Tobacco Asia

30 tobaccoasia PRODUCT NEWS 产品新闻 BAT Raises Outlook as Velo Nicotine Pouches Drive Growth British American Tobacco (BAT) has increased its full-year revenue forecast, crediting the rising global popularity of oral nicotine pouches—particularly its Velo brand—for the improved outlook. Velo, part of BAT's "new category" segment that also includes vaping products, has shown the fastest growth, the company reported. BAT c.e.o. Tadeu Marroco expressed optimism about the brand's momentum, especially in the US market. "Globally, Velo continues to gain volume share in this fast-growing category, driven by the US and our continued leadership position in AME (Americas & Europe)," he said, highlighting notable performances in the UK, Scandinavia, and Poland. Marroco also noted enthusiasm for the launch of the Velo Plus loyalty program in the US. As a result of a stronger-than-expected performance in the first half of the year, BAT now projects revenue growth of between 1-2% for 2025, up slightly from the previous 1% forecast. Despite these gains, BAT still derives most of its income from traditional combustible cigarettes, including brands like Pall Mall and Camel. While global cigarette volumes have fallen about 9% so far this year, the company said it has been able to increase its market share, particularly with Lucky Strike. Marroco also addressed ongoing pressure in the vaping sector, where legal product sales have been affected by competition from illegal alternatives. BAT has previously warned that the rise of unregulated disposable vapes has negatively impacted sales of its own Vuse brand and has urged government intervention. UK Disposable Vape Ban Starts The UK began enforcing a nationwide ban on single-use disposable vapes on June 1. Lawmakers say the policy aims to protect young people and reduce the environmental damage caused by the devices. Stores and supermarkets must now remove disposable vapes from their shelves, although they can continue selling rechargeable and refillable models. Authorities blame disposable vapes for fueling a rise in youth vaping. Despite existing laws that ban sales to anyone under 18, many teens have turned to these brightly colored, compact single-use products. Recent surveys show that 1 in 7 young adults between 18 and 24 vape without ever having smoked traditional cigarettes. The ban also targets growing environmental concerns. The Department for Environment, Food, and Rural Affairs reported that people threw away or littered nearly 5 million single-use vapes every week last year. Most ended up in landfills, where batteries containing lithium, mercury, and other chemicals can leak into the soil and water. Discarded batteries also sparked hundreds of fires in garbage trucks and waste facilities across the UK. Retailers in England and Wales who ignore the ban face a £200 (US$255) fine for the first offense, with larger penalties or jail time possible for repeat violations. While the law does not make it illegal to own single-use vapes, it does ban their sale. Some customers rushed to stock up ahead of the deadline, even though refillable vapes and flavored pods remain widely available. The previous Conservative government introduced the measure in England and Wales, but failed to pass it before the last general election. After taking office, Labor pushed the legislation through. Scotland and Northern Ireland aligned their bans with the same June 1 launch date. Vape use has surged in the UK over the past decade, with about 9% of the population now using e-cigarettes. Roughly a quarter chose disposable versions, though that share has fallen since the government announced the ban. Health officials welcome the change but argue that the country still needs stronger regulations to address youth vaping more effectively. Disposable Ban Clouds Smokefree 2030 Goals In the lead-up to the disposable vape ban on June 1, a recent survey commissioned by retailer Vape Shop suggested the move could have unintended consequences for adult nicotine users and the government's goal of a smokefree 2030. The poll of 750 UK adults aged 18 and over who vape found that more than 42% would consider returning to cigarettes if all vaping products were banned. Additionally, 17% said they would likely go back to smoking following the new tax on vaping products scheduled for October 2026. Vaping remains a widely used alternative to cigarettes. Among respondents, 44% said they originally started vaping to stop smoking. While 52% have already transitioned to reusable devices, 48% still use disposable or chargeable disposable vapes for their convenience and variety. Despite the upcoming ban, nearly 27% said they do not plan to reduce how often they vape. Some expressed concern about rising costs—20% said they're worried about affordabil- ity post-ban, and 11% fear the restrictions could fuel an unregulated black market. Flavor options also matter to many adult vapers. If flavored liquids were banned, 23% said they would return to cigarettes, while 33% said they would continue vaping regardless. Chris Price, e-commerce manager at Vape Shop, urged policymakers to consider the broader impact of the disposable ban. "We urge the government to consider a more balanced approach, such as tighter age verification and packaging controls, rather than removing a tool relied upon by many adults trying to quit smoking," he said. Velo is BAT's fastest growing product in the "new category" segment. Credit: Jakubdrastich2, CC4.0.

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