Latest news with #BATGroup
![[KH Interview] Korea central to BAT's smokeless pivot: COO](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F06%2F29%2Fnews-p.v1.20250629.f0d5b07b54594595887ee1dfff0d2fa1_T1.jpg&w=3840&q=100)
![[KH Interview] Korea central to BAT's smokeless pivot: COO](/_next/image?url=https%3A%2F%2Fall-logos-bucket.s3.amazonaws.com%2Fkoreaherald.com.png&w=48&q=75){kind=small}
Korea Herald
29-06-2025
- Business
- Korea Herald
[KH Interview] Korea central to BAT's smokeless pivot: COO
London-based tobacco giant targets 50% of sales from non-combustibles by 2035 British American Tobacco, one of the world's largest tobacco firms, is reinforcing its commitment to South Korea as a strategic hub for its smokeless transformation, positioning the country as both a key innovation testbed and a competitive frontline for next-generation nicotine alternatives, according to the group's top executive. BAT Group Chief Operating Officer Johan Vandermeulen said Korea's value to the London-based group extends far beyond immediate sales, speaking in an exclusive interview with The Korea Herald at the headquarters of the group's Korean unit, BAT Rothmans, in Seoul on June 20. 'Korea offers a unique blend of sophisticated consumers, cutting-edge technology and a dynamic regulatory environment that makes it an ideal testing ground for our next-generation products,' said Vandermeulen, a 30-year BAT veteran who assumed the role of global COO in 2023. He visited Korea as part of an Asia tour that also included Japan and China. Korea was the second market globally to launch BAT's tobacco heating product Glo in 2017, and is currently the second-largest heated products market globally — two signs that reflect BAT's confidence in Korea as a proving ground for innovation, he said. Since then, the Korean heated tobacco market has become one of the most competitive in the world, with nearly every major global player vying for market share. BAT is aiming to stay ahead by focusing on product innovation, localization strategies and technology enhancements tailored to Korean consumers, who Vandermeulen described as 'distinct and trend-sensitive.' 'BAT Rothmans here possesses exceptional capabilities, and our manufacturing facility in Sacheon (in South Gyeongsang Province) is regarded as one of the best within the entire BAT Group,' he added. 'Innovation, technology and talent — these are the core strengths of the Korean market, and why BAT is so focused on it.' The company's Glo Hyper series was the first device in its lineup to feature a display screen and boost button, both aimed at improving user experience. BAT developed the heating sticks specifically for the Korean consumer palate. BAT has also rolled out its vapor brand, Vuse, in Korea, emphasizing quality, product stewardship and responsible marketing. The devices come in various formats — slim and box types — and exclude flavors and features that could appeal to minors. 'We ensure that our vapor products are first stewarded at an ingredient level. Ingredients to be included in e-liquids must be, at minimum, food grade, with nicotine being pharmaceutical grade. We believe similar standards should be formally introduced and required for vaping products across the industry,' he said. Alongside Glo and Vuse, BAT is expanding globally into nicotine pouches — a category that does not involve inhalation and is now its fastest-growing segment, already launched in over 40 markets. While not yet available in Korea, the company sees opportunity as consumer preferences continue to evolve. At the heart of BAT's strategy is its mission of "A Better Tomorrow," which aims to build "A Smokeless World" by offering science-backed, non-combustible alternatives. The company aims to increase the revenue share from these products to 50 percent of its total by 2035, up from the current 17.5 percent, and to grow its adult user base to 50 million by 2030, from over 29 million today. This transformation aligns with BAT's Tobacco Harm Reduction philosophy. 'We aim to offer alternatives with reduced risk profile to cigarettes to adult smokers who would otherwise continue to smoke, thereby making a positive contribution to reduce the public health burden associated with cigarette smoking,' Vandermeulen said. On regulation, BAT supports clear, fair and consistent policies across the industry. 'We believe regulation should be clear, consistent and fairly applied. Provided these conditions are met, we view regulatory changes positively.' Still, Vandermeulen expressed concern over the rise of illicit vaping products, warning they undermine public trust and legitimate market efforts. 'This is ultimately about corporate responsibility,' he said. 'Proper regulation and enforcement are essential to protect consumers and ensure fair competition.' With nearly one billion smokers still using traditional cigarettes worldwide and only about 115 million having switched to smokeless alternatives, Vandermeulen said the stakes are high. 'We believe vaping has a vital role in encouraging adult smokers, who would otherwise continue smoking, to switch completely to smokeless alternatives. But the category can only thrive if market order is preserved.'
