British American Tobacco (BAT) CEO Jack Bowles announced that in the first quarter of 2021, consumers of heat-not-burn products increased by more than 1.4 million, bringing the total to 14.9 million.
“Thanks to our digital and consumer-centric multi-category approach, as well as appropriate resources and products, and our agile organizational support, we are investing in and building strong, fast-growing international brands in each market segment, rapidly accelerating our Coverage and the speed of consumer acquisition,” Bowers said.
“Our heat-not-burn product portfolio is tailored to meet the needs of adult consumers. We are rapidly adding new categories to encourage more smokers to switch to scientifically based alternatives that reduce risk.”
The company’s new category of products is now available in 74 markets in 53 countries. The value share of its Vuse/Vype steam equipment in all the top 5 markets is increasing.
Bowers said that Vuse is even close to the world’s leading position in the steam field. In April this year, its category value share reached 31.4% in the top five steam markets.
British American Tobacco’s Glo Tobacco Heating Products (THP) has recorded positive sales share growth in many markets, including Japan. In April of this year, the device achieved a 16.2% category sales share in the top 9 THP markets.
According to Bowers, British American Tobacco has also been consolidating its leading position in Modern Oral’s international sales share, and Velo’s sales share in the United States has grown strongly. In April this year, the company’s top five market share of Modern Oral reached 40.2%.
The company said that British American Tobacco’s heat-not-burn products are characterized by strong prices and strong sales. Since the beginning of the year, the group value and sales share have both increased by 10 basis points, and the industry sales volume for the whole year is expected to drop by about 3%.
For 2021, British American Tobacco now expects currency revenue to continue to grow by more than 5%, above its 3-5% guidance.