50 million consumers of our Smokeless Products by 2030 and to accelerate the growth of our Smokeless Products, reaching at least 50% of our revenues 2035.
We have already made good progress towards these targets: we now have 23.9 million consumersÌý1Ìýof Smokeless Products. Revenue from these products accounts for 16.5% of Group revenue, as at 31 December 2023.
1 Excludes Russia and Belarus
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BAT
Globe House
4 Temple Place
London
WC2R 2PG
+44 (0) 20 7845 1000
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