Gulf Business
20-03-2025
- Business
- Gulf Business
Meet Soraya Benchikh: The CFO driving BAT's global growth and inclusion
BAT Group's Chief Financial Officer, Soraya Benchikh. Sipping her coffee in a modern, well-appointed office on the 39th floor of BAT's Dubai headquarters, with the city's iconic skyline stretching out below, Soraya Benchikh exudes calm, approachability, and poise. As BAT Group's Chief Financial Officer, Benchikh was in Dubai on a brief business trip in January, connecting with staff and overseeing operations. Based in the UK, Benchikh has been in her current role for eight months. Yet, she is no stranger to BAT, having spent over two decades with the company before a high-profile stint as President of the European region at beverage giant Diageo. In the buzzing Dubai offices, the excitement was palpable as staff and senior leaders gathered for meetings and events organised to mark her visit. If you didn't know her story, you might not guess the immense journey that has brought Benchikh to this point. Raised in Beirut during the turbulent 1980s, she and her family fled to Europe as refugees. 'I ended up in Europe as a refugee. I went to school there for a few years and later attended university to study my passion — mathematics. I didn't overthink it; I just pursued what I enjoyed,' she recalls. The challenges of displacement taught her resilience and adaptability. After graduating, she faced the uncertainty of life on a refugee visa. Benchikh saw the chance to return to a company she knew intimately while embracing a fresh challenge as CFO during a pivotal period. 'I needed to find a job, and at a career fair, I came across a stand for accountancy and thought I'd give it a shot. That's how I joined a management trainee programme at Gillette,' she explains. This first role proved to be a critical launchpad for her career. Early in her professional life, Benchikh excelled in finance, taking on foundational roles that demonstrated her leadership potential. A move to General Electric expanded her horizons as she travelled extensively, leading system implementation projects. She then joined Rothmans just before its merger with BAT, where her career trajectory accelerated. 'At Rothmans, a year later, the merger with BAT happened. I started my career in finance as a qualified accountant, and my first finance director role was in North Africa. This was particularly exciting as it was my first professional role in the Middle East,' she says. In Cairo, she was immersed in Middle Eastern business cultures while managing diverse challenges. 'The role offered incredible diversity: starting up a business in Egypt, bidding for the Moroccan monopoly, managing a joint venture in Tunisia, and overseeing market entry in Algeria. It was an incredible experience,' she adds. Turnaround Expert During her regional finance role, she noticed how closely finance and general management intersected at BAT, sparking her desire to transition into general management. Her first such opportunity came in France, where she turned around a struggling company in just three and a half years. Building on this success, she was promoted to lead one of BAT's largest businesses in the Southern African region, based in Cape Town and Johannesburg. This role brought complex challenges, including collaboration with governments to address trade issues. Again, her leadership transformed the company's performance, earning it a Group award after four years. Her reputation as a transformative leader led to her recruitment by Diageo, where she took on the role of Managing Director for Northern Europe, overseeing 11 countries from a base in Hamburg, Germany. Taking on this role during the COVID-19 pandemic posed unique challenges. 'The pandemic was a period of immense learning for me,' she reflects. 'Navigating a new industry remotely taught me the importance of resilience and collaboration.' Despite these hurdles, her fresh perspective helped identify market opportunities and capitalise on shifts in consumer behaviour, resulting in significant business growth. After two and a half years, her achievements earned her a promotion to Diageo's executive committee as President for Europe. In this capacity, she spearheaded the establishment of Diageo's Middle Eastern head office in Dubai, which became one of the group's fastest-growing units. Driving Inclusion and Empowerment at BAT Soraya Benchikh is fully committed to BAT's transformative journey, and she is highly supportive of ensuring diversity, equity, and inclusion (DEI) within the organisation. She firmly believes in the power of inclusivity to create a thriving workplace. 'At BAT, diversity, equity, and inclusion are at the heart of our values. These principles drive initiatives designed to help women excel and advance into leadership and management roles,' she shares. To nurture a truly inclusive culture, BAT has implemented key initiatives such as 'Women in BAT,' 'Women in STEM,' and 'Women in Leadership.' These programmes provide mentorship, training, and essential resources to empower women in industries where they have historically been underrepresented. Highlighting the measurable impact of these initiatives, Soraya explains, 'By 2025, we aim to have women make up 40 per cent of senior leadership teams and 45 per cent of management roles. Programmes like Women in Leadership, which now supports around 1,000 female managers, are accelerating careers and creating lasting impact.' A Leadership Style Shaped by Heritage Soraya Benchikh's Middle Eastern heritage has profoundly shaped her leadership philosophy. 'As a Lebanese woman with extensive experience working for leading corporations in many parts of the world, I've been deeply influenced by the incredible women I've had the privilege to work alongside,' she shares. Her upbringing instilled resilience and adaptability, qualities that have been instrumental in her success. The Gulf region's remarkable progress in empowering women resonates deeply with her. 'Witnessing the progress across the Middle East today is truly inspiring. The efforts of GCC governments to empower women are commendable,' she states. Highlighting initiatives like Saudi Vision 2030 and the UAE's Gender Balance Council, she adds, 'These efforts are similar to BAT's global vision to empower women and enable them to excel in every sphere of life.' BAT's Vision and Growth in the Middle East Since its founding in 1902, BAT has transformed into a multi-category consumer goods business. Soraya explains, 'We're not just talking about change — we're driven by it. Our vision focuses on offering alternatives with lower-risk potential to traditional products, empowering consumers to make informed choices.' The company's commitment to innovation extends to new markets and sustainability. 'Our investments in innovation, production, and market expansion demonstrate our commitment to creating a sustainable business that transcends traditional boundaries. We engage with regulators, policymakers and industry stakeholders to support evidence-based policies on new category produts,' Soraya adds. BAT invests over £300m annually in research and development for its New Category products, a testament to its dedication to reshaping the industry and prioritising the importance it places on consumer choice. The Middle East has emerged as a crucial growth market for BAT, given the region's openness to innovation and progressive regulatory frameworks. 'The opportunities in the Middle East are immense, particularly in New Categories,' Soraya shares. The Dubai office has become a hub for innovation, driving initiatives like artificial intelligence to enhance supply chain efficiency and consumer insights. 'AI has infinite applications, and the work being done in our Middle Eastern offices is absolutely critical to our global vision,' she notes. The GCC has been integral to BAT's strategy for over six decades, aligning with the region's push for innovation and economic diversification. 'The region's openness to innovation, coupled with its progressive regulatory landscape, makes it a key growth area for us,' Soraya adds. Collaborating with governments, regulators, and communities, BAT contributes to shared goals of sustainability and economic progress. Soraya's leadership highlights how resilience and innovation can redefine an industry. 'The GCC is a vital part of our global strategy,' she concludes. 'Through our initiatives and partnerships, we're not just transforming our business but also contributing to the transformative journey of the region.'
