Time: 2021-07-16
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On July 15 news, according to foreign news reports, British American Tobacco UK announced the integration of its British e-cigarette product line Vype into its global brand Vuse.
The London-based tobacco company has been investing heavily in non-combustible nicotine products and plans to reach 50 million users of its smoke-free products by 2025.
Earlier this year, it reported that it attracted 1.4 million new users of e-cigarettes, heated tobacco products and nicotine bags in the first quarter of 2021, as it sought to make cigarette alternatives profitable by 2025.
British American Tobacco's stock price rose more than 2% in early trading after the company reported that it had a strong performance in cigarettes and non-combustible products, such as its flagship steam brand Vype (now Vuse).
Vuse is the largest closed e-cigarette system in the UK, accounting for 44.2% of total sales, leading the market. It provides adult consumers with a wider range of lower-risk products, including e-cigarette products. All models are backward compatible, so users can use Vuse cartridges on Vype devices and vice versa.
The design of the equipment also takes into account sustainability. Its packaging is made of 100% recyclable cardboard, and the ePod device kit and pod packs do not contain plastic film, and the silicone cap of the ePen3 pod has also been removed.
In a rapidly growing market, Vype exceeded our expectations. It is the fastest-growing closed system brand in the UK. According to Nielsen's April data, the overall year-on-year growth in 2021 was 44% (independent and symbolic categories grew 36%). It also has a market-leading overall sales share (44%) and independent stores (38%). "Khurram Durrani, British American Tobacco's UK Trade Director, said.
At the same time, due to the increase of 1.4 million users, the total users of British American Tobacco's smokeless products reached 14.9 million, less than one-third of the company's target. If BAT is to achieve its target, sales will have to continue to accelerate.
The company also plans to achieve annual revenue of 5 billion pounds through three new products-Vuse vapes, Velo oral nicotine bags and Glo heated tobacco. This will require higher growth than last year, when it reported sales in this category of £1.4 billion, an increase of 15% year-on-year.